1. Copyright Future Perfect Associates, Inc 11/2002 1 THOUGHTS ON CRM STATUS & MANAGEMENT ISSUES

2. Copyright Future Perfect Associates, Inc 11/2002 2 Is CRM Really New? No, but our way of THINKING about CRM has changed!

3. Copyright Future Perfect Associates, Inc 11/2002 3 Who Is Successful Now? Southwest Airlines Neiman Marcus L L Bean Frito Lay Johnson & Johnson

4. Copyright Future Perfect Associates, Inc 11/2002 4 CRM Defined A business philosophy, including culture, strategy, tactics, policies, and procedures, that seeks to improve competitive advantage by increasing customer satisfaction as well as company sales and profits

5. Copyright Future Perfect Associates, Inc 11/2002 5 Forces Driving CRM Efforts Global competition E-commerce Marketing/sales effectiveness Technology convergence Investor expectations

6. Copyright Future Perfect Associates, Inc 11/2002 6 Clear Need, Mostly Average Execution Viewed as another IT “silver bullet” Important questions never asked/answered Cultural issues No short/long term view of CRM Delegated responsibility

7. Copyright Future Perfect Associates, Inc 11/2002 7 Problems – Etc. Misplaced incentives Competitive intelligence lacking Top down vs. collaborative Systems integration issues Accurate costing information

8. Copyright Future Perfect Associates, Inc 11/2002 8 Know Thyself and Thy Customers SWOT analysis is critical What are my customers’ biggest beefs What can I learn from competitors? Test accuracy of customer/cost data How big a cultural shift is required?

9. Copyright Future Perfect Associates, Inc 11/2002 9 What Delights Customers? Receiving what they ordered on time Quick resolution of any issues Being asked for their input Being surprised Solving their problems

10. Copyright Future Perfect Associates, Inc 11/2002 10 View Of CRM 90 days 6 months Etc Improve on-time deliveries 20% Customer service phones answered by third ring On-time delivery at 95% Sales history, A/R and profitability analysis

11. Copyright Future Perfect Associates, Inc 11/2002 11 Chunked Implementation CRM Server Sales 2 A/R 3 Del 1 Forecast 4 Cust Fin 5 Cust Bus Plan 6 Industry 7

12. Copyright Future Perfect Associates, Inc 11/2002 12 Keys To Success Clearly defined stretch goals Continuous measurement of progress Senior officer sponsor Cultural fit Chunked implementation Shared authority

13. Copyright Future Perfect Associates, Inc 11/2002 13 Success – Cont’d Embrace change Training, training, training Willing to aggressively deal with deviation

14. Copyright Future Perfect Associates, Inc 11/2002 14 Final Thought An effective CRM philosophy will promote rapid communication and actions in response to special opportunities – Corporate credibility – 9/11 – Etc.