AGENDA

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CRM and customer centricity? CRM some definitions Best practices and pitfalls

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What is CRM?
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CRM is not just a piece of software, nor is it a glorified customer address book. Effective CRM is a broad collaboration between marketing, sales, customer service, and IT to reevaluate and optimize how a company interacts with its customers. There is no single definition of CRM, and individuals & companies will have different views of CRM depending on their background and industries It is crucial for us to define what CRM means for us, and how we will use it to achieve customer centricity

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THERE ARE MANY WORKING DEFINITIONS FOR CRM

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CRM is a business strategy that helps organizations cope with three of todays most urgent business imperatives: generating new growth, attaining operational excellence, and enhancing competitive agility" SAP CRM is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time CRM Magazine

Simply put, a CRM solution is anything that helps you develop, maintain, or improve your customer relationships Entellium

CRM is both a business strategy and a set of discrete software and technologies whose goal is to reduce costs, increase revenue, identify new opportunities and channels for expansion, and improve customer value, satisfaction, profitability, and retention Oracle Corporation

CRM is a comprehensive way to manage the relationship with your customers, including potential customers, for long-lasting and mutual benefit. More specifically, modern CRM systems enable you to capture information surrounding customer interactions and integrate it with every customer-related function and data point Salesforce.com * Footnote Source: Source:

CRM is a broad term that covers concepts used by organizations to manage their relationships with prospects and customers, including collecting, storing, and analyzing pertinent, detailed information. CRM brings together information from all areas of a company (sales, marketing, customer service, and management departments) to provide a complete view of each customer Oncontact Software

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WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT?

Unit of measure Core CRM beliefs

View every customer interaction as a

opportunity: offer the right product to the right person at the right time

Take holistic view of all the customer value

drivers levers from acquisition to retention

Focus on the highest ROI activities by

measuring customer lifetime value and analyzing marketing campaigns Focus on high-priority segments Underpromote to low-priority segments

Lead with strategy and operations and

deploy marketing-led IT investments

Deliver the right customer experience,

which is consistent with brand promises, and creates true customer advocates
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CRM REACHES ACROSS MULTIPLE FUNCTIONS AND DELIVERS Unit of measure IMPROVEMENTS IN PROFITABILITY SIGNIFICANT

Account management Lead management Sales coverage design Sales forecasting/pipeline mgmt Incentives

Increased sales per customer

Lower cost to sell and service

Sales

Segmentation Customer
analytics Customer Marketing insights Campaigns/ promotions Customer value modeling

Customer

Customer Service

IT

Service requests Order management Escalations Differentiated treatment by customer segment

Larger customer base

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Software packages ( SAP) Data management

(storage and integrity) Analytical tools (e.g., BI)

Higher retention

EXERCISE: THINK OF YOURSELF AS A CUSTOMER . . .

Unit of measure Name two or three companies that do a good job selling to you as a consumer

Why do you think they do a good job? What do they know about you? When did you first become a customer?

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EXERCISE: HOW WERE THESE COMPANIES GOOD AT CRM?

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What are the different ways they interact with you? How frequently do they interact with you? Have they sold you more things over time or sold you
things you didnt realize you wanted?

Within this category, do they have an increasing

share of your wallet?

Do they keep you coming back even though their

price may be a little higher?

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KEY ELEMENTS OF A SUCCESSFUL CRM PROGRAM

Unit of measure Weve identified key CRM elements Practical customer segmentation Tailored & differentiated service offerings Focused customer retention & loyalty . . . by studying winners across a variety of sectors

Retail banking

Quantified lifetime value of customer

Credit cards

Differentiated treatment by segment Superior customer data analysis

Continuous pilot/testing

Wireless

Optimized customer value

Auto Service

Overarching CRM Strategy

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INVESTING IN CRM REQUIRES CLEAR VIEWPOINT ON VALUE CREATION, Unit ofIS MUCH MORE THAN A TECHNOLOGY TOOL AND measure
1 Identify value-creation levers and targets Price
Price mgmt

2 Activate CRM across sales, marketing, and customer service processes

Winning Winning CRM CRM program program

Increase revenue

Retention From existing customers

Up-sell

1. CRM Strategy

CRM is much more than an IT system, it is a way of doing business

Customer value drivers

Volume

Cross-sell

Reduce costs

Capture/ penetrate From new customers Enter new markets

2. Sales

3. Marketing

4. Customer service

What is the objective? Where will the client create value?

5. Rigorous performance management and metrics 6. Systems and technology

3 Drive change management to ensure success in

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initial implementation and ongoing sustainability

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AGENDA
Unit of measure

What is CRM? How can CRM lead to customer centricity? Best practices and pitfalls

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Customer centricity is critical in the cement and concrete markets of the future Unit of measure

1. Complex Heat Map Different market segments and hot spots emerging 2. Growing fight for share of wallet Higher competitive intensity with rise of regional players 3. Volatile margins Continued cycle of over and under supply

Which segments do you prioritise?

How do you build loyalty amongst targeted customers?

How do you manage portfolio to have least volatility?

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What is Customer centricity?

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Not about Winning every customer Delighting customer at all cost FMCG style branding/ heavy segmentation 30 small projects, some margin dilutive

but is about Sustained margins from purposeful choice of profitable (and more stable) customer segments through differentiated productservices delivered through tailored business models by an engaged team

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Unit of measure CRM is the best enabler for Customer Centricity

Provides a robust fact base to drive alignment Aligned view on what winning with customers means 1. Prioritise portfolio of customers based on granular understanding of profitability and volatility 2. Differentiate profitably through a platform of value propositions

Allows meaningful segmentation of thousands of customers, channel partners and influencers

Who?

Generates data & insights at a customer level which allows identification of winning value proposition

What?
Provides performance feedback, and enables assignment of right person to each customer segment

3. Deliver these value propositions through tailored business models

4. Enable through process, capability and mindset shifts

How?

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AGENDA
Unit of measure

What is CRM? How can CRM lead to customer centricity? Best practices and pitfalls

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BEST PRACTICES AND PITFALLS OF CRM IMPLEMENTATIONS(1 of 2)

Unit of measure
Successful approaches Common pitfalls and mistakes

Strategy

Fitting CRM to the strategy by using strategic

goals to identify key issues, design high-impact initiatives, and rigorously assess how CRM can support these

Fitting the strategy to CRM by trying to

build business objectives based on CRM systems

Customer oriented: Using CRM to enable

customer value-driven product, pricing, and channel campaigns

Product-oriented: Using CRM to run a few

product-driven campaigns without prioritizing by potential value

Solutions driven: Using specific problems or

opportunities to create initiatives with welldefined and measurable goals

Capabilities driven: Attempting to install an

array of capabilities in the hope that they will improve performance without quantifying the expected returns

People

Actively gaining sales-force buy-in through

roadshows, involvement in design process, and incentives

Assuming the sales force will

automatically buy in without persuasion

Aggressively managing behavioral change

from the top down to ensure commitment and quality

Hoping for change and that use of the new

system will bring about the necessary changes in sales practices

Managers playing key role by enforcing

behavioral change via meetings, monitoring, reports, and metrics * Footnote Source:

Managers on the sideline believing CRM is

only for sales reps and sales support

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BEST PRACTICES AND PITFALLS OF CRM IMPLEMENTATIONS (2 of 2)

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Successful approaches Common pitfalls and mistakes

Execution

Sales group leading the change from

the top down

IT group leading the change bottom-up,

usually with poor coordination with business strategy and sales

Redesigning organizational processes to fit

the core CRM system and the new CRM approach

Over-customizing the CRM system until

it replicates the old processes and approach

Getting the other pieces right by focusing

on training, support, and adoption as well as installation and design

Focusing only on technology

implementation without accompanying organizational/process changes

Sequence phases based on priority of business

objectives and value drivers

Rollout program based on availability and

hierarchy of software modules

Starting small with few tactical (e.g., threemonth), high-impact initiatives rolled out to a subset of reps that leverage existing technology

Doing it all with a big bang approach to

attack too many unprioritized issues

Patient learning: Realizing CRM is an ongoing,

iterative learning process (typically a few months per initiative, one to two years for full transformation) * Footnote Source:

Impatient frustration: Expecting too many

or the wrong things and becoming frustrated by early setbacks (70% of companies report little or no impact)

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KEY TAKEAWAYS AND DISCUSSION POINTS

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How will CRM help Holcim further increase its

business?

If Holcim had better information, what could it do

that it doesnt already do?

What things does Holcim already do well when it

comes to these types of customer relationship activities? Where can Holcim improve?

Based on what you know now, how would you

define CRM?

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