Lyell Ritchie, Vice President of Strategic Business Development at The Fedcap Group, and Scott Zelinski, Managing Director at Huron Consulting Group, talked about how to develop a roadmap to accelerate CRM adoption.
Zelinski began the roundtable discussion at the 2019 Customer Experience Leadership Forum: Beyond Satisfaction, Building Loyalty, held on March 12 in New York City, by announcing this would be an interactive session to explore how CRM impacts customer experience as well as providing a context and framework for backing out of technology and choosing the right technology. He offered this quote from Walker’s Customers 2020: A Progress Report: “By 2020, customer experience will overtake price and product as key brand differentiators” and commented, “We all live this, and we’re at the front edge. We need to have a road map to get started. This process isn’t months long. It’s weeks long, and that’s what we’re going to talk about. The model we use is ‘think big, start small, and move fast,’” he said.
“The major failure point in CRM is around adoption, not technology. If people in the company—not just senior executives—don’t feel they’re playing a role in this process, that’s where adoption falls down,” noted Zelinski. He presented a diagram of the customer lifecycle that had five main points:
- Reach—starts with the universe of potential customers and ends with a prospect
- Acquire—starts with a qualified prospect and ends with a customer
- Develop—starts with a new customer and ends with a timeframe
- Retain—starts with a current customer and includes all processes designed to retain that customer
- Inspire—starts with a current customer and includes all processes designed to grow them as a customer
Each of these points on the customer lifecycle has a group of capabilities associated with it.
Ritchie then outlined how his company addressed the customer lifecycle and transformed it. Fedcap first identified the following three goals:
- Enable sustainable revenue growth.
- Standardize the customer experience.
- Improve organizational effectiveness.
To achieve these goals, the company developed the following four strategies:
- Create an effective and scalable sales
- Create an interconnected organization with full integration among systems, people, and processes.
- Leverage proactive marketing functionality to open new markets, increase revenue, and allow for predictable revenue forecasting.
- Launch a best-in-class customer experience organization that improves marketing efficacy, grows the existing revenue stream, and creates a secondary revenue stream.
After Ritchie completed the presentation about his company’s experience, he and Zelinski engaged members of the audience via a poll conducted using mobile phones so the audience had the opportunity to virtually emulate Ritchie’s experience in their own company.
The first poll question was, “In one word, describe your firm’s CRM adoption.” Audience members were then asked to consider the “reach” capabilities of the customer life cycle: “As we’ve defined it, please rate—from 0, meaning no impact, to 5, meaning significant impact—this capability in terms of its business value to your firm and importance to your company compared to other priorities around CRM.” Thirty-three percent of the audience found “reach” had significant impact on their business.
The audience then rated the remaining four capabilities—acquire, develop, retain, inspire—and ranked them according to their importance to their company. Seventy-three percent rated “acquire” as significant.
Zelinski then asked members of the audience to identify the business value and complexity of each of these capabilities based on four categories: high value-low complexity, high value-high complexity, low value-low complexity, and low value-high complexity. “By doing this, you can understand what’s most important to your firm,” he said. “This rating needs to not just come from senior leadership or management. It needs to come from your customers and end users. High value-low complexity is the low-hanging fruit and should be part of your phase I. This success criteria forms the basis of your roadmap.”
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