1. CUSTOMER RELATIONSHIP STRATEGIES
BPOL 541 YA
Arun Ayyagari - Glen Biely - Theo Cragg

2. Agenda Customer services issues facing businesses today
Critique of 2 successful customer service oriented companies
Lands End
Cisco
Summary

3. TODAY’S BUSINESS ENVIRONMENT:
Innovation is accelerating
Information and networks are more pervasive
Customers face numerous choices (with little effort)
Businesses still focused on products and services

4. THE RESULTING PROBLEM:
Increased competition
Products and services are commodities with ever decreasing margins
Businesses misusing and under utilizing scarce resources
Telecommunications and banking industries experience high customer defection rates and a saddled with numerous unprofitable customers

5. TODAY’S COMPANIES ARE LOOKING FOR:
Loyal customers (easier said than achieved)
More than market share, they want “share of wallet”
Build RELATIONSHIPS with their customers
EFFECTIVE CUSTOMER MANAGEMENT

6. EFFECTIVE CUSTOMER MANAGEMENT IS:
Treating your best customers best
Learning from your customers
Anticipate customer needs
its more profitable to retain customers than it is to acquire new customers

7. HOW DO COMPANIES ACHIEVE ECM
Remold company culture
Modify the organization structure
Invest in technology
Customer management software
Provide organization with access to customer account history

8. WHAT WILL COMPANIES GAIN:
More effective cross sell and up-sell
Higher customer retention and loyalty
Higher customer profitability
Dramatically more productive sales efforts
Higher response to marketing campaigns
Extraordinary service and support
More effective investment of scarce resources

9. LANDS’ END B2C; strong focus on customer satisfaction
“Take care of the customer, the business will take care of itself”
80% business comes from repeat customers
On-line business is booming
1999 online sales totaled $61M (4% total sales)
2000 on-line sales to date are over $150M
Why Land’s End’s CRS is working established one-to-one relationship.

10. LANDS’ END COMPETITORS
J Crew.com “On-line catalog only”
Well-designed site, good clearance items
Poor sizing guide, no company information, random affiliate programs, contact only
LL Bean.com “Outdoors Online”
Park search, resort partners, outdoor programs, extensive company history, 5 languages, 1st time visitor walk-through, corporate sales
Basic site, poor clearance items, contact only, difficult to find sizing information

11. LANDS’ END COMPETITORS
Nordstrom.com “Style Not Substance”
Shop by category, trends, your style, brands, special sizes, best sellers. Good company history. Beauty hotline newsletter, bridal boutique. Men’s mix & match, and Power Browse.
Limited sale items (Nordstrom Rack), all focused toward women. Contact by only. “Help” not easily found.

12. LANDS’ END Cont.
Believe the longer customers stay on-line the greater chance a sale will occur
Interactive Aids: Land’s End Live, Your Personal Model, Art Of Business Casual, Shop With A Friend, Oxford Express,
Extensive company history, corporate sales, catalog quick order, Garrison Keillor audio, electronic greeting cards, Lost Mitten Club
Clearly designed on-line business to develop customer relationship strategy

13. CISCO B2B that prides itself on it’s customer focus
Has used numerous techniques such as TQM to improve all aspects of their business
Sites customer relationships as “top priority”
Consistently improved “customer satisfaction levels” since 1990

14. CISCO Cont.
Utilizes special advisory board comprised of customers and channel partners
Developed a central depository for information and knowledge that is shared throughout the corporation
Eliminates “information silos”
Must also leverage customer interaction information to create a competitive advantage

15. CISCO Cont. Technical Assistance Center Service & Support Solutions
Products, Technologies, Tools, Documents, and Software Center
Service & Support Solutions
Success Stories
Review customer experiences to ensure successful network
General Service Programs
Program overviews, Cisco Connection Online, Cisco Systems Capital, etc.

16. CISCO Cont. Service & Support Solutions (Cont.)
Enterprise Service Programs, Service Provider Programs, and Small/Medium Business
Details on ordering, installation, maintenance, account management, and consulting
Partner Service Program
Support programs for partners and resellers

17. SUMMARY Companies need to expand focus beyond product and services
Implement network and database applications to capture customer information
Make this information available company wide
Develop relationships with customers

18. WE’RE DONE………………………...