Customer Relationship Management – Consulting approach – Munich, June 2000

- 1 - Discussion_Paper_SAG.ppt

Roland Berger & Partner GmbH – International Management Consultants

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Customer Relationship Management

– Consulting approach –

Munich, June 2000


This document was created for the exclusive use of our clients. It is not complete unless supported by the underlying detailed analyses and oral presentation. It must not be passed on to third parties except with the explicit prior consent of Roland Berger & Partners.

Content Page

A. Introduction 3

B. Project objectives and scope 12

C. Approach 16

C.1 CRM target setting 19

C.2 CRM strategy and technology concept 34

C.3 CRM implementation 74

D. References 77

E. Appendix: Supporting tools to implement CRM 81

E.1 The Internet as a supporting CRM tool 82

E.2 The call center as a supporting CRM tool 93


A. Introduction


The importance of an integrated Customer Care approach receives increasing awareness at top management level all over the world

Source: Forrester Research, basis: 50 Sales managers of Fortune 500 companies

"Do you have a single, integrated view of the customer today?"

"Do you have a single, integrated view of the customer today?"

"How important is a single, integrated view of the customer across your company"

"How important is a single, integrated view of the customer across your company"

48 %

44 %

6 % 2 %

Very important

Critical

Somewhatimportant

Not at all important 2 %

10 %

52 %

36 %

Yes

Somewhat

Not really

Not at all


In the future, a company's value will increasingly depend on the value of its customer base

Factors influencing corporate valuation

Market value addedmethod

Market value addedmethod

Discountedcashflow method

Discountedcashflow method

Multiplesmethod

Multiplesmethod

Customer lifetimevalue method

Customer lifetimevalue method

Customer acquisi-tion cost method

Customer acquisi-tion cost method

Industrialsociety

Informationsociety

Traditional industrial companies,

e.g. manufacturing industry

Service companies, e.g. consulting firms, software companies

Internet companies

Assets

Employeebase

Customer base

Source: Roland Berger & Partners


The value of the customer base is determined by the key factors individual customer value and size of the customer base

Value of customer base – corporate value

Increasedcorporate value

Increasedcorporate value

Higher customer net present value

Higher customer net present value

Higher absolutenumber of customers

Higher absolutenumber of customers

Customer cashflows

Number of customers

An

nu

al p

rofi

t/c

ust

om

er

1

2 3 4 5 6 7 8

Price premiums

Recommendations

Cost savings

Sales growthper customer

Base profit

Acquisition cost

Customerretention rate

New customeracquisition rate

[%]

t

+ +x%



The market value of the leading InfoCom companies clearly exceeds that of OEMs – the customer base is the key success factor

Source: Roland Berger & Partners analysis

Overview of customer ownership and market value

44

90

112

189

228

300

376

405

42

80

67

40

14

28

20

90

4001,128

VW

GM

Ford

Yahoo!

Mannesmann

Vodaphone/Airtouch

AOL

Nokia

Microsoft

Number of customers in millions (12/99) Market value in DM billions (12/99)

DM 1,000/customerDM 1,000/customer




DM 16,300/customer

DM 16,300/customer

DM 10,700/customer

DM 10,700/customer

DM 18,800/customer

DM 18,800/customer



Points of customer contact

• Shopping• TV/media• Telephone/mobile

• Banking• Sport• Car


Managing the customer relationship is a key lever to increase shareholder value

Market and customer valueExample

Managing the customer relationship

Market value

(bn Euro)

Customer Value(Euro)

Today

0.4

12/99

1.000 (Current)

0.6

3.6

Potential

Future

1.500 (Microsoft)- 9.000 (AOL)

Calculation basis: 400.000 customersSource: Roland Berger & Partners


CRM is a strategy designed to increase individual customer value by establishing a long-term and systematic customer relationship

Learning relationship

Generating/ recording

customer data

Ongoing customer

relationship

22

33

44

11

Identification

Informationanalysis• Customer

profiles• Forecasting

buying behavior• Monitoring

success

Initial contact with customer

00

Developing customer benefits, e.g. • Value-added

services• Customized offers

• Increased customer retention

• Wider range of services

• Higher efficiency in contacting customers



The „knowledge cycle“ is the key to successful CRM when dealing with customers

Actions to support network effects

Source: Hagel/Armstrong; Roland Berger & Partners

Community-generated content

• Online discussions for members• Create profiles

Partnerships with other organisations

• Cross advertising• Partnerships with road side

assistance

Creation of a market place/auction

• Shopping malls• Partnership with auction provider

Questionaires on the net • Experience with a product• Customer history/profile

Need to log-in for each member

• For newsletters• For membership

Continous report of individual information

• Monitoring of web-usage (focus of interest)

Promotions of member- to-member interaction

• Personalized e-mail system for members

• Personal web pageCustomized interaction • Service reminders

Conserving relationships

• Product updates• Archive of chat contributions• Bonus programmes (e.g.

web miles based on after sales frequency)

Increased content attractivity

Better knowledge about the client

Higher loyalty

Examples

Examples

Examples

Increasing return of

marketing & Sales

1.

2.

3.


The key lever for CRM success is the Internet innovative options for individual customer contact

3

1

2

Maximumcustomer potential

Maximumvolume

Product/service rangeaddressed

Currentcustomer

value

Marketing/sales cost

Enhanced loyalty: Changing occasional customers into loyal customers

• Internet as convenience channel• Individual communication, e.g. my.com sites• Information-based value-added services

1

Opportunities offered by the Internet

Broad-based customer communication: Cross selling

• The Internet is used to collect information other than the individual product/service range

• The Internet is used to address a wide range of products

2

More efficient contact: Cost savings

• The Internet is a low-cost sales channel• Option to provide individualized information

(example mail-order: Catalogues tailored to customer profiles)

3



B. Project objectives and scope


The strategic goals aim at sustainable growth and profitability

Enhance identification, segmentation, conquest and

loyalty of customers

Strategic goals of CRM

Having a clear idea of the customers’ current and future needs

Reinforcing the awareness of the Group and of its service mix

Increasing customer satisfaction

Responding quickly and efficiently to the customer bearing in mind its

economic value



The project objectives aim at a seamless implementation of CRM from vision to systems integration

CRM project objectives

Create a strong CRM vision and focus areas with highest business potential

Create a strong CRM vision and focus areas with highest business potential

Translate CRM vision into bold CRM strategy combined with a customized technology concept

Translate CRM vision into bold CRM strategy combined with a customized technology concept

Ensure a sustainable implementation supported by reliable CRM processes and systems

Ensure a sustainable implementation supported by reliable CRM processes and systems



The project covers the entire business-channel matrix with CRM applications to attract, penetrate and retain customers

CRM applications

• Personalized customer dialogue

• Personalized offerings

• Customer retention module

DirectOwn

concess

SIVA

INTERBANCO

COMEPOR

Channel

Business

Business-channel matrix

3rd partyconcess.

MULTIRENT

Tele-mktg.

Promo-tors

Inter-banco

Multi-rent

Inter-net Stores

Inter-national

LGA

SIXT

RETALHO

Example



C. Approach


ImplementationImplementation

The approach to define and implement Customer Relationship Management consists of three phases

ObjectivesObjectives

Target settingTarget setting CRM strategy andtechnology conceptCRM strategy and

technology concept

1 2 3

• Analysis of customer

requirements

• Benchmarking and Best

Practice analysis

• Evaluation of existing CRM

measures

• Development of CRM vision

and target system

• Estimation of potentials


• Development of a detailed

CRM strategy within the

overall sales & marketing

strategy

– Personal customer

dialogue

– Personalized offerings

– Customer retention

• Designing a technology

concept in co-operation

with CRM systems

providers

• Set up of detailed CRM

business case

• Implementation of CRM

strategy and technology

concept (work program to

be detailed during phase II)


The customer relationship management strategy can be ready for implementation in 4.5 months

Project monthActivity

1 2

1 Target setting

2. CRM strategy

– Personal customer dialogue

– Personalized offerings

– Customer retention program

– Process and organizational implications

– Pilot implementation

3. Technology concept

– IT-Audit

– Data-model and IT-infrastructure plan

– Software and service provider selection

4. Implementation

3 4


Timing

5


C. Approach

C.1 Target setting

C.2 CRM strategy and technology concept

C.3 Implementation


?Key questions „target setting“

• What customer segments are addressed by the CRM strategy and what are the segment-specific customer requirements?

• Which benchmarks and best practices can be derived from automotive and non-automotive CRM applications?

• How is current customer information deficit to be tackled?

• To what extent can the project build upon existing CRM measures in the Group?

• What is the vision as the guideline to define the CRM strategy?

• What are quantified and measurable targets to evaluate business options and to track the implementation process in a consistent way?

• What overall business potential (additional revenues and improved margins) is associated with the implementation of CRM?



The „target setting“ phase can be completed within 4 weeks (1)

Project weekActivity

1 2 3 4

Work schedule „target setting“

1.Analysis of customer requirements

– Definition of relevant customer segments for the CRM strategy

– Identification of segment specific requirements with regard to CRM applications

2.Benchmarking and Best Practice Analysis

– Identification of relevant benchmarking targets

– Gathering of bechmarking data from RB&P databases and external sources

– Definition of relevant benchmarks and best practices

3.Evaluation of existing CRM measures

– Analysis of existing point-of-contact structure of customers

– Documentation and evaluation of existing CRM activities



The „target setting“ phase can be completed within 4 weeks (2)


Work schedule „target setting“

4.Development of the CRM vision and target system

– Break down of CRM goals into detailed targets

– Definition of target weights and measures

– Set up of balanced score card for entire project

5.Estimation of potentials

– Estimation of segment-specific revenue and margin improvements

– Rough assessment of cost and investment requirements

1 2 3 4



The analysis of customer requirements will deliver segment-specific CRM related needs

Business to businessBusiness to businessBusiness to consumerBusiness to consumer

• Cost reduction

• Reduction of processing times

• Service degree/access to services

• Convenience

• Information "on demand"

• Individual problem solving

• Entertainment

• Price advantages

Customer needsCustomer needs

• Quality of service

• Efficiency improvement

• Innovative business models

• Customer loyalty/penetration

• Reach new customers

• Brand image

ObjectivesObjectives

1) Fleets/direct customers



…

Benchmarking and best practice analysis will reveal feasible and attractive CRM opportunities

Example: CRM related content at Porsche

Post cards• Via e-mail• Collects sender and

recipient addresses

Company links• No data entry• Personalization via

cookies onlyTravel club• Different travel offers• Online application• Total personalization

Porsche newsletter• Newsletter

subscription• Collects e-mail

addresses Guest book• No personalization

since only entry of name required

Games• Simple little games• Personal information entry

required in order to be listed in high score tables



Transferable best practices can also be derived from non-automotive benchmarking targets

Bonus program

Customer-specific

Customer segment-

specific

No customiz-

ation

Own product/ service range

Entire demand range

Degree of individuality

Degree of demand coverage

Holistic CRM

players

Cross-selling

No

Yes



Particularly the airline industry is leapfrogging the development in customer retention programs including personalized services for target segments

• American Airlines• Internet market entry of www.aa.com in 1995• Objectives: Online bookings from US$ 1.7 m per day (max.) in

1998 up to US$ 500 m total in 1999, further expansion of one-to-one customer customer relations

• Earning miles: – Fly (AA, BA, Canadian Airlines, Cathay Pacific, Finnair, Iberia,

Quantas Airlines, Japan Airlines, Swissair, etc.)

• Each Internet visitor receives an offer tailored to her/his history and individual profile

• At present, there are > 35 m AAdvantage-members, 1.7 m of which have already visited the Internet website

General information Product/service range and partners

Personalized Internet services Success

– Hotels (Best Western, Holiday Inn, etc.)– Car rentals (Alamo, Avis, Hertz, etc.)

– Shopping (Golf, Dining, etc.)• Using miles:

– Fly, hotels, car rentals, trips

• Top-tier Aadvantage members have access to a personalized AA page

• More than 35 % of the top-tier members use the online offer• Record-booking day 1998: US$ 1.7 m



The points-of-contact analysis is supported by specific tools and results in a rough estimate of how CRM functions can be optimally applied

Segment-specific points-of-contact analysis supported by tools

Transaction

Channels

Internet

Call center

Sales force

Logisticsservices

Presales Sales After-sales

Customer segment A

Customer segment B

Customer segment C

Points-of-contact tool

• What are the points of contact?

• What information is generated at these points?

• How is this information aggregated/ evaluated/utilized?

• What additional information should be collected (cost orientation)?

• What further points of contact should be set up?

• What analysis results are to be expected from the future information base?

• How wide/detailed are future customer profiles?

• What is the presumed frequency/intensity of the points of contact?Etc.



Life cycle management Information and complaint mangement

Customer service concept Segment-specific programs


Existing CRM activities will be evaluated in terms of their potential of being integrated into the overall CRM strategy

Lack of strategic direction and process

orientation

Customer life cycle management• Prospective customer service• Customer service pre-sales• Customer service after sales• New customer program• Reactivation/recovery programs

Vehicle cycle management• Service card (planned first

upgrade)• Service program

Segment II/III

Integrated customer life and vehicle cycle management• Service card (planned second upgrade)

Information management• Prospective customer service

Complaint management• Definition of response times• Catalog of rules for cooling off customers• Proactive reactivation/recovery appeal

Trade service program• Customer retention • Service coupons

Service program• New media/electronics• Real-space worlds

– Forum– Representation– Forum for technology/history

• A Plus expanded services – Tourism– Expansion of assistance

• Brand/oldtimer club• Mobility guarantee

Premium program• VIP service

Other customer groups• Companies

– Fleet management– Industrial customer service– Major customer service

• Taxi customers– Taxi customer program

Age group program• Youth

– Youth program

Project example: Analysis of existing CRM activities for premium OEM


CRM player C

The vision will define the future positioning towards the customer relationship

• Address attractive customer segments in many parts of the demand range

• Cover product/service range with the help of partners

• Establish and trade own currency (e.g. "Miles", "Buxx")

• Personalize offer and pricing based on customer behavior

• Use the Internet (via different access media) as main channel to reach the customer

• Cut other companies from customer access

Customer retention vision 2005: “Total Customer Ownership”

CRM player B

CRM player A

Financial Service

Mobiletelecom.

Gro-ceries

Ele-tronics

Mobility

CD/books

Personalized offer

Illustrative



The evaluation of the target system will allow the definition of a clear hierarchical order….

IllustrativeTarget system CRM strategy (1)

Increase shareholder value

Increase shareholder value

Improve profitability

Improve profitability Sustain growthSustain growth

Overall

General

Operating

Product - specific



… that will translate into a scorecard required in the first phase to evaluate business options

Target system CRM strategy (2)

Phase 1Phase 1

Objective Weight

Objective

Sub-objective 1

Operating objective

Operating objective

…

Sub-objective 2

Operating objective

Operating objective

…

0,5

0,2

0,05

0,1

0,3

0,15

0,1

Evaluate businessoptions

Evaluate businessoptions

Phase 2Phase 2 Phase 3Phase 3

Monitoring

…

Performance measure

…

Today

…

Goal

…

When

…

Implementationmilestones

Implementationmilestones

Derive performance targets from selectedbusiness options

Derive performance targets from selectedbusiness options

Illustrative


- 32 - MUC-0260-90099-02-72a.ppt

The individual weights of the targets will be defined interactively and represent their relative importance

Project example: target system for e-commerce strategy

Increaseshareholder-

value

Improveprofitability

(31%)

Strengthenbrands(35%)

Increasechannelcontrol(34%)

•Avoidance of lost sales (7%)

•Increase of sales (6%)

•ECOM ROI (6%)

•Channel cost reduction

(6%)

•Improved planning (6%)

•Customer retention (8%)

•Conquest (7%)

•Image contribution (7%)

•Web-site fidelity (6%)

•Compliance with brand

strategy (7%)

•Control of customer

data/ prospects (9%)

•Service quality (7%)

•Group-coherent offering (6%)

•Top-3 competitive offer (5%)

•Time-to-market (7%)


Example


In the course of the actual potential estimation, parts of the customer strategy development have to be anticipated

Segment-specific estimation of potential[Based on business plan]

Prod./service range

Segment

A

B

C

D

Own product/service range

Spectrum to be addressed

N

Prod./serv. range

Segment

A

B

C

D

Resultspectrum

Spectrum to be addressed

N

Focus segments

Trans-action

Channels

Internet

Call center

Sales force

Logisticsservices

Presales Sales After-sales

Expected sales(at optimum CRM use)

Expected sales(at optimum CRM use)

Cost

Realistic CRM potential

Estimating segment-specific potential

Identifying focus segments Estimating CRM cost

Etc.

• Frequency• Degree of individualization• etc.



C. Approach

C.1 Target setting


C.3 Implementation


?Key questions „CRM strategy and technology concept“

• What are the opportunities to intensify the dialogue with the customer and improve customer knowledge to increase customer loyalty and cross-selling?

• What are the most promising business options to develop personalized customer benefits through customized offers and value added services?

• What are the most promising business options to establish an ongoing customer relationship through customer retention programs?

• What are the necessary adaptations in processes and organizational structure to implement CRM?

• What is the main impact on the existing IT-Infrastructure due to “translating” strategy definitions in IT-Logic?

• Which functionality could be implemented by choosing “best of bread” software components?

• What efforts have to be done to reach quick and lasting results in a stable IT-environment?



D.2.1 CRM strategy


The CRM strategy can be completed within 14 weeks

Work schedule "CRM strategy"


Project week Activity

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1. Personal customer dialogue

– Concept– Pilot implementation

2. Personalized offerings– Concept– Pilot implementation

3. Customer retention program

– Concept– Pilot implementation

4. Process and organizationalimplications


Personal customerdialogue

Personal customerdialogue

Personalizedofferings

Personalizedofferings

Customerretention

Customerretention

Process andorganizatinalimplications

Process andorganizatinalimplications

• Develop business options per action field– Content– Contact frequency– Customer contact points

• Evaluate and select busi-ness options according to the target system

• Develop criteria catalogue for the technology concept

• Derive control measures

• Define core competencies/ make-or-buy

• Integrate external service providers

• Define processes/ process changes, clearly integrated into existing marketing & sales processes

• Derive organizational structure

• Change management/ transformation

• Develop business options per action field– Bonus programmes– Communities– My.com sites – etc.


• Detail business options – Scope (customer seg-

ments/ business units)– Content– Functions/processes– Partnering concept– Business plan

• Develop business options per action field– Products-/services range– Cross-selling– Degree of individualiza-

tion


• Detail business options– Customer contact/ fore-

casting– Partnering concept– Business plan

Four steps will derive a winning CRM strategy

Project approach CRM strategy development



How to individualize customer contact: Personal customer dialogue


?Key questions „Personal customer dialogue“

• Based on the customer contact analysis of phase I: At which contact points should the customer dialogue be intensified? Are the current contact points sufficient? What are additional opportunities to contact the customer in the most efficient way to further increase customer loyalty and cross-selling?

• What are the data requirements for an efficient customer dialogue? Which techniques should be applied in order to forecast customer buying behavior?

• What are the necessary adaptations among the different companies within the Group in terms of customer contact points, content and contact frequency in order to ensure maximum efficiency of the customer dialogue?

• What are the appropriate control measures to safeguard the achievement of the targets set in phase I?



The personal customer dialogue concept can be completed within 6 weeks


1 2 3 4 5 6

1.Development of business options for personal customer dialogue

– Assessment of the current personal dialogue activities among the Group’s companies based on the results of phase I

– Selection of the relevant focus action fields

– Development of business options per action field (across companies/ company-specific)

– Evaluation and selection of the business options according to the target system

2.Development of a criteria catalogue for the technology concept

– Define data requirements and layout customer database

– Cross-check with data availability

– Data aggregation/networking

– Definition of analysis and forecasting routines

3. Definition of control measures

– Definition of the appropriate control measures per business option

– Establish reporting routines

4. Pilot implementation


Work schedule „Personal customer dialogue“


CRM business models will be defined for existing and new products and services

New business models

Currentproductservices

Personaldialogue

Personalizedoffers

Customerretention

1 2 3

Flexible leasing offers

Servicereminder

Smart bonuscard



For the strategically most attractive action fields several business options will be developed


Illustrative

Lifestyle-oriented newsletter with content partners

Lifestyle-oriented newsletter without partners

…

Indirect customers captive

Expected impact from

changesChange effort

Neither time nor resource intensive

Either time or resource intensive

Time and resource intensive

EvolutionTrans-

formationRevolu-tion

Front-office

Newsletter with mainly product-oriented content

1

2

3


The business options developed are evaluated in qualitative terms in consideration of the target system

Qualitative evaluation of business options

Product-oriented newsletter

…Lifestyle-oriented news-letter without partners

Business optionsWeightingCriteria

• Sales potential 0.2

• Efficiency increase 0.2

• Customer retention 0.25

• Potential to conquer new customers

0.3

Total


+ o

+ o

o ++

o ++

Illustrative


The evaluation according to the target system ensures stringent prioritization across all project modules

Improve profitability Strengthen brands Increase channel control

Positive impact No impact

Incr

ea

se o

f sa

les

RO

I

Cha

nn

el c

ost

re

duct

ion

Imp

rove

d p

lan

nin

g

Cus

tom

er

rete

ntio

n

Con

qu

est

Ima

ge

con

trib

utio

n

Web

- si

te f

ide

lity

Com

plia

nce

with

b

ran

d s

trat

eg

y

Con

tro

l of

cust

ome

r d

ata

/pro

spe

cts

Ser

vice

qua

lity

Gro

up

coh

ere

nt

off

erin

g

To

p 3

co

mp

etit

ive

o

ffer

Tim

e-t

o m

ark

et

Avo

ida

nce

of

lost

sa

les

E-fleet ordering

On-line service appointments

Priority 1

Priority 2

Evaluation of B2B options versus target system

Σ

11.5

Flexible fleet 9

On-line test drive booking

9.5

9

Project example



A customer data model allows high-quality data analysis and enormously reduces data maintenance work

Customer data modelCustomer data model

Value creation through customerdata model

Value creation through customerdata model

High-quality data analysis Reduce data maintenance

CRM system country A CRM system country B CRM system country C

Country-specificadaptation of data

Basis for CRM processes

Unique and minimal definition of persons/individuals, attributes, code structures, and relationships

Project example



The relationality of the customer database allows comprehensive data management

Model

Partner-vehiclerelation

Partner vehicleservice

Vehicle

Company

Exclusionflags

Partnerservice

Person

Lifestyle

Partner-dealerrelation

Contact

Partner-addressrelation

Address

Dealer

CaseContact case

relation

Campaign

Project example


Database structure


How to maximize customer benefits: Personalized offerings


?Key questions „Personalized offerings“

• What are the most promising products and services for personalization to maximize customer benefits and thus increase customer loyalty and cross-selling?

• What is the optimum degree of personalization with regard to the requirements and potentials of the different customer segments?

• How can the input from personal customer dialogue be utilized to forecast customer buying behavior and thus optimize the efficiency of the product’s/services’ customization?

• To what extent should external partners be involved to complement the existing product/service range to further increase customer benefits?



The module “Personalized offerings” can be completed within 6 weeks


4 5 6 7 8 9

1.Development of business options for personalized offerings

– Screening of current product and service range to determine the products and services with the highest potential for personalization

– Development of business options for the defined products and services

– Definition of the optimum degree of personalization with regard to the requirements and potentials of the different customer segments


2.Detailing selected business options for implementation

– Synchronization with personal customer dialogue in terms of contacting customers and forecasting customer buying behavior

– Partnering concept to complement offers and fulfillment

– Development of a business plan per business option



Work schedule „Personalized offerings“


The Internet is a key lever for personalized offerings


Content Processes/functions

• Demarcating the field of application in terms of product/service range and focus segments

• Defining control ratios for the degree of individualization, e.g. – Status (sales)– Potential– Internet affinity– Contact frequency

• Designing the Internet points of contact, e.g. – IT-based value-added services– Pricing– Product/service range– Rewarding– Templates for my.com site

• Detailed trigger definition (acting vs. reacting)

• Finding partners for external services and logistics requirements

• Processes– Integration into existing

sales/marketing processes– If necessary, defining new

processes(e.g. logistics, individualized production)

• IT infrastructure focusing on the Internet and database marketing

• Implementation within the organization


Dependant on the perceived customer benefit and the necessary change effort the most promising business options for personalized offers will be selected

Selection criteria personalized offers

high

low

Perceived customer benefit through level of differentiation

lowhighChange effort• Processes• Resources• Time

Your personal assistant

Flexible leasing

Personalized e-mail newsletter

Recall & service bulletins

Online vehicle history


Illustrative


The selected business options will be assessed in detail

Overview of “Flexible fleet” process

• Leasing program with no predefined vehicle

• On-line functionality provides users with the opportunity of choosing cars from a car pool

• Strict data tracking provides insights into customer behavior and serves as input for a learning customer rela-tionship

Company siteCompany site Fleet managerFleet manager Fleet userFleet user Leasing companyLeasing company

• Logs into NSC site

• Requests car

Validationprocedure Eligibility check

Car availability

Proposal for availability and

“price”Choice

Confirmation

Forwarding

For scheduling pick-up For records/admini-

strative proceduresSource: Roland Berger & Partners

Project example


How to develop ongoing customer relationship: Customer retention


?Key questions „Customer retention “

• What are the most promising business options to establish an ongoing customer relationship through customer retention programs?

• What are the criteria to be applied for customer segmentation to release the maximum potential of the customer retention program?

• How does the ideal partnering concept look like to complement the companie’s program in terms of content, reach and fulfillment? What is the most promising branding concept?

• What are the requirements in terms of database structure to most efficiently support the retention program and leverage the additional data generated with regard to a learning customer relationship?



The module “Customer retention” can be completed within 6 weeks


7 8 9 10 11 12

1.Development of business options for customer retention programs

– Screening of alternative customer retention concepts

– Benchmarking of best practices from automotive and non-automotive companies

– Description of feasible business options


2. Detailing selected business options for implementation

– Define scope (customer segments/companies included) and content of the retention program

– Detail underluying processes and functions

– Partnering concept to complement the companie’s program in terms of content, reach and fulfillment

– Definition of database requirements for data support and optimum utilization of data generated

– Business plan development



Work schedule „Customer retention“


A successful customer retention program requires the use of smartcards


Content Processes/functions

IT infrastructure

• Establishing the bonus program, incl. rewarding and status concept

• Cost-benefit check

• Database-marketing concept

• Defining card functions, e.g. – Identification– Payment function– etc.

• Specifying card processes, esp.– Processing of applications– Billing– Service centers

• Designing a card concept, incl.– Card type (chip, magnet, hybrid)– Reading/writing devices– Card management system

• IT infrastructure (safety, interface integration, etc.)

Susan Sample

Gold member

6653 1239 3976


Customer segmentation Customer retention program

Systems Partnering


Lufthansa’s “Miles&More” is an example for a comprehensive and highly successful customer retention program

• Customer segmentation according to flight miles with Lufthansa or partnering airlines

• Differentiated customer contact concept: Communication budget– Frequent travellers: 43 DM p.a.– Basic customer: 6 DM/p.a.

• Miles & More loyalty program for frequent travellers

• 3.6 million members, thereof– 1.6 million active members– 220.000 frequent travellers

• Increase in frequent travellers ~20 % p.a.

• Database management and IT-systems as a core competence within the marketing & sales organization

• Continuous extension extension of the loyalty program through broad-scale partnering concept – Star Alliance– Hotels– Car rental companies– ...

Benchmark


Communities like the “BMW drivercircle” are innovative, target group-oriented customer retention programs using the interactive potential of the Internet

BMW drivercircle community

Live-chat with BMW managers

Contact with other 7-series drivers

("Web-community")

News and innovations concerning 7-series

Personal e-mail account

Direct connection to BMW• Check vehicle-manu-

facturing schedule• Information about BMW

employees, plants ...

(Access with password only for 7-series drivers)


Benchmark


A personalized portal is a powerful tool to increase customer loyalty as well as to attract and conquer new customers


Personalized portal

My Link to Info-Terminal My Stocks Auctions

Travel / Ticketing Direct-BankingPeople & Chat

My Chat

Shopping My Weather

My News My SportsMy TV ListingsMy Horoscope

Yellow Pages

Region City

Communities

TK & IT Flirt

Search Engine /My Searches

My Reminders /My Favorite Links

Illustrative


Process and organizational implications


?Key questions „Process and organizational implications“

• What are current or future core competencies to be safeguarded respectively further extended?

• What are possible areas for integrating external service providers to complement the companie’s competencies, based on a make-or-buy decision?

• How do future CRM processes and their interlinkages with the existing marketing and sales processes look like? What are the necessary process adaptations?

• What are the implications on the organizational structure?

• What is the role of change management to ensure a smooth transformation towards the implementation of CRM?



The module “Process and organizational implications” can be completed within 4 weeks


11 12 13 14

1.Definition of the optimum degree of vertical integration

– Definition of core competencies

– Make-or-buy analysis

– Screening potential external partners

2. Assessment of core CRM processes and process changes

– Definition of core CRM processes in terms of information and transaction

– Analysis of interlinkages with the existing marketing & sales processes

– Derive necessary process adaptations

3. Implications on the organizational structure

– Definition of necessary functional competencies and capacities

– Integration of CRM into existing marketing & sales organizational structure

Work schedule „Process and organizational implications“



CRM is a key process within marketing & sales

Maximum value creation per customer for all products/services

Maximize market value

Zero-defect delivery

Increase loyalty/ conquer target

customers

Minimum processing time with maximum demand

satisfaction

Brand management

Product-/services lifecycle management

Customer relationshipmanagement

Sales planning/control and "order-to-delivery"

Services

ET/accessories

...

NSC, importer

Retail

New/pre-owned vehiclesSales + Service

• Fleet business

• Directbusiness(e-commerce)

• Area sales

Project example



The core processes will be mapped in detail with special regard to the customer data flow

Pre-sales Sales Monitor delivery

Data flow E-fleet ordering

Fleet managerFleet manager

DealerDealer

LeasingcompanyLeasingcompany

NSCNSC

Providesaccess code

Receives basiccustomer data,saves car request

Receives customer data, car request

Provides saved carconfigura-tion

Receives customer information/order details from orderform

Receivesorder formfor approval

Receivesorder formfor approval

Receivesapproval

Receivesorder forrecords

Receivesorder fordeliveryscheduling

Receivesorder forrecords

Provides deli-very data to customer


Project example


The necessary organizational structure will be derived in order to establish CRM

Dimensioning sales initiation phase

Task Capacity

General Manager

ECOM Region / Market Manager

Quality Manager ECOM (QME)/ECOM Platform Manager

Toolbox Concept Manager

Partnership Manager

ECOM-Technology / IT-Manager

ECOM-Controller

Secretary

Total

1

5

1

2

1

2

1

1

14

Dimensioning direct sales phase

Task Capacity

General Manager

ECOM Region / Market Manager

ECOM Sales Manager

Quality Manager ECOM (QME)/ECOM Platform Manager

Toolbox Concept Manager

Partnership Manager

ECOM-Technology / IT-Manager

ECOM-Controller

Secretary

Total

1

5

5

3

2

3

4

1

2

26


Project example


C.2.2 Technology concept


?Key questions „Technology concept“

• Which existing IT-Systems are directly affected by implementing a CRM-Strategy?

• Are there any functionality concerning analysing consumer behaviour and transferring it into transaction oriented consumer response which could not be fulfilled by existing IT-infrastructure?

• Is there a fit between customizing effort / integration effort and profound benefit analysis?

• What additional IT-Systems should be implemented following a “best of bread” strategy?



Three steps are required to combine the CRM strategy with a sustainable technology concept

IT-AuditIT-Audit Data Model/IT-Infrastructure Plan

Data Model/IT-Infrastructure Plan

Software- / Service-Provider- Selection

Software- / Service-Provider- Selection

• Pragmatic creation of transparency about– existing IT-Systems (Software)– Hardware– Network, communication

protocols– etc.

• Identify all major stake holders who are responsible for implementation and operation of target IT-CRM solutions

• Translate defined tool-/provider demands into Request For Quotation (RFQ)

• Identify the best implementation partners based on Broadvision SW-platform

• Derive milestones / implementation plan

• Develop holistic data model regarding – actual customer profiles– defined target systems– future CRM-trends (e.g. internet

as customer contact point)

• Identify relevant databases

• Define “data gap” and provide technical solution for closing the gap

• Derive target IT-infrastructure plan



The technology concept can be completed in 14 weeks in parallel to the CRM strategy development


1 2 3 4 5 6

1. IT-Audit

– Development of standardized questionnaire

– Focus interviews with major stakeholder

– Description of existing Hard- and Software-Components (CRM-specific IT-Landscape)

2.Design Data-Model and IT-Infrastructure Plan

– Identification of relevant data and databases (according to defined target systems)

– Development of database model

– Identification of data flows and participated IT-Systems

– Definition Migration-Plan into a target IT-Infrastructure

3.Software and Service Provider selection

– Development of Request For Quotation´s (RFQ´s) for potential SW-and Service providers

– Provider/Tool selection

– Development of implementation plan (in co-operation with SW-Partner)

7 8 9 10 11


Work schedule „Technology concept“

12 13 14


C.2.3 Business Case


All revenue, margin improvement, cost and investment effects are consolidated in to business plan based on different scenarios

Business plan

Realistic case

Worst case

Best case

Aggregated cashflow

DM m

2001 2002

• Sales increase– Penetration of existing customers– Acquisition of new customers– …

• Efficiency increase– Improvement of margin– Reduction of process costs– Reduction of process times– Increased hit-rates– …

Total cash-in• Investment

– Planning/restructuring– EDP (hardware/software)– Network– Dealer training– …

• Current expenditures– Personnel– Leasing hardware– Software licenses– Software updates– External providers– …

Total cash-out

Cashflow

2000 2001 …


2000

Illustrative


Cost effects and investments are recorded in detail

1.2.1 Shipping channel

Extract

Parameter Q 1/00 Q 2/00 Q 3/00• • •

2.1 E-Com phase II

2.1.1 Planning2.1.1.1 Internal project management2.1.1.2 Concept development2.1.1.3 IT-logic2.1.1.4 DP concept2.1.1.5 External integration planning2.1.1.6 Internal integration planning

2.1.1.2 Development environment2.1.1.2.1 Hardware2.1.1.2.1.1 Server2.1.1.2.1.2 Network adapter Fast Ethernet2.1.1.2.1.3 DAT streamer/accessories2.1.1.2.1.4 Development clients

...2.1.1.2.2 Software2.1.1.2.2.1 Scoring tool2.1.1.2.2.2 Application server2.1.1.2.2.3 Performance pack2.1.1.2.2.4 Designer client2.1.1.2.2.5 Visual Age for Java2.1.1.2.2.6 DB2 license2.1.1.2.2.7 Version system PVCS2.1.1.2.2.8 Case tool Paradigm Plus2.1.1.2.2.9 Data warehouse

...

MAK 2MAK 3MAK 3MAK 4

EX- MAK 2MAK 2

17215

1115151511

122534

25,400.-4,000.-3,000.-

122554

100

Detailed planning Investments, IT,

marketing, operations ...

Source : Roland Berger & Partners


C. Approach

C.1 Target setting


C.3 Implementation


For each business model seven internal and external tasks need to be performed for implementation

Project management/

controlling

Managing externalservice providers

Management of internal tasks

Content management

1

Implement IT plan

3

Marketingplanning and

implementation

2 Operations support/hot line

4

Select/management content partners

6Management of

systems integrators

7

Select implementation

partners

5

Business model A

Business model B



e-partnering is the approach of Roland Berger & Partners to provide you with an effective partner management framework in Electronic Commerce

e-partnering framework

DefinitionDefinition

e-partnering is aframework to

manage partners andpartnership processes effectively in the field

of Electronic Commerce

Portfolio of partnershipsPortfolio of partnerships

Company profile

Name:Field ofbusiness:Contactperson:

Company profile

Name:Field ofbusiness:Contactperson:

Strategic partners Operational partners

Process of partner managementProcess of partner management

Evaluation Screening/selection

Coaching Integration

process

• Mutual evaluation of set targets• Identification of weaknesses• Continuing/closing partnership

• Regular meetings• Open/continuos exchange of

experience ideas• Built-up trust

• Definition of required partner profile

• Market screening• Close partner contracts

• Definition of interface withpartners (contact person, IT etc.)

• Integration of business processes• Identification of latent problems

1

23

4



D. References


Roland Berger & Partners have successfully completed numerous project in related issues

Selected clientsSelected clients Selected projectsSelected projects

• Realignment of key marketing processes including CRM at a vehicle manufacturer

• e-commerce and CRM strategy for a premium manufacturer

• Organizational realignment of a car rental company• Strategic repositioning of a telematics service

provider• Evaluation of strategic opportunities for the

business model of a telematics service provider• Marketing concept for automatic toll collection• Development of a business model for

e-services/telematics• Design and implementation of a partnering concept

for a telematics service provider• Pan-European market study (potential until 2010)

for traffic telematics services and systems• Selection of a telematics service operator for an

OEM

• ACB/Dürkop (Retailer Group)

• ALD

• Audi

• Auto-By-Tel

• BMW

• DaimlerChrysler

• debis

• Europcar

• GEFA

• General Motors

• Infos Telematica

• Johnson Controls

• Mannesmann Autocom

• Retailer Groups

• Sixt

• Volkswagen

No directmatching



Strong internal teaming and external partnering provides one-stop-solutions to our clients

Example: Joint acquisition with CC InfoCom and Lisbon office

Automotive expertise

• Business models

• Customer segment requirements

• Sales channel management

Know-how from other industries

• Airlines

• Banking

• Healthcare

• Broad Vision • Lucent Technologies • Siebel

Customerrelationshipmanagement

External partners

Ongoing customer

relationship

3

4Developing customer benefits, e.g. • Value-added

services• Customized offers

Informationanalysis• Customer

profiles• Forecasting

buying behavior

• Monitoringsuccess

Generating/ recording

customer data

2

1

IdentificationInitial contact with

customer

0

External partners


Due to its technical expertise, e-commerce experience and business view, the InfoCom CC provides indispensable support for CRM and e-commerce projects

Company-specific, successful CRM and/or e-commerce projectCompany-specific, successful CRM and/or e-commerce project

• Concept for the integration of CRM into the IT environment

• Utilizing technological benefits of data mining for trigger design

• Integrating Internet functions and decentralized data storage for data provision concepts

• Selecting data warehouse and data mining tools and CRM software

• Designing e-services, value-added Internet services

• Designing corporate webpages on the Internet

• Pricing for e-commerce transactions

• Integrating existing pools into an e-commerce platform

• Evaluating the significance of value-added services

• Calculating business plans

• Drawing up CRM structures and processes

• Benchmarking of CRM concepts (also from competitors' point of view)

Technological competence

• Knowledge of basic technologies and their application

• Knowledge of the essential products available and their derivatives (gained from projects in the IT industry)

E-commerce competence

• More than 50 e-commerce projects

• E-commerce studies

• Continuous dialog with top e-commerce companies worldwide

Business view

• Focus on economic benefits of applied technologies

• Competent development of business concepts and analysis of competitors' strategies

Roland Berger & Partners InfoCom Competence Center Roland Berger & Partners InfoCom Competence Center

Project experience in CRM and e-commerce



E. Appendix: Supporting tools to implement CRM


E.1. The Internet as a supporting CRM tool


A group wide website will be used as a new sales channel and CRM portal

Work package objectives

• Determine the technical requirements and

specifications and a business plan for the various

partners

• Coordinate the work of the web agency, the IT

platform providers, ...)

• Integrate the legal and technical constraints for the

evolution of the concept and offer

• Build the initial content in coordination with the

internal branches, the potential partners, and the web

design and technical solutions providers

• Build a requirements and specifications document to

provide to web designers and/or technical solution

providers

• Screen and select short list of bidders

• Establish briefs and provide them to the short list

• Select web designers and solution providers

• Regular coordination meetings with the various actors

Activities to be performed

Building sites and technical solutions



The overall objective for the technologies of the portal is to provide a state-of-the-art system that meets all functional requirements

- Objective for an Internet platform technology -

Open, flexible and modular architecture

Real time connection to the companie’s

ERP system

State of the art technology e.g. Java based programs

Open and flexible interfaces (group companies, logistic

providers and selected customers)

Sophisticated security system (access authority,

fire walls)

Ensure that all requirements concerning functionality can

be met

Internet platform

Source. Roland Berger & Partners

Scalability

Multirent.pt


Various IT applications are required in order to set up an Internet portal

Schematic

Inte

rne

t

Group companies

Customer Internet Browser; perhaps

additional software for a connection to

ERP systems

Group companies

Connection directly to the

companie’s ERP system

Required technology infrastructure


Web Design

(e.g. site design; interactive effects;special features, ...)

additional software applications

(e.g. content management software, log file analysis tools, ...)

E-commerce software

Procurement software

Market place software

E-commerce software

IT system integration

(data migration, interfaces management, ...)

IT infrastructure and Internet access

(hardware, databases, web hosting, ...)

Connection via interface

database


E-commerce at the "front-end" means marketing, selling, and interactive customer relationship management

1) Depending on country regulations

"front end"e-commerce

SellingSelling MarketingMarketing

CRMCRM

• OTC-commerce

• Internet pharmacies

• Claim management with health insurance and HMOs1)

• New organization of sales force

• E-detailing of drugs to doctors in practice and hospital

• Electronic prescription writing

• Online product information (e.g. epocrates)

• Ads on other webpages

• "Link mangement" on the web

• Increase of patient compliance

– Doctors (practices, hospital)

– Patients (severe, chronic, OTC, prevention)

– Hospital purchasers/pharmacist

– Paymasters, healthcare officials

• Indirect product marketing through content sites

• Info sites, electornic brochures, permission marketing

• Cost reduction in medicalcommunication

• Bi-directional flow of information/steady marketing effort toward clients

• Build up relationship to:

• “Build your community"


Project example

- 87 - Discussion_Paper_SAG.pptSource: Roland Berger & Partners

Questionnaires filled out by other web page providers as well as call centers help identify the best practice in homepage maintenance

Questions to healthcare homepageproviders

1. Content

• Who decides on the content of the homepage?

• Who decides which links are included on the webpage?

• What steps are taken to place links to your ownwebsite on other homepages?

• • What alliances have been set up with othercompanies/webpage providers?

2. Maintenance

• What is the maintenance frequency for thehomepage?

• Who/how many employees have/has beenassigned to the maintenance of the homepage?

• Which tasks are allocated to central webadministration/decentralizedweb administration (if there are regionalsubsidiary pages )?

• Which company designed your homepage?

• If you provide a hotline service: Who accepts thecalls (students, employees, physicians, …)?

• Who responds to the e-mails addressed to thecompany?

• How much time is required to reply?• • Is e-mail/caller data systematically collected?

• If yes, what data is collected?• If yes, who administrates caller data or has

access to it?• If yes, what is caller data used for

(marketing, sales, medicine)?

Questionnaire for call centers

1. Content

• What are the guidelines for caller handling?

• What is the typical content of the calls?

• What steps have been taken to boostcustomer awareness?

2. Processes

• Who accepts the calls (student, physician,office staff,…)?

• At what times is the call center staffed?

• How many employees are responsible forhandling calls?

• Is caller data collected systematically?• If yes, what data is collected?• If yes, who administrates caller data or

has access to it?• If yes, what is the call center

information used for (marketing, sales,medicine)?

• Do you call customers/physicians yourselfto inform proactively?

• How is the call center integrated into anoverall concept (e.g. of marketing,corporate communication, etc.)?

3. Call center functions

• How many minutes does an average calllast?

• How many calls are accepted perday/week?

• What is the structure of the caller groups(physicians, patients, etc.?

Questionnaire for homepage providers

Questionnaire for call centers


Specification for the various modules will need to be informed

Illustration

Topics coveredTopics covered Key questions answeredKey questions answered

Product catalogue/product descriptionProduct catalogue/product description• How does the product catalogue look like? How are the products

features described?

Stakeholder focusStakeholder focus • Which segments should be focused overtime?

Content provisioning process to portal usersContent provisioning process to portal users • How is process of content exchange organized?

Content rangeContent range • Which content should be offered?

Pricing/Access to contentPricing/Access to content • How does the access to content work; to which conditions?

Content sources and managementContent sources and management • Where does the content come from and how is it managed/updated?



Content presentation is also an essential part of the concept definition

Illustration

Content categoryContent category FunctionsFunctions

Contact PortalContact Portal

• Virtual "3D" tour through portal• Online help with bookmark functionality, keyword and full text

search functionality• Call center available on a 24/7 basis

Communication/chatCommunication/chat• Chat rooms for professionals/private individuals• Virtual project databases for workgroups• Free e-mail addresses and homepages for professionals

Product-related contentProduct-related content• Product video for downloading• Sample ordering function

News-related contentNews-related content• Niew ticker with important news New groups• News calendar with memory effect E-mail newsletter

(push)

General contentGeneral content• "Emergency button" for how to deal in emergencies; direct contact

to call center

- Portal content features -



The business concept represents the basis for a concrete IT-concept

Business concept

•

•

•

•

•

•

•

Know-how

IT conceptIT concept

1. Total architecture1.1 Development platform1.2 Runtime environment1.3 Web- and application server1.4 Security/firewall1.5 Mail server and API1.6 Relevant legacy systems1.7 Host/mainframe2. Data model2.1 Relevant legacy systems2.2 Platforms, formats2.3 Data model specifications2.4 Extraction components2.5 Persistence3. Provider concept3.1 Administration3.2 Access administration3.3 Training/train the trainer4. Proof of concept4.1 Functional blocks and extent5. ...

CRM-Strategy

•

•

•

•

•

•

•

Strategy



The Internet platform needs to have different kinds of interfaces in order to connect its partners and customers

Schematic


Homepage

Inte

rne

t

WebserverDatabase

Interfaces to partners and customers

Firewalls

Interface 1

Interface 2

Interface 3

Logistics provider: Exchange of order data

Content provider: Set up and main-tenance of content

Key customers: Electronic product ordering, billing etc., connection to ERP systems


Several technological success factors have been identified and shall be obeyed


Technological success factors

Security

• Firewalls need to be installed

• A sophisticated access authority concept with various security levels is required

• Each customer needsonly one password

Intuitive and simple structure of the pages in order to make navigation more easily and to increase speed of page loading

Various interfaces (between group companies, customers, logistics providers) need to be installed – data exchange should be possible in both directions

Platform architecture needs to be modular in order to be able to connect further applications/modules in the future

Systems should be available on a 100% basis

Scale of the system needs to be set up to cope with extensive growth of the amount of data

User friendliness

Scalability

Interconnectivity

Architecture

Reliability


E.2. The call-center as a supporting CRM tool


The call center solution to be implemented must be oriented towards the cross-corporation, call center-specific demands of suppliers

Call center solutionCall center solution

Cross-corporation demandsCross-corporation demands

Call center-specificdemands

Supplierdemands

Strategic objectives

• Securing/expanding the market position

• Increasing the revolving ratio

• Expanding new business

• Raising productivity

• Securing/enhancing profitability

• Reducing internal cost structures



The cross-corporation demands are clarified by means of qualitative and quantitative targets

Cross-corporation demands

Qualitative objectivesQualitative objectives Quantitative objectivesQuantitative objectives

Motivated staff

Longer opening

times

Attaining maximum availability

levels

Quick and uncom-plicated

processing

Controlling via stan-dardized reports

Process optimization

More efficient

processing

Image advantagesImage advantages

Raising customer satisfactionRaising customer satisfaction

Raising customer retention (revolving)Raising customer retention (revolving)

Raising productivityRaising productivity

Cutting costsCutting costs

Retaining/increasing market shareRetaining/increasing market share

Retaining/increasing salesRetaining/increasing sales



Several requirements for technology solution and supplier must be taken into account

Source: Roland Berger & Partners-analysis

Call center-specific demands

• Customer Account & Contact Manage-ment

• Market research tools

• Sales force control

• Workflow-/Messaging Services

• Servicemanagement

• ERP-integration

• 24h support/remote diagnosis

• Power Dealing connection/CTI connectivity

• Skill based routing

• Reliability

Supplier-specific demands

• Broad experience and competence in telecommunications

• Excellent reference cases

• Integrated solutions/one-stop-shopping

• Individual taylorized concepts

• Innovative technology and outstanding market position

• Safety of investments

• Good price-cost-ratio


Having a powerful, high-tech telephone system is one of the prerequisites for a professional service center

CustomersCustomers ALDALD Technical imperativesTechnical imperatives

Customer in Hamburg

Customer in Munich

Customer in Leipzig

ALDALDTeamNorth

Team North

Team North

Team North

Customeradvice

IT CT/support

Contact, usually with the name of a specific person Allocated Call/request is processed

• ACD Equipment (Automatic Call Distribution)

• CTI (Computer Telephone Integration

• Voice mail

• E-mail, Internet suitability

• Fax on demand

• Optional: Interactive Voice Response Unit

Project example



Roland Berger & Partners have broad experience in preparing the client management's decision through a comprehensive evaluation process

Evalua-tion process

Evalua-tion process

Prelimin-ary infor-mationand informal visit to CC1)

(e.g.Deut-scher Inkasso-dienst, Deutsche Bauspar)

Initialrough selection from among all suppliers active on the market

Evaluation of support possibili-ties for selection via tele- data

Generation of a catalog of criteria for evaluating suppliers

Grading of suppliers according to a uniform catalog of criteria

Evaluation of suppliers via the documents submitted, the pres-entation, and the individual price list

RB&Pprovides manage-ment with a paper to aid the decision-making process

Suppliers involvedSuppliers involved

Compila-tion and request for tenders

• Alcatel• Dt. Telekom• Lucent Tech.• Nortel Dasa• Micrologica• Siemens

• Alcatel• Lucent Tech.• Nortel Dasa

Three suppliers are invited to give their presenta-tion

Proposals submitted Presentation

Parti-cipantsParti-cipants ALD, RB&PALD, RB&P RB&PRB&P ALD,

RB&PALD, RB&P

ALD, RB&PALD, RB&P RB&PRB&P

1) CC = Call center

?

Project example



The dual selection procedure allowed Roland Berger & Partners to recommend cooperation with Lucent Technologies for implementation of ALD's CC solution

Proposals submittedProposals submitted

Initialselection process

Initialselection process

Invitation to presentationInvitation to presentation

Secondary selection process

Secondary selection process

Alcatel

LucentTechnologies

Siemens DeutscheTelekom

Nortel Dasa

Micrologica

Interactivelydevelopedcatalog of

criteria

Interactivelydevelopedcatalog of

criteria

AlcatelLucent

TechnologiesNortel Dasa

Presentation

Lucent Technologies

RB&Precommendation

Individual price lists

Individual interviews

Assumptions

• Interactively developed catalog of criteria

• Criteria are given different weighting under considerations of ALD-specific aspects

• Consideration of critical systems requirements, of company profile and of the technical and/or realization concept

• Grading of the different suppliers

• Subsequent analysis of suppliers' strengths and weaknesses

• Analysis of presentation documents

• Analysis of individual price lists

• Evaluation of individual interviews

Preconditions:

• Reduction of software/hardware and maintenance costs

Project example



A board range of software solutions could be used for technology enabled selling

Examples

Source: Roland Berger & Partners-analysis

• Abalon• Broadway & Seymor• Clarity• Chordiant

• Corepoint• Pegasystems• Onyx• Siebel

• Allegis• Partnerware• Channel Ware• Webridge

Channel PartnerSystems

Contact SW,Telesales,Telemarketing

• Vantive

• Clarity• Chadiant• Corepoint• Quintus

• Siebel• Vantive• Natural

Microsystems

Call CenterApplications

• Micrologica• Bendata• Tetel

• Broadvision• Microsoft• Art Technology• Engage Technology

Interactive MarketingSoftware

• Genesys• Aptex• Aditi• Brightware

E-Mail Response Management

• E-Queue• Ergotech• General Interactive• Kana

• Mustang


The requirements of the service personnel are derived from the target standards set for the service center

Requirements for service personnel

Targets

Definition of service levels andproductivity standards

Basis for staff/team target discussions

Transfer of staff/team targets to operative business

Productivitytargets, etc.

Service targets

Measuring target achievement levels• Computer-based evaluation• Customer survey• Benchmarks

Feedback loopfor annual

interviews todiscuss targets

Excellent specialist knowledge through:

• Experience in vehicle leasing• Training and qualification as leasing clerk• Training in business administration

Strong communication skills (especially telephone skills)

Stress resistance

High frustration threshold

Independence and good organizational skills

Ability to cope with pressure

Team spirit

"Good people skills"

Customer orientation is at the heart of the business

1

5

4

3

2

Project example



Internet Call Center as Customer Care Solution integrates communication flow from customer to the company via phone, fax, mail and Internet

Customer CompaniesInternet Call Center

Internet/E-Mail

Fax

Phone

Post

Routing Center • AMD (Automatic Message Distribution)

• ACD (Automatic Call Distribution

• Predictive Dialing

MailCenter

DataWare-house

Response

CTI-Agent CompaniesIntegration

in Back- Office-

Outcall of employees

IWR(Interactive Web Response)

Computer-Telephony-Integration

IVR (Interactive Voice Response)

Agent


Vision


rb addresses

ARGENTINARoland Berger y Asociados S.A.International Management ConsultantsTte. Gral. J.D. Peron 346 - Piso 5°1038 Buenos AiresPhone ++54-11-43 42 14 98Fax ++54-11-43 45 57 58

AUSTRIARoland Berger & Partner Ges.m.b.HInternational Management ConsultantsFreyung 3/2/10A-1010 ViennaPhone ++43-1-5 36 02 0Fax ++43-1-5 36 02 60

BELGIUMRoland BergerInternational Management Consultants S.A.100, Boulevard du SouverainB-1170 BrusselsPhone ++32-2-6 79 01 70Fax ++32-2-6 72 92 22 or 51 81 25 01

BRAZILRoland Berger & Partners S/C Ltda.Rua Alexandre Dumas, 2220-5° andar04717-004 São Paulo / S.P.Phone ++55-11-51 81 83 66Fax ++55-11-51 81 69 19

CHINARoland Berger (Shanghai)International Management Consultants Ltd.

6/F. East Lake Villas Office Building35 Dongzhimenwai StreetBeijing 100027, P.R.C.Phone ++86-10-64 67 70 69

or 70 93 or 70 94Fax ++86-10-64 67 76 28

72 Xing Guo Road3F Business BuildingShanghai 200052 , P.R.C.Phone ++86-21-62 12 64 11Fax/Phone ++86-21-62 12 74 71

CZECH REPUBLICRoland Berger & Partner GmbHInternational Management ConsultantsVsehrdova 2/ 560CS-110 00 Prague 1 - Malá StranaPhone ++420-2-57 31 11 61Fax ++420-2-57 31 11 63

FRANCERoland Berger & Partner GmbHInternational Management Consultants16, avenue George VF-75008 ParisPhone ++33-1-53 67 03 20Fax ++33-1-53 67 03 75

GERMANYRoland Berger & Partner GmbHInternational Management Consultants

Alt Moabit 101bD-10559 BerlinPhone ++49-30-3 99 27 50Fax ++49-30-3 99 27 30 3

Georg-Glock-Straße 3D-40474 DüsseldorfPhone ++49-211-4 38 90 1Fax ++49-211-4 38 91 40

Bockenheimer Landstraße 42D-60323 FrankfurtPhone ++49-69-17 00 30Fax ++49-69-17 00 35 02

Stadthausbrücke 7D-20355 HamburgPhone ++49-40-37 63 10Fax ++49-40-37 63 11 02

Arabellastr. 33D-81925 MunichPhone ++49-89-9 22 30Fax ++49-89-9 22 32 02

Löffelstraße 40D-70597 StuttgartPhone ++49-711-7 67 30Fax ++49-711-7 67 34 01

GREAT BRITAINRoland Berger & Partners Ltd.International Management Consultants12 Stratford PlaceGB-London W1N 9AFPhone ++44-171-2 90 48 00Fax ++44-171-4 99 99 38

HUNGARYRoland Berger & Partner Kft.International Management ConsultantsAndrássy út 64H-1062 BudapestPhone ++36-1-3 53 02 29Fax ++36-1-3 53 24 34

INDIARoland Berger International Management ConsultantsPvt. Ltd.Hyatt Regency Hotel, Room No. 487Bhikaji Cama Place, Ring Road Delhi - 110 066Phone ++91-11-6 79 11 47 or 11 48Fax ++91-11-6 79 10 48

ITALYRoland Berger & Partner S.R.L.International Management Consultants

Via Sirtori, 32I-20129 MilanPhone ++39-02-29 50 11Fax ++39-02-29 52 48 37

Via Ludovisi, 35I-00187 RomePhone ++39-06-48 82 11 9Fax ++39-06-48 91 94 83

JAPANRoland Berger & Partner Ltd. International Management ConsultantsARK Mori Building 22nd Floor1-12-32, AkasakaMinato-ku, Tokyo 107-6022Phone ++81-3-35 87 66 60Fax ++81-3-35 87 66 70

LATVIA Roland Berger & Partner GmbHInternational Management ConsultantsBasteja Blvd. 12LV-1050 RigaPhone ++371-7 21 20 68Fax ++371-7 21 69 38

MALAYSIARoland Berger & Partner SDN. BHD.International Management ConsultantsLetter Box 81, Level 17 Menara IMCNo 8 Jalan Sultan Ismail50250 Kuala LumpurPhone ++60-3-2 06 57 13Fax ++60-3-2 06 57 14

PORTUGALRoland Berger & Partner Lda.International Management ConsultantsEdificio MonumentalAv. Fontes Pereira de Melo, 51-4° EP-1050 LisbonPhone ++351-1-3 56 76 00Fax ++351-1-3 52 43 60

ROMANIARoland Berger & Partner SRLInternational Management ConsultantsStr. Emanoil Porumbaru 10, Sect. 1RO-71263 BucharestPhone ++40-1-2 22 19 05Fax ++40-1-2 22 62 71

RUSSIARoland Berger & Partner GmbHInternational Management Consultants1. Tverskaja - Jamskaja ul. 23RF-125047 MoscowPhone ++7-095-7 21 19 51Fax ++7-095-7 21 19 54

SPAINRoland Berger S.A.International Management Consultants

Avda. Diagonal, 567, 3rd FloorE-Barcelona 08029Phone ++34-93-4 94 74 40Fax ++34-93-4 94 74 20

Paseo de la Castellana, 140, 3rd FloorE-Madrid 28046Phone ++34-91-5 64 73 61Fax ++34-91-5 64 72 75

SWITZERLANDRoland Berger AGInternational Management ConsultantsDufourstr. 56CH-8008 ZurichPhone ++41-1-2 67 41 11Fax ++41-1-2 67 41 19

UKRAINERoland Berger & Partner GmbHInternational Management Consultants19 Panasa Mymogo Str.252011 KievPhone ++380-44-2 90 43 30Fax ++380-44-2 90 43 46

USARoland Berger & Partner, LLCInternational Management Consultants

100 West Big Beaver Road, Suite 200Troy, MI 48084 Phone ++1-248-6 80 67 30Fax ++1-248-6 80 67 31

350, Park Avenue, 27th FloorNew York, N.Y. 10022Phone ++1-212-6 51 96 60Fax ++1-212-7 56 87 50

Documents

Customer Relationship Management – Consulting approach – Munich, June 2000