Transcript 1. dia - Асоциация Телекомуникации

Customer Relationship Management
the mobile telco case
AAM Management Information Consulting Ltd.
Csaba Lengyel
International Business development Director
11 May 2005, Sofia
AAM Consulting
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Founded in 1994
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AAM Technologies – our technology arm, 2001
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2nd largest Consulting firm in Hungary, 2003
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International BU, 2004
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Headcount 120+30
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Net revenue 5,5 million euro
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Clients: Telco, Financial services,
Utilities, Public Administration
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Services: Management and IT Consulting
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What is CRM? – in the real life…
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What is CRM? – and in the future…
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Agenda for today
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CRM definition
How does it all work?
What Capabilities are required?
IT support
CRM Business Case
A mobile telco case
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„The true business of every company is to make and keep
customers.”
Peter Drucker
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What is CRM? – the „dark side”
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All started with „all promising” technology investments:
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Than the disillusionment came
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Call Center
Sales Automation Software
Internet based customer service
Campaign management solutions
Integrated CRM solutions
70% of Big CRM investments were not justified by either cost-cutting or
revenue increase (late ’90-ies data)
In 2002 $13 billion has been spent on CRM related technology
„The CRM „spirit” is willing, but the cash backing is still weak”
„Customer privacy concerns require improvement in marketing capabilities.”
„As the channel mix grows, enterprises will become more accountable for the ways in which
they reach out for the customers”
Gartner predictions
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What is CRM? – the „challenge” still ahead
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Key questions still persist:
– Do you know which customers are the most profitable?
– Which customers are satisfied, …and which not so much?
– Do you know, what they would need (Who? What? How?)
– How your customer service processes compare in speed, cost and value to
your competitor?
– How the executive leadership is supportive and your culture is customer
oriented?
– Does your technology support your aspirations?
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Why? – The „real CRM levers”
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Increasing competition
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Deregulation
Common market
Low cost competitors
Need for „real-time” response
Decreased customer loyalty
– or a threat of that
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Revenue uncertainties
– More customers
– Lower prices, dropping revenue per user
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Increasing marketing and sales costs
– More products and services
– Shortening cycle times
– Multiple channels (e-Commerce, Internet, Contact
Center, etc.)
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CRM – is a Paradigm shift
Our objective is to sell our
product to as many Buyers as
possible.
We want to sell these products
on the highest possible price
and produce, service them on
the lowest possible cost.
Our objective is to sell as many
products to our Buyer as as
possible.
We want to obtain the highest
possible profit margin on each
Buyer through maximizing his
satisfaction by providing him with
the most appropriate products
and services given his needs and
buyer capacity.
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CRM Objective
Increase profitability over the Customer Lifecycle!
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Knowing who are your most profitable customers
Increasing revenue & profitability through cross-selling,
up-selling
Prolonging the lifecycle of the customers by reducing
churn
Increase efficiency of customer interactions through
 differentiated (segment based) servicing
 targeted sales offers
 Integrated channel management
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Customer Lifecycle
What we need to know?
Acquisition
What criteria determine who will
be our most profitable
customers? How can we acquire
this customer in the most efficient
way?”
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Retention
How can we keep this
customer for as long as
possible?”
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$
$ $ $ $
Time
$$
Time
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Cross/Upsell
How can we increase the
profitability of this
customer?”
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Servicing
How can we increase the satisfaction
and optimise the cost of servicing this
customer through efficient and
„personalized” care?”
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Customer Lifecycle
How we can increase profitability?
Event based sales
opportunities
Customer
Relationship
profitability
Time
Actions which build
relationship warmth
 No fault service
 “Have a nice day”
 Targeted sales
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Evolution of Mobile market
A „general” view:
Stage 1:
„Starting up”
Stage 2:
„Growing”
Stage 3:
„Maturing”
„Customers” agenda:
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Network quality
 Coverage
 Phone sets / appliances
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Products & Services
 Pricing
 Brand
 Customer Service
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How to get a
sustainable
advantage?
Customer insights
 Tailored offers
 Smooth servicing
 Globalisation
Business issues:
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Network development
investments
 Phone subsidies
 Rapid growth
 Revenue stream risks
Accent on customer
service
 New services / tariffs
 Continuous growth
 Competition
(copying services/tariffs)
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What is CRM? – in the real life…
Example 1: Identifying Churn probability and make a relevant offer!
1. A Regular customer
calls Call Center and
asks for the detailed
invoice to be resent
again.
2. On the CRM
interaction screen the
high churn probabiliy of
this customer is visible.
3. Based on the
“Retention offerings”,
the most suitable
proposal is made to the
customer.
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What is CRM? – in the real life…
Example 2: Support Cross selling with targeted relevant offer!
1. A Customer comes to
a shop to buy a new
headset. After the sales
the agent registers the
interaction in the CRM
solution.
2. Since the sales resulted a
positive mood, the agent
proposes a new MMS tariff
plan to the customer based
on the three targeted offers
available in the CRM
solution.
3. The agent registers
the reaction of the
customer in the CRM
solution.
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What is CRM? – in the real life…
Example 3: Support prepaid-postpaid migration, retention with workflows
1. A prepaid customer
calls Call Center and
asks why an ordered
service is not
available for free,
although he
recharges regularly
with a high amount.
2. Since the churn lamp
shows high churn and the
customer has a high
value, the CSR offers the
migration to post-paid
(because the requested
service is free for postpaid)
3. Since further
processing required (in
back office) the CSR
registers the request
and assigns it to the
relevant user group.
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What is CRM? – in the real life…
Example 4: Unified channels
1. A Customer calls
Call Center, who has
been targeted with
the recent SMS
campaign.
2. A Flash window
appears for the CSR,
notifying her/him about
the campaign.
3. The CSR can use this
information to find out
the response of the
customer. The preferred
way of contact of the
customer can be
registered.
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How technology may help?
IT Components of the CRM architecture :
Direct decision
support through
ALL channels
Direct actions to
build customers
Value added components
Action delivery
applications Customer Contact
applications
Middleware
(EAI)
Data and tools
of strategic
analysis
Data mining and
analysing tools
(OLAP)
Ensure data to ALL CRM
applications
Supporting elements
Background
support systems
(Billing, etc)
DWH
Access to reliable
and coherent data
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CRM Benefits
For the Company:
For the Customers:
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Increase profitability
Retain most valuable customers
Entering new markets, get new
customers
Stop market losses
Leave unprofitable markets
Effective marketing through market
segmentation
Product and service development based
on customer needs
High level customer service
Shortening sales cycles
Get more knowledge about customers
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Products, services and processes
tailor made to their (individual)
needs
Multi-channel sales and Customer
Service
Segment dependent
communication, sales and service
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Building a Business Case for CRM
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Benefits…
Acquisition
costs
Acquisitio
n
ARPU
Cro
ss/
Ups
ell
Ser
vici
ng
Servicing
Costs
Ret
enti
on
Churn
Concrete CRM Targets (Levers)
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Tasks…
IT developments:
• Building a unified customer database
(data model, data cleansing, migration,
populating)
• Implementing new CRM application(s)
• Implementing EAI
• Updating / changing existing systems
Process & Organisational development:
• Modify existing customer facing processes
• Develop new processes
• Update / develop new organizational forms
• Develop KPI’s and performance measurement
procedures
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CRM Programme - Timeline Overview
Phase 0
Phase 1
Phase 2
Conceptioning
Customer
segmentation
& cust. value
calculation
CRM business actions
Central Customer
Database realisation
- Operational CRM
Core System implementation
CRM IT architecture
realisation
Middleware software
implementation
New Loyalty Prog.
realisation
Contact Centre
implementation
2003
2004
Customer segment strategies
& Account planning
Sales Force Automation
Approval Process
of Corporate
Sales
Opportunities
Automation
Automation of
85%
of the
Corporate
Sales Process
Automation of
100% of the Sales
Process
Mobility - Use of
Mobile Devices
Use of Analytic
Results
Implementation of
Campaign Management
& Analytical Tool
Contact Centre & CRM
Core System Integration
2005
Legend
Completed
In progress
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Planned
CRM Programme achievements
Operational CRM
Customer
value
Campaign
execution
Terminal service
Support system
Document
Management
& registry
Analytical CRM
Central customer
database
New Loyalty
Programme support
Churn (preand postpaid)
Customer need
(corporate and
consumer)
Sales Proposal
process
support
Billing
Systems
(pre-and
postpaid)
Data
Warehouse
Customer self-care
solutions (web, wap)
Legend
Contact Center
core
Call
Center
IVR
- completed
- still in progress
- out of project scope
Interactive CRM
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CRM Programme Results
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Increasing revenue by effective retention and crossselling activities
Churn rate by starting CRM activities has decreased
by more than 50% in the targeted segments
Despite the aggressive price competition the market
share is unchanged due to the CRM Strategy, even
the number of customers is still increasing
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Lessons Learnt – To Focus On
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Business Journey - a clear business direction that shows how
the business will become customer centric
Customer Strategies - that plans the customer journey from
initial prospect to high value customer and enables all customer
facing functions to know what is required of them to achieve this
goal
Organisation Design – purpose built to deliver the customer
strategies and provides the cultural framework for transitioning
the business
Information Architecture - that underpins the execution of the
customer strategy, providing the right data, processes and
treatments at each customer touch point
Performance Measures - that recognise and reward the new
behaviours required for the company to become customer
centric
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Lessons Learnt –To Avoid
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Low company leadership commitment
 Misaimed scope of the project
 Internal focus of the business, often product centric
 Functional organisation design
 Unchanging command and control culture
 Inadequate customer data (also inconsistency of
customer data between applications)
 Emphasis on IT as a solution for CRM
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Questions?
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