Improving your Signal to Noise Ratio with SAP CRM Jim Goldfinger – CRM CVN Session Code*: 0109
First….Raise Your Aspirations
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What That Means In Our Context
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http://en.wikipedia.org/wiki/Signal-to-noise_ratio
Signal-to-noise ratio (often abbreviated SNR or S/N) is a measure used in science and engineering that compares the level of a desired signal to the level of background noise. It is defined as the ratio of signal power to the noise power. Signal-to-noise ratio is sometimes used informally to refer to the ratio of useful information to false or irrelevant data in a conversation or exchange. For example, in online discussion forums and other online communities, off-topic posts and spam are regarded as "noise" that interferes with the "signal" of appropriate discussion.
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Direct Relief International – Signals Saving Lives
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Intelligent Data Management in Real Time For Profit
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Speed Wins – Creates Competitive Advantage 1815 – Rothschild Brothers used carrier pigeons between banks, made money on battle results
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Even Slim Advantages Can Pay Huge Dividends
Spent $200M for 4 milliseconds Customers pay $3M/Year
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Additional Examples Polyphonic HMI – Spain – Predicts Potential of Songs Ben Novak – Auckland, NZ : For 2 months, most played song in the UK
UNOS – Organ sharing – saving lives with Kidney Transplants
IBM’s Watson– Medical Diagnosis including facial expressions
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More Relevant to this discussion – Real Time Offers Call center – connecting customers based on personalities to suitable agents
Improvement from 10 minute calls with 47% resolution to
5 minute calls with 92% resolution
Vodaphone – added personality as variant for cross-sell, upsell
8600% increase in sales
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Companies Need to Rethink How to Engage Customers
Customer Engagement With Real-time Insight is the New Business Imperative
72% of CEOs rate understanding individual customer needs and response time as a top priority Source: IBM CEO Study
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Get the 360 View of the Customer Real-Time, Anywhere, Anytime
Real-time Insight True customer 360 insight with embedded and predictive analytics
Real-time Interactions
Real-time Execution
1:1 Customer Engagement with context through Social Channels and on any device
Plan and execute effectively and efficiently In the Cloud or On Premise
Attract and retain more customers while driving profitability & growth
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The New Speed Driven Culture
Instant and global exposure in the social world
Provide personalized customer insights
Quickly respond to customer needs
React faster to market changes
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SAP is Reinventing the Future
SAP 360 Customer Sell Better
Engage Your Consumer Better
All sales needs from one solution provider (SFA, T&E, customer analytics, transactional data), turn admin time into sales time.
Engaging customer in business transactions leveraging mobile, social and other channels in real-time at moment of truth. Reaching new customers, segment of one, next generation loyalty and reward.
Serve Better Better customer service from call center to service technician dispatching, 3D asset visualization, billing, …
Consumer engagement true social, content (sports, events, shopping preferences, ..)
Market Better From customer insight, social and transactional analytic, to on the fly market segmentation and marketing execution.
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Sell Better • • • •
• • •
True 3600 view of the customer Social insights, sentiment analysis and sales trends at your fingertips Feeds and team collaboration on demand Sales agility with easy anywhere, anytime access to relevant customer and market insights from all channels More time to sell effectively Focus on the right customers and opportunities Make every customer conversation count
Sales focused
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Serve Better •
• • • • • • • •
Multi-channel service-assisted, unassisted and social Spare parts available Mobile field service SLA compliance Predictive service Social communities and experts 3D Visualization Machine to machine “Service is the new Marketing”
Service focused
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Market Better
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• • • • •
Make better decisions with real-time marketing performance analytics Holistic view of all marketing activities Rich customer data and data accuracy High-speed segmentation Loyalty management Real-time, social and location-based offers 1:1
Marketing focused
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Engage Your Customers Better Consumer focus
Business Transactions Provide your customers instant access to relevant enterprise data and business transactions through all channels.
Personalized Offerings Provide customers with personalized information and offers at the right time and at the right place.
Mobile and Social Experience Enrich the customer experience through mobile and social engagement.
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SAP 360 Customer is Socially Connected
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Enhance your 360 customer visibility with real-time social insight, sentiment analysis, and social profiling
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Increase customer loyalty and build advocacy with social collaboration communities of experts (customers, employees , partner)
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Leverage customer feedback streams to increase innovation, reduce new product time to market
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Extend your sales channels and turn ‘Like’ into ‘Buy’ with social campaigns, offers and orders
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Customer intelligence powered by SAP HANA An integrated suite of applications, on a common data foundation Account Intelligence Audience Discovery and Targeting
Customer Value Intelligence
Business to Consumer
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SAP Account Intelligence An integrated suite of applications, on a common data foundation
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For: Sales Managers to coach sales team
For Sales Reps to execute on the insight and recommendations for their accounts
Mobile, interactive access to your customer insight and selling recommendations
Visual account targeting based on customer engagement, value, and geography
On top of Customer Value Intelligence
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SAP Customer Value Intelligence An integrated suite of applications, on a common data foundation
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For: Sales to invest the right resources into the right customers, products and channels.
Recommendations for customer segments to target, and what products to position for revenue and margin growth
Single view of customer value today and tomorrow across the front and back office
Includes Audience Discovery and Targeting
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SAP Audience Discovery and Targeting An integrated suite of applications, on a common data foundation
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For: Marketing, Sales & Service professionals to rapidly and easily segment large customer populations
Manage Target Groups for insight to action
Trigger initiatives like customized offers for each segment and channel
Integration with HANA Predictive Analytics
Available separately or within Customer Value Intelligence
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How the suite fits together
Intelligent Selling Execution
Recommended Offerings and Customers Stratification and Differentiated Treatment
Classification, Targeting and Initiatives
Customer Analysis Foundation
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Intelligent Selling Execution
Recommended Offerings and Customers
Customer Analysis Foundation
Stratification and Differentiated Treatment
Classification, Targeting and Initiatives
Customer Analysis Foundation
What is it? •
Single view of the customer across ERP, CRM, legacy and external
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Real Time integration with SAP ERP and CRM: data, embedding and execution
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Configurable, extensible application, with quarterly enhancements
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Business Objects tools and content also included
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Rapid Deployment available: Est. 2 weeks set up, 10 weeks validation
Benefits: Visibility, Integration, Manageability, TCO
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Intelligent Selling Execution
Recommended Offerings and Customers
Stratification and Differentiated Treatment
Stratification and Differentiated Treatment
Classification, Targeting and Initiatives
Customer Analysis Foundation
What is it? •
Stratification based on Buying Power, Loyalty, Profitability and Cost to Serve
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Configurable and flexible: Branch, District, Segment, Market
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Interactive and up to date, in real time
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Take action on the insight
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Close collaboration and co-innovation between Graybar and SAP
Benefits: Grow Revenue and Margin Strategically
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Intelligent Selling Execution
Recommended Offerings and Customers
Classification, Targeting and Initiatives
Stratification and Differentiated Treatment
Classification, Targeting and Initiatives
Customer Analysis Foundation
What is it? •
Flexible, interactive customer analysis for business users
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Easily detect outliers and important patterns
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Create named Target Groups of customers and take action with Initiatives
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Closed loop execution into CRM and out to the account reps
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Provide guidance, assign responsibility and track progress
Benefits: Grow Revenue and Margin Strategically
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Intelligent Selling Execution
Recommended Offerings and Customers
Recommended Offerings and Customers
Stratification and Differentiated Treatment
Classification, Targeting and Initiatives
Customer Analysis Foundation
What is it? •
Automatic recommendations for what products and categories to suggest, including expected revenue and margin impacts
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Take the guesswork out of cross/upselling
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Approach A: Product/SKU affinity analysis
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Approach B: Product Line/Category based on whitespace and revenue mix
Benefits: Guided & Consistent Sales Execution
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Intelligent Selling Execution
Recommended Offerings and Customers
Intelligent Selling Execution
Stratification and Differentiated Treatment
Classification, Targeting and Initiatives
Customer Analysis Foundation
What is it? •
Simple and effective interface for sales reps to execute on the insights and recommendations, for their accounts
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Account targeting, activity planning, and a clear 360 view of their accounts
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Mobile, Web and embedded into SAP CRM
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Closed loop insight to action
Benefits: Guided & Consistent Sales Execution
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Predictive Strategy Predictive built into Customer Value Intelligence
For cross/up sell, buying propensity, lifetime value and more Configurable solution employing HANA’s in-database predictive algorithms
SAP Business Objects Predictive Analysis
Customers can extend the out of the box predictive analysis
Performance & Insight Optimization (PIO)
SAP consulting team focused on predictive analysis and optimization Deep experience in both industry and science
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Key Business Benefits Real visibility and understanding of your customers
Not just Revenue, but Margin, Lifetime Value, Churn, Engagement and Satisfaction Across the front office, back office, legacy systems, 3rd party and social sources In real time, for high data volumes
Grow Revenue and Margin strategically
Invest the right go-to-market resources with the right customers for growth Stratification, Segmentation, and Playbooks to manage differentiated treatment Recommendations for which offerings to cross/upsell to which customer segments Align Execution to Strategy
Guided & Consistent Sales Execution
Guide the reps to invest with the right customers, and spend more time selling Increase account penetration with Up/Cross sell recommendations Reduce customer attrition by actively managing customer engagement Closed loop insight to action directly into CRM
Customer Stratification drives gross margin improvements of 1.5% - 7%, and can double EBITDA from 5% to 11% by implementing best practices. (NAW, F. Barry Lawrence, Texas A&M, 2011) Active cross/upsell analysis organizations spend 17% less time searching, have a 15% higher retention rate, and 11% more accurate sales forecasts. (Aberdeen, 2011)
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Thank You
