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Re-inventing CRM

Re-inventing CRM. For the Customer-centric Organization. Mike Boysen, Effective CRM mike@mikeboysen.com 678-310-6276. The CRM Industry’s Unique Position . All businesses need customers CRM has a “C” in it Every part of the business is involved in serving customers

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Re-inventing CRM

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  1. Re-inventing CRM For the Customer-centric Organization Mike Boysen, Effective CRM mike@mikeboysen.com 678-310-6276

  2. The CRM Industry’s Unique Position • All businesses need customers • CRM has a “C” in it • Every part of the business is involved in serving customers • Opportunities abound beyond sales, marketing & service

  3. Technology Does Not Drive Outcomes Rule 1. “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. ” Rule 2. “The second is that automation applied to an inefficient operation will magnify the inefficiency. ”

  4. Where is it written that CRM disruptors will look like this…?

  5. …when Google thinks it can “beat” the entertainment industry with a “stick”

  6. CRM is viewed as software It’s delivered as a tool & marketed on features The tools are designed to fit within functional areas – not end-to-end business processes The Customer needs seem to have been forgotten

  7. When CRM product development is iterated around an existing product… LAN Web “Innovation” looks like the same product

  8. We ask… What can we build?

  9. Not… What do our customers need?

  10. CRM is seen as a technology to “hire”, and is relegated to the status of commodity by the IT function Getting the best price is the best practice

  11. CRM software has become… …table stakes …a commodity

  12. Why Are We Told We Need CRM? • It provides a 360 degree view of the customer… • It Reduces Costs… • Better Customer Service… • Better Customer Satisfaction… • Better Customer Retention… • More Loyal Customers… • More Repeat Business… • More New Customers… • More Profits…

  13. CRM is said to solve these problems… Yet So Many Questions Remain

  14. What Questions are Companies Struggling to Answer? How can I grow my business year after year? How can I maximize profitability?

  15. What we know today are “needs” in terms of our current features • What we need to know are all of our customers desired outcomes • Successful innovation requires measurable certainty. • Certainty requires a systematic & complete understanding of customer needs

  16. We’re only addressing part of our customers’ job… …and only a handful of “needs”

  17. The CRM Market Today

  18. The CRM Industry is BOOMING!

  19. 2000 - 2005 Organizations spent $220 billion implementing CRM solutions Source: A Strategic Framework for Customer Relationship Management – A. Payne, P. Frow

  20. 2008 - 2012 Organizations spent >$300 billion The CRM Industry is clearly still growing

  21. Meanwhile… “75% of companies fail to meet the expected return on their CRM investment “Source: Customer Relationship Management Implementation Gaps – Zablah, Bellenger, Johnston “5% of companies are able to sustain a real, inflation adjusted growth rate of more than 6%” Source: Stall Points – Corporate Strategy Board “95% reach a point where growth simply stalls, to rates at or below the rate of growth of GNP”Source: Stall Points – Corporate Strategy Board Source: Stall Points – Corporate Strategy Board and The Innovator’s Solution – C. Christensen

  22. Here’s the scary part… Of the companies whose growth stalls, only 4% are able to successfully reignite their growth to even 1% above GNP growth. The equity markets brutally punish these companies.

  23. If Facebook can stall So can CRM Vendors

  24. While they struggle to articulate this… CRM Customers Don’t Want CRM Software… They Want to Grow (profitably)

  25. So Do Vendors!

  26. 2004 2012 What a Difference a Few Years Makes Source: Google Trends

  27. Fail Fast is not an option. (this is not amateur hour)

  28. People want to getthe whole job done… …or more related jobs done… …on a single platform And they will pay more to get the job, or jobs done better than alternatives

  29. A 3 Phased Approach Get the whole job done Define the job-to-be-done Discover the segment

  30. What job are companies hiring your product for? Adjust the temperature? Define the job-to-be-done

  31. That’s what the product does, but… Define the job-to-be-done What job are people trying to get done?

  32. Customer-centric Product-centric Define the job-to-be-done What job are people hiring my product for? What job is the customer trying to get done?

  33. Adjust the temperature? Define the job-to-be-done Or is it… Achieve personal comfort?

  34. Plow a field? Grow a crop?

  35. Get the whole job done Define the job-to-be-done Discover the segment

  36. Determine all your customers’ needs, not just the ones they articulate Segment the market Measure your customer needs Target underserved opportunities (needs), not ideas

  37. Stop looking in the usual places for the next big idea….

  38. Get the whole job done Define the job-to-be-done Discover the segment

  39. Get the whole job done • Define the job from the customer’s perspective • The entire job; not just part of it • People will only pay more for significant improvement • “If” they are underserved

  40. Products rarely get the whole job done Achieve Personal Comfort We need to get more of the job done On a single platform

  41. Win a disproportionate share of the profits 7x the price 5% market share 20% profit share 5x the price 21% market share 72% profit share

  42. What New Kinds of Information Does CRM Technology Need to Help You Collect and Act Upon? How will that new knowledge change the way you execute your capabilities over time to develop a strong brand?

  43. What job are companies hiring your product for? Define the job-to-be-done Sell More Widgets?

  44. Customer-centric Product-centric Define the job-to-be-done What job are people hiring my CRM product for? What job is the customer trying to get done?

  45. Sell more Widgets? Define the job-to-be-done Or is it… Achieve sustained growth?

  46. Complete Call Report? Acquire new Customer?

  47. Products rarely get the whole job done Achieve Sustained Growth We need to get more of the job done On a single platform

  48. What Job Are You Really Trying to Get Done? “ People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” Ted Levitt Legendary Marketer What job(s) are your customers trying to get done with CRM software?

  49. For more information on how to innovate around CRM, contact… Mike Boysen Principal, Effective CRM 678-310-6276 mike@mikeboysen.com @mikeboysen (Twitter) www.mikeboysen.com (blog)

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