First class Customer Relationship Management Course University of Amsterdam (master business studies) Impression of this course

1. Ed Peelen
CRM
Class 1

2. Customer Centricity
> Pre-Industrial Period
• Consumer and producer together
> Industrial Period
• Mass production and consumption: a gap between two
worlds
• The role of marketing to bring both worlds together
> A changing interface; drivers of change
• Financial markets, government interference, new
economies, information technology, societal trends, new
economic laws (‘increasing returns’)
>->Position stakeholders
2

3. Customer centricity?
3
Shareholder
value
Resources
Productivity
Quality
management
Financial
planning
Financial value
Employee valueCustomer value
Societal value

4. Customer Centricity and Stakeholders
Classic Grid

5. Customer Centricity and Stakeholders
‘Real World’ Stakeholder Grid

6. Value chain
Stakeholders
Customers
Suppliers
Employees
Shareholders
Society
Engaging
platform
Mutual value
Communication
Reflection
Honesty,
TransparencyRamaswamy and Prahalad

7. •7-7-2014
The essentials of co creation
> Consumers and managers have plenty of alternatives to
choose from
> Therefore we do not need to search for in-depth value (and
not for more alternatives; product differentiation)
> The value of creating together, on a specific moment, in a
specific context
> Traditional point shifts where consumers detracts value from
a supplier; focus on the entire value chain
> No outsourcing or shifting of activities from supplier to
consumer
> Quality of co creation depends on the infrastructure that
facilitates interactions
Ramaswamy and Prahalad

8. •7-7-2014
Prosumer
> Roughly 25% of the population that
behaves differently,
• consciously purchases new products,
• lives on information,
• appreciates contact with suppliers and
• wants to have influence on suppliers
> Powered by internet, media fragmentation
(rising influence of their word-of-mouth
communication), globalization (global
influence)
•Some history

9. •7-7-2014
•© ICSB Marketing en Strategie
Building blocks
>Dialogue: empathy, understanding the
emotional, social and cultural context
of experiences. The forming of
thematic communities.
>Access: not ownership!
>Risk assessment
>Transparency
> Prahalad and Ramaswamy (2004)

10. The value is in the individual, not in the
service
Event
Context
event
Personal
relevance
Involvement
An irregular heartbeat at 11 o’clock in the morning at home
Versus an irregular heartbeat downtown in the middle of the night
Individual
consumer
Ramaswamy and Prahalad

11. Doing it together…
• launch Nov 04 - March 05
• 30,000/80.000 models uploaded
• LDD 1.2 million total downloads
• 5% Royalty paid to winners
• 3 products launch July 2005
• Planning next generation

12. How does CRM fit in this all?
Gartner CRM hype cycle

13. © ICSB, Adviesbureau voor Marketing en Strategie
>Definition Gartner Group
“A business strategy that combines skilled
customer-facing personnel, optimal
processes and enabling technologies to
balance enterprise revenues and profits
with maximum customer satisfaction”.
Definition CRM
IT allows you to develop individual relations
on a large scale at low costs

14. Course objectives
>Understand co-creative enterprise and
(S)CRM
>How to formulate a customer (CRM)
strategy
>Understand the consequences of co-
creation and CRM for the organization,
marketing and IT
>Be able to formulate a roadmap
towards the implementation of CRM

15. CRM described
> Mass marketing
> Market (segment)
> One way
> Market share
> Product orientation
> Satisfaction and
transactions
> Rules of thumb
> Interactive marketing
> Segment and individual
> Two way
> Customer share/value
> Customer centric
solutions
> Loyality and relations
> ‘Accountable’

16. 16

17. The Jefferson Hotel
Washington D.C.

18. 18

19. CRMVision and Strategy
Co-operation within organization
CRM Processes
CRMTechnology
CRM Metrics
Communication
CRM described
building blocks
Relationship mgt Customer knowledge

20. CRM
Building blocks: Vision - Customer Advocacy
>Act as an advocate for your customer
in the organization
• Principle: Customer success is priority #1!
• Useful principle?
• Preconditions: transparency (crystal
clear)
• Consequences?

21. CRM
Building blocks: Co-operation within
organization
Sales Support Techrep (optional)
Product Management
Vice President
Aircraft Services
Aircraft Services
Account Support
Product Management
Vice President
Material Support
Material Support
Account Support
Product Management
Vice President
Component Maintenance
Component Maintenance
Account Support
Product Management
Vice President
Technical Services
Technical Services
Account Support
Account Manager

22. Replenish
stock
Payment
Read and
save
Monitor
value
Sell
Order
Drink
Check:
date
Monitor
collection
Stock
Wine adm.
Wine info
Order info
Catalogue/newsletter
Payment
Delivery
Wine for
sale
Order
Take on three of the ten customer activities with a greater
degree of accuracy - Le Caveau

23. CRM
Building blocks: Communication

24. CRM
Building block: Communication
+-
Supplierinitiated
+-
Consumerinitiated
50%
Profile, secude, expert
behavior
Facilitate, be transparant
and open
Time

25. CRM
Communication: customer journey
Eigenomgeving/lifes
tyle: met mode,
telco’s, F&B etc.
•Blad/magazine
•Posters/flyers
•SMS/MMS
•Internet
•Vrienden, familie of
community
Ticketbox (free
record)
•Programma
toesturen per
post/SMS/MMS,
internet
•Kortingen op …
•Lid van bijv.
community
•Lid van
blad/magazine
•Free gadget van
sponsor
Eigen omgeving
•Bekijken
internetsite (info,
partypics, recencies
eerdere edities)
•Kopen/draaien
muziek o.i.d.
•Kopen kleding etc.
•Kapper
•Veroer/verblijf
Vervoer/mobiliteit
•Verschillende
vervoersmodaliteiten (OV,
eigen vervoer)
•Samen of alleen
•Radio (updates)
•SMS/MMS (updates)
•Bewegwijzering (posters
etc.)
•Podia onderweg?
Key
•Eten en drinken
•merchandise en
accessoires
•Artiest(en)/groep(e
n)/act/show/
•Faciliteiten
(toiletten, internet,
oplaadpunten etc.)
•Veiligheid/crowd
management
Eigen omgeving
•CD/DVD
•Blad
•Internet (partypics,
recencies)
•SMS/MMS
•Radio/TV
•Vrienden, familie of
community
Purchase
ticket
Prepare Going to
event
Participating Afterwards
Organisator
Back
home
Vervoer/mobiliteit
•Verschillende
vervoersmodaliteiten
(OV, eigen vervoer)
•Samen of alleen
•Radio (updates)
•SMS/MMS (updates)
•Bewegwijzering (posters
etc.)
•Podia onderweg?
•Verblijfsaccommodatie
•Afterparty/borrels etc.
Orientation
Bron: Europen Centre for the Experience Economy

26. mailing 80% 25% 50% 33%database ‘order’NegotiateF2facecall
standard
1362430100
script Sales man
competencies: how good are we in executing these steps?
CRM
Processes: optimalization

27. CRM
Technology
• Data:
• Masterdata, databases/mart/warehouse,
• Applications: call center, internet, sales
force automation, content management,
software for analysis, campaign
management
• Service oriented architecture
o 1 suite (Siebel/Oracle, Epiphany) versus a
pallet of applications

28. CRM metrics: dashboard
Continuous Monitoring & Analysis – Opportunity & Threat Detection
Purpose of your CRM dashboard (phase 1):
 Track performance to various goals via
related success metrics
 Helps achieve goals by showing which
contribution metrics drive behind performance
levels
 Improve your ability to anticipate future
changes in performance levels
Purpose of your CRM dashboard (phase 2):
 Expand scope to be not just evaluation tool,
but a projection tool
Monitor the dashboard regularly!
Dashboard is constantly changing.

29. Summarized
Customer centric organization
> From mass marketing to interactive marketing; co
creative effort
> From product focused to solution oriented
> New pricing models
> From transaction focused to relation oriented
> Process synchronization
> Steer on customer success
> Organizing around customers: customer ownership
> Branding customer solutions
> Facilitating and interconnecting infrastructure