Slide 1: Got customers?
Slide 2: It’s called VRM, Vendor Relationship Management
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Slide 3: “Retention is for wimps. We measure the percentage of customers who have our name tattoed on their body.”
(Harley Davidson Annual Report)
“80% of CEOs believe their brand provides a superior customer experience…8 % of their customers agree“
(Bain & Company)
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Slide 4: CRM – A Matter of Perspective
Is your firm looking from the insideout or from the outside in?
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Slide 5: Are your customers coming or going?
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Slide 6: Does Your Firm Stand Out?
“We retail electronics” “We’re in pharmaceuticals” “We offer professional services” “We manufacture dry goods” "We're not in the xyz business. We're in the decommodification business.”
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Slide 7: It’s not your father’s CRM…or is 7 it?
Slide 8: CRM Alone Won’t Grow Revenues
98% of Coupons Get Thrown Away It is 10x More Expensive to Generate Revenue from a New Customer A 5% Increase in Retention Can Increase Company Profits by 60% – 100% It is 6x More Expensive to Service Customers Through a Call Center than it is via the Internet and Website Customers Who Refer Another Customer Generate Revenue at No Cost Loyal and Referred Customers Stay Longer, Buy More Products and Services
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Slide 9: COLOR
9 It’s time to color outside the box
Slide 10: It’s time to break a few coconuts
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Slide 11: CRM Logical Left Brain •Customer’s Value to Enterprise •Systems and Transactions •Functional Value
CEM Emotional Right Brain •Enterprise’s Value to Customer •People and Interactions •Emotional Value
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Slide 12: CRM is an “insideout” view
CRM involves heavy applications of technology: CRM applications Enhanced IVR and ACD applications Outsourcing call center operations Offshoring Sales force automation
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Slide 13: CRM is technology employed for user convenience…
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Slide 14: CRM is a shotgun approach
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Slide 15: CRM is Multiple channels, customers in a box.
PHONE WEB STORE (FACE TO FACE) (COMPUTER TO COMPUTER) (PHONE TO PHONE)
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Slide 16: Is there a Better Way?
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Slide 17: Fixing CRM
Customer Management should focus on value creation, not cost reduction, effectiveness, not efficiency. CRM should have revenue targets. Value creation through CRM initiatives comes from: Growing the customer base Maintaining the customer base – retention, crosssell & upsell Servicing customer segments Maximizing channel effectiveness
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Slide 18: Change of Focus
The focus is changing from enterprise to single customer, from technology to process, to… Customer Acquisition (number of new "quality" customers) Customer Retention (percent of existing customer retained) Customer Satisfaction (question results from survey and/or focus groups) Customer Segmentation (percent of profit by customer demographics) Customer Profitability (average profit per customer/per household) Customer Servicing (average response time for customer complaint/ inquiry resolution, first call resolution) Customer Referrals (Net) 18
Slide 19: Where is business headed?
Nonstore retailing. The customer acquisition cost, clicks versus bricks is much lower. Some retailers employ a bricks CRM strategy to meet the needs of their clicks customers. An M x N relationship exists among customers and their preferred retail channel. Market leaders are deploying joint solutions of CRM and CEM – customer experience management. CEM employs an “outsidein” view of the company/customer relationship. 19
Slide 20: How are your customers connected to each other? To you?
Slide 21: Customers have many purchase and channel choices
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Slide 22: Customers Solicit Bids
I want to notify the whole market that I want to buy a SONY plasma TV. In effect, I want to issue a personal RFP that goes out to every retailer of SONY plasma TVs.
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Slide 23: The customer is channel agnostic, and how the customer is cared for must be infrastructure agnostic.
Customer Experience Management is the New Marketing
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Slide 24: To decommodify, become the customer… … Reengineer
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Slide 25: From what to what?
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Slide 26: Customer Management Evolution
CRM evolves to CEM Customer Experience = Vendor Performance – Customer Expectations The value add is transforming CEM to Customer Equity Management – the total lifetime discounted value of all the firm’s customers.
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Slide 27: Customers vs. Vendors – who is winning?
How many hits does Google Reader display for your firm? How many for FaceBook? MySpace? YouTube?
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Slide 28: How many of those interactions are you managing?
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Slide 29: Managing customers is like herding cats…not much bang for your buck.
(of course I’ve heard of cats)
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Slide 30: It’s not a fair fight…
While you manage them, they are managing you
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Slide 31: It’s called Vendor Relationship Management, VRM
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Slide 32: Still with us?
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Slide 33: Two worlds have collided, customers and vendors
Did either survive intact?
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Slide 34: It’s not easy…
but important ventures rarely are.
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Slide 35: Where do you need to go?
How do you get there?
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Slide 36: Need Help?
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Slide 37: (EASY button not included}
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Slide 38: Clinton Rubin can lead the way
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Slide 39: It’s called VRM, Vendor Relationship Management
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Slide 40: First, write the playbook…
CRM to CEM: •Define goals/objectives •Evaluate the situation •Define expectations •Develop a plan •CRM •CEM •VRM •Social networking •Implement
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Slide 41: Define Goals & Objectives
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Slide 42: Evaluate your situation
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Slide 43: Develop a plan
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Slide 44: CRM
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Slide 45: CEM
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Slide 46: VRM
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Slide 47: Social Networking
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Slide 48: +1 (484) 885-6942 +1 (610) 384-1811 paul.roemer@clintonrubin.com
Paul Roemer, Partner Clinton Rubin, LLC
Contact: Paul Roemer, Partner, Clinton Rubin LLC paul.roemer@clintonrubin.com (484) 8856942 48
