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Posts Tagged ‘Industry News’

Top three learnings from CRM.

December 27, 2009 Leave a comment

I have worked on CRM as a process consultant for over four years and continued my “relationship” with CRM even after I joined MBA. Not just continued the relationship, but also widened and deepened the same with new perspectives that I absorbed on the way. To keep it short and sweet, I have listed the top three takeaways that I feel have not only widened my perspective on CRM as an enterprise solution, but also in day-to-day business life:   

  1. Relationships Rank No. 1. Customers are the lifeblood of a business just as friends and family are the fuel for our soul.  And just that companies are finding that these relationships are key to surviving the recession, the view can be extended from customers to all the stakeholders in the enterprise and the ecosystem surrounding the enterprise. Relationships and information flow across partners, vendors, customers and the enterprise is the key to deliver the best.
  2. Technology Helps: It is often said that CRM isn’t a technology, it’s a strategy, but , it is the technology helps make it happen. Leave aside the enterprise solutions such as SAP, Oracle etc. but, even in day to day life, we need technology to make a long distance call, travle to friends and family, chat with fiends overseas. Managing relationships has been simplified by technology.  CRM consists of two equally important components of the Human Component and the IT component. Both work hand in hand to make the CRM strategy a success.
  3. Garbage in Garbage Out: You can’t expect a quality outcome if you don’t have quality inputs. For long people have been talking of “user friendly” systems, but, I believe, for best results, we need “friendly users” as well. Remember CRM EA is an enabler in the process of managing and executing the CRM Strategy, even after discounting the internal system checks and balances, it can give valuable outputs only if managed properly. Be nice to the system, the system will be more than nice to you!

Best wishes for the new year!

Competing on Analytics: Part 2

December 13, 2009 1 comment

We have seen in my earlier post on Analytics that how and which companies are competing on the basis of analytics. The next questions that a person is bound to ask is that what type of companies or companies in which industry sector make the best use of Analytics?

The answer is ANY. Yes, any company in any sector can compete on the basis of analytics. Analytics does not mean that one has to have hoards of data and numbers. Analytics can also be use on transactions that involve verbatim details. Companies even make use of the analytics in analyzing words, phrases, the sentiments etc.

So now we know that any company can implement analytics. But, to make use of the analytics framework and to derive the desired results, the human component is as important as the mathematical model and IT component driving it.

There are a few more questions that arise in the implementation of analytics:

What data to capture?

This question has no straightforward answer. The executives driving the implementation should decide on what data will enable them to achieve the insights required. Some executives try capturing every bit of data that they can lay their hands on. It is good to capture as much data as one can because you never know what will be required at what point in time. But al J.L. Distinguished Prof. of Kellogg University puts it “It may lead to data obesity and knowledge starvation”. There no measure to determine the “optimum” amount of data or the “optimum” parameters on which to collect data. Thus, it is a pure Human component of the implementation that decides what to capture (unless one is implementing a package which requires mandatory fields to be captured). The capture of data also depends upon the requirements of the “downstream” systems and channels. For example in the CRM system may not require all the data for itself, but has to mandatorily capture it for the downstream systems such as Billing and Finance.

Correct: The data captured should be correct in all respects. Incorrect data will spoil the quality of results and may even lead one to wrong results.

Complete: The data to be captured should complete. There should be no missing fields. The missing fields may be considered as “zero” or “null” by the analytical tool. This may again lead to incorrect results.

Current: The data should be consistent with the time line. The data being captured at this moment should be current. Any data that is not current should specify the timeline when it was captured.

Consistent: The data should be consistent along the time line. There should not be huge deviations and fluctuations in the quantity and quality of data. This discounts the cyclicity of the data.

Context: The data being captured should be in line with the context. The context is again defined by the parameters which define the scope and scale of the framework.

Controlled: The data should be controlled and manageable. The control on the data makes sure that the data under analysis is the sample that one wants to analyse. The control on the data also ensures the management of sudden spikes and troughs.

Poor Customer Service Costs Billions

December 8, 2009 Leave a comment

A new study, “The Cost of Poor Customer Service: The Economic Impact of the Customer Experience and Engagement,” may finally put the damage bad service can create into a language executive boards understand : Dollars and Cents. According to the survey of 8,880 consumers across 16 countries, poor customer service cost an aggregate of $338.5 billion per year, the average value of each lost relationship across all countries surveyed costing $243.

According to study findings, companies in the financial services and telecommunications sectors should take special notice. Statistics reveal that financial services firms lost more than $44 billion, while cable and satellite television providers lost upwards of $37 billion. Wireless carriers and Internet service providers each lost $36 billion, with landline carriers posting $33 billion in lost revenues.

Financial services and otherwise, the most significant reasons for poor service according to the study are:

  • being trapped in automated self-service;
  • waiting too long for service;
  • callers having to repeat themselves; and
  • customer service representatives lacking the skills to answer inquiries.

Consequently, what then ended up at the top of many respondents’ wish lists for customer service improvements included better integration between self-service and assisted service, including voice and Web.