CRM 2.0 - Frameworks for Program Strategy

CRM 2.0 Frameworks for Program Strategy

@mikemoir

Copyright © 2010 Mike Moir Consulting

CRM 2.0 Series mikemoir.com

From the CRM 2.0 Series



CRM 2.0 - Context Diagram

Marketing Sales Service Product

Socially Enabled

Socially Enabled

Socially Enabled

Socially Enabled

Social CRM Capabilities

Traditional CRM

Business Channels

Social Web

POS Mobile Email Social Media

Face-to-Face Website Partners

Skills

Organizational Tenants

Customer Centricity

Trust, Authenticity & Transparency

Listen, Engage, Respond & Close

Loop

Coordinated Rapid Responses

& Agility

Existing & Company Led Social Media

Facebook Myspace Twitter

Linkedin Communities

Forums Social Sites

Principles Trust

Authenticity Reputation

Rules of Engagement Wisdom of Crowds

Collaboration Peer Support

Content Creation

Customer Ecosystem Affinity Segments - Prospects – Customers – Advocates – Influencers – Partners – Competitors - Detractors

People Culture Incentives & Alignment Knowledge Collaboration

Customer-Centric Analysis


Sales 2.0

What’s New

Approach •  Selling through Experience and Relationship •  Leverage your online reputation •  Customers and Advocates are new channel

Customer Needs •  Convenience •  To be known by business (personalization) •  To be involved in the process (not sold to)

Lead Generation •  Use social media monitoring tools to identify leads and watering holes on web. •  Participate as expert in online discussions. •  Comment on blogs •  Use Twitter and build a following •  Create a social network group or area of practice.

WOM •  Enhanced ability for consumers to exchange ideas about brands through social networks like Facebook and MySpace and consumer-generated media like blogs.

Sales Insights •  Better sales intelligence using social data •  Gain deeper insights into competitor landscape



Marketing 2.0

What’s New

Marketing Message •  Shift from product/company specific marketing messages to customer-centric campaign themes.

Amplify Traditional Marketing with Social

•  Integrate social media/engagement tactics with other marketing tactics / media buys to enhance value of spend.

Engagement Marketing • Traditional marketing funnel is changing to an Engagement Continuum. For example, consumers snack on content at many touchpoints and then research using social media (blogs, peer reviews) to make purchase decisions. Traditional media campaign stimulate consumers and brands need to engage with these conversations during and after campaigns (conversational marketing).

WOM & Social Media •  WOM Marketing shits from testing to integrated component in the marketing mix. Social media marketing and consumer behavior changes have reignited the WOM discipline.

More Consumer Channels •  Traditional marketing programs effectiveness is declining due to channel proliferation, audience fragmentation, advertising fatigue and younger audience attitudes towards advertising.

Follow your customers •  Listen and Engage with customers where they reside (Social Networks, Blogs etc..).



Marketing Execution Cycle

Offline Mkt.

Website

Email

Online Ads

Search

1. Business Goals and Objectives

Marketing • Product Creation • Product Branding • Product Launch • Campaign Execution • Consumer Research

Sales • New Sales • Repeat Sales • Channel Sales

Support • Returns • Product Support • Billing Issues • Product Information

Operations • Fulfillment

6. Data Analysis and Reporting

5. Data Collection Storage, and Access

Social

4. Customer Touchpoint Interactions

• Data Reporting •  Automated •  Ad Hoc

• Data Analysis •  OLAP •  Datamining •  Content/Usage •  Optimization Analysis

• Scenario and Interaction Planning

•  Data Harvesting

•  Data Storage

•  Data Aggregation

Customer Needs

•  Information •  Engagement •  Awareness •  Access

• Purchase • Promotion • Decision tools • Recommendations • Buy Flow • Fulfillment

• General Info • Usage Question • Account Support

• Information • Education

Awareness

Consideration

Purchase

Usage

Support

• Usage Question • Event Information • Community

Website

Email

Online Ads

Search

2. Content Creation and Management

3. Content Presentation and Transaction Processing •  Content Creation

•  Content Management

•  Content Authoring

•  Meta Tagging

•  Asset Management

•  Ad Serving

•  Web Presentation

•  Email Presentation

•  ECommerce

•  Social Programs

Extension

• Loyalty Programs



Service 2.0

What’s New

Approach •  Goals are to minimize problems, retain customers, improve satisfaction, generate revenue from base and deliver “Legendary “ customer service. •  Have the “right answer - the first time”. •  Cannot have a disconnect between the marketing message and the product expectation. •  Some say “Customer Service is the new marketing”.

Customer Needs •  Has Multichannel Preferences •  Prefers self-service •  Only wants to be sold to when it’s appropriate. •  Customer Service needs to respond to the new “Social Customer”

Listen, Tune-In, Respond •  Go where your customers are •  Proactively listen and respond accordingly •  Develop customer service capabilities on these social sites (Twitter is very popular)

Use Feedback Systems •  Implement a feedback platform for your customers •  Harness valuable insights back to your product, marketing and other teams. •  Consider a SaaS feedback system (UserVoice, GetSatisfaction)

Community-based Support •  Customers are willing to help each other •  Encourage this peer support interaction through forums, wikis, acknowledgement etc..



Product Innovation 2.0

What’s New

Approach •  Rapid product innovation requires harnessing and foster ideas, features and fixes from customers and the greater web. •  Greater role for the customer in the product feedback loop. •  “Catching Innovations trends right under your nose”

Market Insights •  Market trends analysis : read content related to industry and concept •  Benchmarking : read user reviews and content published about competition •  Competition analysis : read user reviews and content published about competition •  Surveys : share surveys and/or find participants via blogs, social networks and microbogging

Crowdsourced R&D •  User ideas generation : read blogs where users share ideas about the possible evolutions of your product.

Co-Creation •  Leverage your own focused community to develop ideas and concepts from stakeholders..

Product Testing •  User testing : test some functionalities with one panel of users and recruit and/or share via the social media •  Beta : launch a private version of the product and recruit/share via the social media

Product Launch •  Communication : use social media and the power of crowds to talk about the launch of your product •  User engagement : use social networks to invite new users and engage a viral effect •  Users feedbacks : use the social media to learn about how your users appreciate your product. Can be surveys or simply reading posts.



Key Strategy: CRM Roadmap

CRM Vision Objectives / Goals Roadmap Outputs

( Linkages ) Initiatives

  Derived/Aligned to core business Strategy   Customer Relationship Philosophy

Processes Project 1

Vision Goals Roadmap Projects

  Customer-Focused Objectives   Internal-Focused Objectives   Identify Business Case & Success Metrics   Identify Risks & Challenges

  Establish Planning Themes/Stages   Define Capabilities Required   Prioritize Capabilities

  Identify/Prioritize Projects   Projects Are Build / Enhance / Maintain   Alignment To Existing Initiatives

Functionality Project 2

Information Project 3

Technology Project 4

Project 5

Project 6 Organization

Project 7

Project 8

CRM Vision Objectives / Goals

The first step to developing a roadmap is anchoring the program on core business strategy and ultimately aligning initiatives to these goals.


Align Objectives to Guide Program Actions Next, we align objectives over time, and also break them down by people, process and technology areas.

People

Process

Technology

Short Term Mid Term Longer Term Objectives



CRM 2.0 Series mikemoir.com CRM Planning Roadmap

Key Strategy: Seeing your business through your customer’s eyes

Creating customer scenarios will help you streamline customer-facing business processes from the customer’s perspective. Often called, “Customer Experience Management”, this program seeks to optimize experience across all touchpoints.

Developing Customer Scenarios Steps Description 1. Select Customer Target Define user type(s) and characteristics.

2. Define Customer’s Goal(s) Select the goal the customer needs to fulfill.

3. Establish Specific Situation(s) Envision a situation for customer, and a context that they are in.

4. Detail the customer steps Think through the individual activities and interactions the customer would perform and the information that is needed at every step.

5. Map how your business supports What does your company do to support these activities. How can your company better support these needs. Think through technologies, people, processes. Map measurements to touchpoints.



Awareness Interested Registered Engagement Loyalty Advocate

Needs

Customer

Stages

Customer Lifecycle

Touchpoints

Measurements

•  Need 1 •  Need 2 •  Need 3

Acquisition Loyalty Engagement






•  Touchpoint 1 •  Touchpoint 2 •  Touchpoint 3






•  Metric 1 •  Metric 2 •  Metric 3






Customer Type

Product/Service

Scenario

Key Strategy: Synchronize Everything Companies have struggled with the “One Company” goal due to many forces. A new competency around “Synchronizing” can have major impact on operational efficiencies.

Synchronization Dimensions Offerings Technology Organization

Objective Provide unified, flexible face to customers

Create IT architecture that bridges organization silos.

Be responsive to customers while maintaining product and functional excellence.

Key Enablers •  Decouple siloed product offerings •  Integrate customer and product databases •  Gain deep contextual understanding of customer activities

•  Decouple customer-facing applications with backend system constraints •  Tiered architecture where middle tier coordinates/integrates

•  Decouple customer expertise from product and functional expertises. •  Align product units as suppliers to customer-facing teams.

Outcome Alignment with customer activities

Integrated and flexible due to modular approach

Establish both a customer-centric and product-centric company



Key Strategy: Customer Co-Creation

Tactics

Encourage Active Dialogue Develop interactive capabilities to interact with your customers. Begin building people, processes and systems to engage them in these dialogues as equals. Learn from them.

Bring together partners and establish collaboration platform

Guide, support and capture co-created ideas through a collaborative and open methodology.

Mobilizing Customer Communities Customers are forming niche communities that have a powerful influence on the market. Find ways to engage, participate, and empower these users that works on their terms.

Co-Creating Personalized Experiences

No longer are customers just buying a product, they are now buying a product that has customer experiences around it. This is particularly relevant in entertainment type offerings. Create offerings that allow customer to become a co-creator and personalize online experiences.

Co-creation is the practice of product or service development that is collaboratively executed by developers and stakeholders together".



Key Strategy: Empowering the Frontline Companies seeking competitive advantage are realizing the front-line customer facing employees have an increasingly important role in the new customer centric organization. Below are five different paths to driving this motivation from front-line workers.

5 different paths to high performing front-line workers Motivation Force Employee Commitment Organizations

1. Mission, Values, Pride Mutual Trust, Collective Pride, Self-Discipline

Values, Proud 3M, Marines, New York City Ballet

2. Process, Metrics Transparent, Clear Tracking of Results

They what is expected, how its measured, why it matters

Toyota, Microsoft

3. Entrepreneurial Path Personal Freedom, Opportunity for High Earnings, Risk

They are in control of their own decisions.

BMC Software, Google

4. Individual Achievement Path Intense respect for individual achievement.

Recognition. Perot Systems

5. Reward & Celebration Path Recognition and celebration of organization accomplishments.

Have fun in a supportive and interactive environment.

Mary Kay, Tupperware



Key Strategy: CRM Program Measurement

Performance driven CRM programs require a commitment to continuous improvement and also the ability to measure and take action using program KPIs.

Balanced Performance Dashboard Area KPI Common Metrics Customer Awareness

Customer Satisfaction Marketing Effectiveness Retention Loyalty

Recall, Impressions, Brand Equity, Sentiment Satisfaction, Net Promoter Score Marketing KPIs (conversion, CPx ..) Churn LTV Referrals Defection Patterns

Marketing Campaign Metrics (Impressions, Visitors, Conversions), Engagement, Referrals

Number of campaigns New customer retention rates Number of responses by campaign Number of purchases by campaign Revenue generated by campaign Cost per interaction by campaign Number of new customers acquired by campaign Customer retention rate Number of new leads by product



Key Strategy: CRM Program Measurement

Balanced Performance Dashboard (cont) Area KPI Common Metrics Sales Prospects

Customers Sales Competitive

Number of prospects Number of new customers Number of retained customers Number of open opportunities Close rate Number of sales calls Number of sales call per opportunity Amount of new revenue Amount of recurring revenue Time to close by channel Sales stage duration Sales cycle duration Number of sales calls made Number of proposals given Competitive knockouts

Service Calls, SLA Time to Resolution Satisfaction

Cases closed same day Number of cases handled by agent Number of service calls Average number of service requests by type Average time to resolution Average number of service calls per day Percentage compliance with service-level agreement Percentage of service renewals Customer satisfaction level Complaint time-to-resolution Propensity for customer defection

Organizational Structure & People Cost Effectiveness Process & Delivery Channels Infrastructure and Enabling Support

Organizational Efficiency Metrics Financial Metrics Process/Productivity/Quality Metrics IT Metrics


www.mikemoir.com



This presentation was brought to you by Mike Moir. I help companies develop programs and design online experiences to build successful relationships with their audiences. I am a marketing strategist, web product

manager and social media professional. If you would like more information please contact me.