A Handbook of Key Customer Relationship Management - Ken Burnett

1. KCRMByKen Burnett Chapter 1 BY Kingkortabbyabemuro

2. What's In? Why KCRM? How KCRM can Help? KCRM? Or No to KCRM? How KCRM affect sales? KCRM & HRM KCRM in 11 steps for Dummies 7/30/2009 2 KKB,KCRM,C#1

3. Why KCRM is the BUZZ!!? Glut economy Technological Innovation Quality Seeking Customers Shorter PLC Dynamic Market place & Organization Culture Changed Channel of Distribution 7/30/2009 3 KKB,KCRM,C#1

4. Every Customer is a Market Segment Customization? Customerization? 7/30/2009 KKB,KCRM,C#1 4

5. Companies Should Focus…….. They can demonstrate distinctive competence They can create sustainable competitive advantage 7/30/2009 KKB,KCRM,C#1 5

6. A Market Segment must be….. Measurable Substantial Accessible Differentiable Actionable 7/30/2009 KKB,KCRM,C#1 6

7. To Ensure Success, A Company must ……. Identify, analyze, & select right market segment. Creating relevant product and services. Focusing sales activities on Key Customers within the target segment. 7/30/2009 KKB,KCRM,C#1 7

8. But beware of…….. Poor Communication both internal & external Inadequate channels to collect feedback Top-Down Planning Approach 7/30/2009 KKB,KCRM,C#1 8

9. KCRM in Your Company What can it do for you? 7/30/2009 KKB,KCRM,C#1 9

10. KCRM can…….. Help to respond to a customer driven environment To maximize the return on investment In any business, financial performance depends on creating capturable customer value (CCV) as efficiently as possible. 7/30/2009 KKB,KCRM,C#1 10

11. KCRM can……..(cont.) 7/30/2009 KKB,KCRM,C#1 11 Customer Benefit Value = $10000

12. KCRM Helps in KCRM helps an organization in addressing operational problems, to help the management of older businesses, phasing out the weaker ones, or building a new SBU and it also helps to be the market leader through risk management, competition control and obviously by offering more value to the customers. 7/30/2009 KKB,KCRM,C#1 12

13. KCRM….. Yes or No? 7/30/2009 KKB,KCRM,C#1 13

14. KCRM is For you if…………… KCRM is more relevant to the business where: Few Customers dominating market demand. Significant economies of scale. Ex: GP vs. TELETALK. Product service differentiation Ex: Customized Software Decision making unit is complex. Ex: Industrial Buying Competition is intense

15. KCRM might be Harmful if………… Market is highly fragmented with few dominant customers. Ex: daily necessary goods. Little product differentiation. Ex: Petrol The product is not technically or financially significant. Ex: Daily Soap Economies of scale is low. If the firm enjoy monopoly. Ex: Central Bank.

16. Pitfalls of KCRM The increased dependence on relatively few customers. Ex: Cement industry. Pressure on Profit Margins if Key Customers abuse this preferred customer status. Dealing with more professional buyers. Prospective customers may be neglected in this process. Ex: Jewelers.

17. Resources Needed What we need?

18. KCRM & Resources

19. How does KCRM affect the sales function Prospecting Product Organization Profile Style Responsibility Authority Culture Competition Targets

20. KCRM & HR Making HR Ready to Face KCRM 7/30/2009 KKB,KCRM,C#1 20

21. Skill Requirements of the KEY Customer Manager Understanding How it works Ability to counsel, advice and influence Ability to identify key result areas Ability to plan & allocate resource Ability to negotiate Ability to lead a multidisciplinary team

22. Customer manager’s contribution to the Company Marketing intelligence Customer knowledge Creative ideas Appreciations

23. KCRM for Dummies How to apply KCRM 7/30/2009 KKB,KCRM,C#1 23

24. Implement KCRM Understand Corporate Objectives Generate Plans Prioritize Agree Upon Plans Organize resources needed Get commitments from Top Mgt Develop detailed Plans Set up a profitability measurement system Introduce KC infosys Introduce KC satisfaction measurement Sys Find mutual stability & GAIN!!! 7/30/2009 KKB,KCRM,C#1 24

25. At a Glance………….. KCRM Helps But Not Everywhere, Every case and Every Time It is needed to be implemented to achieve profitability The Company must have some HR capabilities It also needs to follow some steps. 7/30/2009 KKB,KCRM,C#1 25

26. The End 7/30/2009 KKB,KCRM,C#1 26