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CRM
CUSTOMER VALUE MANAGEMENT
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Customer Value Management -Metrics
Optimizing resource allocation and inestments !ased on Customer
alue
Customer Engagement Modelling
Traditional Mar"eting Metrics
E#g#$ Mar"et s%are Sales gro&t%
No Customer leel data
Mar"eting e'ectieness metrics
(a) Customer ac*uisition rate
(!) Ac*uisition cost
Customer serice Metrics
Retention Rate
Actie customers + ,ro!a!ilit o. !eing actie
Customer li.e duration
/in-!ac" rate
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Customer Value Management -Metrics
Customer alue !ased metrics
Size o. &allet
S%are o. &allet
E0pected s%are o. &allet
Strategic Customer 1ased Value Metrics
,ast Customer alue (Reenue + Margins)
,otential alue (Reenue + Margins)
Re.erence and in2uence alue
R3M Value
Customer li.etime alue
Customer e*uit
Strategic partners%ip + &illingness to engage in a long term
strategic manner
Customer4s current + potential use o. compan4s range o. products
and serices
5oint mar"eting e'orts + campaigns + ,R alue and potential
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Customer Value Measurement
Scoring sstem .or Customer alue
3actors to !e considered
/eig%tages
6ata gat%ering
3rom di'erent sstems 7
3inancial (GL$ Orders$ AR$ product margins$ etc)customer serice
sstem$ sales and mar"eting sstems
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Customer Value Management Customer alue !ased 8nteractions$
Account,lanning and SAM$ Mar"eting and sales actioSerice delier$
8nestments$ etc#
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CRM
MEASUR8NG RO8
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CRM RO8 Measurement
Comple0 to measure
Multiple initiates result in increase o. reenues and pro9ts:
6i;cult to isolateCRM impact
Some costs are !asic costs t%at do not contri!ute to increase in
reenue 7 Notnecessaril CRM costs - e#g#$ process optimization
Some costs are s%ared 7 sstems and people 7 allocation is a
comple0 process anridden &it% con2icting claims
RO8 is easier to measure in simple$ isolated pro
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CRM
TREN6S AN6 C>ALLENGES
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Emerging Trends
Mo!ile CRM (mCRM)
Social CRM
8ndustr speci9c CRM solutions
Customer
Value on Customer E0perience
6emands increasing
S%ortened customer loalt
3ast c%anging Customer pre.erences
,re.erences 7 green initiaties$ corporate social
responsi!ilities
Regulator and compliance mandates
Non-mar"et .orces 7 actiist groups$ traditional and social
media
6ata priac issues
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Social CRM
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6ata ,riac
Customer concerns and actiists4 groups
Regulation + legal aspects
Understand t%e *uid pro *uo 7 customer needs .or
personalizedserice and priac
,ost + pu!lis% compan polic
,ermission mar"eting ,riac settings$ Opt-in and Opt-out $
coo"ies
Contractual aspects$ Operational processes to %onor
o!ligations
