QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
Reaptransform
1. retention . efficiency . acquisition . penetration
Successful CRM
From the outside in and inside out
2. 2
About REAP Consulting
Our primary purpose is to increase your business performance CRM
methodologies that work. We have 20 years‟ know-how to help Ahmed Seddiqi
identify, plan and implement improvements to create and accelerate your CRM
capability, delivering financial bottom line improvement.
We offer unparalled access to CRM I.P. developed by us and our best of breed global
consulting partners, providing you with access to thought leadership and cutting edge
solutions
Our people are highly experienced and have blue chip backgrounds with both
industry and consulting firms
Put simply we are in business to enhance yours….
5. 5
CRM Projects are still littered with failure
• “66% of all CRM projects fail”
- KPMG
• “80% of all CRM initiatives fail, less than 1% achieve predicted
benefits”
- Gartner Group
• “20% of CRM systems purchased in the last two years have never
been installed; 30% have gone no further than the first stage of
deployment a year after acquisition”
- Yankee Group
• Whichever statistics you go with, CRM still does not have a good
track record
After nearly 20 years does this
make sense?
6. 6
Why is CRM so difficult?
• No commitment from Senior Executives
• Lack of CRM understanding among employees
• Lack of CRM training and skills development
• Flawed execution
• Non-alignment of internal processes
• Non-integration of communication channels
• Inconsistent data quality
• Projects often I.T. led/technology driven
• No assessment of organizational requirements and capabilities
We typically see:
7. 7
What‟s wrong with the typical approach to CRM ?
Typical current approach
Focus Capability building:
Technology | processes
Techniques | skills
Mindset What do I need to
implement to be „Good at
CRM‟?
Underlying
Beliefs
Put lots of CRM „stuff‟ in
place, and the value will fall
out
Being good at CRM will
lead to financial impact
8. 8
What‟s wrong with the typical approach to CRM ?
Typical current approach REAP CRM Value based
approach
Focus Capability building:
Technology | processes
Techniques | skills
Sources of value and what we
have to do to realize them
Mindset What do I need to
implement to be „Good at
CRM‟?
How can we use CRM best
practice to improve our bottom
line?
Underlying
Beliefs
Put lots of CRM „stuff‟ in
place, and the value will fall
out
Being good at CRM will
lead to financial impact
CRM is a business model that
focuses on financial returns – not
warm, fuzzy measures
Focus on financial impact will
produce financial impact – begin
with the end in mind
9. 9
This is absolutely key
“There is only one profit centre and that is the customer.”
“The purpose of a business is to create and keep a customer”
AND
10. 10
CRM Definitions
“The key is to identify and attract those customers who will
value your products or service and then retain them as a
customer and win the largest possible share of their lifetime
business.” – Sir Colin Marshall, Ex Chairman, British Airways
The Business View
11. 11
The 4 Customer and
Business Levers that are
at the core of our approach
to delivering Customer
Value
The 4 Customer Levers
12. 12
We focus on creating…
Value
• Externally from Customers and
their interactions, delivered via
designed experiences
• Internally from optimized
processes with near zero defects
• Internally from engaged, aligned
employees
• Internally from management &
innovation
13. 13
Acquire new and more profitable customers
Increase revenue and profitablity from existing customers
Increase customer loyalty and increase relationship durations
Increase brand value and align with customer experience
Unify customer experience across touchpoints
Match experience promised with experience received
Improve productivity and ROI in marketing, sales and service
Reduce overall costs of customer acquisition and retention
Simplify processes and technology infrastructure
Decrease time to market for new products and services
Reduce frictional costs of transactions
Reduce fulfilment errors
Return on
Customer
Relationships
($)
Investment in
Customer
Relationships
($)
Increase
Revenues
Direct
Revenue
Impact
Indirect
Revenue
Impact
Reduce
Costs
Direct Cost
Reduction
Indirect Cost
Reduction
Increase Profitability
Typical Value Approach Map
14. 14
CRM Balanced Scorecard
Value Creation
Value – Efficiency &
Effectiveness
Value – Knowledge & Knowledge
Application
Value Propositions &
Brand Equity
15. 15
Strategy Framework
Top down
Purpose – what business are you really in?
Vision – the big WHY and WHAT is to be achieved
5 year view of performance and growth
Values to be communicated
16. 16
Capabilities to be assessed
Where value is being created and lost in the
organization
Analysis & Planning
Value Propositions
Customer Activities
People & Organization
Information & Technology
Processes
KPI‟s
19. 19
Future state mapping
Current
Value State
Aligned to Capability, Utilization
and Competence feasibility
Capabilities & how well are they
utilized with current
competencies?
Roadmap with
milestones and
priorities
Future
Value State
ROI realization is an integral
part of the planning &
forecasting of the future
state + resources required
(internally & externally)
20. 20
Focus on the financial returns from CRM
CRM is a business system
Considers full 360° view
Enabling capabilities visibly linked
to financial contribution
“Line of
Sight”
21. 21
Case Study – Islamic Bank, UAE
From rigorous assessment of their Customer Engagement and CRM
capability we identified some immediate “win areas” that would provide
financial and business benefit PRIOR to installing their preferred CRM
solution
We identified revenue uplift through improving their REAP lever
performance of more than $50 million
We were able to re-segment their customer base, working closely with the
finance team that clearly showed:
Which customer relationships were profitable
The volume and value of non profitable customers
The massive potential in what had previously been described as “mass” segment
The true level of account dormancy and the impact that was having on the bank‟s
cost structures
We provided a clear roadmap to the desired future capability
Throughout the process we established our credentials to the bank in terms
of being “trusted advisors” where we were asked to input and help decide
issues over and above the original project scope.
22. 22
Our Consulting Team Brief Profiles
Michael Walters
Managing Director, REAP Consulting
• Michael commenced a career in Retail Banking that
involved working for a number of well known financial
institutions such as Royal Bank of Canada, The Mortgage
Corporation and Chase Manhattan Bank.
• From Branch Management he moved into
Marketing & Strategic Product Development both
in the UK and across Europe.
• Increasingly through the use of customer data – he
deployed direct marketing with highly successful
results.
• In the early 90‟s he moved into Consulting and began to
specialize in what became known as CRM.
• He was involved in many pioneering CRM Projects
in the UK, Europe and eventually SE Asia and the
US.
• Came to the Middle East in 1999 and worked for a
number of organizations, including Saatchi & Saatchi,
bringing his customer insight and strategic marketing skills
to many clients.
• Since 2004 he has been working consistently with clients
on CRM and formed REAP Consulting in 2009.
• Michael is frequently quoted on CRM issues across the
Region and is a frequent choice of speaker for CRM
Events.
Lakshmi Krishnakumar
Lead CRM Consultant - UAE, REAP Consulting
• Lakshmi Krishnakumar is one of the leading CRM
Strategy/ Process consultants in the region.
• In the region for over 17 years with cross-industry,
multi-market CRM experience that spans the best
CRM programs.
• Portfolio includes General Motors, Philip Morris,
Nutricia and Cartier amongst others.
• Core strength creating strategy and detailing
processes – and in overseeing a CRM project across
partners - until it reaches fruition.
• A Computer Science Engineer with a specialization in
International Business. Also certified by DMA North
America.
• Career span… Ogilvy One India, Jacobsons Direct
where she setup the CRM Consulting unit and Fulcrm
part of Arab Media Group before setting up STEROID
in 2009
• Lakshmi is also CEO of Steroid Integrated Marketing
LLC.
23. 23
Our Team Brief Profiles
Paul J Maryan
Senior Consultant
Neil Weston
Clarity Consulting and The Customer Framework
• Highly focused and experienced senior executive skilled in
managing people, mixed cultures, critical stakeholders and
key resources to achieve targeted growth in revenues, profit,
and customer retention in aggressive and highly competitive
industries.
Key Skills
• Strategy formulation around Vision and Mission.
• Business Modeling aligned to V&M and Strategy
• Financial Management and KPI Modeling around KRA‟s and
Business Model.
• Formulation of Marketing Strategies
• Modeling, Implementation/Monitoring Systems for Customer
Service Programs
• In-depth Market Analysis & Brand Awareness Programs
aimed to deliver maximum revenue opportunity in local,
regional or global markets
• Leadership Development Program strategy and
implementation
• Sales Organization Strategy creation and implementation
• Performance Management linked to SMART goals attainment
• Balanced Score Card – from intention, implementation and
monitoring
• ERP Implementation
• Change Management
• Analysis, planning and implementation of Turnaround
requirements
• Neil’s strong skills in the technology and process of
multi-channel, relationship marketing gives clients
the confidence they need to make key
improvements in their Customer ManagementHis
current interests include the evolution of digital and
social marketing and how the customer experience
will change over the coming years as mobile
technologies grow.
• Neil has more than 15 years of experience at the
sharp end of customer facing functions in both blue
chip companies like Hewlett-Packard and BT along
with a number of SMEs..
• He was previously an associate of QCi and a
licensed CMAT assessor and is passionate about
helping organisations improve their customer
facing activities and seeing the realisation that this
is a profit increasing exercise!
• Neil is a Physics graduate and has an MBA from
Warwick Business School. He is a Member of the
IDM.
25. Performance through Transformance
Some companies and individuals
are prospering like never before. To
prosper, you need Performance that
transcends the competition. You
need a combination of the latest
business practices with cutting
edge personal development. The
alchemy of Performance and
Transformation is the only way
ahead. We call this potent
combination TRANSFORMANCE.
30. Online tools to measure team
performance
We also
have other
online
diagnostics
to highlight
trust levels
within the
organization.
They
facilitate the
change
process
31. Creating New ExperiencesCreating New Experiences -- Virgin AtlanticVirgin Atlantic
• Chauffeured
delivery to
destination
• Comfortable ride
door-to-door
• Know ledgeable
local driver
• Arrival valet
• 18 show ers
• Makeup & shave
• Heated floors
• Clothes pressed
• Hot & Cold
Breakfast
• Full-sleeper seats
• Mood lighting
• Gradual daw n
• Bar
• You decide meals
• Clubhouse w ith
Internet access,
fax, library
• Salon, messages,
beauty
• Sound room,
driving range,
skiing machine
• “Drive-though”
check-in
• Airline know s w here
you are
• Transport to airport
provided
• Driver handles
luggage
Service
Solution
C u s t o m e r E x p e r i e n ce
• Traffic
• Unfamiliar place
• Unkempt
• Unshow ered
• Clothes a mess
• Planes are
uncomfortable by
nature
• Long-time spent in
a seat
• Boredom
• Want/need to w ork
• Want/need to relax
• Long, frustrating
lines
• Unnecessary
(only necessary
to the airline)
• Stressful
• Complicate
• Parking
• Lugging
Feelings
Getting to
Destination
ArrivalIn-Flight ComfortComfort until
Flight
Check-InGetting to the
airport
Moments of
Truth
We have moments of truth mapping
35. Bottom line for CRM and Intangibles
“Our clients typically see an
improvement in profit or margin
of between 10% - 30%. In other
instances we have been
measured at providing ROI
return on our fees of between
3:1 to 8:1, depending on the
client situation” - Michael
Walters, CEO
Hinweis der Redaktion
We talk about inside out and outside in – Need to take into account how you are organized internally for customer, but equally you need to represent Voice of Customer (VOC) in your planning and capabilities
Firstly we have a model that is more than 15 years old that shows all of the components that constitute good Customer Management Practice. We believe there are only 4 business levers that nay business can manipulate for results – they are Retain more profitable customers, apply appropriate costs to serve relative to customer contribution or value, acquire more profitable customers at an optimized acquisition cost and cross sell to existing customers – hence our name
We interview key stakeholders – against a structured questionnaire, but it is in a conversational style. We do however seek evidence to prove and stated claims.Understanding where value is being generated from customers is extremely important. Once we have this we can then work with a client in applying different strategies – e.g. Increase market share and model the impacts and benefits that this would have for the Business.The strategic dimensions (there are 20) are directly related to over 350 key CM practices, which are the basis for the audit and scoring part to address “where are we now” in terms of capability. The strategic dimensions are used to indicate the future state that the organization wishes to attain. We facilitate the feasibility of that change – is the client trying to be too ambitious. Finally we can work out from the desired future state what are the resources required to deliver the blue print to the future.