CRM thru the Customer Experience Model

1. CRM thru the Customer Experience Model Presented by: Ian Scatliff

3. CRM thru the Customer Experience Model Ian Scatliff October 2005

4. About myself - Ian Scatliff • Protegra principal consultant • Account management & project delivery • Protegra shareholder • Leading focus on wealth management market • Protegra Wealth Management team • Worked with clients in Canada, US, Japan and Europe • Experience in: • Business process improvement initiatives • Designing software build processes • Building and integrating software • Previously held roles with: • Rescom, wealth mgt product company • SHL Systemhouse • GPA Technologies (international development arm for LPL Financial Services)

5. Introducing Protegra • Passionate, creative professionals that provide business and technology solutions • 50+ consultants with average experience of 14 years • Protegra Wealth Management services • Solutions that target growth and efficiencies • Successes in this regard includes: • LPL Financial Services of San Diego • European-based Moventum • Canadian-based Assante Wealth Management (CI Funds), IQON Financial, Wellington West Capital, Credit Union Central of Manitoba • 8 years in business • Never a quarterly loss and no debts • Employee owned

6. Protegra offerings • Protegra Wealth Management • Business Process Consulting • Solution Architecture • Solution Design & Development • Solution Centre • Virtual IT • “A la carte” outsourcing

7. Topic • How CRM can be enhanced through Customer Experience Management (CEM) • Discussion goals: • Provide landscape overview • Provide awareness of issues and potential approaches

8. Market Forces Leading Clients to CEM • 50% churn of customer base every 5 years • Cost of new customer acquisition is much larger than retention • No clear understanding of “wallet share” and customer profiles • Competition is driving the need to reduce costs and improve customer experience • Consumers are savvier • Multiple channels to reach the customer, with no clear measurements or integration between silos • Small percentage of customer base contributes to profitability • Brand impact of bad customer experience

9. What is CRM? • Forrester defines CRM to be the set of processes and supporting technologies used to acquire, retain, and enhance customer relationships

10. What is CRM? • CustomerThink Corp defines CRM as a business strategy to select and manage the most valuable customer relationships. CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes. CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy, and culture.

11. What is CRM? • Enables a corporation to: • Acquire, maintain, enhance customer relationships • Not just a software solution • Desired outcomes must be determined • Clear processes, measures and goals • Requires IT enablement

12. What is CEM? • Walker Information defines CEM as applying technology and the storage of customer information to improve the customer's service experiences with the company • Jeff Marr defines CEM as applying customer perceptions, technology and the storage of customer information to improve customers' service experiences and their ultimate loyalty to the company

13. What is CEM? • A “win-win” for your company and the customer • In general terms: • CRM is about collecting purchase and profile data for the purposes of marketing or cross-selling • CEM is about improving the service experience of the customer

14. What is CEM? • Define measures from your customer’s perspective • How to gather data? Ask your customer! • Close the loop through customer feedback • Measure a customer’s experience

15. Examples of data and simple solutions • Gathering wait times, or perception of wait times, at a bank branch at lunch • If too long, increase staffing over lunch hour • Old hotel, elevator example

17. The benefits of CEM / CRM • By understanding your customer experience: • Increase loyalty • Improve experience • Retain customers (reduce acquisition costs) • Increase market share • By understanding your customer relationship: • Increase profitability of current relationships • Acquire new customers • Reduce customer interaction costs (targeting) • Leverage offerings across channels • Increase market share

18. The benefits of CEM / CRM • You define! • Measure what is important to you • Plan for what you can afford to implement

19. Technology complexity Enterprise integration Executive commitment Single customer view Managing change Aligning business strategy 0 5 10 15 20 25 30 35% Top CRM Challenges (Forrester)

20. CEM Best Practices • Integrated • Customer perceptions, service activities, purchase behavior are consolidated • Data spans all touch points • Phone center, email, the web site or a visit to the branch office • Data spans all stages • Prospect, new customer, recent purchase, loyal customer • Loyalty-linked • Analyze what transactions impact loyalty the most; good or bad

21. CEM Best Practices • Frequency-managed • Beware over-surveying of individual customer contacts • Diagnostic and performance-measurable • Short surveys track operational performance but also diagnose how to make it better • Accessible • Info available in real time • Available for use by sales, operations, help desk, etc… • Continuous Improvement • Info is being used to make improvements by sales, operations, help desk, etc… • Have accountability (and responsibility), to management for doing so

22. Forrester’s CRM Success Factors 1. Build strong executive sponsorship 2. Have the business lead CRM, with support from IT 3. Put in the right governance structure Strategy & Governance Strategy and governance 4. Define processes first, then apply technology 5. Follow a realistic pace for roll-out Process 6. Define data requirements and quality management approaches 6. Define data requirements and quality management approaches Data Data 7. Strive for high user involvement 9. Place high priority on usability Training, user adoption, andchange management 7. Strive for high user involvement 8. Place a high priority on usability 8. Work towards a common platform 9. Limit customization 10. Actively manage the vendor relationship 9. Work towards a common platform 10. Actively manage the vendor relationship Technology Technology

23. Proposed Workplan • Reviewed market forces, success factors, best practices and challenges • The following slides describe an approach that’s worked for our clients

24. Implementation Approach • Best approach is to begin with a strategy assessment • Understand drivers, gaps, and barriers • Come up with options to position for future

25. Strategy Planning • Begin with the end in mind • Start with desired business outcomes • Strategy often covers these key areas: • Infrastructure • Organization & Governance • Applications & Service Levels • Business Strategy • Process • Finance

26. Strategy Planning • Senior executive support is key • CEM / CRM must work toward corporate goals, not departmental • Define the business drivers • Balance needs of all departments • Careful not to focus on one measure at all costs • Identify all requirements

27. Performance map • A performance relationship map identifies • Desired outcomes • Gaps between what is and what should be • Current barriers to this change

29. Current state analysis • Current State Assessment • Establish an enterprise understanding of current Business and IT state • Customer interaction assessment • Focus on CRM drivers • Further iterate the performance map

30. Solution Architecture Recommendation • Initiatives to eliminate gaps and position for desired outcomes • Business cases defined for initiatives • Position business for future

31. Case study • Background: • Client decided to improve customer offering • Challenge: • Old technology • IT/Business unaware of all systems/processes • The Results: • Strategy planning initiative undertaken • 100+ IT applications discovered • 4 product line processes, reduced to 1 • Enterprise vision delivered in phases • First phase successfully completed with desired outcomes • Hit their projected ROI

32. Technology Application • Broad overview of CRM/CEM • Strategy work plan reviewed • Following slides describe a flexible approach to the solution

33. Realizing the solution architecture • All-or-none vs. phased approach • An approach we’ve used successfully leverages assets • Asset identification • Asset packaging using Services-Oriented Architecture (SOA) • Benefits of our approach: • Leverage industry CRM packages • Minimizes data replication • Lowers cost of initial implementation • Lowers cost of future phases • Solution tailored to your requirements • In less time than custom build • Increases quality of solution

35. The “Dashboard” • A system users homepage • Advisor or operational staff • Services are tailored to you • Different users see different services • Display information required to maximize measures and hit goals

38. Summary • CRM can be enhanced through CEM • The top CRM / CEM implementation challenge is business strategy alignment • Protegra recommends a strategy assessment to identify: • Desired outcomes • Issues, Gaps, Barriers • Recommended initiatives to meet targets • Protegra’s approach can leverage CRM assets to build a tailored CEM solution (or other)

39. Contact Information Ian.Scatliff@protegra.com www.protegra.com

40. Referenced Work • Julie Phillips Baker, “Measurement Should Be From the Customer's Point of View”, Quaero, Aug, 2005 • William Band, “Best Practices For CRM Deployment: Lessons From 22 Global Companies (Part 1 of 3)”, Forrester, June 22, 2005 • Niall Budds, “You Can't Gauge Your Business Success Without Effective Measurement”, Quaero, Aug, 2005 • Jeff Marr, “Should the Focus Be on Customers Experience or Loyalty?”, Creating Loyalty, May, 2005 • Bob Thompson, “What is CRM?”, CustomerThink Corp, April, 2002

41. Presentation Title: CRM thru the Customer Experience Model Presented By: Ian Scatliff