Discussion_Paper_SAG.ppt,Roland Berger & Partner GmbH International Management Consultants Barcelona Beijing Berlin Brussels Bucharest Budapest Buenos Aires Delhi Detroit Dsseldorf Frankfurt Hamburg Kiev Kuala Lumpur Lisbon London Madrid Milan Moscow Munich New York Paris Prague Riga Rome So Paulo Shanghai Stuttgart Tokyo Vienna Zurich,Customer Relationship Management Consulting approach Munich, June 2000,Discussion_Paper_SAG.ppt,This document was created for the exclusive use of our clients. It is not complete unless supported by the underlying detailed analyses and oral presentation. It must not be passed on to third parties except with the explicit prior consent of Roland Berger & Partners.,Content Page,A. Introduction 3 B. Project objectives and scope 12 C. Approach 16 C.1 CRM target setting 19 C.2 CRM strategy and technology concept 34 C.3 CRM implementation 74 D. References 77 E. Appendix: Supporting tools to implement CRM 81 E.1 The Internet as a supporting CRM tool 82 E.2 The call center as a supporting CRM tool 93,Discussion_Paper_SAG.ppt,A. Introduction,Discussion_Paper_SAG.ppt,The importance of an integrated Customer Care approach receives increasing awareness at top management level all over the world,Source: Forrester Research, basis: 50 Sales managers of Fortune 500 companies,“Do you have a single, integrated view of the customer today?“,“How important is a single, integrated view of the customer across your company“,Very important,Critical,Somewhat important,Not at all important,Yes,Somewhat,Not really,Not at all,Discussion_Paper_SAG.ppt,In the future, a companys value will increasingly depend on the value of its customer base,Factors influencing corporate valuation,Market value added method,Discounted cashflow method,Multiples method,Customer lifetime value method,Customer acquisi- tion cost method,Industrial society,Information society,Traditional industrial companies, e.g. manufacturing industry,Service companies, e.g. consulting firms, software companies,Internet companies,Assets,Employee base,Customer base,Source: Roland Berger & Partners,Discussion_Paper_SAG.ppt,The value of the customer base is determined by the key factors individual customer value and size of the customer base,Value of customer base corporate value,Source: Roland Berger & Partners,Discussion_Paper_SAG.ppt,The market value of the leading InfoCom companies clearly exceeds that of OEMs the customer base is the key success factor,Source: Roland Berger & Partners analysis,Overview of customer ownership and market value,Number of customers in millions (12/99) Market value in DM billions (12/99),DM 1,000/ customer,DM 1,100/ customer,DM 1,700/ customer,DM 4,700/ customer,DM 16,300/ customer,DM 10,700/ customer,DM 18,800/ customer,DM 4,500/ customer,DM 2,800/ customer,Points of customer contact,Shopping TV/media Telephone/mobile,Banking Sport Car,Discussion_Paper_SAG.ppt,Managing the customer relationship is a key lever to increase shareholder value,Market and customer value,Example,Managing the customer relationship,Market value (bn Euro),Customer Value (Euro),Today,0.4,12/99,1.000 (Current),0.6,3.6,Potential,Future,1.500 (Microsoft) - 9.000 (AOL),Calculation basis: 400.000 customers,Source: Roland Berger & Partners,Discussion_Paper_SAG.ppt,CRM is a strategy designed to increase individual customer value by establishing a long-term and systematic customer relationship,Learning relationship,Generating/ recording customer data,Ongoing customer relationship,2,3,4,1,Identification,Information analysis Customer profiles,Forecasting buying behavior Monitoring success,Initial contact with customer,0,Developing customer benefits, e.g. Value-added services Customized offers,Increased customer retention Wider range of services Higher efficiency in contacting customers,Source: Roland Berger & Partners,Discussion_Paper_SAG.ppt,The knowledge cycle“ is the key to successful CRM when dealing with customers,Actions to support network effects,Source: Hagel/Armstrong; Roland Berger & Partners,Community-generated content,Online discussions for members Create profiles,Partnerships with other organisations,Cross advertising Partnerships with road side assistance,Creation of a market place/auction,Shopping malls Partnership with auction provider,Questionaires on the net,Experience with a product Customer history/profile,Need to log-in for each member,For newsletters For membership,Continous report of individual information,Monitoring of web-usage (focus of interest),Promotions of member- to-member interaction,Personalized e-mail system for members Personal web page,Customized interaction,Service reminders,Conserving relationships,Product updates Archive of chat contributions Bonus programmes (e.g. web miles based on after sales frequency),Increased content attractivity,Better knowledge about the client,Higher loyalty,Examp