西门子供应链培训材料3（英文PPT3139099.pptx

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1、Customer Relationship Management-A Winning Customer StrategySeminar presentationApril 2004AgendaCustomer Relationship Management Presentation8:00-9:15Break9:15-9:30Case 1 San Fabian Supply Company9:30-10:30Case 2 Solo Mobile Phone Company10:30-12:002Author/DivisionWhat is CRM in your mind?What is cu

2、stomer relationship management?What does CRM bring to companies?A survey on senior marketing executives at Fortune 1000 companies indicates a widespread frustration about the return on CRM investmentsCRM in not a technology term,but instead,a strategy driven holistic management approachSource:Booz A

3、llen Hamilton Survey,20013Author/DivisionCRM is a customer-and value-based management approach to increase the company valueCustomer Relationship Management is a customer-and value-based company orientation with the goal of building up and fully benefiting from lasting and profitable customer relati

4、onships through holistic and individualized marketing,sales and service concepts using state-of-the-art technologiesCRM definitionIdentifying the top customers and exploiting the maximum share of their expense budgetsRaising the efficiency of customer managementEstablishing customer loyalty and life

5、time relationshipsFully exploiting the potential customer segments by acquiring new customersThereby increasing the company valueCRM objectives4Author/DivisionCustomer Relationship Management differs from classical marketing in many waysTraditional marketingCustomer relationship managementObjectives

6、Generate salesCreate a loyal customerFocusAcquisition phaseTotal customer life-cycleTimeframeShort termMedium to long termPerformance indicatorsMarket share,salesShare of wallet,customer profitability,customer valueCustomer knowledgeDemands from customer segmentsIndividual preferences and needsProdu

7、ctStand-alone productIntegration of products and servicesPriceGeneral discountsPrice differentiation on the basis of customer loyaltySales channelsTraditional sales channels(multi-level)Disintermediation,multi channel managementCommunicationUnidirectional communicationInteractive dialog with custome

8、rs and communities,24 hrs./7 day availability5Author/DivisionCRM is the holistic approach to a customer-value based company orientation four enablers set up the frame.CreateGainUnderstandRetainORGANIZATIONSTRATEGY CULTURECRM-StrategyHolistic approach/top-management issueDefinition of target segments

9、 and customersValue-based prioritizationOrganizationand processesCustomer-oriented structures and processesCustomer process/touchpoint innovationOrganizational anchoring of the CRM responsibilityTECHNOLOGYTechnologySystem integrationUse of e-technologiesSelection of system/technology partnersCulture

10、 and change managementConsolidating the customer value orientationManagement processes and incentive systemsContinuous change management and improvement processesCustomer valueCRM enablers6Author/DivisionCRM creates lasting strategic competitive advantagesUnderstand markets and customersCreate super

11、ior customer offersRetain profitable customersGain profitable customersBuilding up superior customer knowledgeIdentifying target segments and developing target customer specific marketing,sales and service conceptsFocusing on the highest-valuecustomersRaising the entry barriers for competitors by bu

12、ilding up lasting relationships with the customersDeveloping a learning relationship in long-term customer relationshipsRaising the entry barriers for competitors through specific product and service offersHigher competitive barriers by covering all sales channels Lowering conflict potential through

13、 the proactive integration of the various channelsRaising customers costs of changing suppliers by covering all needsCreateGainUnderstandRetainORGANIZATIONSTRATEGY CULTURETECHNOLOGYCustomer value7Author/DivisionMarketing-Mix are core elements of customer relationshipstrategyMarketing-MixTarget Marke

14、tproductplacepricepromotionMarketing-Mix provides a decision-making method for deciding howto manage the customer relationshipDifferentiated product targeting different customer segmentProduct customization:design,function,packagingService levelPrice strategy:e.g.charge price premium for valuable cu

15、stomer segment Payment termsSpecial discountsSelect of Marketing Communication vehicle to better reach target customer:TV ads,PR,SponsorshipEvents for valuable customersVIP clubEffective channel strategy:one-to-one visit,call center,storesVarious channel combination to more efficiently serve target

16、customers8Author/DivisionThe three main application areas of CRMOperational CRMAnalytical CRMCRMcomponentsCollaborative CRMcampaign managementAutomatically distributionERP-integrationCustomer serviceData Mining/Data WarehousePurchase probability Forecasting Customer segmentation Cross-selling-potent

17、ial Regional-purchase-behavior Channel-managementFace-to-FaceCall-CenterBrief/FaxWeb/Mail9Author/DivisionThere are quite a few obstacles to effectively apply CRMLack of marketing fundamentalsLack of clear value proposition and failure to target customersTechnology is introduced before companies mast

18、er marketing fundamentalsReliance on mass marketingPoor data qualityIncomplete informationInaccurate informationInadequate data collection systemsLimited external sources of data(e.g.,no or few list-rental companies)Poor direct marketing skillsLack of experienced statisticians and marketing program

19、developersLack of outsourcing resources,such as direct-mail or telemarketing agencies Heavy emphasis on academic and overly sophisticated analysesOrganizational weaknessesNo strong centralized marketing or product groups to drive CRMCRM regarded as a small,low-priority marketing areaFlawed performan

20、ce measurements;limited support resources,e.g.,call center operators;little or no cross-functional effort10Author/DivisionAbility to differentiate productBuying transaction frequencyAccess to customer informationAppropriate programDifferent industries have different demand on CRM program Example ind

21、ustriesValue of customerLowHighNoneProgram choiceWeakStrongNoYesNoYesData captureChange behaviorDifferentiation Data capture,differentiationData captureNoneReal estateCommodity trading,non-branded goodsNewspapersTheme parks,museums,playhousesAirlines,hotels,credit cards,telecoms,bankingMembership se

22、rvices(e.g.,travel),mail-order clubsDepartment stores,retailersGrocery,gas stationsHighLowHighLow11Main objectives of CRM in German top companies%1)Increase sales for existing product/service rangeVery important/importantEmpirical results confirm the main objective for pursuing a CRM strategy is to

23、increase customer loyaltyMediumLess important/not importantIncrease sales by cross-/up-sellingWin new customersIncrease customer retention/loyaltyIncrease efficiency/reduce costs in marketingIncrease efficiency/reduce cost in salesIncrease efficiency/reduce costs in serviceIncrease efficiency/reduce

24、 costs in IT utilization1)Cross-industry study,200 top companies in GermanySource:Roland Berger Research 200177149582517592021934 354291758271554311543352212Author/DivisionCRM application examplesHotelAirlineTelecomLoyalty club membership:Points collection and rewardCustomer database to support quic

25、k check-in and customized service(Newspaper in the room,fruits and welcome notes)Proactively drive sales leads by combining upcoming trade show and conference information with consolicated customer data to better serve high value customers:corporate account and business travelerMileage card:mileage

26、collection and rewardAirport special lounge for valuable customersDifferentiated service for different value customersVIP club:VIP customer can get fast and personalized serviceUse multi-channel to approach customers and to fulfill customer service:call center,VIP customer representatives,Stores,web

27、site,etc.Leverage customer database to do up-sell and cross-sell,and more importantly,to reduce churnIndustry(B2B)Global Account management:account profiling Key account manager for A-class customersDifferentiated payment practice:e.g.extended term of payment13Author/DivisionUp-sell and cross-sellCu

28、stomer FeedbackData collectionChannel mix to approach potential customersFriendly customer interfaceMulti-channel serviceVIP customer value-added serviceInformation on the BillNews LetterCall center to collect feedbackUnderstand reasons to churnLeverage customer database to build churn warning syste

29、mProactive promote to customers with inclination to churnLoyalty programAcquisitionChurn reductionCustomer ServiceVisit our shop!Great deal on MMSCall center product recommendationProduct/service demonstration at storeProduct information on the billExample:Mobile Operator applies CRM levers in each

30、customer life cycle stageMobile Operator Example14Author/DivisionFor consumer goods companies,channel partners as well as consumers are both their customersMobile Phone Company ExampleMobile Phone CompanyChannel:wholesaler/retailerOperatorServiceEnd-user(consumer)SellHandset subsidySellSellUnderstan

31、d customer needs is the basis for a successful customer relationship managementEnd-user/consumer is the main customer,whose demand must be analyzed in depth and be well-segmentedAt the same time,CRM also needs to be used to foster relationships with channel partners15Author/DivisionConsumer goods co

32、mpanies should apply different CRM strategy and actions to different customer typesChannel:wholesaler/retailerOperatorEnd-user(consumer)Mobile Phone Company Disguised ExampleCustomer DemandsCRM leversHigh distribution margin and large volumeIn-time delivery and low stock costGood technology and serv

33、ice supportHigh customer satisfaction rateGolden-channel award:offer award to best performance wholesaler/retailerBetter product offeringsTechnology call center to timely support channels request on tech supportIncorporate channels supply chain system to Mobile Phone Companys supply chain system to

34、realize just-in-time supplyHigh ARPUMore new subscriber and lower churn rateHigher customer satisfaction rate Incorporate special mobile operator functions/programs into product designCarry operator logo on the product Technology call center to offer timely tech supportOffer special discounts to Mob

35、ile VIP customersHigh price performance ratioBetter quality guarantee and customer serviceFeeling of ownership and care by mobile phone company Better product design to serve a specific customer segmentCustomer database and targeted promotionConsumer club more value-added functions to club membersSe

36、rvice network and call center16Author/DivisionCase StudiesWe will do two cases in the next hours.One is an industrial goods company,and the other is consumer goods companyLets see how customer relationship can work in these companies17Author/DivisionCase Study&Exercises San Fabian Supply CompanyBrie

37、f Introduction SituationComplicationResolutionDemand for construction material has decreased since MacDowell expanded its production capacityPhilippine is still a relationship driven business world and the way to do business is differentWealth is concentrated in Phil marketOne of the largest supplie

38、rs of building materials in PhilippineThe exclusive distributor of MacDowell products in PhilippineHas good reputation for well-trained and aggressive sales forceA manufacturer of noncombustible,chemically-resistant materialIs currently plagued by plant overcapacity and eager to boost salesMarketSan

39、 FabianMacDowell(MD)MacDowell(MD)Wish to increase sales by having more dealers carrying their productsWant to take upon itself the whole sale distribution role San Fabian had been fillingTherefore,it wants to terminate exclusive distributor agreement with San FabianWont take a non-exclusive contract

40、But MD products contributes a lot to San Fabian sales and net incomeIt is not easy to get exclusive agreement with other supplierSan FabianWhat will MacDowell do with customer relationship with San Fabian?How will San Fabian react facing the change from MacDowell19Author/DivisionCase exerciseTask:Af

41、ter reading through the case,you are required to answer following questions1.What does San Fabian do for MacDowell?What does MacDowell do for San Fabian?2.What change is MacDowell proposing and why?3.What benefits and risks MacDowell will get from this change?4.If you are the management of MacDowell

42、,how will you treat this exclusive distributor relationship?5.What are San Fabians alternatives if you are invited to give advice to San Fabian?6.How can San Fabian come to an agreeable solution with MacDowell?20Author/DivisionKey takeawaysIt is always a hard decision related to channel models:exclu

43、sive vs.selective vs.mass distribution,which we can often see in daily business operationThere is an inevitable love/hate relationship between channel members.Both want product to be sold,but each wants more of the sales marginChannel profits are maximized when cooperation overcomes conflict.Therefo

44、re,how to achieve win-win becomes the critical topicDistributors provide a variety of activities on behalf of their manufacturers.Exclusive distribution model can stimulate distributor to make great effort to push the sales21Author/DivisionCase Study&Exercises Solo Mobile Phone CompanyCase backgroun

45、d*Solo is a European mobile phone company whose product are all GSM mobile phones.It is among the top three largest mobile phone manufacturer in the world.Solo has entered China market in 1995 and performed quite well in China before year 2000.It is the third largest player on China market,only afte

46、r the global mobile giant AA and BB.Solo enjoys good reputation of high quality and business people targeted design.It had quite sound customer base in China and its brand awareness is high.*Disguised case,all data and company name in this case are disguisedSuccess in 1990sChallenge and threat since

47、 2001China mobile phone market is still growing quickly,but more and more dominated by young and trendy products.Young people tend to change their mobile phones more frequently.Therefore,Solo decided to change its focus and brand image since 2001,putting more emphasis on young peopleBut the effort o

48、f changing brand positioning seems to weaken Solos brand image.In a recent market survey,consumers responses show their confusion of the brand image of SoloFast growth of local brand TL,BD,AM,KK,etc.formed huge threat to global players on the market.Under the competition pressure,Solos market share

49、decreased from 15%in 2001 to 5%in 2003What Solo should do to regain the lost market share?23Author/DivisionThe Chinese mobile phone market is the fastest growing mobile phone market*ProjectionCAGR+18%China Mobile Phone Market Size(all standards,mio.units)GSM CDMA 334 523 551628697774*FY 75981081224A

50、uthor/DivisionTrendy,Fashionable and Multi-function mobile phones become the mainstream in competitionMore fashionable designColor display and Poly-phonic ring toneImbedded camera,games,MP3Compete on trendy design and more functionsVarious form factors:Clamshell,block,slider,flip,rotateWhile price i