CRM part 1

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2012 Carl-Johan Rosenbrijer

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CRM part 1

Dr.Sc. (Econ.) Carl-Johan Rosenbrijer

Department of Economy, Media and Engineering

ARBIT Applied Research in Business an IT

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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Customer Relationship Management: 30.8-

1.9.2012

What is marketing

Introduction to CRM - development of marketing

Business and CRM strategy

The nature and complexity of customer relationships

The network approach

Group assignment part 1

Customer loyalty

Customer value and the value creation process


Future of CRM

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Strategic dimensions to CRM

Business vs. CRM strategy

Business relationship strategy

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Strategy and organisational issues

Individual attitudes affect ability and willingness to

change and adapt

Thoughts

Feeling

Activity

Vision

Passion

Action

Adapted from: Karlf (1987)

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What is strategic leadership?

An ability to see the totality (holistically) - complexity

An ability to identify the need for change turning

points An ability to create a strategy for change

An ability to know and use tools for the change process

An ability to firmly and consistently lead the change

process

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Customers

business strategy:

Vision

Mission

Objectives

Our

business strategy:

VisionMission

Objectives

Transaction based non transparent

relationship

Customers

business strategy:

Vision

Mission

Objectives

Our

business strategy:

VisionMission

Objectives

&Co-operation

based

transparent

relationship&

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Customers

position now

Suppliers

position now

Sub-suppliers

position now

Customer

Supplier

Sub-

supplier

Obstacles

Obstacles

Obstacles

Customer

Vision

Supplier

Vision

Sub-supplier

Vision

The resource base!

Value creation!

The obstacle removal business

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M & A operationsIndustry consolidation

Organic growth

Acquiring and exitingcustomer relationships

Gain, develop and keep

customer relationships

Turnover growth

Business Strategy CRM Strategy

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Business and CRM strategyProfitability growth


Increase revenue

Cut costs

Out-sourcing

Shareholder value

Offering development,

cross-sell and up-sell

Partnerships

Customer relationship profitability

Exiting relationships

Coordintation and efficiency

in customer interaction

Key supplier partnerships

Customer value

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Business and CRM strategyInvestments


Machinery

R&D

Personnel

M & A

Supplier and customer relationship

management

Developing customer

relationship competence

Integration and coordination of

both parties supplier and customer

relationships

Supplier relationship management

Customer oriented machine investments

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Strategically different


Our

company

Growing customer

Shrinking customerShrinking business potential!

Demanding customer

Stable & easy

customer

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Creating different interaction strategies for different customers

Growing customersShrinking customers

Demanding

customer rel.

Stable & easy

customer rel.

Managerial

effort in the rel.

CRITICAL QUESTIONS: Why is the customer skrinking or

growing?

Why is the customer rel. easy or

difficult to manage (nature of rel.)?

How should we allocate or re-

allocate our managerial resources How should we interact with

the customer? (hierarchical level, way

of interacting)

Business potential

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Business relationship strategyInteraction strategy created with the strategic objective of moving the

customer relationship to a new position in (or outside) thecustomer relationship portfolio

Growing customersShrinking customers

Demanding

customer rel.

Stable & easy

customer rel.

Managerial

effort in the rel.

Business potential

EXIT!

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The nature and complexity of


CRM perspectives and customer

orientation

The customer relationship as an

interaction process

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Key areas in customer oriented

relationship management example

professional services/ auditing company

ATTITUDES

I am interested in doing my own tasks,

for example auditing, tax or legal servicesas good as I can.

ORGANIZATION

We have the best possible competence

in for exampleauditing, tax and legal services

Only I am also interested

in the customers situation,i.e. their challenges and concerns

and even developing the

customers business.

OnlyWe are also organized

according to thecustomers

needs/concerns and we

manage the customer relationship

as a whole, for example over the

service areas

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What is CRM?

Customer Relationship Management:

Managing a customer relationship in which

additional value is created by developing the

interaction in the way that the customers needs

and concerns are taken care of.

Starting point:

Who is the customer?

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Who is the customer? Example:

the facility business

THE OWNER?

THE USER?

THE TENANT?

THE BUILDER?

THE SERVICE PROVIDER?

THE INVESTOR?

SOMEBODY ELSE?

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Who is the customer? Example:

the facility businessPERSON ORGANIZATION

The owner

The tenant

The user

The investor

The builder

The service provider

Somebody else

Top management

Middle management

Operative level

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Interaction process of the customer

relationship

Process aspect essential management challenges

THE LIFE CYCLE OF CUSTOMER RELATIONSHIPS

CUSTOMER RELATIONSHIP ARISES CUSTOMER RELATIONSHIP DEVELOPESCUSTOMER RELATIONSHIP FADES

How does a customer relationship arise? From where has the customer come?

How has the customer come?

Why has the customer come?

When has the customer come?CRM

TODAY!

How does the customerrelationship fade/end? Why does the customer

relationship fade/end?

Where to does the customer

move?

How does the customer move?

When does the customer move?

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Competition and offers a new world,

but why? The AuditorCase

Accounting scandals

Rotation(EU 8th directive)

Independence

(EU 8th directive)

Increased price awarenessand demand for change

(top management & owners)

Transparency of price:Annual reports and corporate governance

Other reasons?

From profession to service business!

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One customer has many service prov.

relationshipsTheAuditorCase

C

USTOME

R

Auditingservices

Taxservices

Financialadvisoryservices

PWC

ERNST & YOUNG

KPMG

DELOITTE

ETC.

Whohas

arel.andwith

whatservice?

Howis the

serviceproviderchosen

andhow/from where

is therelationshipmanaged?

Otherservices

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relationship

The b-to-b customer relationship is complex

Several active persons from suppliers and customers

side

Who is the decision maker (the fox)? Which incidents affect customers decision?

Suppliers offering (i.e. products and services) is often

integrated to customers activities and affects

customers own success Exchange in one customer relationship affects other

customer relationships (network effect)

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relationshipB-to-b customer relationship is complex

Supplier

Customer

Management

Management

Middle management

Middle management

Operative level

Operative level

CUSTOMER RELATIONSHIP

Coordination of

the interactionprocess between

organisation

levels

Coordination of the interaction process between divisions and departments

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relationship

Who is managing the relationship?

Supplier traditionally in production based

business (for example forest industry) Customer traditionally in purchasing based

business (for example construction industryand retailing)

Both traditionally in product developmentbased business

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relationship

The nature of the customer

relationship CUSTOMERDOMINATED

SUPPLIER

DOMINATED

COMPETITION COOPERATION

Source: Alajoutsijrvi (1996)

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The network approach and group

assignment part 1

A network approach


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Markets Relationships/Partnerships Hierarchies

Transactions Supplier Acquisitions

Buyer/End User/Consumer Mergers

Institutional Divestitures

Strategic Alliances Joint Ventures

A network approach

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Supplier Customer

Isolated?

Exchange

No!

Supplier

Supplier

Sub-

supplier

Sub-

supplier

Customers

customer

Customers

customer

Customer

Customer

A network approach

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Pulp Producers

Paper

Producers

Owners

Media

Authorities

ResearchInstitutes

EnvironmentalOrganisations

Merchants Publishers

Printers

Adv.Agencies

CustomerCompany

End Users / Consumers

ForestOwnersEquipment

Manufacturers

Consultants

Banks

Capital Markets

Trade Unions

Other Suppliers

A network approach

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Group Assignment: Part 1

Create a total view of the chosen customercompanys/units business network (currentsituation), I.e. network picture:

all central companies and organisations all central supplier/buyer and other inter-

organisational relationships ofimportance

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Thank You!

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

CRM part 1

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Transcript of CRM part 1