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Customer management maturity
1.
Customer Management Maturity
1 Commercial In Confidence © Bsquared Consulting 2013
2.
Customer management maturity
The level of maturity a company demonstrates in its approach to its customer relationships Why is this important? Gartner 2010 Forrester 2012 “Enterprises that deploy “Customer experience is customer management probably the greatest untapped strategies would return at least source of profits in business 25% better financial metrics than today” those that didn’t” 2 Commercial In Confidence © Bsquared Consulting 2013
3.
Customer management maturity Companies
with a mature approach to their customer relationships ■ Outdistance competitors through a more intimate knowledge of their customers ■ Quickly identify new business opportunities and improve the probability of winning ■ Reduce costs through building customer confidence, loyalty and improved customer retention ■ Use customer data to drive changes in processes, products and services Characteristics of a Mature Organisation ■ A CEO who is visionary in the business’ approach to managing customers ■ Involvement at all levels of the business in customer management activities ■ Accountability for change to ensure that change happens ■ Visibility and tracking of actions to drive change ■ Functions working together with common rather than conflicting agendas ■ Knowledge gained from customers is mined for maximum advantage 3 Commercial In Confidence © Bsquared Consulting 2013
4.
Customer management maturity
This will provide a measure to understand: ■ Areas of potential strength in the organisation ■ Opportunities for improvement and action ■ Where best to invest resource ■ Components of a successful Customer Management Strategy ■ Insights into best practice of successful organisations 4 Commercial In Confidence © Bsquared Consulting 2013
5.
Customer management maturity
Why build a model? ■ Subject area poorly defined ■ Plenty of anecdotal evidence but little empirical data ■ Establish a tool to support benchmarking ■ Platform for organisations to assess progress over time Research conducted during 2011 and 2012 ■ European and US based organisations ■ Business-to-business ■ Range of sectors ■ Senior level personnel – face-to-face and on-line 5 Commercial In Confidence © Bsquared Consulting 2013
6.
Bsquared maturity model
Tangible results 5 Competitive and Relationship Impact Organisational Infrastructure collaboration processes Integrated Supporting pillars 2 3 4 1 Executive Commitment and Vision Foundation 6 Commercial In Confidence © Bsquared Consulting 2013
7.
Bsquared maturity model
1 Executive Commitment and Vision The extent to which senior executives express a desire and passion for building, growing, and sustaining key customer relationships 2 Infrastructure Describes the systems and technology that exist to collect, analyse and report on information that helps the company understand the way in which the customer views the organisation and to guide key decisions 3 Integrated Processes The degree to, and manner in which, customer data and knowledge is used in other business processes across the organisation 4 Organisational Collaboration The degree to which employees embrace the philosophy of customer-centricity and put the needs of customers ahead of the needs of internal groups or functions 5 Competitive and Relationship Impact The ability to measure and manage changes in your organisation’s competitive position and customer relationships 7 Commercial In Confidence © Bsquared Consulting 2013
8.
Customer management maturity
Findings from pilot study ■ Only 8% of companies were executing consistently across all five key areas ■ Less than half had a clearly articulated and visible customer management strategy ■ Areas of weakness identified were: – Building the infrastructure required to support customer initiatives – Getting internal functions to work together to use information gathered to make improvements – Acting on the intelligence gathered to drive change in the organisation – Realising the full potential of the knowledge gained from customers 8 Commercial In Confidence © Bsquared Consulting 2013
9.
Customer management maturity
Mature Optimising Active Establishing / in progress Investigating Zero 9 Commercial In Confidence © Bsquared Consulting 2013
10.
Bsquared maturity model
Description of categories Zero Investigating Establishing / in progress Customer relationship management Describes an organisation that Describes an organisation that can is undeveloped at the moment and recognises the need for more demonstrate a basic set of not seen as an immediate priority focused customer relationship customer management processes management practices. It is likely to and initiatives, but often have begun work on individual disconnected and without a defined initiatives that are limited in scope strategy and visibility Active Optimising Mature Organisations at this level generally The organisation has not only The organisation has a clearly have established customer developed a customer management articulated, established, and management strategies, are building strategy but has also integrated it dynamic customer management capabilities and launching initiatives, into the business. Focus is on strategy. The company is using and may have implemented leveraging strengths and customer data to drive internal customer management systems continuous improvement. changes, manage relationships, and derive real value 10 Commercial In Confidence © Bsquared Consulting 2013
11.
Customer management maturity Programme
results Executive Commitment and Vision 5 Programme average Your current performance 4 Programme best practice 3 Competitive and 2 Infrastructure Relationship Impact 1 0 Organisational Integrated Collaboration Processes Needs work Improving Best practice 11 Commercial In Confidence © Bsquared Consulting 2013