Customer Services and the CRM Value Chain

Document Sample
Customer Services and the CRM Value Chain Powered By Docstoc
					Customer Services and the
    CRM Value Chain

    Presented by:
    Rudy Oetting, Sr. Partner
    Deana Leda, Sr. Consultant
    R.H. Oetting & Associates, Inc.
Time for a Reality Check -- It’s
No Myth!


• Instead of looking to customers to make
  themselves more valuable to your
  company, your company must make itself
  more valuable to the customers!



              R.H. Oetting & Associates, Inc.
    Making Your Company More
     Valuable to the Customer!

• Optimize your Knowledgebase to assure each customer
  communicates effectively with your company.
• Know the long time value of each of your customers.
• Assure their profile dictates how they should be handled.
• Process map each communication channel’s contact activity
  and the associated costs/benefits.
• Ask yourself are your processes geared to customers’ desires
  or are they heavily impact by cost?




                     R.H. Oetting & Associates, Inc.
  PROFIT CENTER’S
KEY BUSINESS GOALS


   • Customer Retention
 • Increased Order Value
     • New Customers


      R.H. Oetting & Associates, Inc.
OPERATING AS A PROFIT CENTER:

 • Drive the top and bottom lines
 • Measure on profitable increments of customer
   acquisition (conversion), orders/call, order revenue
   and customer retention
 • Manage costs
 • Assure primary investments are for effective
   communications with customers and the tools that
   support them
 • Enhance the marketing value chain

                  R.H. Oetting & Associates, Inc.
WE WORK IN A “TELEPHONE
NETWORKED” WORLD IN WHICH
  • Communications capabilities are
    increasing
  • Costs are decreasing
  • Accurate (and inaccurate) information
    is exploding
  • Easy to reach and be reached by
    customers

RESULTING IN GLOBAL COMPETITION
                 R.H. Oetting & Associates, Inc.
IN A NETWORKED WORLD . . .

 AN INFORMATION REVOLUTION?
             OR
 A RELATIONSHIP REVOLUTION?

                                          M. Schrage MIT


        R.H. Oetting & Associates, Inc.
INCREASING GLOBAL COMPETITION …

• Provides customer with choices
• Increases customer’s expectations

• Shortens customer and product life cycles

• Narrows margins

• Demands effective retention strategies,
  communications, and customer “dialogues”



 RESULTS IN “BUYERS MARKETS”.
                  R.H. Oetting & Associates, Inc.
BUYERS MARKET GOALS…

NON COMPETITIVE COMPETITIVE
• Gain                        • Retain
• Develop                     • Develop
• Retain                      • Gain


            R.H. Oetting & Associates, Inc.
CUSTOMER RELATIONSHIP
    MANAGEMENT

  “Customer information based
  business strategies created to
 increase profitable retention and
acquisition across all pre-sale, sale
      and post-sale customer
         communications”
          R.H. Oetting & Associates, Inc.
                CRM

CRM AND CUSTOMER CONTACT “COST
   CENTERS” ARE DIAMETRICALLY
              OPPOSED




         R.H. Oetting & Associates, Inc.
CRM HAS “COST/ BENEFITS” IN
     PROFIT CENTERS
• Increased conversion %’s, or lower
  Ad and Ops costs per order
• Estimate your Ad expenses for a call
  to enter your queue
• The more orders per call the higher
  the return on your advertising
  investment

          R.H. Oetting & Associates, Inc.
               CRM
“ CRM is about technology in the
same way that hospitality is about
 having a welcome mat in front of
           your door.”

                            *David Sims
                              CRMGuru Magazine




        R.H. Oetting & Associates, Inc.
               Customer Contact Centers Have
               Evolved In Process Complexity
                                            Contact Types

                                                                                 Work Flow Management
        High




                                                        Management of multiple
                                                        accounts - Outbound
                                            Cross-divisional inquires
Complexity
   of                                 Product support inquiry
 Contact                       Cross channel support:
                               voice, web, email
                           Problem Resolution
                         Outbound sales campaigns

                      Status inquiry on one account

        Low
              Short                      Length Of Contacts                              Long
               One                                                                      Several
                                          Number Of Contact

       Customer demands require enterprises to set business rules to
       integrate technologies and processes to achieve true work flow
       management.
                                   R.H. Oetting & Associates, Inc.
             Customer Contact Requires Desktop
                   System Perspectives
                              Business Requirements
                              • Customer/Client Focused
                              • Matches Resources to Customers
                              • High Value Contacts With High
                                Value Resources
                              • One Stop Shopping
                              • Minimal Steps and Repetition
Integrated Technologies/Processes                    High-Performance Operations
• Business Rules                                     • Organizational Design
• Automatic Call Distribution                        • Performance Management
• Voice Processing                                   • Incentive Programs
• Networking                                         • Targeted Training & Communications
• Outbound Dialing                                   • Conducive/Productive Facilities
• Force Management Software                          • Least-Cost Scheduling
• Management Reporting                               • Multi Skill Forecasting
• Computer Telephone Integration                     • Management Methods & Procedures
• Customer Relationship Software                     • Activity Based Costing
• Internet support
• Imaging
• Work Flow Management

                              R.H. Oetting & Associates, Inc.
 CRM “VALUE CHAIN” ELEMENTS
     CLEAR GOALS, STRATEGIES & OBJECTIVES

INTEGRATED FUNCTIONS & CUSTOMER COMMUNICATION

 LIVE     IVRU/VR           WEB                 E-MAIL     FAX

    PRE-                                                 POST-
    SALE                     SALE                        SALE

  CUSTOMER DATA/INFORMATION WAREHOUSE BUILDING

            CUSTOMER VALUE CONTEXT

        INDIVIDUALIZED CUSTOMER DIALOGUES

“INCREASED RETENTION, SALES AND PROFITS”
              R.H. Oetting & Associates, Inc.
        CUSTOMER CONTACT PROFIT CENTERS
                                                                        L
                                                                        I
 DISCREET ACTIVITIES                           GOALS                    V
                                  Inquiry capture                      E
 PRE-SALE SERVICE                Inquiry screening, qualification &
    Ad Response                   info capture                         I
    Customer Needs               Information/education                V
                                                                        R
                                  Conversion to orders                 U
                                  Order taking/making
 SALE SERVICE                    Upgrades, add-ons, cross-sells       W
    Ad Response                                                        E
                                  Info capture
    Customer Needs                                                     B
                                  Account development & coverage
                                  Product support/education            E
                                  Sales process support                M
 POST-SALE SERVICE                                                     A
    Customer Needs               Tier 1,2,3 Support
                                                                        I
    Decision Reinforcement       Information/education                L
                                  “Thank you”
                                                                        F
                                                                        A
                        R.H. Oetting & Associates, Inc.                 X
     CRM INFORMATION
   PROCESSING & ACTION

GATHER
                                            ALL
ORGANIZE                NOW
                                            SOURCES
                         (REP)
ASSESS                                     LATER
                                            (MARKETING)
SYNTHESIZE
DISTRIBUTE



          R.H. Oetting & Associates, Inc.
          RESULTS OF
    INFORMATION ENRICHMENT

% CONVERSION
                                            KNOWLEDGE
                                                 BASE

                                   CONTACT
                      INFO
                      BASE

         CONTACT
  DATA
  BASE


                     LTV
               R.H. Oetting & Associates, Inc.
       PRE-SALE/SALE:
     ACHIEVING $’S / CALL

• VALUE OF EVERY CALL (%
  CONVERSION)
  – Current vs. new customers
   Structured dialogues
   “Sound” of the company
   The right amount of time
   Asking for the order, the right way

              R.H. Oetting & Associates, Inc.
           PRE-SALE/SALE:
         ACHIEVING $’S / CALL
• VALUE OF EVERY ORDER ($’S / ORDER)
     Educating customers and making them
      aware of options
     Having a “Program” and the right desktop
      technology & tools

• MEASUREMENTS -- AT THE REP LEVEL

                R.H. Oetting & Associates, Inc.
      POST-SALE: ACHIEVING
           RETENTION
It is more difficult to measure Post-Sale
performance in the short term. Possible solutions
are …

•Appending CSR code and Reason & Resolution
codes to customer records for LTV tracking

•“Voice of customer “ call surveys by CSR

•Establishing quantitative value for lost customers
to determine $ save benefits attributable to CSRs
                R.H. Oetting & Associates, Inc.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:21
posted:11/4/2012
language:English
pages:22