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 codesto 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.