Back to Basics CRM - the magic of seven Communicate, Collaborate, Compete #TFM2012 David Beard Sage CRM Evangelist
Oct 22, 2014
Back to Basics CRM
- the magic of seven
Communicate, Collaborate, Compete
#TFM2012
David Beard
Sage CRM Evangelist
What’s the evangelist stuff then?
2
Sage Overview
• Over £1B in revenue
• 14,500 employees
• Over 6 million customers
• Global distribution network
– 30,000 reseller partners
• Presence in 26 countries
• 3rd largest business
management software provider
worldwide
3
About Sage CRM
Sage CRM offers customers
a rapid route to success
and value
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What The Analysts Say
Source: Gartner Magic
Quadrant for Sales Force
Automation 28 July 2010
Gartner on Sage CRM
Strengths include:
End-user usability
Core opportunity management
End-to-end business process support, such as "opportunity to cash"
Forrester on Sage CRM The solution’s primary strengths include a low price tag, strong usability,
and quick time-to-value. The solution offers an intuitive admin UI, strong
performance capabilities, and strong product help functionality. In
addition, the product integrates well with other Sage back-office
software products. Source: The Forrester Wave™: CRM Suites For Midsized Organizations, Q2 2010 , Forrester Research,
Inc
Source: Gartner Magic Quadrant for Sales Force Automation 28 July
2010
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What’s the problem ?
The case for
Customer Relationship Management
6
Common Business Issues
Faced by Companies Today “I need a quick
and easy way for
me to see how
the business is
performing”
“I want to
maximise the
productivity of
all my
employees”
“I need to be able
to calculate the
cost per member
easily and
accurately” “Acquisition
campaigns are
difficult to manage
and information
can go missing”
“We don’t have an up
to date log of all
communications with
members” “Our
processes
are not
automated
so issues
sometimes
fall through
the cracks”
“I want to have
access to the
same member
information the
customer team
has so I
understand any
issues”
“I don’t want
to be
wasting time
re-entering
the same
information
into multiple
places”
“forecasts are
difficult to
create and
time-
consuming”
“I sometimes
spend my
whole
morning
trying to
figure out who
I’m meant to
follow-up with
and when”
“I need to
know what
the revenue
flow looks
like quickly
and easily”
“It take me
ages to roll up
all the line-of-
business
forecasts”
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Why Do Companies
Experience These Difficulties?
CRM Brings it All Together
Information in Disparate Locations Throughout the Company
User
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What is CRM ?
Customer Relationship Management
So, what is CRM ?
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“A business strategy whose outcomes optimise
profitability, revenue and customer satisfaction…
CRM technologies should enable greater customer
insight, increased customer access, more effective
customer interactions, and integration throughout all
customer channels and back-office enterprise
functions”.
-Gartner
Time to define …
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a means by which to achieve
strategic goals
CRM is …
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CRM for Marketers
The “magic of seven” value drivers
for success
Finding the value drivers:
- the challenges
• Big investment with little measurable feedback
• Cross company thinking often means a series of stumbling blocks
• BUT ….
• Successful implementations share common characteristics
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Finding the value drivers:
- reset your beliefs
• CRM is not an over-arching business salvo
• It’s an enabler to achieve improved customer relationships
• Measuring the outputs of investments in CRM
measures the CRM strategy
• A measured CRM strategy, with customers in mind
= Happy Customers
= Profits
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Finding the value drivers:
- some thoughts
• What is your CRM initiative - strategic or operational?
• Strategic:
• How your organisation relates to its customers
• Integration of marketing, sales and service to
achieve greater effectiveness and efficiency
• Operational:
• gather customer data quickly
• identify most valuable customers
• increase loyalty through customised offers
Across three stages of customer relationships
- acquisition, maintenance & termination
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Finding the value drivers:
- focus on the unique characteristics
• CRM has a number of unique characteristics.
• It’s about
• One to one relationships
• Interactive processes not simple transactions
• Value-added activity based on mutual interdependence
• Collaboration between suppliers and customers
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Finding the value drivers:
- measuring CRM success
• Let’s harden up on what success means
• Profitability ? Satisfaction ? Retention ? Share of wallet ?
• Customer Equity (CE)
• Identifies the value of a customer to a selling firm
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Finding the value drivers:
- let’s make sense of Customer Equity
Relating CRM to Customer Equity (CE), provides
• a common basis on which to measure different customer
impacting initiatives
• Customer Equity (CE) is
• Concerned with identifying value of customer to the business
• Provides an indication that margin generated is above &
beyond product and selling costs
• Focuses on two important concerns for marketers
• Customer relationships
• Financial accountability
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Finding the value drivers:
- the dimensions of Customer Equity
CE has three subcomponents
Value equity – based on the utility of the brand
to the customer
Brand equity - more concerned with the meaning
of the brand to the customer
Relationship equity – the relationship above and
beyond the other two elements
Value
Brand
Relationship Customer
Equity
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Finding the value:
- core benefits of CRM that drive CE
These do not vary greatly across industries or countries
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading to cost savings
and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised pricing messages
5. Customised products and services
6. Improved customer services efficiency and effectiveness
7. Improved pricing
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Finding the value:
- let’s look at each for CE drivers
For each of the seven core CRM
components that drive
Customer Equity
Value
Brand
Relationship
U
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Finding the value:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
Improvements here are positively related to value equity
in the customer acquisition stage
22
Finding the value:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
Improvements here are positively related to value equity
& brand equity in the maintenance stage
U
23
Finding the value:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness
Improvements here are positively related to value &
brand equity in the acquisition and maintenance stages
as well as relationship equity in maintenance stages
U
24
Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised marketing messages
Improvements here are positively related to value &
brand equity in acquisition and maintenance stages.
U
25
Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised marketing messages
5. Customised products and services
Improvements here are positively related to brand &
relationship equity in the maintenance stage.
U
26
Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised marketing messages
5. Customised products and services
6. Improved customer services efficiency and
effectiveness
Improvements here are positively related to value &
brand equity in acquisition and maintenance stages
& relationship equity in the maintenance stage.
U
27
Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading to
cost savings and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised marketing messages
5. Customised products and services
6. Improved customer services efficiency and effectiveness
7. Improved pricing
Improvements here are positively related to value equity
during acquisition and maintenance stages
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The value drivers story
- the benefits in using CE with CRM
Whether you are considering operational or strategic CRM
• Focuses CRM initiatives on 7 core components
• Provides a broader view of measurement for process &
technology change
• Provides financial accountability for CRM investments
• Measuring changes in customer’s perception of value,
brand and relationship equity gives on-going accountability
U
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Back to Basics CRM
- the magic of seven
Communicate, Collaborate, Compete
#TFM2012
David Beard
Sage CRM Evangelist