CRM Backwards

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CRM is almost always done wrong.Customers vote with their feet and wallets. The absence of describing and designing the best customer outcome has been the fatal flaw of most, if not all, CRM initiatives. Customer relationship management has a forty percent to seventy plus percent project failure rate as reported by major technology analysts firms and business consultants whom have interviewed executive management, IT and system end users. If you ask customers, the failure rate is even higher as customer dissatisfaction ratings climb and customer outrage grows. Customers have become less loyal and more vocal as they spread their disapproval across all media channels from web site reviews, FaceBook slams, product and company review sites. CRM should be built backwards. Define what you want the customer experience to be. Inventory every contact and quantify and the best business outcome. Then script best customer contact across each company contact, system, function and process.

Text of CRM Backwards

  • 1. CRM Backwards What you need to know before you spend another cent on CRM 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com

2. Every contact matters especially to customers. 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 3. Customers measure contacts differently then companies2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 4. How Your Customer Measures CRM Monetize this: From Preface, Page XII,Customer Worthy, Why and how everyone in your organization must Think Like a Customer,Michael R Hoffman, Paramount Publishing 2010The Customer Revolution StartsWhile Your Customer is on Hold 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com Michael Hoffman Investment My Cell Phone Company(rhymes with horizon) 20 minutes preparation 20 minutes online 20 minutes on hold 20 minutes call hold time = Free 11 Minutes Customer Service Rep Interaction Time 11 minutes Customer Service Talk Time My time @ 3.00 minute Call time @ $0.45 minute X 71 Minutes Me, The Customer Cost= $210 Wireless Phone Company Cost: $4.95 @ $50 hr = 59.16@ $10 hr = 11.43 Final Resolution 6 Month Cost X 551 Minutes 120 minutes @$54 Me, The Customer Cost= $1,653 Wireless Phone Company Cost: $54 5. Its coming Consider your company warned CustomerPayback.com a social network for customer self-monetization, Live April 2010 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 6. For customers, every contact is part of customer relationship management = 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 7. Customersinvestacross the entire customer cycle 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 8. Yes, every contact has at least two costs: company $ + customer $ Andeverycontact has potential revenue 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 9. So CRM is Everyones Job 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 10. Figure 12.4 CxC Matrix Systems Include (sample list) Customer Worthy, pg. 151 Accounting Advertising Business intelligence Business performance management Business process management Call routing Care center inbound Compensation Contact management Content management Cost accounting Credit authorization Credit modeling CRM (customer relationship management) Customer service Customer survey Data matching Device design Device management Digital asset management Security Self service Self service kiosk Self service mobile Self service phone Self service web Shipping Social media Statistics Subscription management Supply chain management Telephony Text to voice Voice to text Web analytics Web chat Web hosting Web presentation Web security Work flow Direct marketing Distribution Email hosting Email management Enterprise marketing management ERP (enterprise resource process management) Financial reporting Fraud detection Fulfillment Game management General ledger Inbound telemarketing Integrated communications Inventory It operations Lead management Licensing List management Location security Logistics Maintenance Marketing automation Master data management Modeling Network design Offer management Order management Outbound telemarketing Packaging Partner management Performance management Performance reporting Point of sale Point-of-purchase Predictive modeling Printing Public relations Quality systems Resource management Returns processing Reverse logistics sales Automation and CRM is in Every System 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 11. But companies dont understand CRM Cost focus here enflames customer rage2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 12. Companies would get it if they monetized every contact 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 13. CRM must incorporate customerexperience transparency From Thinkmap, Visual Thesaurus 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 14. CRM Backwards Summary

  • Majority of CRM designs fatally flawed due to lack of focus on customer impact
  • Unmeasured expense-to-customer is business & competitive handicap
  • Unrealized revenue per contact is enormous
  • Customers should be focus of system, function, process integration
  • Customer experience as described in CxC Matrix quickly quantifies potential cost savings and revenue opportunities (see next 2 slides; more clarification in Customer Worthy (book) and at Customer Worthy.com)

2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 15. Start broadMacro CxC Matrix build in 1 week2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 16. Identify & monetize cells critical to business objectivePrioritize budget, projects based on monetizationx x x x x x x x x 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com 17. Thank You! Michael R. Hoffman, 908.542.1134 CLIENT x CLIENT clientxclient.com Think Like a Customer! CRM & Marketing for the next 10 years. 2010 All rights reserved. ClientXClient 908.350.3012 mrh@customerworthy.com