Presentation for 1st Serbian CRM conference in Belgrade
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The document discusses the critical role of measurement in effective Customer Relationship Management (CRM) within organizations. It outlines how measurement supports management in achieving business plan results by providing insights into sales, customer service, and account management. Additionally, it emphasizes the importance of using CRM systems for tracking various metrics to optimize operational performance and enhance decision-making.
Presentation for 1st Serbian CRM conference in Belgrade
- 1. Why is Measurement so Important for Effective CRM? CRM: Conference, Exhibition, Workshop Hotel Intercontinental, Belgrade, Serbia April 26-28. 2006
- 2. Why is Measurement so Important for Effective CRM? Annual Business Plan Board of Directors Senior Management Traditional Business Planning Flows Upward from Senior Management to the Board
- 3. Why is Measurement so Important for Effective CRM? Senior Management ??? Middle Management and Frontline Employees But What Flows Down to Ensure the Processes are in Place to Deliver the Business Plan Results?
- 4. Why is Measurement so Important for Effective CRM? Is the company structure built to deliver the results promised in the business plan? Have key company processes been updated to reflect the business plan? Senior Management Daily Management Middle Management CRM Systems and provide Frontline Employees Measurement
- 5. CRM Measures and Tells You Where You Are CRM Systems Can Provide Top Management with Measurement of: Customer Contact Information Revenue Products Churn Tariff Plans Sales Forecast Statistics for Benchmarking (including Customer Profiling and Segmentation) Using CRM Measurement as a Tool, Management can Make More Effective: Sales Plan Churn Plan Product Plans Tariff Plans Training Plans Organization Structure for Sales & Customer Service IT Infrastructure Plan
- 6. Examples of What to Measure for Telcos CRM Forward Looking Sales Is Your Sales Forecasting Accurate? Is Your Sales Funnel Big Enough? Backward Looking Account Development/Customer Service Are You Doing Enough to Maintain Your Customer Base? Are Revenues Growing or Reducing? Are New Services Being Marketed to Existing Customers?
- 7. Examples of What to Measure for Telcos CRM In 1997 a Russian CLEC connected approximately 11,000 fixed phone lines The 1998 Business Plan had a goal of 18,000 new fixed phone lines What would make sense to check? Productivity per Sales Person Amount of Sales People Monthly Sales Trends
- 8. Examples of What to Measure for Telcos CRM In a CLEC with the following data what changes would you make to achieve a business plan that required Sales of 20,000 new lines? Year Lines Contracts Contracts/ Lines/ Month Contract 1 12,188 2,857 238.1 4,27 2 11,363 2,999 249.9 3,78 3 9,167 3,428 285.7 2,67 4 9,856 4,050 337 2,53
- 9. How to Use CRM Information to Decide What is a VIP Account Revenue/Profit Potential Revenue/Profit Quantity and Types of Services Company Name Fortune 500? Perspective of Additional Future Business Business Type Politically Sensitive Customer Government Companies in Common Shareholding Structure
- 10. Segmentation by Customer Revenue 80/20 Rule Few Customers Give Lots of Revenue VIP $ But is This Enough? $ Ordinary
- 11. Segmentation by Customer Profitability 1 VIP Maintain 100 2 VIP Develop Monthly Revenue 80 60 3 Serve via Call 40 Center 20 4 Serve via IVR 0 5 Hope they ARPU 1 2 3 4 5 Leave!!!! Customer Type Cost to Serve
- 12. Analysis of Effective Loading of VIP Account Management Personnel How Much Revenue is Being Protected by Your Account Management Team? Measure Revenue Monthly and Compare How Many Accounts per Manager? There is no Right Answer However, for a CLEC, between 20 and 50 depending on types of accounts
- 13. Goal Setting for VIP Account Management Personnel Revenue Analysis of Accounts Can we get more Revenue? Do we service all their locations? Do we understand seasonal fluctuations in their usage of our services? Do we visit the customer often enough? Do we see decision makers? Are they buying from our competitors?
- 14. Analysis of Effective Loading of Customer Service Call Center Personnel Call Waiting Times Amount of Incoming Calls Amount of Incoming Letters What Does Your Escalation Reporting Look Like?
- 15. Goal Setting for Customer Service Call Center Personnel Customer Retention Number of Calls to be Handled Percentage of Accounts Retained Number of Letters to be Handled
- 16. Major Types of Customer Service Work to be Captured by Effective CRM systems 丐 丐 丕弌丕 123 丐 乂亊 仂仍-于仂 仗亳亠仄 于亠仄亠仆仆亶 于于仂亟 亳亰 仂弍仍亢亳于舒仆亳 32 丕弌丕 644 仂从舒亰 仂 亟仂仗仂仍仆亳亠仍仆 仍亞 6 舒于仂仂于亠亳从 9 仗仂仍仆仂亠 仂于仂弍仂亢亟亠仆亳亠 85 舒仆舒仍亳亳亠从亳亠 仂亠 56 弌丐 个丶 194 亳仆仂仄舒亳 于 "09" 3 于于仂亟 于 仂弍仍亢亳于舒仆亳亠 10 仂于亠 仆舒 亰舒仗仂 亠亠弌舒 18 亟仂仗.仍亳仆亳亳, 从舒仆舒仍 亳 .亟. 19 仗亳仄仂 仆舒 亰亠仍 23 亟仂仗仂仍仆亳亠仍仆亠 仍亞亳 4 仗仍舒亠亢仆仂亠 仗仂亠仆亳亠 66 亰舒仄亠仆舒 2 亠从于亳亰亳 38 从舒舒 于磶亳 51 亟亞仂亠 46 丐 58 仗亠亠于仂亟 仆舒 亟亞亳亠 仍亞亳 2 从舒亠于仂 仗亠亟仂舒于仍磳仄 仍亞 24 仗亠亠仆仂 26 从仂仄仄亠亠从亳亠 仍仂于亳 3 仗亠亠仂仂仄仍亠仆亳亠 153 仗仂仆亠 亰于仂仆从亳 14 仗亠亠仗仂亞舒仄仄亳仂于舒仆亳亠 PBX 2 亠舒/仗仍舒亠亢亳 16 亟亞仂亠 1 舒仆亳仂仆仆亠 仍亞亳 169 豫丼弌 丕丐乘 60 舒亳仆亶 仗仍舒仆 77 舒从 1 亟亞仂亠 64 亞舒舒仆亳亶仆仂亠 仗亳仄仂 7 弌乘 个丶 0 亟仂亞仂于仂 舒亠仆亟 1 亟仂亞仂于仂, 仗亠亳亳从舒亳, 亟仂仗.仂亞仍舒亠仆亳亠 49 仗仍舒亠亢亳 2 丐 1079
- 17. Major Types of Customer Service Work to be Captured by Effective CRM systems Orders, Refusals from Service, Information, Claims, Legal Documents
- 18. Why is Measurement so Important for Effective CRM? Conclusions If you do not measure it, then you cannot manage it! Remember - CRM Systems are only Tools and like any tools they rely upon the intelligence of their user However - CRM Systems are powerful tools, used well, can provide timely insight into your business
- 19. Why is Measurement so Important for Effective CRM? ANSWER: BECAUSE YOUR BOSSES MEASURE YOU!!!! THINK ABOUT IT!!!
Editor's Notes
- #9: Assuming the run rate stays the same, the amount of contracts per month would have to be doubled.