Customer Relationship Management
– Consulting approach –
Munich, June 2000
Roland Berger & Partner GmbH – International Management Consultants
Barcelona – Beijing – Berlin – Brussels – Bucharest – Budapest – Buenos Aires – Delhi – Detroit – Düsseldorf – Frankfurt – Hamburg – Kiev – Kuala Lumpur – Lisbon
London – Madrid – Milan – Moscow – Munich – New York – Paris – Prague – Riga – Rome – São Paulo – Shanghai – Stuttgart – Tokyo – Vienna – Zurich
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Discussion_Paper_SAG.ppt
Content
Page
A. Introduction
3
B. Project objectives and scope
12
C. Approach
C.1 CRM target setting
C.2 CRM strategy and technology concept
C.3 CRM implementation
16
19
34
74
D. References
77
E. Appendix: Supporting tools to implement CRM
E.1 The Internet as a supporting CRM tool
E.2 The call center as a supporting CRM tool
81
82
93
This document was created for the exclusive use of our clients. It is not complete unless supported by the underlying detailed analyses and oral presentation. It must not
be passed on to third parties except with the explicit prior consent of Roland Berger & Partners.
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Discussion_Paper_SAG.ppt
A.
Introduction
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Discussion_Paper_SAG.ppt
The importance of an integrated Customer Care approach receives increasing
awareness at top management level all over the world
"How important is a single, integrated view of the
customer across your company"
"Do you have a single, integrated view of the
customer today?"
Not at all
2 % important
Somewhat 6 %
Yes
2%
10 %
Somewhat
important
36 %
Not at all
44 %
Critical
48 %
Very
important
52 % Not really
Source: Forrester Research, basis: 50 Sales managers of Fortune 500 companies
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Discussion_Paper_SAG.ppt
In the future, a company's value will increasingly depend on the value of its
customer base
Factors influencing corporate valuation
Customer base
Discounted
cashflow method
Customer lifetime
value method
Employee
base
Industrial
society
Multiples
method
Information
society
Customer acquisition cost method
Market value added
method
Assets
Traditional industrial
companies,
e.g. manufacturing
industry
Service companies,
e.g. consulting firms,
software companies
Internet companies
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The value of the customer base is determined by the key factors individual
customer value and size of the customer base
Value of customer base – corporate value
Customer cashflows
Annual profit/
customer
Price premiums
Recommendations
Cost savings
Sales growth
per customer
Higher
customer net present value
Increased
corporate value
Base profit
2
3
4
5
6
7
8
Acquisition cost
1
+
Number of customers
+x%
[%]
Customer
retention rate
Higher absolute
number of customers
New customer
acquisition rate
t
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The market value of the leading InfoCom companies clearly exceeds that of
OEMs – the customer base is the key success factor
Overview of customer ownership and market value
DM 1,000/
customer
44
42
VW
Points of customer contact
90
80
GM
67
Vodaphone/Airtouch
AOL
DM 4,700/
customer
189
Yahoo!
• Shopping
• Banking
• TV/media
• Sport
• Telephone/mobile • Car
DM 1,700/
customer
112
Ford
Mannesmann
DM 1,100/
customer
40
DM 16,300/
customer
228
14
300
28
DM 10,700/
customer
376
DM 18,800/
customer
20
Nokia
405
90
1,128
Microsoft
Number of customers in millions (12/99)
Source: Roland Berger & Partners analysis
DM 4,500/
customer
400
DM 2,800/
customer
Market value in DM billions (12/99)
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Discussion_Paper_SAG.ppt
Managing the customer relationship is a key lever to increase shareholder
value
Example
Market and customer value
Today
Future
3.6
Market
value
(bn Euro)
Managing the
customer relationship
0.6
0.4
12/99
Customer
Value
(Euro)
Potential
1.500 (Microsoft)
- 9.000 (AOL)
1.000
(Current)
Calculation basis: 400.000 customers
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
CRM is a strategy designed to increase individual customer value by
establishing a long-term and systematic customer relationship
0
1
Initial contact with
customer
Identification
Generating/
recording
customer data
• Increased customer retention
2
Ongoing
customer
relationship
4
Learning
relationship
Developing customer
benefits, e.g.
• Value-added
services
• Customized offers
Information
analysis
• Customer
profiles
• Forecasting
buying behavior
• Monitoring
success
• Wider range of services
• Higher efficiency
in contacting customers
3
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The „knowledge cycle“ is the key to successful CRM when dealing with customers
Actions to support network effects
Promotions of memberto-member interaction
2.
Customized interaction
Increased
content
attractivity
Examples
Community-generated
content
Partnerships with other
organisations
Creation of a market
place/auction
•
•
•
•
Online discussions for members
Create profiles
Cross advertising
Partnerships with road side
assistance
Conserving
relationships
Increasing
return of
marketing &
Sales
Examples
• Personalized e-mail system
for members
• Personal web page
• Service reminders
• Product updates
• Archive of chat contributions
• Bonus programmes (e.g.
web miles based on after
sales frequency)
Higher 3.
loyalty
• Shopping malls
• Partnership with auction provider
Examples
Need to log-in for each
member
•
•
•
•
Continous report of
individual information
• Monitoring of web-usage
(focus of interest)
Questionaires on the net
1.
Better knowledge
about the client
Experience with a product
Customer history/profile
For newsletters
For membership
Source: Hagel/Armstrong; Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The key lever for CRM success is the Internet innovative options for
individual customer contact
Opportunities offered by the Internet
Maximum
volume
Maximum
customer potential
Marketing/sales cost
1 Enhanced loyalty: Changing occasional
customers into loyal customers
3
• Internet as convenience channel
• Individual communication, e.g. my.com sites
• Information-based value-added services
2 Broad-based customer communication: Cross
selling
1
• The Internet is used to collect information other
than the individual product/service range
• The Internet is used to address a wide range of
products
Current
customer
value
3 More efficient contact: Cost savings
2
• The Internet is a low-cost sales channel
• Option to provide individualized information
(example mail-order: Catalogues tailored to
customer profiles)
Product/
service range
addressed
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
B.
Project objectives and scope
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Discussion_Paper_SAG.ppt
The strategic goals aim at sustainable growth and profitability
Strategic goals of CRM
Having a clear idea of the customers’
current and future needs
Increasing customer satisfaction
Enhance
identification,
segmentation,
conquest and
loyalty of
customers
Responding quickly and efficiently to
the customer bearing in mind its
economic value
Reinforcing the awareness of the
Group and of its service mix
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The project objectives aim at a seamless implementation of CRM from vision
to systems integration
CRM project objectives
Create a strong CRM vision and focus areas with highest
business potential
Translate CRM vision into bold CRM strategy combined with a
customized technology concept
Ensure a sustainable implementation supported by reliable
CRM processes and systems
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The project covers the entire business-channel matrix with CRM applications
to attract, penetrate and retain customers
Example
Business-channel matrix
Channel
Business
SIVA
MULTIRENT
INTERBANCO
COMEPOR
Own 3rd party TeleDirect concessconcess. mktg.










SIXT

RETALHO

Multirent
Internet
Stores
International










LGA
Promo- Intertors
banco

CRM applications
• Personalized
customer dialogue

• Personalized
offerings

• Customer retention
module







Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
C.
Approach
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Discussion_Paper_SAG.ppt
The approach to define and implement Customer Relationship Management
consists of three phases
1
2
Target setting
• Analysis of customer
requirements
• Benchmarking and Best
Practice analysis
Objectives
• Evaluation of existing CRM
measures
• Development of CRM vision
and target system
• Estimation of potentials
3
CRM strategy and
technology concept
Implementation
• Development of a detailed
CRM strategy within the
overall sales & marketing
strategy
– Personal customer
dialogue
– Personalized offerings
– Customer retention
• Designing a technology
concept in co-operation with
CRM systems providers
• Implementation of CRM
strategy and technology
concept (work program to
be detailed during phase II)
• Set up of detailed CRM
business case
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The customer relationship management strategy can be ready for
implementation in 4.5 months
Timing
Project month
Activity
1
2
3
4
5
1 Target setting
2. CRM strategy
– Personal customer dialogue
– Personalized offerings
– Customer retention program
– Process and organizational implications
– Pilot implementation
3. Technology concept
– IT-Audit
– Data-model and IT-infrastructure plan
– Software and service provider selection
4. Implementation
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
C.
Approach
C.1
Target setting
C.2
CRM strategy and technology concept
C.3
Implementation
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Discussion_Paper_SAG.ppt
Key questions „target setting“
•
What customer segments are addressed by the CRM strategy and what are the
segment-specific customer requirements?
•
Which benchmarks and best practices can be derived from automotive and nonautomotive CRM applications?
•
How is current customer information deficit to be tackled?
•
To what extent can the project build upon existing CRM measures in the Group?
•
What is the vision as the guideline to define the CRM strategy?
•
What are quantified and measurable targets to evaluate business options and to track
the implementation process in a consistent way?
•
What overall business potential (additional revenues and improved margins) is
associated with the implementation of CRM?
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The „target setting“ phase can be completed within 4 weeks (1)
Work schedule „target setting“
Project week
Activity
1
2
3
4
1. Analysis of customer requirements
– Definition of relevant customer segments for the CRM strategy
– Identification of segment specific requirements with regard to CRM
applications
2. Benchmarking and Best Practice Analysis
– Identification of relevant benchmarking targets
– Gathering of bechmarking data from RB&P databases and external
sources
– Definition of relevant benchmarks and best practices
3. Evaluation of existing CRM measures
– Analysis of existing point-of-contact structure of customers
– Documentation and evaluation of existing CRM activities
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The „target setting“ phase can be completed within 4 weeks (2)
Work schedule „target setting“
Project week
Activity
1
2
3
4
4. Development of the CRM vision and target system
– Break down of CRM goals into detailed targets
– Definition of target weights and measures
– Set up of balanced score card for entire project
5. Estimation of potentials
– Estimation of segment-specific revenue and margin improvements
– Rough assessment of cost and investment requirements
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The analysis of customer requirements will deliver segment-specific CRM
related needs
Business to consumer
Customer
needs
Business to business
• Convenience
• Cost reduction
• Information "on demand"
• Reduction of processing times
• Individual problem solving
• Service degree/access to services
• Entertainment
• Price advantages
Objectives
• Customer loyalty/penetration
• Quality of service
• Reach new customers
• Efficiency improvement
• Brand image
• Innovative business models
1) Fleets/direct customers
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
Benchmarking and best practice analysis will reveal feasible and attractive CRM
opportunities
Example: CRM related content at Porsche
Company links
• No data entry
• Personalization via
cookies only
Travel club
• Different travel offers
• Online application
• Total personalization
Post cards
• Via e-mail
• Collects sender and
recipient addresses
…
Porsche newsletter
• Newsletter
subscription
• Collects e-mail
addresses
Games
• Simple little games
• Personal information entry
required in order to be listed
in high score tables
Guest book
• No personalization
since only entry of
name required
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
Transferable best practices can also be derived from non-automotive
benchmarking targets
Bonus
program
No
Yes
Holistic
CRM
players
Customerspecific
Degree of
individuality
Customer
segmentspecific
No
customization
Own product/ service
range
Cross-selling
Entire demand
range
Degree of demand coverage
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
Particularly the airline industry is leapfrogging the development in customer
retention programs including personalized services for target segments
General information
•
•
•
American Airlines
Internet market entry of www.aa.com in 1995
Objectives: Online bookings from US$ 1.7 m per day (max.) in
1998 up to US$ 500 m total in 1999, further expansion of one-toone customer customer relations
•
Each Internet visitor receives an offer
tailored to her/his history and
individual profile
•
Top-tier Aadvantage members have access to a personalized AA
page
Product/service range and partners
•
Earning miles:
– Fly (AA, BA, Canadian Airlines, Cathay Pacific, Finnair,
Iberia, Quantas Airlines, Japan Airlines, Swissair, etc.)
– Hotels (Best Western, Holiday Inn, etc.)
– Car rentals (Alamo, Avis, Hertz, etc.)
– Shopping (Golf, Dining, etc.)
• Using miles:
– Fly, hotels, car rentals, trips
•
•
•
Personalized Internet services
At present, there are > 35 m
AAdvantage-members, 1.7 m of
which have already visited the
Internet website
More than 35 % of the top-tier members use the online offer
Record-booking day 1998: US$ 1.7 m
Success
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The points-of-contact analysis is supported by specific tools and results in a
rough estimate of how CRM functions can be optimally applied
Segment-specific points-of-contact analysis supported by tools
• What are the points of contact?
Customer segment C
• What information is generated at these points?
Customer segment B
• How is this information aggregated/
evaluated/utilized?
Customer segment A
• What additional information should be collected
(cost orientation)?
Transaction
Presales
Channels
Sales
After-sales
• What further points of contact should be set up?
Internet
• What analysis results are to be expected from the
future information base?
Call center
Sales force
• How wide/detailed are future customer profiles?
Logistics
services
• What is the presumed frequency/intensity of the
points of contact?
Etc.
Points-of-contact tool
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
Existing CRM activities will be evaluated in terms of their potential of being
integrated into the overall CRM strategy
Project example: Analysis of existing CRM activities for premium OEM
Life cycle management
Customer life cycle management
• Prospective customer service
• Customer service pre-sales
• Customer service after sales
• New customer program
• Reactivation/recovery programs
Information and complaint mangement
Vehicle cycle management
• Service card (planned first
upgrade)
• Service program
Segment II/III
Information management
• Prospective customer service
Complaint management
• Definition of response times
• Catalog of rules for cooling off customers
• Proactive reactivation/recovery appeal
Integrated customer life and vehicle cycle management
• Service card (planned second upgrade)
Trade service program
• Customer retention
• Service coupons
Service program
• New media/electronics
• Real-space worlds
– Forum
– Representation
– Forum for technology/history
Lack of strategic
direction and process
orientation
Premium program
• VIP service
Other customer groups
• Companies
– Fleet management
– Industrial customer service
– Major customer service
• Taxi customers
– Taxi customer program
• A Plus expanded services
– Tourism
– Expansion of assistance
• Brand/oldtimer club
• Mobility guarantee
Customer service concept
Age group program
• Youth
– Youth program
Segment-specific programs
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The vision will define the future positioning towards the customer relationship
Illustrative
Customer retention vision 2005: “Total Customer Ownership”
CRM player C
CRM player B
• Address attractive customer
segments in many parts of the
demand range
CRM player A
• Cover product/service range with the
help of partners
• Establish and trade own currency
(e.g. "Miles", "Buxx")
Mobile Financial
telecom.Service
• Personalize offer and pricing based
on customer behavior
CD/
books
• Use the Internet (via different access
media) as main channel to reach the
customer
Groceries
Mobility
Eletronics
• Cut other companies from customer
access
Personalized offer
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The evaluation of the target system will allow the definition of a clear
hierarchical order….
Illustrative
Target system CRM strategy (1)
Increase
shareholder value
Overall
Improve
profitability
General
Sustain growth
Operating
Product - specific
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
… that will translate into a scorecard required in the first phase to evaluate
business options
Illustrative
Target system CRM strategy (2)
Phase 1
Objective
Objective
Phase 2
Weight
0,5
Sub-objective 1
Performance
measure
…
Today
…
Phase 3
Goal
…
When
…
Monitoring
…
0,2
Operating objective
0,05
Operating objective
0,1
…
Sub-objective 2
0,3
Operating objective
0,15
Operating objective
0,1
…
Evaluate business
options
Derive performance targets from selected
business options
Implementation
milestones
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The individual weights of the targets will be defined interactively and
represent their relative importance
Example
Project example: target system for e-commerce strategy
Increase
shareholdervalue
Improve
profitability
(31%)
Strengthen
brands
(35%)
Increase
channel
control
(34%)
•Avoidance of lost sales (7%)
•Customer retention (8%)
•Increase of sales (6%)
•Conquest (7%)
•Control of customer
data/ prospects (9%)
•ECOM ROI (6%)
•Image contribution (7%)
•Service quality (7%)
•Channel cost reduction
(6%)
•Web-site fidelity (6%)
•Group-coherent offering (6%)
•Compliance with brand
strategy (7%)
•Top-3 competitive offer (5%)
•Improved planning (6%)
•Time-to-market (7%)
Source: Roland Berger & Partners
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MUC-0260-90099-02-72a.ppt
In the course of the actual potential estimation, parts of the customer strategy
development have to be anticipated
Segment-specific estimation of potential
[Based on business plan]
Estimating segmentspecific potential
Prod./service
range
Segment
Own product/
service range
Spectrum
to be addressed
Identifying focus segments
Prod./serv.
range
Segment
A
A
B
B
C
C
D
D
Result
spectrum
Spectrum
to be addressed
Transaction
Channels
Presales
Sales
After-sales
Internet
Call center
Sales force
Logistics
services
Expected sales
(at optimum CRM use)
N
Estimating CRM cost
Etc.
N
• Frequency
• Degree of individualization
• etc.
Cost
Focus segments
Realistic CRM potential
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
C.
Approach
C.1
Target setting
C.2
CRM strategy and technology concept
C.3
Implementation
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Discussion_Paper_SAG.ppt
Key questions „CRM strategy and technology concept“
•
What are the opportunities to intensify the dialogue with the customer and improve
customer knowledge to increase customer loyalty and cross-selling?
•
What are the most promising business options to develop personalized customer
benefits through customized offers and value added services?
•
What are the most promising business options to establish an ongoing customer
relationship through customer retention programs?
•
What are the necessary adaptations in processes and organizational structure to
implement CRM?
•
What is the main impact on the existing IT-Infrastructure due to “translating” strategy
definitions in IT-Logic?
•
Which functionality could be implemented by choosing “best of bread” software
components?
•
What efforts have to be done to reach quick and lasting results in a stable ITenvironment?
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
D.2.1
CRM strategy
- 36 -
Discussion_Paper_SAG.ppt
The CRM strategy can be completed within 14 weeks
Work schedule "CRM strategy"
Project week
Activity
1.
Personal customer
dialogue
– Concept
– Pilot implementation
2.
Personalized offerings
– Concept
– Pilot implementation
3.
Customer retention
program
– Concept
– Pilot implementation
4.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Process and
organizational
implications
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
Four steps will derive a winning CRM strategy
Project approach CRM strategy development
Personal customer
dialogue
Personalized
offerings
• Develop business options • Develop business options
per action field
per action field
– Content
– Products-/services range
– Contact frequency
– Cross-selling
– Customer contact points
– Degree of individualization
• Evaluate and select business options according to • Evaluate and select busithe target system
ness options according to
the target system
• Develop criteria catalogue
for the technology concept • Detail business options
– Customer contact/ forecasting
• Derive control measures
– Partnering concept
– Business plan
Source: Roland Berger & Partners
Customer
retention
• Develop business options
per action field
– Bonus programmes
– Communities
– My.com sites
– etc.
• Evaluate and select business options according to
the target system
• Detail business options
– Scope (customer segments/ business units)
– Content
– Functions/processes
– Partnering concept
– Business plan
- 38 -
Process and
organizatinal
implications
• Define core competencies/
make-or-buy
• Integrate external service
providers
• Define processes/ process
changes, clearly integrated
into existing marketing &
sales processes
• Derive organizational
structure
• Change management/
transformation
Discussion_Paper_SAG.ppt
How to individualize customer contact: Personal customer dialogue
- 39 -
Discussion_Paper_SAG.ppt
Key questions „Personal customer dialogue“
•
Based on the customer contact analysis of phase I: At which contact points should the
customer dialogue be intensified? Are the current contact points sufficient? What are
additional opportunities to contact the customer in the most efficient way to further
increase customer loyalty and cross-selling?
•
What are the data requirements for an efficient customer dialogue? Which techniques
should be applied in order to forecast customer buying behavior?
•
What are the necessary adaptations among the different companies within the Group
in terms of customer contact points, content and contact frequency in order to ensure
maximum efficiency of the customer dialogue?
•
What are the appropriate control measures to safeguard the achievement of the targets
set in phase I?
Source: Roland Berger & Partners
- 40 -
Discussion_Paper_SAG.ppt
The personal customer dialogue concept can be completed within 6 weeks
Work schedule „Personal customer dialogue“
Project week
Activity
1
2
3
4
5
6
1. Development of business options for personal customer dialogue
– Assessment of the current personal dialogue activities among the
Group’s companies based on the results of phase I
– Selection of the relevant focus action fields
– Development of business options per action field (across companies/
company-specific)
– Evaluation and selection of the business options according to the
target system
2. Development of a criteria catalogue for the technology concept
– Define data requirements and layout customer database
– Cross-check with data availability
– Data aggregation/networking
– Definition of analysis and forecasting routines
3. Definition of control measures
– Definition of the appropriate control measures per business option
– Establish reporting routines
4. Pilot implementation
Source: Roland Berger & Partners
- 41 -
Discussion_Paper_SAG.ppt
CRM business models will be defined for existing and new products and
services
New
business
models
Smart bonus
card
Flexible
leasing offers
Service
reminder
Current
product
services
1
Personal
dialogue
2
Personalized
offers
3
Customer
retention
Source: Roland Berger & Partners
- 42 -
Discussion_Paper_SAG.ppt
For the strategically most attractive action fields several business options will
be developed
Illustrative
…
3
Indirect customers captive
Front-office
Change
effort
Expected
impact from
changes
Evolution
Transformation
2
Revolution
1
Lifestyle-oriented newsletter with
content partners
Lifestyle-oriented newsletter
without partners
Newsletter with mainly productoriented content
Neither time nor
resource intensive
Either time or
resource intensive
Time and resource
intensive
Source: Roland Berger & Partners
- 43 -
Discussion_Paper_SAG.ppt
The business options developed are evaluated in qualitative terms in
consideration of the target system
Illustrative
Criteria
Qualitative evaluation of business options
Weighting
Product-oriented
newsletter
Business options
Lifestyle-oriented newsletter without partners
• Sales potential
0.2
+
o
• Efficiency increase
0.2
+
o
• Customer retention
0.25
o
++
• Potential to conquer
new customers
0.3
o
++
…
Total
Source: Roland Berger & Partners
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Discussion_Paper_SAG.ppt
The evaluation according to the target system ensures stringent prioritization
across all project modules
Evaluation of B2B options versus target system
E-fleet
ordering
Time-to market
Top 3 competitive
offer
Group coherent
offering
Service quality
Control of customer
data/prospects
Increase channel control
Compliance with
brand strategy
Web- site fidelity
Image contribution
Customer retention
Strengthen brands
Improved planning
Channel cost
reduction
ROI
Increase of sales
Avoidance of lost
sales
Improve profitability
Conquest
Project example
Σ
11.5
On-line test
drive booking
9.5
Flexible fleet
9
On-line service
appointments
9
Positive impact
Priority 1
Priority 2
No impact
Source: Roland Berger & Partners
- 45 -
Discussion_Paper_SAG.ppt
A customer data model allows high-quality data analysis and enormously
reduces data maintenance work
Project example
High-quality data analysis
Value creation through customer
data model
Reduce data maintenance
Customer data model
Unique and minimal definition of
persons/individuals, attributes, code
structures, and relationships
CRM system country A
CRM system country B
Basis for CRM processes
CRM system country C
Country-specific
adaptation of data
Source: Roland Berger & Partners
- 46 -
Discussion_Paper_SAG.ppt
The relationality of the customer database allows comprehensive data
management
Database structure
Project example
Model
Vehicle
Partner
service
Contact
Partner-vehicle
relation
Company
Person
Partner-address
relation
Exclusion
flags
Lifestyle
Address
Partner-dealer
relation
Dealer
Partner vehicle
service
Contact case
relation
Case
Campaign
Source: Roland Berger & Partners
- 47 -
Discussion_Paper_SAG.ppt
How to maximize customer benefits: Personalized offerings
- 48 -
Discussion_Paper_SAG.ppt
Key questions „Personalized offerings“
•
What are the most promising products and services for personalization to maximize
customer benefits and thus increase customer loyalty and cross-selling?
•
What is the optimum degree of personalization with regard to the requirements and
potentials of the different customer segments?
•
How can the input from personal customer dialogue be utilized to forecast customer
buying behavior and thus optimize the efficiency of the product’s/services’ customization?
•
To what extent should external partners be involved to complement the existing
product/service range to further increase customer benefits?
Source: Roland Berger & Partners
- 49 -
Discussion_Paper_SAG.ppt
The module “Personalized offerings” can be completed within 6 weeks
Work schedule „Personalized offerings“
Project week
Activity
4
5
6
7
8
9
1. Development of business options for personalized offerings
– Screening of current product and service range to determine the
products and services with the highest potential for personalization
– Development of business options for the defined products and
services
– Definition of the optimum degree of personalization with regard to the
requirements and potentials of the different customer segments
– Evaluation and selection of the business options according to the
target system
2.Detailing selected business options for implementation
– Synchronization with personal customer dialogue in terms of
contacting customers and forecasting customer buying behavior
– Partnering concept to complement offers and fulfillment
– Development of a business plan per business option
3. Pilot implementation
Source: Roland Berger & Partners
- 50 -
Discussion_Paper_SAG.ppt
The Internet is a key lever for personalized offerings
Content
Processes/functions
• Demarcating the field of application in terms
of product/service range and focus segments
• Finding partners for external services and
logistics requirements
• Defining control ratios for the degree of
individualization, e.g.
– Status (sales)
– Potential
– Internet affinity
– Contact frequency
• IT infrastructure focusing on the Internet and
database marketing
• Processes
– Integration into existing
sales/marketing processes
– If necessary, defining new
processes
(e.g. logistics, individualized
production)
• Designing the Internet points of
contact, e.g.
– IT-based value-added services
– Pricing
– Product/service range
– Rewarding
– Templates for my.com site
• Implementation within the
organization
• Detailed trigger definition (acting vs.
reacting)
Source: Roland Berger & Partners
- 51 -
Discussion_Paper_SAG.ppt
Dependant on the perceived customer benefit and the necessary change effort
the most promising business options for personalized offers will be selected
Illustrative
Selection criteria personalized offers
high
Your personal
assistant
Flexible leasing
Personalized email newsletter
Perceived customer benefit
through level of
differentiation
Online vehicle
history
Recall & service
bulletins
low
high
low
Change effort
• Processes
• Resources
• Time
Source: Roland Berger & Partners
- 52 -
Discussion_Paper_SAG.ppt
The selected business options will be assessed in detail
Project example
Overview of “Flexible fleet” process
Company site
Fleet manager
• Strict data tracking provides
insights into customer
behavior and serves as input
for a learning customer relationship
Leasing company
• Logs into NSC
site
• Requests car
• Leasing program with no
predefined vehicle
• On-line functionality provides
users with the opportunity of
choosing cars from a car
pool
Fleet user
Validation
procedure
Eligibility check
Car availability
Proposal for
availability and
“price”
Choice
Confirmation
Forwarding
For scheduling
pick-up
Source: Roland Berger & Partners
- 53 -
For records/administrative procedures
Discussion_Paper_SAG.ppt
How to develop ongoing customer relationship:
Customer retention
- 54 -
Discussion_Paper_SAG.ppt
Key questions „Customer retention “
•
What are the most promising business options to establish an ongoing customer
relationship through customer retention programs?
•
What are the criteria to be applied for customer segmentation to release the maximum
potential of the customer retention program?
•
How does the ideal partnering concept look like to complement the companie’s program
in terms of content, reach and fulfillment? What is the most promising branding concept?
•
What are the requirements in terms of database structure to most efficiently support the
retention program and leverage the additional data generated with regard to a learning
customer relationship?
Source: Roland Berger & Partners
- 55 -
Discussion_Paper_SAG.ppt
The module “Customer retention” can be completed within 6 weeks
Work schedule „Customer retention“
Project week
Activity
7
8
9
10
11
12
1. Development of business options for customer retention programs
– Screening of alternative customer retention concepts
– Benchmarking of best practices from automotive and non-automotive
companies
– Description of feasible business options
– Evaluation and selection of the business options according to the
target system
2. Detailing selected business options for implementation
– Define scope (customer segments/companies included) and content of
the retention program
– Detail underluying processes and functions
– Partnering concept to complement the companie’s program in terms of
content, reach and fulfillment
– Definition of database requirements for data support and optimum
utilization of data generated
– Business plan development
3. Pilot implementation
Source: Roland Berger & Partners
- 56 -
Discussion_Paper_SAG.ppt
A successful customer retention program requires the use of smartcards
Content
Processes/functions
• Establishing the bonus program, incl.
rewarding and status concept
• Defining card functions, e.g.
– Identification
– Payment function
– etc.
• Cost-benefit check
Gold member
• Database-marketing concept
Susan Sample
• Specifying card processes, esp.
– Processing of applications
– Billing
– Service centers
6653 1239 3976
• Designing a card concept, incl.
– Card type (chip, magnet, hybrid)
– Reading/writing devices
– Card management system
• IT infrastructure (safety, interface integration, etc.)
IT infrastructure
Source: Roland Berger & Partners
- 57 -
Discussion_Paper_SAG.ppt
Lufthansa’s “Miles&More” is an example for a comprehensive and highly
successful customer retention program
Benchmark
Customer segmentation
Customer retention program
• Customer segmentation according to flight
miles with Lufthansa or partnering airlines
• Miles & More loyalty program for frequent
travellers
• Differentiated customer contact concept:
Communication budget
– Frequent travellers: 43 DM p.a.
– Basic customer: 6 DM/p.a.
• 3.6 million members, thereof
– 1.6 million active members
– 220.000 frequent travellers
• Increase in frequent travellers ~20 % p.a.
• Continuous extension extension of the
loyalty program through broad-scale
partnering concept
– Star Alliance
– Hotels
– Car rental companies
– ...
• Database management and IT-systems
as a core competence within the
marketing & sales organization
Systems
Partnering
Source: Roland Berger & Partners
- 58 -
Discussion_Paper_SAG.ppt
Communities like the “BMW drivercircle” are innovative, target group-oriented
customer retention programs using the interactive potential of the Internet
Benchmark
BMW drivercircle community
Live-chat with BMW
managers
Contact with other 7series drivers
("Web-community")
News and innovations
concerning 7-series
(Access with password only
for 7-series drivers)
Direct connection to BMW
• Check vehicle-manufacturing schedule
• Information about BMW
employees, plants ...
Personal e-mail
account
Source: Roland Berger & Partners
- 59 -
Discussion_Paper_SAG.ppt
A personalized portal is a powerful tool to increase customer loyalty as well
as to attract and conquer new customers
Illustrative
Personalized portal
My News
My Sports
Yellow Pages
Communities
Region
City
TK & IT
Flirt
My TV Listings
My Horoscope
Search Engine /
My Searches
Shopping
My Reminders /
My Favorite Links
My Weather
Travel / Ticketing
Direct-Banking
People & Chat
My Chat
My Link to Info-Terminal
My Stocks
Auctions
Source: Roland Berger & Partners
- 60 -
Discussion_Paper_SAG.ppt
Process and organizational implications
- 61 -
Discussion_Paper_SAG.ppt
Key questions „Process and organizational implications“
•
What are current or future core competencies to be safeguarded respectively further
extended?
•
What are possible areas for integrating external service providers to complement the
companie’s competencies, based on a make-or-buy decision?
•
How do future CRM processes and their interlinkages with the existing marketing and
sales processes look like? What are the necessary process adaptations?
•
What are the implications on the organizational structure?
•
What is the role of change management to ensure a smooth transformation towards the
implementation of CRM?
Source: Roland Berger & Partners
- 62 -
Discussion_Paper_SAG.ppt
The module “Process and organizational implications” can be completed
within 4 weeks
Work schedule „Process and organizational implications“
Project week
Activity
11
12
13
14
1. Definition of the optimum degree of vertical integration
– Definition of core competencies
– Make-or-buy analysis
– Screening potential external partners
2. Assessment of core CRM processes and process changes
– Definition of core CRM processes in terms of information and
transaction
– Analysis of interlinkages with the existing marketing & sales processes
– Derive necessary process adaptations
3. Implications on the organizational structure
– Definition of necessary functional competencies and capacities
– Integration of CRM into existing marketing & sales organizational
structure
Source: Roland Berger & Partners
- 63 -
Discussion_Paper_SAG.ppt
CRM is a key process within marketing & sales
Project example
...
ET/accessories
Services
Brand management
New/pre-owned vehicles
Sales + Service
Maximize market value
• Fleet business • Area sales
Product-/services lifecycle
management
Zero-defect delivery
• Direct
business
(e-commerce)
Increase loyalty/
conquer target
customers
Customer relationship
management
Sales planning/control and
"order-to-delivery"
NSC, importer
Minimum processing time
with maximum demand
satisfaction
Retail
Maximum value creation per
customer for all products/services
Source: Roland Berger & Partners
- 64 -
Discussion_Paper_SAG.ppt
The core processes will be mapped in detail with special regard to the
customer data flow
Project example
Data flow E-fleet ordering
Pre-sales
NSC
Fleet manager
Dealer
Receives basic
customer data,
saves car request
Sales
Provides
saved car
configuration
Receives
customer
information/
order details
from order
form
Provides delivery data to
customer
Receives
approval
Receives
order form
for approval
Provides
access code
Monitor delivery
Receives customer
data, car request
Receives
order for
records
Receives
order for
delivery
scheduling
Receives
order form
for approval
Leasing
company
Receives
order for
records
Source: Roland Berger & Partners
- 65 -
Discussion_Paper_SAG.ppt
The necessary organizational structure will be derived in order to establish
CRM
Project example
Dimensioning sales initiation phase
Task
Dimensioning direct sales phase
Capacity
Task
Capacity
General Manager
1
General Manager
1
ECOM Region / Market Manager
5
ECOM Region / Market Manager
5
Quality Manager ECOM (QME)/
ECOM Platform Manager
1
ECOM Sales Manager
5
3
Toolbox Concept Manager
2
Quality Manager ECOM (QME)/
ECOM Platform Manager
Partnership Manager
1
Toolbox Concept Manager
2
ECOM-Technology / IT-Manager
2
Partnership Manager
3
ECOM-Technology / IT-Manager
4
ECOM-Controller
1
ECOM-Controller
1
Secretary
1
Secretary
2
Total
14
Total
26
Source: Roland Berger & Partners
- 66 -
Discussion_Paper_SAG.ppt
C.2.2
Technology concept
- 67 -
Discussion_Paper_SAG.ppt
Key questions „Technology concept“
•
Which existing IT-Systems are directly affected by implementing a CRM-Strategy?
•
Are there any functionality concerning analysing consumer behaviour and transferring it
into transaction oriented consumer response which could not be fulfilled by existing ITinfrastructure?
•
Is there a fit between customizing effort / integration effort and profound benefit
analysis?
•
What additional IT-Systems should be implemented following a “best of bread” strategy?
Source: Roland Berger & Partners
- 68 -
Discussion_Paper_SAG.ppt
Three steps are required to combine the CRM strategy with a sustainable
technology concept
IT-Audit
• Pragmatic creation of
transparency about
– existing IT-Systems (Software)
– Hardware
– Network, communication
protocols
– etc.
Data Model/
IT-Infrastructure Plan
• Develop holistic data model
regarding
– actual customer profiles
– defined target systems
– future CRM-trends (e.g. internet
as customer contact point)
• Identify relevant databases
• Identify all major stake holders
who are responsible for
implementation and operation of
target IT-CRM solutions
• Define “data gap” and provide
technical solution for closing the
gap
Software- / Service-ProviderSelection
• Translate defined tool-/provider
demands into Request For
Quotation (RFQ)
• Identify the best implementation
partners based on Broadvision
SW-platform
• Derive milestones /
implementation plan
• Derive target IT-infrastructure plan
Source: Roland Berger & Partners
- 69 -
Discussion_Paper_SAG.ppt
The technology concept can be completed in 14 weeks in parallel to the CRM
strategy development
Work schedule „Technology concept“
Project week
Activity
1
2
3
4
5
6
7
8
9
10
11
12 13
14
1. IT-Audit
– Development of standardized questionnaire
– Focus interviews with major stakeholder
– Description of existing Hard- and SoftwareComponents (CRM-specific IT-Landscape)
2. Design Data-Model and IT-Infrastructure Plan
– Identification of relevant data and databases (according
to defined target systems)
– Development of database model
– Identification of data flows and participated IT-Systems
– Definition Migration-Plan into a target IT-Infrastructure
3. Software and Service Provider selection
– Development of Request For Quotation´s (RFQ´s) for
potential SW-and Service providers
– Provider/Tool selection
– Development of implementation plan (in co-operation
with SW-Partner)
Source: Roland Berger & Partners
- 70 -
Discussion_Paper_SAG.ppt
C.2.3
Business Case
- 71 -
Discussion_Paper_SAG.ppt
All revenue, margin improvement, cost and investment effects are
consolidated in to business plan based on different scenarios
Illustrative
Business plan
2000
2001
…
Aggregated cashflow
• Sales increase
– Penetration of existing customers
– Acquisition of new customers
– …
• Efficiency increase
– Improvement of margin
– Reduction of process costs
– Reduction of process times
– Increased hit-rates
– …
Total cash-in
• Investment
– Planning/restructuring
– EDP (hardware/software)
– Network
– Dealer training
– …
• Current expenditures
– Personnel
– Leasing hardware
– Software licenses
– Software updates
– External providers
– …
Total cash-out
DM m
Best case
Realistic case
Worst case
2000
2001
2002
Cashflow
Source: Roland Berger & Partners
- 72 -
Discussion_Paper_SAG.ppt
Cost effects and investments are recorded in detail
Extract
•
•
•
1.2.1
Shipping channel
2.1
E-Com phase II
2.1.1
2.1.1.1
2.1.1.2
2.1.1.3
2.1.1.4
2.1.1.5
2.1.1.6
Planning
Internal project management
Concept development
IT-logic
DP concept
External integration planning
Internal integration planning
2.1.1.2
2.1.1.2.1
2.1.1.2.1.1
2.1.1.2.1.2
2.1.1.2.1.3
2.1.1.2.1.4
Development environment
Hardware
Server
Network adapter Fast Ethernet
DAT streamer/accessories
Development clients
...
Software
Scoring tool
Application server
Performance pack
Designer client
Visual Age for Java
DB2 license
Version system PVCS
Case tool Paradigm Plus
Data warehouse
...
2.1.1.2.2
2.1.1.2.2.1
2.1.1.2.2.2
2.1.1.2.2.3
2.1.1.2.2.4
2.1.1.2.2.5
2.1.1.2.2.6
2.1.1.2.2.7
2.1.1.2.2.8
2.1.1.2.2.9
Parameter
Q 1/00
Q 2/00
Q 3/00
MAK 2
MAK 3
MAK 3
MAK 4
EX- MAK 2
MAK 2
1
2
2
5
3
4
1
2
2
5
5
4
1
0
0
1
7
2
15
25,400.4,000.3,000.-
Detailed planning
Investments, IT,
marketing, operations ...
1
1
15
15
15
1
1
Source : Roland Berger & Partners
- 73 -
Discussion_Paper_SAG.ppt
C.
Approach
C.1
Target setting
C.2
CRM strategy and technology concept
C.3
Implementation
- 74 -
Discussion_Paper_SAG.ppt
For each business model seven internal and external tasks need to be
performed for implementation
Business model B
Business model A
Management of internal tasks
3
2
1
Marketing
planning and
implementation
Implement
IT plan
Project
management/
controlling
Content
management
4
Operations support/
hot line
5
Select
implementation
partners
6
Select/management
content partners
7
Management of
systems integrators
Managing external
service providers
Source: Roland Berger & Partners
- 75 -
Discussion_Paper_SAG.ppt
e-partnering is the approach of Roland Berger & Partners to provide you with
an effective partner management framework in Electronic Commerce
e-partnering framework
Portfolio of partnerships
Strategic partners
Operational partners
Company profile
Definition
Company profile
Name:
Field of
business:
Contact
person:
e-partnering is a
framework to
manage partners and
partnership processes
effectively in the field
of Electronic Commerce
Name:
Field of
business:
Contact
person:
Process of partner management
Evaluation
• Mutual evaluation of set targets
• Identification of weaknesses
• Continuing/closing partnership
Screening/selection
4
• Definition of required partner
profile
• Market screening
• Close partner contracts
1
process
• Regular meetings
• Open/continuos exchange of
experience ideas
• Built-up trust
Coaching
Source: Roland Berger & Partners
- 76 -
3
2
• Definition of interface with
partners (contact person, IT etc.)
• Integration of business processes
• Identification of latent problems
Integration
Discussion_Paper_SAG.ppt
D.
References
- 77 -
Discussion_Paper_SAG.ppt
Roland Berger & Partners have successfully completed numerous project in
related issues
Selected clients
•
•
•
•
ACB/Dürkop (Retailer Group)
ALD
Audi
Auto-By-Tel
•
•
•
•
•
•
•
BMW
DaimlerChrysler
debis
Europcar
GEFA
General Motors
Infos Telematica
Selected projects
No direct
matching
• Johnson Controls
• Mannesmann Autocom
• Retailer Groups
• Sixt
• Volkswagen
• Realignment of key marketing processes including
CRM at a vehicle manufacturer
• e-commerce and CRM strategy for a premium
manufacturer
• Organizational realignment of a car rental company
• Strategic repositioning of a telematics service
provider
• Evaluation of strategic opportunities for the
business model of a telematics service provider
• Marketing concept for automatic toll collection
• Development of a business model for
e-services/telematics
• Design and implementation of a partnering concept
for a telematics service provider
• Pan-European market study (potential until 2010)
for traffic telematics services and systems
• Selection of a telematics service operator for an
OEM
Source: Roland Berger & Partners
- 78 -
Discussion_Paper_SAG.ppt
Strong internal teaming and external partnering provides one-stop-solutions
to our clients
Example: Joint acquisition with CC InfoCom and Lisbon office
0
Automotive
expertise
1
Initial contact with
customer
Identification
• Business models
• Customer segment
requirements
Know-how from
other industries
Generating/
recording
customer data
Ongoing
customer
relationship
Customer
relationship
management
• Sales channel
management
4
2
Information
analysis
• Customer
profiles
• Forecasting
buying
behavior
• Monitoring
success
• Airlines
• Banking
• Healthcare
Developing customer
benefits, e.g.
• Value-added
services
External
partners
• Customized
offers
3
External partners
• Broad Vision
• Lucent Technologies
- 79 -
• Siebel
Discussion_Paper_SAG.ppt
Due to its technical expertise, e-commerce experience and business view, the
InfoCom CC provides indispensable support for CRM and e-commerce projects
Project experience in CRM and e-commerce
Company-specific, successful CRM and/or e-commerce project
• Concept for the integration of CRM into
the IT environment
• Designing e-services, value-added
Internet services
• Evaluating the significance of valueadded services
• Utilizing technological benefits of data
mining for trigger design
• Designing corporate webpages on the
Internet
• Calculating business plans
• Integrating Internet functions and
decentralized data storage for data
provision concepts
• Pricing for
e-commerce transactions
• Drawing up CRM structures and
processes
• Integrating existing pools into an
e-commerce platform
• Benchmarking of CRM concepts (also
from competitors' point of view)
Technological competence
E-commerce competence
Business view
• Knowledge of basic technologies and their
application
• More than 50 e-commerce projects
• Focus on economic benefits of applied
technologies
• Knowledge of the essential products
available and their derivatives (gained from
projects in the IT industry)
• Continuous dialog with top e-commerce
companies worldwide
• Selecting data warehouse and data
mining tools and CRM software
• E-commerce studies
• Competent development of business
concepts and analysis of competitors'
strategies
Roland Berger & Partners InfoCom Competence Center
Source: Roland Berger & Partners
- 80 -
Discussion_Paper_SAG.ppt
E.
Appendix: Supporting tools to implement CRM
- 81 -
Discussion_Paper_SAG.ppt
E.1.
The Internet as a supporting CRM tool
- 82 -
Discussion_Paper_SAG.ppt
A group wide website will be used as a new sales channel and CRM portal
Building sites and technical solutions
Work package objectives
•
•
•
•
Activities to be performed
•
Determine the technical requirements and
Build a requirements and specifications document to
specifications and a business plan for the various
provide to web designers and/or technical solution
partners
providers
Coordinate the work of the web agency, the IT
•
Screen and select short list of bidders
platform providers, ...)
•
Establish briefs and provide them to the short list
Integrate the legal and technical constraints for the
•
Select web designers and solution providers
evolution of the concept and offer
•
Regular coordination meetings with the various actors
Build the initial content in coordination with the
internal branches, the potential partners, and the web
design and technical solutions providers
Source: Roland Berger & Partners
- 83 -
Discussion_Paper_SAG.ppt
The overall objective for the technologies of the portal is to provide a state-ofthe-art system that meets all functional requirements
- Objective for an Internet platform technology -
Open, flexible and modular
architecture
Scalability
Multirent.pt
State of the art technology
e.g. Java based programs
Sophisticated security
system (access authority,
fire walls)
Internet platform
Open and flexible interfaces
(group companies, logistic
providers and selected
customers)
Ensure that all requirements
concerning functionality can
be met
Real time connection to
the companie’s
ERP system
Source. Roland Berger & Partners
- 84 -
Discussion_Paper_SAG.ppt
Various IT applications are required in order to set up an Internet portal
Schematic
Required technology infrastructure
Group
companies
Connection
via interface
database
additional software applications
(e.g. content management software, log
file analysis tools, ...)
E-commerce software
Procurement
software
Group
companies
Connection
directly to the
companie’s ERP
system
Internet
Web Design
(e.g. site design; interactive effects;
special features, ...)
Market place
software
E-commerce
software
IT system integration
(data migration, interfaces management, ...)
Customer Internet
Browser; perhaps
additional software
for a connection to
ERP systems
IT infrastructure and Internet access
(hardware, databases, web hosting, ...)
Source: Roland Berger & Partners
- 85 -
Discussion_Paper_SAG.ppt
E-commerce at the "front-end" means marketing, selling, and interactive
customer relationship management
Project example
Selling
Marketing
•
•
• OTC-commerce
• Internet pharmacies
• Claim management with health
insurance and HMOs1)
• New organization of sales force
• E-detailing of drugs to doctors in
practice and hospital
• Electronic prescription writing
• Online product information (e.g.
epocrates)
•
•
Indirect product marketing through content sites
Info sites, electornic brochures, permission
marketing
Cost reduction in medicalcommunication
Bi-directional flow of information/steady
marketing effort toward clients
"front end"
e-commerce
• Ads on other webpages
• "Link mangement" on the web
• Increase of patient compliance
• Build up relationship to:
– Doctors (practices, hospital)
– Patients (severe, chronic, OTC, prevention)
– Hospital purchasers/pharmacist
– Paymasters, healthcare officials
•
“Build your community"
CRM
1) Depending on country regulations
Source: Roland Berger & Partners
- 86 -
Discussion_Paper_SAG.ppt
Questionnaires filled out by other web page providers as well as call centers
help identify the best practice in homepage maintenance
Questionnaire for call centers
Questions to healthcare homepage
providers
1. Content
•
Who decides on the content of the homepage?
•
Who decides which links are included on the web
page?
•
What steps are taken to place links to your own
website on other homepages?
Questionnaire for call centers
1. Content
•
•
What alliances have been set up with other
companies/webpage providers?
•
What are the guidelines for caller handling?
•
What is the typical content of the calls?
•
What steps have been taken to boost
customer awareness?
2. Maintenance
2. Processes
•
What is the maintenance frequency for the
homepage?
•
Who accepts the calls (student, physician,
office staff,…)?
•
Who/how many employees have/has been
assigned to the maintenance of the homepage?
•
At what times is the call center staffed?
•
Which tasks are allocated to central web
administration/decentralized
web administration (if there are regional
subsidiary pages )?
•
Which company designed your homepage?
•
If you provide a hotline service: Who accepts the
calls (students, employees, physicians, …)?
•
Who responds to the e-mails addressed to the
company?
•
•
•
How much time is required to reply?
•
•
•
•
How many employees are responsible for
handling calls?
Is caller data collected systematically?
•
If yes, what data is collected?
•
If yes, who administrates caller data or
has access to it?
•
If yes, what is the call center
information used for (marketing, sales,
medicine)?
Do you call customers/physicians yourself
to inform proactively?
How is the call center integrated into an
overall concept (e.g. of marketing,
corporate communication, etc.)?
3. Call center functions
Is e-mail/caller data systematically collected?
•
If yes, what data is collected?
•
If yes, who administrates caller data or has
access to it?
•
If yes, what is caller data used for
(marketing, sales, medicine)?
•
How many minutes does an average call
last?
•
How many calls are accepted per
day/week?
•
What is the structure of the caller groups
(physicians, patients, etc.?
Questionnaire for homepage providers
Source: Roland Berger & Partners
- 87 -
Discussion_Paper_SAG.ppt
Specification for the various modules will need to be informed
Illustration
Topics covered
Key questions answered
Product catalogue/product description
•
How does the product catalogue look like? How are the products
features described?
Stakeholder focus
•
Which segments should be focused overtime?
Content provisioning process to portal users
•
How is process of content exchange organized?
Content range
•
Which content should be offered?
Pricing/Access to content
•
How does the access to content work; to which conditions?
Content sources and management
•
Where does the content come from and how is it managed/updated?
Source: Roland Berger & Partners
- 88 -
Discussion_Paper_SAG.ppt
Content presentation is also an essential part of the concept definition
Illustration
- Portal content features Content category
Functions
•
•
•
Virtual "3D" tour through portal
Online help with bookmark functionality, keyword and full text
search functionality
Call center available on a 24/7 basis
Communication/chat
•
•
•
Chat rooms for professionals/private individuals
Virtual project databases for workgroups
Free e-mail addresses and homepages for professionals
Product-related content
•
•
Product video for downloading
Sample ordering function
News-related content
•
•
Niew ticker with important news
News calendar with memory effect
•
"Emergency button" for how to deal in emergencies; direct contact
to call center
Contact Portal
General content
Source: Roland Berger & Partners
- 89 -
New groups
E-mail newsletter (push)
Discussion_Paper_SAG.ppt
The business concept represents the basis for a concrete IT-concept
IT concept
Strategy 
1.
1.1
1.2
1.3
1.4
1.5
1.6
1.7
2.
2.1
2.2
2.3
2.4
2.5
3.
3.1
3.2
3.3
4.
4.1
5.
Know-how
CRM-Strategy
Business concept
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Total architecture
Development platform
Runtime environment
Web- and application server
Security/firewall
Mail server and API
Relevant legacy systems
Host/mainframe
Data model
Relevant legacy systems
Platforms, formats
Data model specifications
Extraction components
Persistence
Provider concept
Administration
Access administration
Training/train the trainer
Proof of concept
Functional blocks and extent
...
Source: Roland Berger & Partners
- 90 -
Discussion_Paper_SAG.ppt
The Internet platform needs to have different kinds of interfaces in order to
connect its partners and customers
Interfaces to partners and customers
Schematic
Internet
Interface 1
Homepage
Database
Interface 2
Logistics provider:
Exchange of order
data
Content provider:
Set up and maintenance of content
Webserver
Firewalls
Interface 3
Key customers:
Electronic product
ordering, billing etc.,
connection to ERP
systems
Source: Roland Berger & Partners
- 91 -
Discussion_Paper_SAG.ppt
Several technological success factors have been identified and shall be
obeyed
Security
Reliability
Systems should be
available on a 100% basis
• Firewalls need to be installed
• A sophisticated access
authority concept with
various security levels is
required
User friendliness
• Each customer needs
only one password
Intuitive and simple structure
of the pages in order to make
navigation more easily and to
increase speed of page
loading
Technological
success factors
Architecture
Platform architecture
needs to be modular
in order to be able to
connect further
applications/modules
in the future
Scalability
Scale of the system needs
to be set up to cope with
extensive growth of the
amount of data
Interconnectivity
Various interfaces (between group
companies, customers, logistics
providers) need to be installed –
data exchange should be possible
in both directions
Source: Roland Berger & Partners
- 92 -
Discussion_Paper_SAG.ppt
E.2.
The call-center as a supporting CRM tool
- 93 -
Discussion_Paper_SAG.ppt
The call center solution to be implemented must be oriented towards the
cross-corporation, call center-specific demands of suppliers
Cross-corporation demands
Call center solution
Call centerspecific
demands
Supplier
demands
Strategic objectives
• Securing/expanding the market position
• Increasing the revolving ratio
• Expanding new business
• Raising productivity
• Securing/enhancing profitability
• Reducing internal cost structures
Source: Roland Berger & Partners
- 94 -
Discussion_Paper_SAG.ppt
The cross-corporation demands are clarified by means of qualitative and
quantitative targets
Cross-corporation demands
Qualitative objectives
Motivated
staff
Longer
opening
times
Attaining
maximum
availability
levels
Quantitative objectives
Quick and
uncomplicated
processing
Controlling
via standardized
reports
Raising customer satisfaction
Process
optimization
More
efficient
processing
Cutting costs
Image advantages
Raising productivity
Raising customer retention (revolving)
Retaining/increasing sales
Retaining/increasing market share
Source: Roland Berger & Partners
- 95 -
Discussion_Paper_SAG.ppt
Several requirements for technology solution and supplier must be taken into
account
Call center-specific demands
Supplier-specific demands
• Customer Account & Contact Management
• Broad experience and competence in
telecommunications
• Market research tools
• Excellent reference cases
• Sales force control
• Integrated solutions/one-stop-shopping
• Workflow-/Messaging Services
• Servicemanagement
• Individual taylorized concepts
• ERP-integration
• Innovative technology and outstanding
market position
• 24h support/remote diagnosis
• Safety of investments
• Power Dealing connection/CTI
connectivity
• Good price-cost-ratio
• Skill based routing
• Reliability
Source: Roland Berger & Partners-analysis
- 96 -
Discussion_Paper_SAG.ppt
Having a powerful, high-tech telephone system is one of the prerequisites for
a professional service center
Project example
Customers
ALD
Technical imperatives
• ACD Equipment (Automatic
Call Distribution)
Customer
advice
• CTI (Computer Telephone
Integration
Customer in Hamburg
ALD
Team
North
Team
North
Team
North
Team
North
• Voice mail
• E-mail, Internet suitability
Customer in Munich
• Fax on demand
IT CT/support
Customer in Leipzig
Contact, usually with the
name of a specific person
Allocated
• Optional: Interactive Voice
Response Unit
Call/request is processed
Source: Roland Berger & Partners
- 97 -
Discussion_Paper_SAG.ppt
Roland Berger & Partners have broad experience in preparing the client
management's decision through a comprehensive evaluation process
Project example
•
•
•
•
•
•
Suppliers
involved
Evaluation
process
Preliminary information
and
informal
visit to
CC1)
(e.g.Deutscher
Inkassodienst,
Deutsche
Bauspar)
Participants
Initial
rough
selection
from
among all
suppliers
active on
the market
Evaluation
of support
possibilities for
selection
via teledata
• Alcatel
• Lucent Tech.
• Nortel Dasa
Alcatel
Dt. Telekom
Lucent Tech.
Nortel Dasa
Micrologica
Siemens
Compilation and
request for
tenders
Proposals
submitted
Generation
of a catalog
of criteria
for
evaluating
suppliers
ALD, RB&P
?
Presentation
Grading of
suppliers
according
to a
uniform
catalog of
criteria
Three
suppliers
are invited
to give
their
presentation
RB&P
ALD,
RB&P
Evaluation
of suppliers
via the
documents
submitted,
the presentation,
and the
individual
price list
ALD,
RB&P
RB&P
provides
management with a
paper to
aid the
decisionmaking
process
RB&P
1) CC = Call center
Source: Roland Berger & Partners
- 98 -
Discussion_Paper_SAG.ppt
The dual selection procedure allowed Roland Berger & Partners to recommend
cooperation with Lucent Technologies for implementation of ALD's CC solution
Project example
Proposals
submitted
Alcatel
Siemens
Lucent
Technologies
Initial
selection
process
Invitation to
presentation
• Interactively developed catalog of criteria
Nortel Dasa
Deutsche
Telekom
Micrologica
• Consideration of critical systems requirements,
of company profile and of the technical and/or
realization concept
Interactively
developed
catalog of
criteria
Alcatel
• Grading of the different suppliers
Lucent
Nortel Dasa
Technologies
Presentation
Secondary
selection
process
• Subsequent analysis of suppliers' strengths and
weaknesses
• Analysis of presentation documents
• Analysis of individual price lists
Individual price lists
• Evaluation of individual interviews
Individual interviews
Preconditions:
Assumptions
RB&P
recommendation
• Criteria are given different weighting under
considerations of ALD-specific aspects
• Reduction of software/hardware and
maintenance costs
Lucent Technologies
Source: Roland Berger & Partners
- 99 -
Discussion_Paper_SAG.ppt
A board range of software solutions could be used for technology enabled
selling
Examples
Contact SW,
Telesales,
Telemarketing
•
•
•
•
Abalon
Broadway & Seymor
Clarity
Chordiant
•
•
•
•
Call Center
Applications
•
•
•
•
Clarity
Chadiant
Corepoint
Quintus
• Siebel
• Vantive
• Natural
Microsystems
Interactive
Marketing
Software
•
•
•
•
Broadvision
Microsoft
Art Technology
Engage Technology
Channel
Partner
Systems
•
•
•
•
Allegis
Partnerware
Channel Ware
Webridge
E-Mail
Response
Management
•
•
•
•
Genesys
Aptex
Aditi
Brightware
•
•
•
•
Corepoint
Pegasystems
Onyx
Siebel
• Vantive
• Micrologica
• Bendata
• Tetel
E-Queue
• Mustang
Ergotech
General Interactive
Kana
Source: Roland Berger & Partners-analysis
- 100 -
Discussion_Paper_SAG.ppt
The requirements of the service personnel are derived from the target
standards set for the service center
Project example
Requirements for service personnel
1
Excellent specialist knowledge through:
Targets
Service targets
• Experience in vehicle leasing
• Training and qualification as leasing clerk
• Training in business administration
Productivity
targets, etc.
Strong communication skills (especially
telephone skills)
2
Definition of service levels and
productivity standards
Stress resistance
High frustration threshold
3
Feedback loop
for annual
interviews to 4
discuss targets
Basis for staff/
team target discussions
Independence and good organizational skills
Ability to cope with pressure
Transfer of staff/team targets
to operative business
Team spirit
"Good people skills"
5
Measuring target achievement levels
• Computer-based evaluation
• Customer survey
• Benchmarks
Customer orientation is at the
heart of the business
Source: Roland Berger & Partners
- 101 -
Discussion_Paper_SAG.ppt
Internet Call Center as Customer Care Solution integrates communication flow
from customer to the company via phone, fax, mail and Internet
Vision
Customer
Internet Call Center
Companies
Internet/E-Mail
IWR
(Interactive Web Response)
Computer-TelephonyCTI-Agent
Integration
Integration
in BackOffice-
Routing Center
• AMD
(Automatic
Message
Distribution)
Fax
Outcall of
employees
• ACD (Automatic
Call Distribution
Phone
Agent
Response
IVR (Interactive
Voice Response)
• Predictive
Dialing
Post
Mail
Center
Data
Warehouse
Source: Roland Berger & Partners
- 102 -
Discussion_Paper_SAG.ppt
ARGENTINA
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International Management Consultants
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- 103 -
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Phone ++351-1-3 56 76 00
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Discussion_Paper_SAG.ppt