Dhl Customer Management

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					                                                 Customer Relationship Management /1




                                                •   The use of information to create
Customer   Relationship                             and enable repetitive sales and
Management                                          support processes,
                                                •   To generate a value proposition
In any rapidly changing business                    that increases customer value
environment it is essential to manage               and loyalty
the expectations and quality of service         •   The     ability   to  increase or
and support to the market. Serious flaws            institutionalize pro-activity
in this area have emerged in relation to
the management of service consistency        To achieve these in a multi channel
and customer care. This section provides     organization   a    supplier   of  CRM
interesting research and guidance from       applications must ensure the ability to
DHL and other sources that will assist in    support and drive integration across all
avoiding problems in this critical area.     relevant channels and functions.

The      consistent     and      effective   Establishing CRM successfully
management        of    the     customer
relationship across all channels and
                                             To     establish  a    successful    CRM
functions within an organization is a key
                                             installation, changes will be required
competitive differentiating and success
                                             within the organizational processes, data
factor for any evolving Business.
                                             and     operation   of    the   customer
                                             management.
Customer     relationship   management
                                             Some of the changes required are:
(CRM) can be defined as an integrated
set of business processes and enabling
                                                •   Establishing and implementing
technologies in support of a consistent
                                                    the key information sets that
entry, management and use of customer
                                                    identify       the       customer
related information across and between
                                                    appropriately
channels of sales and service.
                                                •   Establishing a consistent set of
                                                    data that describes customer
The essence of Customer                             activity
relationship Management                         •   Establishing consistent data and
                                                    business rules in gathering,
At the heart of CRM is the issue of data            processing and storing data
and relationship ownership. In the past,        •   Reengineering established and
marketing or sales have been deemed to              emerging channels to comply with
own the customer. In the CRM model                  CRM requirements
any single entity or function does not          •   Reengineering          established
own the customer. The customer is                   information      and       support
managed cooperatively by all the parties            processes to reflect available
with a customer contact responsibility or           normalized data
service   provision  /   support    role.       •   Management of change in any
                                                    application or process related to
The purpose of CRM remains the same                 CRM       support,     feed     or
as   that   of   existing    customer               presentation
management processes. These are:                •   Integration of manual and on-line
                                                    processes     to   be     mutually
   •   The growth of business by                    supportive
       leveraging existing relationships,
   •   Using information available to        Should any of the above not be
       improve        the        customer    achieved, then islands of data and
       relationship,                         process will remain un-integrated and
                                             add time, cost, inconsistency and




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                                                     Customer Relationship Management /2



inefficiency  throughout       the      entire          supplier to investigate and
organization.                                           introduce innovative new
                                                        services at an individual,
What should CRM contain?                                corporate or industry level.

Any successful CRM         implementation           •   Application       and       process
integrates the following                                integration

   •   Customer Detail Information               This     looks   to    ensure  that   the
                                                 organization's internal application set is
       This provides a total view                geared to integration in support of the
       of    all   activities  and               customer       relationship.  Here     an
       information related to the                organization looks to have access and
       customer, their activities,               normalize all information from Legacy,
       their interactions and their              emerging and future applications and
       stated or intimated needs                 processes in support of a single
                                                 consistent but customizable view of the
   •   Modes and means of contact or             customer for all functions and support
       service provision                         activities.

   This defines the channels of access           From Islands to Integration
   the customer has operated within in
   the past and future channel needs             The organization into which CRM is
   and allows the activities performed           introduced must also change. Traditional
   over each channel to be codified to a         concepts of ownership and responsibility,
   single,     integrated,   consistent          contribution and value projection have to
   relationship history.                         be addressed. The introduction of CRM
                                                 requires      present     isolated    and
   •   Services,   processes    or   support     uncoordinated players in the customer
       used                                      relationship to realign to focus on the
                                                 relationship as a collegiate responsibility
                                                 to which all cooperatively contribute and
       This      identifies       the
                                                 gain reward. Failure to ensure that this is
       elements         of        the
                                                 the overriding and explicitly stated
       organization offer that the
                                                 objective of the implementation of CRM
       customer has used in the
                                                 will cause the project to deliver less
       past. This information can
                                                 benefit    internally   and     externally.
       be    used    to    illustrate
       customer trends in service
                                                 This can only be achieved through the
       use, trends, patterns of
                                                 inclusion of all stakeholders, realignment
       use and allows proactive
                                                 of their focus in relation to the customer
       offers or channel transition
                                                 and a singular focus on creating a totally
       suggestions to be made to
                                                 consistent customer support resource for
       them.
                                                 the customer and the organization.
   •   Relationship information on other
       relationship stakeholders
                                                 The role of the customer in
                                                 CRM
       No customer or supplier
       relationship operates in                  The essential purpose of CRM is to
       isolation.     Understanding              maximize organizational effectiveness
       the precursors to a trade                 and efficiency in the servicing of and
       and        the      follow-on             benefit from customer needs. This is a
       relationships      of     the             learning and analysis process that is
       customer allows the                       generally focused on active customers.



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                                              Customer Relationship Management /3



This, whilst central to the organization's    •   Customer analysis
operational    efficiency,   should    be
augmented with careful analysis of                Analyze existing and past
customers no longer trading with it.              customers to have a truly
                                                  rounded      view    of   the
Every lost customer is a lost opportunity         organization      strengths,
for additional revenue and growth.                weaknesses, opportunities
However it is also an opportunity to              and threats. Competitive
identify failings or inadequacies that the        benchmarking is a critical
customer felt compelling enough to force          element of this process as
them to embark on a process of                    it identifies external offers
changing suppliers and initiating the             more attractive to past
development of a new relationship.                customers and potentially
                                                  to existing ones also. This
In support of any CRM project, special            process       should     also
attention should be focused on lost               include the analysis of
customers and their perception of the             internal customers.
organizations failings. Generally the
feedback received will be very precise
                                              •   Scope    the    project    and   its
and a very good indicator of issues that
                                                  objectives
many existing customers may have but
have yet to feel are sufficient to force
change.                                           In    this     process     the
                                                  organization         carefully
Existing customers will also illustrate           analyses       the      entire
weaknesses       and     strengths.   The         organizational scope of the
strengths should be the core of the CRM           customer         relationship,
initiative and the weaknesses the core of         their channels, services
development in support of a fuller                products      and     support
management offer in support of the                already in place. From this
customer. Once addressed and in place             a       clearly       defined,
there then exists the opportunity to re-          organizationally      agreed,
contact lapsed or lost customers to sell          focused project description
the       new      offer      to    them.         is created.

It should be realized that customers          •   Create the business case
might have a very tactical view of the
service and support offer made. This              The business case must be
tactical view and feedback must be                created in a manner that
carefully merged to the strategic                 identifies  the     business
objectives the organization has for the           problem      across       the
CRM project. Only through the correct             organization      and     the
balance of the tactical and strategic can         individual functional and
CRM projects address today`s needs in a           overall benefits that can
manner which allows flexibility to                be gained from a CRM
address future situations.                        project. The CRM business
                                                  plan must illustrate and
Moving Forward                                    make clear that no single
                                                  solution     will     deliver
Where the decision is made to progress            everything all at once.
with a CRM initiative there are a few             CRM is an evolutionary
simple but relatively standard steps that         process that will require
are needed to assist in the successful            consistent,   multi     year
delivery and operation of the final               resourcing for people and
deliverable.                                      budgets.



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                                             Customer Relationship Management /4




•   Cross integrate CRM strategy to              management empowered
    the     existing  Organizational             to align disparate functions
    strategies                                   and processes will increase
                                                 the opportunity for failure.
    All    organizations    have                 All functions should be
    business, technical and, in                  tasked to participate and
    most cases, customer care                    contribute key knowledge
    strategies already in place.                 personnel to the process.
    The CRM strategy must be                     Delivery    of   the    CRM
    fitted to the framework of                   objectives should be a
    existing          strategies.                stated Key deliverable and
    Equally, because of the                      metric for all managers in
    strategically      important                 the affected functions.
    nature of CRM, existing
    strategies have to be                    •   Stage the implementation process
    reviewed       to     ensure
    alignment at a business,                     CRM is a rapidly evolving
    technical and customer                       field. The complexity of
    care objectives level. The                   aligning      the   internal
    objectives arrived at must                   processes and functions is
    support and be supported                     enormous and if not rolled
    by those of the core                         out      in      manageable
    organizational strategies.                   sections will overwhelm
                                                 the organization`s ability
•   Technology choice will be critical           to        integrate       its
                                                 capabilities. Equally the
    No existing CRM package                      staging of the rollout
    will     fulfill   all   your                allows the organization to
    immediate        needs.   The                review both the strategy
    CRM strategy needs to                        and the priority schedule
    identify, in priority order,                 to reflect changing market
    the     requirements      that               and user needs / trends.
    must be delivered in
    sequence. This allows the                •   Allow no exceptions
    technical teams to clearly
    vet the technology offers                    CRM      can    only    be
    in line with their ability to                successful    where      it
    address the organization`s                   guarantees a consistency
    priorities. Ease of doing                    of customer management
    business and integration                     and service across all
    simplicity must be key                       channels, functions and
    criteria     for   application               processes. An organization
    choice.                                      ill prepared to align all
                                                 channels, functions and
•   Simplify project management                  processes in support and
                                                 use     of    the    CRM
    The     organization   must                  deliverables          has
    appoint      one      single                 undermined the project
    accountable             and                  from the beginning.
    empowered manager to
    deliver     against      the             •   Measure the process
    strategy. Failure to have a
    distinct leader, explicitly           CRM will, where staged deploy into an
    supported by senior                   organization that will have existing and



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                                               Customer Relationship Management /5


new processes running in parallel for a
period. It is critical that the metrics used
allows the value of both existing and new
processes to be measured to comparable
criteria. This allows the effectiveness of
the new to be measured against the old
and allows for business plans to be re-
addressed to ensure reality is reflected in
them. These consistent measures also
allow processes to be analyzed to see
inefficiencies or gains that are less that
projected.      This      allows    ongoing
realignment of the processes and
supporting     technologies     to   provide
expected or better service levels.


Some Things to remember

   •   A      dissatisfied     non-Internet
       customer tells on average 9
       people of their bad experience. A
       dissatisfied Internet customer can
       tell the world.
   •   Selling to an existing customer is
       500% cheaper than selling to a
       new customer
   •   A     5%      customer     retention
       improvement         can     increase
       profitability by 85%
   •   Good customer care will ensure
       that     70%       of    complaining
       customers trade again

Existing customers are successfully sold
new products in 50% of cases. For new
customers the figure is 15%.




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