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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
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
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
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
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
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
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
At a glance: the key changes




© PRISM Consulting 2008
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
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
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
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
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

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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