The introduction of a CRM strategy can lead the company to:
• Change the traditional evaluation and approach modes concerning cus- tomers and markets. It might in fact open up entirely new markets or ef- fect the abandonment of non loyal or nonprofitable customers.
• Create new communication channels between the best customers and re- search or production areas. "This way the customers' suggestions and evaluations, originating from the actual use of products and services, can be used to maximize the company efforts to improve the innovation and creation capacity, according to the customers' preferences and needs"
(PricewaterhouseCoopers, 2000). What is more, the company has to estab- lish guidelines for managing channels in terms of:
• Service provision modes over all available channels - the company should be able to present a consistent image to its customers.
• Choice of the most suitable channels according to the customers' characteristics and preferences.
In contrast to the past, when companies could only refer to their sales personnel, they now have a whole range of other means available to contact its customers, which lead to new opportunities not just in terms of effectiveness, but in terms of efficiency as well, on a cost-per-contact basis (Nadin, Cerri, 1999). In fact, the cost-per-contact level will guide the choice of the customer interaction mode.
116 Main Benefits and Organizational Impacts of CRM within the Bank
services Customers:
pro-asset information management and customer relationship
markets
Channels:
development and integration of multiple channels of sale
and services
Products/services:
innovation and time-to-market management
sales
Customer's points of contact:
mail web direct
Business application:
direct purchases sales automation and support campaigns management customer service and self-service
Technologies:
phones Internet/Web content management client server mobile computing data warehousing/mining middleware Figure 7.1 New market approach. Source: PricewaterhouseCoopers, 2000
The new customer contact approaches raise questions about the very nature of the current sales networks. Up to now, the salesperson has been considered the only actor entitled to cultivate relationships with customers. The latest management approaches, implying the use of call centres, for example, allow routine tasks in customer management (e.g. acquisition and carrying out of orders, payment con- trol, etc.) to be given a lower priority than the search for new business opportuni- ties. This makes it possible to maintain or even improve the quality of customer service while effecting significant cost reductions (e.g. fewer commissions for fewer salespersons) (Child, 1987; Brown, 2000).
Change Management and CRM Initiatives 117 Therefore, customer maintenance and management activities no longer fall in the exclusive competence of the commercial personnel, requiring on the contrary in- ternal reorganization of company functions, from production to logistics, from sales to service, in order to meet the customer's demands in terms of schedule keeping, and product and service quality, etc. (Galliers, Baets, 2000).
To make the introduction of this new approach successful, companies must care- fully consider the following key dimensions:
• Integration: concerns the development of a consistent and integrated channel strategy, supported by accurate analyses of the data relating to customers. The contribution of Business Intelligence is fundamental here, allowing for the combination of structured, mainly quantitative data with unstructured data, text or multi-media, owing to the recent opportu- nities provided by web technology. What is more, a new concept is com- ing about, that of the "Enterprise Information Portal" created using company intranet and extranet, supporting analysis, reporting, and deci- sion activities for all the company's knowledge workers and partners.
• Balance: concerns the attainment of a balance in the use of the available collaboration technologies (self-service or operator-assisted interactions), bearing in mind the cost of each option and, above all, the customers' preferences.
• Technology: applies to the operational infrastructure, or the choice of the suitable technological components for the exchange, the gathering, the understanding, and the proactive use of customer information. It is a very important element in the introduction of new technologies which may tum out to be a great risk for the company. Therefore, it is recommended that prototypes be tested and that companies proceed step by step before implementing the new technologies on a large scale.
• Change management: the entire organization, from processes, to person- nel, to infrastructures, etc., is involved in a radical change (Galliers, Baets, 2000; De Marco, 1992). It is necessary for the company to manage it cautiously, trying:
Not to underestimate the amount of required resources, from both a qualitative (competencies) and a quantitative (work loads) point of view,
Not to create unattainable expectations among the users,
To involve all interested areas in the project from the start, in order to come to agreements on objectives and functional requirements, To promote customer orientation.
8 Data Mining Systems Supporting the Marketing Function: The Experience of Banca Monte dei Paschi di Siena