Anzeige

CRMSession 2 - Customer Focused Organisations

Assistant Professor - Retail, Welingkar Institute of Management Development & Research (WeSchool), Pursuing PhD um Welingkar Institute of Management Development & Research (WeSchool)
12. Oct 2017
Anzeige

Más contenido relacionado

Similar a CRMSession 2 - Customer Focused Organisations(20)

Anzeige

Más de Welingkar Institute of Management Development & Research (WeSchool)(18)

Anzeige

CRMSession 2 - Customer Focused Organisations

  1. GOALS OF CUSTOMER FOCUS: End goal of customer focused strategies is the same: Boosting retention and repurchase = more sales!!! Creating Better Products or Services Offering compelling customer experience Building deeper customer relationships
  2. BUSINESS PERFORMANCE FACTORS CONTRIBUTION TO SHAREHOLDER VALUE 86% 83% 75% 71% 62% 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Product/Service Quality Customer Sat. & Loyalty Operating Efficiency Financial Results Innovation Employee Satisfaction Source: Price Waterhouse Coopers, 2015
  3. Knowing what drives customer loyalty is important to your company’s financial health Repeat customers and new customers from referrals  continuous revenue streams Disloyal customers are expensive to replace Attracting NEW customer is 4 x cost of retaining existing customer 5% increase in customer retention  75% in aggregate lifetime profits from that customer CUSTOMER SATISFACTION = PROFITS
  4. 3% 5% 9% 14% 69% No reason Other Suppliers Competitors Product Dissat. Attitude of owner, manager or employee WHY CUSTOMER SATISFACTION IS IMPORTANT? Study by Le Beouf: “the reasons why customers no longer dealt with a particular supplier”
  5. A customer relationship program
  6. IT STARTS WITH A SERVICE VISION WHAT DOES A SERVICE VISION DO?  It communicates your precise customer focus  It identifies how you will be unique and distinguished in the eyes of customers  It provides a tool for aligning energy and effort so customers enjoy consistency and reliability  It serves as a grounding for service standards, measures, and practices
  7. MARRIOTT LODGING We will fulfill the obvious and subtle work, travel and leisure needs of our guests away from home by consistently providing a place they find comfortable, amenities they find valuable, and an experience they find positive and memorable.
  8. VICTORIA’S SECRET CATALOGUE VICTORIA’S SECRET STORES Relationships with our clients are intimate, loyal and respectful. We will always provide a pampering and indulgent shopping experience that is absolutely dedicated to legendary client service, urgency, passion and results.
  9. THE RITZ-CARLTON CREDO “WE ARE LADIES AND GENTLEMEN SERVING LADIES AND GENTLEMEN” WE PLEDGE TO PROVIDE THE FINEST PERSONAL SERVICE AND FACILITIES FOR OUR GUESTS WHO WILL ALWAYS ENJOY A WARM, RELAXED YET REFINED AMBIENCE. THE RITZ-CARLTON EXPERIENCE ENLIVENS THE SENSES, INSTILLS WELL-BEING AND FULFILLS EVEN THE UNEXPRESSED WISHES AND NEEDS OF OUR GUESTS.
  10. CUSTOMER FOCUS INITIATIVE CAUTIONS AND WARNINGS ABOUT TODAY  Defend rather than try to learn; blame rather than seek to understand  Work the example and miss the point  Attempt to fix what’s bad without using or supporting what’s good  Think you have no stake, no
  11. CUSTOMER FOCUS INITIATIVE WARNINGS ABOUT SERVICE CULTURE CHANGE  It takes more time than you think  It also takes much longer than you think  It is never orderly and precise  It will involve every senior leader in ways that can be awkward
  12. CUSTOMER FOCUS INITIATIVE WARNINGS ABOUT CULTURE CHANGE  It will have failures and successes  Service quality may get worse before it gets better  Some associates will never “get it” and will likely work against it  Each culture change effort is custom; and, there is no precise blueprint
  13. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES IF YOU STUDIED THE COMPANIES THAT THEIR CUSTOMERS’ TODAY SAY ARE CONSISTENTLY CUSTOMER-CENTRIC, WHAT WOULD YOU FIND?
  14. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES  Their motivation for a strong and enduring customer focus comes from more than simply an economic, financial or marketplace advantage  They have a clear service vision that permeates the organization and is used as a touchstone for all plans and practices
  15. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES  They craft a distinctive “brandable” customer experience that flows out of their vision/values and is in sync with their total offering (across all customer touch points)  They create customer metrics (including report cards) that reflect their customers’ definition of service excellence
  16. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES  They use broad based employee participation and over communication as key tools to learn, early warn, improve, and implement as well as foster employee buy-in  They have selection, orientation and training processes that reflect a strong customer focus
  17. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES  Leadership demonstrates that a customer focus is crucial to the success of the organization  Customer metrics are integrated into performance management, leadership accountabilities and incentives.
  18. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES  They thrive on continuous customer feedback and customer intelligence used to drive continuous improvement throughout the organization  They have clear service standards throughout the organization designed to promote consistency among internal partnerships and excellence in internal service
  19. CUSTOMER FOCUS INITIATIVE CHARACTERISTICS OF CUSTOMER FOCUS CULTURES  They use well-practiced service recovery for customer intelligence and process improvement, not just for damage control at the front line  Front line employees are empowered to solve most customer issues and are frequently affirmed for their service excellence
  20. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  A rough “back of the envelope” framework without timelines  An approximation, based on experience of others  A starting place based on your goals and the initial assessment  A tool for discussion, exploration and alteration
  21. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE FOCUS Grounding Direction ASSESS Learning Knowledge REPAIR Improving Quality REFINE Discovering Invention
  22. Customer Focus InitiativeCustomer Focus Initiative Creating a Customer Focus CultureCreating a Customer Focus Culture
  23. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Conduct Customer, Culture and Employee Research  Craft and Communicate Customer Focus Strategy and Vision  Gain Employee Understanding of and Commitment to Vision  Identify/Eliminate/Incapacitate Barriers to Strategy and Vision FOCUS Grounding Direction
  24. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Develop Customer Focus Accountability Methods for Leadership  Insure Selection, Orientation and Training Support Vision  Begin Service Quality Peer Review Process for Partnering  Begin Customer Service Standards Development System wide FOCUS Grounding Direction
  25. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Elevate customer report card to “driver” status  Use service recovery tools for customer intelligence  Craft/communicate/use real-time feedback tools system wide  Intensify senior leadership’s live assessment of customer focus ASSESS Learning Knowledge
  26. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Craft leadership process for reviewing & using customer intelligence/feedback  Begin system wide cycles of service training and develop processes for inter- unit review/improvement  Begin focus on affirmation methods  Implement performance management & compensation systems to reflect a customer focus ASSESS Learning Knowledge
  27. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Intensify focus and train organization on service recovery  Develop tools and guidelines for responsible freedom (empowerment)  Formalize service improvement process  Design a system wide renewal effort to deal with “the wall” REPAIR Improving Quality
  28. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Develop processes for complaint analysis/breakdown trends  Revamp customer intelligence communication systems for early warning and rapid repair  Institute training on quality tools and methods to eliminate negative variances  Improve inter-unit interfaces REPAIR Improving Quality
  29. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Develop ways to surface, reward and recognize innovation  Create a cadre of rotating, internal service quality consultants  Include residents in service reinvention process  Train leaders in leading a creative work environment REFINE Discovering Invention
  30. CUSTOMER FOCUS INITIATIVE CREATING A CUSTOMER FOCUS CULTURE  Develop ways to expand community connections  Create service standards for vendors and suppliers  Institute training in lean thinking to eliminate unnecessary waste  Begin using customer focus as a part of marketing/advertising REFINE Discovering Invention
  31. Customer RelationshipCustomer Relationship Success is aSuccess is a Journey, Not a DestinationJourney, Not a Destination
  32. S = average revenue per customer sale C = costs of servicing customer V = expected # sales per year Y = expected # years customer will use your services A = cost of acquiring new customer N = # of referrals from customer F = correction factor Lifetime Value of Customer (CLV) = [(S-C)*(V*Y)-A+ (A*N)]*F OR Margin * # sales – cost of acquisition + savings from referrals * correction factor WHAT ARE YOUR CUSTOMERS WORTH? Customer Lifetime Value = CLV
  33. S = average revenue per customer per sale C = costs of servicing customer V = expected # sales per year Y = expected # years customer will use your services A = cost of acquiring new customer N = # of referrals from customer F = correction factor S = 20,000 C = 5,000 V = 2 Y = 5 A = 1500 N = 4 F = 1.2 CLV = [(20000 - 5000)*(2*5) – 1500 + (1500*4)]*1.2 CLV = 185,400 WHAT ARE YOUR CUSTOMERS WORTH? Customer Lifetime Value = CLV
Anzeige