Module Three
Any organization can become more customer focused.
It’s just harder sometimes…
Product-centric P&L/Decision Channel-centric P&L/Decision Segment-centric P&L/Decision
True competitive
advantage will go to
The scope for connected CRM is broad and spans
multiple function… Many groups need to be aligned
Information Insights Interaction Measurement Optimization Agility
Strategy
Value Segmentation Measurement Execution
Analytics Integration Organization
Success drivers
Data Governance
Culture and People Change Management
Defined Project Objectives
Multi-phased Execution Roadmap
Program Governance
Business Process Change
How Top-performers Achieve Break-away Change
Executive Governance
Example Retail Bank Team
• Head of Consumer Banking
• Corporate Marketing
• Database Marketing
• Customer Insight and Analytics
• Branch (sales) and Branch Support
• Contact Center
• eBusiness
• Technology
Objectives
• Be champions for lasting change
• Align enterprise to common vision
• Apply value-lens in prioritizing
alternatives
• Integrate initiatives across groups
• Ultimately, track business results
and impact
Driving lasting change
Executive leadership and governance team
Champions – Vision – Value – Integration – Business Results
Customer engagement vision
1
CRM capability gap assessment
2
Technology assessment
3
CRM
blueprint &
roadmap
4
New and
revised
transformationinitiatives
Culture and People Change Management Data and Technology Business Process Change Organizational Realignment
• End-state vision for the infrastructure and operating model for a customer interaction ecosystem that executes the CRM vision
• Integrated view of initiatives phasing based on priorities, business impact, dependencies, feasibility, resources and deployment timing
Driving lasting change
Customer Engagement Vision
CRM Capability Gap Assessment
Technology Assessment
CRM Blueprint and Roadmap
• Identify critical interaction points, and“moments of truth”
• Define desired end state for media and channel interaction
• Illustrate current and future state customer journeys across media and channel
• Baseline current capability across six Connected CRM Capabilities
• Define capability requirement to support Customer Engagement Vision
• Define capability gaps relative to targets state and gain alignment
• Separate track reflects scope and complexity of the technology component
• Define technology environment required address defined capability gaps
• Create logical end-state solution architecture, project inventory and phasing
1
2
3
Driving Change at a
Global Entertainment
12
24
9
11
6
-1
5
5
Casinos
Big Box Retailers
Online Retailers
Grocers
11
22
10
12
3
-15
2
1
Revenue
EBITDA
Percent, 10 year CAGR (1999-2009)
Connected CRM drives massive shifts in operating
and organization models
From
Campaign management
Brand management
“Near time”
Periodic measurement
Model and execute
Organizational silos
Partitioned incentives
To
Interaction management
Brand activation
Real time
Optimization
“Always on” personalization
Agile collaboration
About the company and their situation
Large media and
entertainment company
US-based company with a global presence
Goals
•
Aggressive growth targets
•
Leverage products across the
enterprise and customer base
The company sought to be more customer-centric across
a siloed organization
Transform
Traditional product
and business unit
siloed orientation
From State
To State
The company and the transformation project had many
obstacles and challenges to overcome
Operational Challenges
Initiative Challenges
Integrated customer centric view
and traditional brand planning
approach needed to co-exist
Traditional budgeting and
planning processes didn’t support
customer centricity
Large product offering and price point
and complicated sales processes and
distribution channels
Quick execution needed despite
massive organization
Comprehensive time and cost
predictions were needed, but
difficult to obtain
Resistance to change and “not
invented here”
Balancing adoption of changes within
the initiative was challenging for the
transformation team.
The new operating model required new
organization structures and differently
Plan of attack
Multi-year transformation initiative
Cross-functional
senior governance
and leadership team
Stepwise and
comprehensive
roadmap
Pilot and program
launch plan tied
Customer stewardship and governance was as important
as new customer-centric organization and capabilities
Integrated customer views and data
Integrated campaigns and triggers
Marketing ops capabilities (call center and web)
Highly integrated system design
Cross-departmental budgeting and finance
Governance
model
Master vision and plan
Team design
New customer centric capabilities and programs were
the outcome
Customer insights and data drive increase timing and efficiency of broader media spend
Call center and web automation capabilities gather and utilize customer preferences, product needs, offer based sales processes
Highly personalized on-boarding and trigger programs for new and existing customers match complex brand and product messages to customer needs and preferences – decrease cancellations, increase average buy rates
Highly integrated system design is focused around the customer
Current and future channels and systems can plug into the new environment
Customer insights guide media spend Call center and web
automation
Personalized onboarding and trigger
programs
Highly integrated system
Aligning leadership and organization required a
comprehensive change management approach
Outcomes: Measureable results
Material Increase
in annual revenue contribution fromtransformation initiative
40 – 55% increase
in contribution over global controlROI of 7:1
Financial impacts
came fast
18-24 months
to reach major milestone goals
