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Module Three

Connected CRM Enterprise Transformation

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Any organization can become more customer focused.

It’s just harder sometimes…

Product-centric

P&L/Decision

Channel-centric

P&L/Decision

Segment-centric

P&L/Decision

True competitive

advantage will go to

firms that transform

their operating

model to deliver

enterprise level

Connected CRM

Customer

Focus

Time

Have to overcome…

• CRM inertia

• Competing priorities

• Entrenched metrics

• Conflicting incentives

• Uncertainty

• Risk avoidance

Value

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The scope for connected CRM is broad and spans

multiple function… Many groups need to be aligned

Information Insights Measurement Interaction Optimization Agility

Strategy Value Segmentation Measurement

Execution Analytics Integration Organization

Technology Database Access Automation

Med

ia

Display

Direct mail

Email

Search

Outbound

Web

TV

Radio

Print

Direct

Response Ch

an

nel

Direct

response

ATM

Email

Branch

Inbound

Phone/IVR

Social

Mobile

Site

Where,

when and

how you

interact with

customers

Capabilities

you need

How it

works in

your

organization

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Success drivers

Data Governance

Culture and People Change Management

Defined Project

Objectives

Multi-phased Execution

Roadmap

Program Governance

Business Process Change

How Top-performers Achieve Break-away Change

Solid Justification Integration Discipline Focus on Lasting Change

Organizational Realignment

+33% odds of

success

Sp

on

so

rship

Funding Management

Assess-

ments

8% odds of

success

+58% odds of

success

n= 400, canonical correlation 65%. Low percentage indicates activities common to high and low performers. High percentages

indicate activities more unique to top performers

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Executive Governance

Example Retail Bank Team

• Head of Consumer Banking

• Corporate Marketing

• Database Marketing

• Customer Insight and Analytics

• Branch (sales) and Branch Support

• Contact Center

• eBusiness

• Technology

Objectives

• Be champions for lasting change

• Align enterprise to common vision

• Apply value-lens in prioritizing

alternatives

• Integrate initiatives across groups

• Ultimately, track business results

and impact

Executive leadership and governance is a key ingredient for

driving lasting change within organizations

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Driving lasting change

Executive leadership and governance team

Champions – Vision – Value – Integration – Business Results

Customer engagement vision 1

CRM capability gap assessment 2

Technology assessment 3

CRM

blueprint &

roadmap

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Time

New and

revised

transformation

initiatives

Culture and People

Change

Management

Data and

Technology

Business Process

Change

Organizational

Realignment

Existing initiatives for change

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• End-state vision for the infrastructure and

operating model for a customer interaction

ecosystem that executes the CRM vision

• Integrated view of initiatives phasing based on

priorities, business impact, dependencies,

feasibility, resources and deployment timing

Driving lasting change

Customer Engagement Vision

CRM Capability Gap Assessment

Technology Assessment

CRM Blueprint and Roadmap

• Identify critical interaction points, and

“moments of truth”

• Define desired end state for media and

channel interaction

• Illustrate current and future state customer

journeys across media and channel

• Baseline current capability across six

Connected CRM Capabilities

• Define capability requirement to support

Customer Engagement Vision

• Define capability gaps relative to targets state

and gain alignment

• Separate track reflects scope and complexity

of the technology component

• Define technology environment required

address defined capability gaps

• Create logical end-state solution architecture,

project inventory and phasing

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2

3

4

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Driving Change at a

Global Entertainment

Company Client Case Study

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12

24

9

11

6

-1

5

5 Casinos

Big Box Retailers

Online Retailers

Grocers 11

22

10

12

3

-15

2

1

Other Competitors Big Data Leader

Revenue EBITDA

McKinsey & Co.

Percent, 10 year CAGR (1999-

2009)

Why the Journey……..Economic Proof

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Connected CRM drives massive shifts in operating

and organization models

From

Campaign management

Brand management

“Near time”

Periodic measurement

Model and execute

Organizational silos

Partitioned incentives

To

Interaction management

Brand activation

Real time

Optimization

“Always on” personalization

Agile collaboration

Collective incentives

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About the company and their situation

Large media and

entertainment company

US-based company with a global presence

Goals

• Aggressive growth targets

• Leverage products across the

enterprise and customer base

• Coordination and integration

across the brand

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The company sought to be more customer-centric across

a siloed organization

Transform

Traditional product

and business unit

siloed orientation

From State To State

Customer centric model

to drive engagement

across entire experience

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The company and the transformation project had many

obstacles and challenges to overcome

Operational Challenges Initiative Challenges

Integrated customer centric view

and traditional brand planning

approach needed to co-exist

Traditional budgeting and

planning processes didn’t support

customer centricity

Large product offering and price point

and complicated sales processes and

distribution channels

Quick execution needed despite

massive organization

Comprehensive time and cost

predictions were needed, but

difficult to obtain

Resistance to change and “not

invented here”

Balancing adoption of changes within

the initiative was challenging for the

transformation team.

The new operating model required new

organization structures and differently

skilled employees

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Plan of attack

Multi-year transformation initiative

Cross-functional

senior governance

and leadership team

Stepwise and

comprehensive

roadmap

Pilot and program launch plan tied

roadmap

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Customer stewardship and governance was as important

as new customer-centric organization and capabilities

Integrated customer views and data

Integrated campaigns and triggers

Marketing ops capabilities (call center and web)

Highly integrated system design

Cross-departmental budgeting and finance

Governance

model

Master vision and plan

Team design

The executive and

stakeholder team

involvement was key

to success in

establishing new

measurement

methodologies that

either replaced or

augmented existing

ones.

Customer centric

ecosystems and

environments require

highly adaptive and

responsive technology

and business

management

Customer

stewardship

and

governance

Customer

centric

capabilities

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New customer centric capabilities and programs were

the outcome

Customer insights and data drive increase timing and efficiency of broader

media spend

Call center and web automation capabilities gather and utilize customer

preferences, product needs, offer based sales processes

Highly personalized on-boarding and trigger programs for new and existing

customers match complex brand and product messages to customer needs

and preferences – decrease cancellations, increase average buy rates

Highly integrated system design is focused around the customer

Customer centric approach drove new methodology, processes and

outcomes

Current and future channels and systems can plug into the new

environment

Customer insights

guide media spend

Call center and web

automation

Personalized

onboarding and trigger

programs

Highly integrated

system

New internal customer

processes

Support of future

channels and systems

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Aligning leadership and organization required a

comprehensive change management approach

Business

Results

Executive

Engagement

Communication

Learning

(Education &

Training)

Stakeholder

Management &

Involvement

Measure &

Reinforce

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Outcomes: Measureable results

Material Increase in annual revenue contribution from

transformation initiative

40 – 55% increase in contribution over global control

ROI of 7:1

Financial impacts

came fast 18-24 months

to reach major milestone goals

Improved Customer

Satisfaction Scores

Improved Operating &

Management Model

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Lessons learned

People & Organization

changes, even though planned

for, were massive

When moving fast, sometimes

slow down and regroup

“Stepwise” approach is a best

practice

Consistent strategic vision

and leadership set the

foundation for competitive

advantage

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Thanks!

Steve LaValle

Executive Vice President, Client and Advisory Services

Chris Crayner

Senior Vice President & GM