Rules of Engagement

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Rules of Engagement
Tools and Technologies for Managing the Customer
Relationship
Stephen Shaw
December 18, 2001
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Agenda

• Overview
• What does CRM mean? Why is it a corporate
  priority?
• Guiding Principles
• What are the main principles of CRM?
• Core Requirements
• What are the business requirements of a CRM
  solution?
• Solution Components
• What are the main components of a CRM
  architecture?
• Tools of the Trade
• What are the various categories of tools?
• Trends and Trepidation
• How is CRM technology likely to evolve?

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Overview
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What is CRM?
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We ignore the entire discipline of CRM.
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Customer Disservice
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They have turned a simple order into a month long
ordeal. All these people had to do was ship my
order and apply a 20.00 coupon. Not only was my
20.00 coupon not applied Not only was my
credit card billed for the full amount of 45.48
Not only was my first order rejected Not only
did I find this DVD at Future Shop for 5.00 less
minus shipping Not only was my order over 2
weeks arriving and your cue times for support
over 20 minutes, BUT the DVD was defective! This
is not the end of my problem with chapters. After
a total of 4 calls to customer service and 6 or 7
emails, I managed to have 14.90 credited back and
then 9.80 recharged to my card. All together my
experience with chapters online has been one of
disgust.
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A New Marketing Model
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No Pain No Gain
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Guiding Principles
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The Value Equation
Cultivate relationships...
... Enhance profitability

• Establish trust
• Exchange learning
• Anticipate needs
• Recognize preferences
• Improve satisfaction

• Buy more products
• Buy more often
• Buy more easily
• Buy at a higher margin
• Buy over a longer period

VALUE
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The Value Chain
Value Proposition
What value is provided in interactions with
customers?
What value is provided in product features?
How easy is it to obtain products and information?
How responsive is customer service?
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Dynamic Segmentation
ADVOCATES
VULNERABLE
UP AND COMING
NEWBIES
LOYALISTS
DORMANT
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Virtuous Cycle
Information
Analysis
Develop Customer Base
Track and Measure Results
Define Customer Segments
Solicit Feedback
Develop Investment Strategy
Engage Customer
Create Business Rules
Develop Management Plan
Interaction
Planning
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Core Requirements
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Customer Value Management
SEGMENTS
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Treatment Rules
If
TREND
SEGMENT
STATUS
EVENT
REWARD
RULES
ACTION
RESPONSE
MESSAGE
CHANNEL
OFFER
then
else
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Campaign Management

• Even Split
• Absolute Count

TEST OFFER
CONTROL OFFER
SORT RECORDS

• Nth Selection
• Percentage
• Absolute Count

SAVE AS NEW LISTS
SUB-GROUP
DEFINE OUTPUT MEDIA
SPLIT INTO OFFER CELLS
LIST LIBRARY
SPLIT LIST
SELECT LIST(S)
SPECIFY OUTPUT FIELDS
SPECIFY DESTINATION
DESCRIBE OFFERS
SUB-GROUP
PRODUCE FILE(S)
CAMPAIGN DEFINITION LOG
ASSIGN CELL CODES
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Event Triggers
Send e-mail requesting registration
Receive e-mail (POP3)
Create new database record with e-mail address
and text
NO
Check database
YES
High value customer?
NO
Send e-mail to Contact Centre
YES
Re-route e-mail to Priority Service
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Prescribed Paths
New?
Profile Current?
Heavy User?
On-line?
EVENT
YES
NO
YES
NO
YES
NO
gt3 Dosage?
Survey
E-alert
YES
NO
No Action
E-Mail?
Heavy User?
MAIL STREAM
YES
YES
NO
Survey
Invitation to Create On-Line Profile
E-MAIL
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Online Relationship Building

• FAQs
• Knowledge Base
• Online chat
• Personal portal

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Dynamic Content Versioning

• Objective is to dynamically align content with
  defined customer groups and subscriber opt-in
  preferences.

CUSTOMER DATABASE

• Variable Substitutions
• Name, email, etc.

• Section Substitutions
• Content variations (e.g. subject, product, etc.)

• Template
• Design variations (e.g. different newsletters)

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Channel Management
Interactions Transactions
ANALYSIS
RICH E-MAIL
RESEARCH
HIGH-SPEED VARIABLE IMAGING
Program Concepts
PERSONALIZED CONTENT
Database Strategy
WEB SITE PAGE VIEWS
RULES
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A CRM Framework

• Groups
• Profiles
• Metrics

• Responses
• Feedback
• Transactions

• Rules
• Triggers
• Campaigns

• Contacts
• Issues
• Complaints

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Solution Components
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The Information Evolution
TODAY
1990s
1980s
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Functional Clustering
CUSTOMER INTERACTIONS
ACTIVITY PLANNING
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Current Ecosystem
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Solution Spectrum
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Defining Attributes

• Drag-and-drop interfaces and component
  architectures compress development times and
  allow users to build applications without IT
  intervention.
• Embedded data mining functionality enables
  smoother integration of scoring models.
• Complex treatment rules can be graphically
  depicted using global logic that controls contact
  timing and intensity.
• Campaigns can span multiple channels and be
  executed in real-time through job scheduling and
  event triggers.

Component Applications
On the Fly Scoring
Workflow Rules
Always On model
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Tools of the Trade
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Campaign Management

• Supports the setup and execution of contact
  programs over multiple channels.
• Campaign Definition Set up standalone,
  continuous or wave campaigns with associated
  costs.
• Campaign Scheduling Specify start dates and
  event triggers.
• List Creation Define target lists and save
  stored values or selection criteria in a library.
  
• List Scoring Perform on the fly predictive
  scoring of eligible records.
• List Splitting Split lists into multiple cells
  using random and Nth selection. Assign keycodes.
• Contact Rules Specify promotional intensity
  rules governing message frequency and contact
  intervals.

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Opt-In E-Mail Campaigns

• Supports the setup, execution and tracking of
  e-mail campaigns.
• List Creation Select opt-in groups based on
  targeting criteria.
• Content Management Import and merge e-mail
  content.
• Personalization Customize messaging with
  variable text substitutions based on individual
  characteristics and preferences.
• Broadcast Execution Distribute export files
  amongst multiple SMTP servers.
• Automated Redirection Track click-throughs to
  harvest customer data prior to routing.
• Event Tracking Monitor messages sent, bounced
  and opened as well as unsubscribes.

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Inbound E-Mail Management

• Supports efficient handling of large volumes of
  inbound e-mail.
• Message Categorization - Analyzes message content
  to determine subject.
• Auto Respond Sends automatic acknowledgement to
  customer with unique case tracking reference
  number.
• Routing Directs e-mail to appropriate agent
  based on content.
• Ticket Escalation Escalates message based on
  time in queue or other factors.
• Message Templates Suggests appropriate
  responses based on message category and content.

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Contact Management

• Supports integrated call centre management
  activity.
• Screen Pops Inbound calls are routed to agents
  with pre-populated customer information screens.
• Consolidated View All prior interaction and
  incident history is available for viewing .
• Contextual Treatment Agents are guided by
  prompts driven by treatment rules.
• Incident Management Service and support calls
  are tracked in an incident queue.
• Co-Browsing Web pages can be pushed out to
  callers for simultaneous browsing.
• Text Chat Agents can interact in real-time with
  Web visitors in a chat session.

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Web Personalization

• Supports the dynamic delivery of targeted content
  and offers to individualize the Web experience.
• Service Portal Provides customers with a
  profile page to register preferences and obtain
  relevant product and account information.
• Offer Optimization In response to a real-time
  interaction, selects and presents the optimal
  offer based on probability of acceptance.
• Collaborative Filtering Recommends appropriate
  products based on preference patterns of similar
  customers.
• Scenario-Driven Rules Targets content based on
  pre-defined business rules derived from user
  profiles or behavioural data.

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Data Mining

• Supports the analysis of customer transactional
  data to help explain or predict behaviour.
• Classification Classifies records into discrete
  groups .
• Estimation Estimates a continuous value.
• Prediction Calculates a probability score based
  on a set of input variables.
• Affinity Analysis Finds the most common
  associations between items.
• Clustering Segments records into distinct
  subgroups or clusters.
• Decision Trees Displays the variables that best
  explain the behaviour in the form of a decision
  tree.

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Web Traffic Analysis

• Supports the analysis of log file data to measure
  Web site performance.
• Site Activity Tracks number of visits, most
  requested pages, activity by time of day, errors
  and abandonments, length of visit, top entry
  pages, navigation paths, referring URLs.
• Merchandising Analysis Tracks products selected
  and removed from shopping carts.
• Lead Generation Tracks leads generated from
  registered visitors.
• Banner Ad Analysis Tracks clickthroughs to
  banner ads on third party sites.

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Trends and Trepidation
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The Major Players
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Bridging the Gap
RELATIONSHIP INTELLIGENCE
DIALOGUE MANAGEMENT
CONTEXTUAL SELLING
CONTACT MANAGEMENT
CHANNEL MANAGEMENT
INTERACTION MANAGEMENT
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Real-Time Interaction
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CRM Trends

• Expanding Domains
• Vendors will continue to seek the strategic high
  ground of CRM in an effort to control all
  interaction channels. Best-of-breed solutions
  will be displaced by modular suites. Niche
  vendors will continue to be absorbed by larger
  competitors. SMEs will opt for ASP solutions.
• Common Treatment Rules
• Organizations will strive to develop common
  enterprise workflow methods and treatment rules
  that are consistent across interaction channels
  and tools.
• Collaboration Push
• Conventional market research methods will merge
  with transactional analysis to invite a
  reciprocal exchange with customers, bringing them
  into the product development process.
• Consensual Dialogue
• To overcome market attention deficit (MAD), all
  communications will need to be permission-based
  offering highly personalized content driven by
  explicit preferences and behaviour-derived rules.

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Questions?
STEPHEN SHAW 416-695-4286 stephen.shaw_at_sympatico.c
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