1. Customer Relationship Management

3. retention Impact of a 5% Increase in Retention Rate on Customer Net Present Value Industry % Increase in Customer NPV Advertising Agency 95 Life Insurance 90 Bank 85 Insurance 84 Car Service 81 Credit Card 75 Laundry 45 Software 35

20. Customers Telephony Internet Face-to-Face Mail Fax Front Office CRM Processes Sales Marketing Services Data Mining and Analysis Data Warehousing Back Offices and External Systems Legal HR Finance R&D Servers Storage Customer Interface Infrastructure Infrastructure for CRM

25. Paradox of productivity gains Amongst other things, this shows the need for METRICS

28. A study of CRM in Ireland Eircom: old monopoly market opened to competition in Dec. 1998 AIB: interesting because no CRM specific platform but CRM unit Irish Life: merger of Irish Life plc and Irish Permanent plc in April 1999 and Acquisition of TSB in 2001 Insurance: over 1.56 million customers (41% of the Irish population) Annual premium income is in excess of €600 million. Over 2.5 million customer contacts re forty thousand insurance claims per year Company Business Maturity CRM software Eircom Telecom 5 years Seibel CRM, GTX, Campaign Management System AIB Financial Services Industry 3 years Client view system, segmentation tool, Campaign Management System Irish Life Financial Services Industry 2 year Siebel eInsurance, POS system Insurance Co Health Care 18 months Analytical tool

36. Summary – drivers of projects Company Origins AIB Eircom Insurance Co Irish Life Poor Customer Segmentation X X X X Process not Standardised X Competitive Environment X X X Regulatory Environment X X Inefficient use of customer data X X X X Automation of customer centric business processes X X Improve Campaign Management X Predictive Customer Modelling X X

37. Summary – Goals and Objectives Company Goals and Objectives AIB Eircom Insurance Co Irish Life Holistic view of the customer X X X Customer retention X X X X Target Marketing X X X X Increase in revenue X X X X Improve customer relationship X X X X Better use of customer information X X X X Communicate more effectively with customers X X X

38. Summary - priorities Company Most Important Objectives AIB Eircom Insurance Co Irish Life Holistic view of the customer X Customer retention X Target Marketing X Increase in revenue X X X Better use of information X Improve the customer relationship X

39. Eircom success Key performance indicator 1998 2002 Customer Service Level 20% in 10 seconds 85% in 10 seconds Calls abandoned 24% 4% Customer wait time 150 seconds 8 seconds Transaction handling time 480 seconds 205 seconds Query resolution at point of contact 60% 87% Electronic enablement 17% 50% Cost per contact-Care Centre € 4.48 € 3.26 Eircom.ie hits per month 285K 426K Eircom.ie substitutable contacts 20% 35%

40. Summary – problems encountered Company Limitations AIB Eircom Insurance Co Irish Life Getting ‘buy-in’ from users X X Unwillingness to change X X No large scale processing power X Lack of ‘fool proof’ systems X X Lack of integration X X X No real time CRM X X X Economic limitations X X Lack of service function X X