CRM 2.0 - Fundamental Changes Beyond Customer Management
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The document discusses the evolution of customer relationship management (CRM) from CRM 1.0 to more advanced versions. It notes that CRM 1.0 focused on mass marketing and segmentation, while more recent approaches treat each customer as an individual and leverage social media and digital technologies. The presentation recommends that companies continue improving their CRM capabilities, engage customers through multiple channels including social networks, and experiment with new approaches to stay competitive as CRM continues evolving rapidly.
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CRM 2.0 - Fundamental Changes Beyond Customer Management
- 1. CRM 2.0 (Fundamental Changes Beyond Customer (F d t l Ch B dC t Management) Vladimir Dimitroff ad o Customer Management Congress, October 2008 © PRISM Consulting 2008
- 2. In this presentation: 1. Classic CRM: the Fundamentals of Customer Centricity 2. Evolving CRM: Changes and Trends 3. Examples and Practical Steps © PRISM Consulting 2008
- 3. CRM 1.0 or ‘CRM as we know it’ - The 20th century: the time when Mass was everything - One size fits all - well, almost - Suddenly… Customers matter! y - Not everyone was convinced (some aren t, aren’t, even today) © PRISM Consulting 2008
- 4. The customer-centric business model Product Excellence Operational Efficiency Customer Intimacy - Dimensions of competitive differentiation competiti e - Sustainability of each approach - Additional benefits of customer centricity Source: Tracey & Wiersema, “The Discipline of Market Leaders” © PRISM Consulting 2008
- 5. CRM 1.0 - The fundamentals - Customers are individuals, and they are different - Segmenting customers (not markets) - Treating them differently - The ‘R’ in CRM: building relationships - Segment of One: personalisation - ‘Show me the money!’ - Did I mention technology? © PRISM Consulting 2008
- 6. So far so good - but things started to happen… - The world is more connected than ever (everyone to everyone becomes reality as social networks become digital) - We discover ‘internal customers’ and other customer types: the concept of stakeholders - Technology unleashes the power of crowds - Marketing goes digital - and not only marketing M k ti di it l d t l k ti - Everyone is talking about something called ‘Web 2.0’ © PRISM Consulting 2008
- 7. The evolving concept of customer centricity ( y (CRM x.x) ) - CRM is all about technology: “We have CRM” (or “CRM didn’t work for us”) - Forget CRM, now CEM is the New Big Thing! - ERM, ERM PRM and assorted TLA-s - From ‘One-to-one’ towards ‘Many-to- many’ relationships ’ l ti hi - Customers truly at the centre of the business © PRISM Consulting 2008
- 8. At a glance: the key changes © PRISM Consulting 2008
- 9. The future is here: manifestations - Generation ‘C’ (for content) - Going viral: a little joke reaches far - Generation ‘C’ (for cash) - The Long Tail (segment of one - and beyond) - Generation ‘C’ (for convergence) - A different kind of convergence © PRISM Consulting 2008
- 10. Are you ready for the future? The good news: - Transformation takes time - Process and organisation change:12-36 months - Culture change takes even longer - Your competitors won’t be able to catch up © PRISM Consulting 2008
- 11. Are you ready for the future? The bad news: - If you are still dabbling with CRM 1.0 - Or you ‘have CRM’ and are happy with it have CRM - You will be left behind - It will take you 3 years just to restore competitiveness (if you’re still in business…) © PRISM Consulting 2008
- 12. A checklist of action steps - Continue building your CRM 1.x capabilities - Add social media to your multi channel strategy multi-channel - Learn and apply SNA - fast! - Engage your customers, in every aspect of the business - Don’t forget to reward active contributors - Do not be afraid to be the first to try something new in your market - Experiment, but have a clear strategy and roadmap © PRISM Consulting 2008
- 13. Thank you! Vladimir Dimitroff Director PRISM Consulting (UK) Ltd C lti 22 Cheviot Drive Charvil Reading RG10 9QD United Kingdom Phone: +44 (0)7947034944 E-Mail: vdimitroff@prism-gb.com www.prism-gb.com Austria • Czech Republic • Germany Hungary • Italy • Malta • Poland • Russia Spain • Switzerland • Turkey • UK © PRISM Consulting 2008