linked objectives: CRM and e-crm as part of the information network

(1)

CRM and e-CRM as part of the information network

SeUGI 19

Florence

(2)

outline

Landesbank Baden-Württemberg

Reasons for the (e-)CRM approach

Customer Loop

Information networking

(3)

Landesbank Baden

Landesbank Baden----Württemberg

Württemberg

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(4)

o r i g i n

Landes

girokasse

Marktteil

L-Bank

Südwestdeutsche

Landesbank

Landesbank Baden

Landesbank Baden----Württemberg

Württemberg

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(5)

Branch offices

Centers

Centers in:

Amsterdam,

Barcelona, Beijing,

Budapest, Hanoi,

Hong Kong, London,

Luxemburg, Mailand,

Mumbai, New York,

Paris, Prag, São Paulo,

Shanghai, Singapur,

Warschau, Wien, Zürich

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(6)

Landesbank Baden

Landesbank Baden----Württemberg

Württemberg

balance sheet total 290 Billion Euro

over 9900 employees

over 240 branches

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(7)

What was our motivation

to commence the

(8)

Competitive pressure in banking industry is

increasing worldwide

Vital factors to stay competitive are:

Customer proximity

Flexibility and quick response

(time to market)

Starting point

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(9)

The clock is ticking – the customer life cycle:

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

Benefit

Non

Non –

–

customer

wavering

customer

canvassing

new customer

winning

back

customer

retention

prospective

customer

w i n n i n g

n e

w

c u s t

o m e r

c u s t o

m

e r

l o y a l t y

cross

-

selling

complaint

management

customer

segmentation

attracting

new customer

(10)

The strategic objectives are imperative!

achieve

cutting edge

over competitors

improve

competitiveness

easier to qualify and utilize

customer potential

• long term securing of profit

• stabilize market position

• competitive edge

effect

Support

function

importance

time

cost reduction

increase

efficiency

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(11)

product

product----driven approach

driven approach

# of customers

# of satis

fied

cu

stomer

needs

?

Marketing

Credit facilities

savings book

Investment funds

stocks

life insurance

credit card

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(12)

Customer

Customer----driven approach

driven approach

Credit facilities

savings book

Investment funds

stocks

life insurance

credit card

One-to-One Marketing

# of customers

# of satis

fied

cu

stomer

needs

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(13)

How

did we implement our

CRM-strategy?

(14)

Meta

dat

en

Meta

dat

en

A AA A BBBB C CC C D DD D Ziel-formulierung Ziel-formulierung Ziel- Operationali-sierung Daten-Audit Methoden-wahl Flatfile-Erstellung Daten- trans-formation Entwicklung ökonomische Validierung Implemen-tierung & Roll-Out Feedbac k & Controll ing Szenario Szenario Performancefaktoren/ Performancefaktoren/ Leistungstreiber Leistungstreiber Repräsentativer Repräsentativer Datenausschnitt Datenausschnitt Data Data--MiningMining--ModellModell

Aggregationen Aggregationen Modellspezifische Modellspezifische Datenanpassung Datenanpassung Neuronale Netze Neuronale Netze CHAID CHAID Regression Regression Simulation Simulation Prozeßintegration Prozeßintegration Motivation Motivation Lernkurven Lernkurven--EffekteEffekte

TK

TK----Anlagen

Anlagen

Voice

Mail

ACD

CTI

CTI----Server

Server

CRM

CRM----zentrale zentralezentrale zentralezentrale zentralezentrale zentrale Front Front Front Front Front Front Front Front---OfficeOfficeOfficeOfficeOfficeOfficeOfficeOffice

DB DB DB DB DB DB DB DB

Data

Information

Event

Customer

DB

----

----Konzept Konzept Konzept KonzeptBriefingBriefingBriefingBriefing

Datenhandling DatenhandlingDatenhandling Datenhandling Daten Daten Daten Daten ----selekt selekt selekt selekt on on on on Qualitäts Qualitäts Qualitäts Qualitäts----sicherung sicherung sicherung sicherung Data Mining Data MiningData Mining Data Mining Vertriebs VertriebsVertriebs Vertriebs----info infoinfo

info „Lettershop“/ Versand/ Versand/ Versand/ VersandLettershop“Lettershop“Lettershop“aufnahmeaufnahmeaufnahmeResponse----aufnahmeResponseResponseResponseKampagnenKampagnenKampagnenKampagnen----controllingcontrollingcontrollingcontrolling Parallel

ParallelParallel Parallel EntwurfEntwurfEntwurfEntwurf

Agentur AgenturAgentur

AgenturAbstimmungAbstimmungAbstimmungAbstimmungAuftraggeberAuftraggeberAuftraggeberAuftraggeberProduktionProduktionProduktionProduktion

Data Warehouse

Data Mining

Data Mining / Reporting

/ Reporting

Campaign

Campaign----Mgt

Mgt

Mgt....

Distribution

Distribution channel

channel

Response

Customer Loop

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(15)

Line of

business

Metadata

accounts

Customer

DB

Controlling

Marketing

Enterprise

WH

Operational

Data

Riskmanag.

Controlling

Data

Marts

Decision

Process management

Infrastructure

Data

Mining

OLAP

Analysis

MVS

UNIX

Server

Fat-Client

Mailing

EWH-Administrator

Query

Reports

FD 3/99

credit

Directbanking

Compliance

Riskmgt.

Marketing

Camp.-Mgt.

Events

1 - n

Direct-banking

Compliance

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(16)

How the quality rule system works

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

Benefit

Line of

business

accounts

Customer

DB

Controlling

Marketing

Enterprise

WH

Operational

Data

credit

Directbanking

Compliance

Riskmgt.

Quality-layer

rule engine

Quality Manager

protocol DB

(17)

Meta

dat

en

Meta

dat

en

TK

TK----Anlagen

Anlagen

Voice

Mail

ACD

CTI

CTI----Server

Server

CRM

Data

Information

Event

Customer

DB

----

Data Warehouse

Data Mining

Data Mining / Reporting

/ Reporting

Campaign

Campaign----Mgt

Mgt

Mgt....

Distribution

Distribution channel

channel

Response

Customer Loop

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(18)

Offline

Online

WWW

Application

Server

Rule Engine

Trackingdata /

Web Logs

Enterprise

Data Warehouse

Click Stream

Data Mart

Individualized

Mining Modell

rules

Web Mining

Rule export

The Web-Mining-Loop

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(19)

Meta

dat

en

Meta

dat

en

TK

TK----Anlagen

Anlagen

Voice

Mail

ACD

CTI

CTI----Server

Server

CRM

Data

Information

Event

Customer

DB

----

Data Warehouse

Data Mining

Data Mining / Reporting

/ Reporting

Campaign

Campaign----Mgt

Mgt

Mgt....

Distribution

Distribution channel

channel

Response

Customer Loop

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(20)

Branch workstation

Selfservice

Mobile

Call Center

„the right product, at the right time for the right customer“

Æ

Channel-distribution at customers discretion

Web

Banking

Event

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

Benefit

„Knowledge“

campaign –

management –

system

R u l e s

(21)

Meta

dat

en

Meta

dat

en

TK

TK----Anlagen

Anlagen

Voice

Mail

ACD

CTI

CTI----Server

Server

CRM

Data

Information

Event

Customer

DB

----

Data Warehouse

Data Mining

Data Mining / Reporting

/ Reporting

Campaign

Campaign----Mgt

Mgt

Mgt....

Distribution

Distribution channel

channel

Response

Customer Loop

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(22)

Presentation layer (Customer Interface)

user interface for branch

consultant

User interface for cc-agent

user interface for

online channels

scheduling of

activities

Input / Output

customer information

contact management

Initiative

Advisory

_service

Offer

Contract

Function layer (customer process)

Datamining

Individualization

Data layer (customer management)

Operative Systeme (OAS)

METADATEN

Enterprise

Enterprise Data Warehouse

Data Warehouse

Quality management

Campaign-Mgt.

Multi tier architecture

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(23)

CRM has to be connected

to other information sources

(24)

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

Benefit

Marketing

Personnel

Procurement

Competitor

Supplier

Controlling

It‘s not just CRM

Supplier

(25)

• The future is and automatized

integration of comprehensive

information.

• intercompany business relations

require integration of external events

• Synchronization of IT-Systems is

imperative to implement value chains

between or within companies

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(26)

completeness

scope

EII

Enterprise Information

Integration

connecting information

within companies

EAI

Enterprise Application

Integration

connecting applications

within companies

IEII

Inter Enterprise Information

Integration

connecting information

wordwide and between companies

IEAI

Inter Enterprise Application

Integration

connecting applications

between companies

The future of Information Networking

“IEII“ – Inter Enterprise Information Integration

(e-) procurement

Multi tier

architecture

Data Enterprise Trust

W a r e h o u s e

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(27)

• c r e a t e

c r e a t e

c r e a t e an Information engine

c r e a t e

– build a warehouse with verified data

– generate Information

– transform information into rules

– automatize the usage of the rules on a rule

system

• p u s h

p u s h

p u s h the information to the „point

p u s h

of sale“ (deliver information)

• l e a r n

l e a r n

l e a r n from the response

l e a r n

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

(28)

Who benefits

(29)

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

Benefit

Benefits of Information Networking

a

From the customer‘s point of view:

•customized configuration of the communication

platform (Internet-Banking, desktop, etc.)

•Besides access to the whole range of

information offered, customized information

will be delivered suited to his/her needs.

•The customer perceives that he/she gets

personal advice

(30)

outline

LBBW

Reasons for the

(e-) CRM approach

Customer loop

Information

networking

Benefit

Benefits of Information Networking

a

_{From the bank‘s point of view:}

•C u s t o m e r l o y a l t y, i. e. to reduce the

customer attrition due to individualization and

significantly improved service levels

•The individualized selection of products increases

profit (efficiency) and reduces costs

•Quick response to market and to customer needs

(time to market)

One of the

SAS Professional Services

‘Papers of Interest’

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