Digital CRM 2.0 Building customer relationships in the digital landscape 02 Introduction 04 A Challenging Environment for CRM 05 Study Results 10 Digital CRM Definition 12 Strategy 17 Analytics 30 Organization 36 Technology 42 Legal 50 Performance Measurement 54 Digital CRM Study Takeaways 66 Contacts 68

03 Introduction

Dear reader, •• What trends are leading organiza- Since our first Digital CRM Study was tions pursuing? published in 2015, this topic has gained even more traction. New trends and technological •• What are the challenges they face? advancements have prompted us to reopen •• How can Digital CRM play a role in a discussion about the transformation of achieving business objectives? customer management with internal and external topic leaders. To give our observations a broader foundation, we conducted in-depth Our 2015 study showed that not all interviews and discussed critical topics with companies and industries had the same various topic leaders across industries. level of maturity in customer relationship management. As customer needs changed As a complement to our findings, we provide and new technological solutions emerged, understandable real-life best practices and companies had to shift their priorities key considerations for each selected topic to create efficient relationship-building based on the experience we have gained in capabilities, with a strong focus on multiple Digital CRM projects and current integrating social channels. research in the field. A lot has changed since then. Cloud Enjoy the newest insights in our Digital CRM solutions have become the norm, new Study 2019! GDPR regulations are affecting key business processes and companies are trying to harness legacy CRM capabilities to drive Steffen Legler superior customer experience. Partner and Practice Leader Deloitte Digital

The objective of this study is to shed some light on what is driving today’s CRM efforts.

With this study, we will shed some light on the factors that are driving CRM efforts today.

04 A Challenging Environment for CRM

In today’s world, digital transformation But the focus is shifting; expectations from forces companies of all sizes and industries internal and external stakeholders alike are to constantly re-evaluate their ongoing moving from shiny TV adverts towards true operations and adapt to new market excellence in customer relationship building realities. “The customer is king” has long and customer experience. been a popular mantra in marketing and sales departments, and industry leaders Why is it so important to focus on customer as well as academic experts are constantly relationship management? Four major preaching customer centricity. forces are dramatically changing the business environment:

Customer demographics and behaviors 1

It is no longer a well-kept secret that screens, consumers are bombarded with customer demographics and behaviors content all day long, and they only pay have radically changed within the last attention to content they see as targeted, decade. Companies have to adapt their relevant and authentic. In the battle for marketing and sales strategy to meet eyeballs, companies need to understand these evolving customer needs. On and know their (prospective) customers the one hand, the customers’ time is to create a memorable, personalized scarce and they want goods on demand, experience across all possible online making them prime targets for a well- and offline channels. Contemporary crafted relationship strategy. On the customers demand more than just goods other hand, as their technological skills and services: they expect companies and product knowledge continue to to be authentic and sustainable, while increase, customers gain more leverage still offering the best deal. They demand over companies. Millennials in particular convenience and want to spend more (Generation Y, born in between the early time on the things that matter. We see 1980s and late 1990s) and Generation a strong desire for self-service, e.g. they Z (born after 1996) are tech-savvy, fully want the convenience to access relevant engaged in social media, and more likely information without a customer service to churn, if their expectations are not representative, but also expert consulting met for any reason. Spending several once they need it. hours each day looking at their mobile

05 The contemporary customer…

Well-informed/ is well-informed thanks to technological advances (e.g. online comparison sites, peer validation, self-educated smart recommenders, etc.).

does not trust most businesses, media or governments, wants self-service and, as a result, Self-directed is difficult to influence.

is convinced that “time is money”. The goal is to get things done quickly and easily so they can spend Fast-paced more time on things that matter.

reads product and service reviews, compares different offerings and carefully weighs all options Picky before making a purchasing decision.

Contradictory is often contradictory in his/her behavior and does not exhibit any clear behavioral patterns.

Always uses smartphones, wearables and corresponding technology at all times, blurring the distinction connected between the online and offline world.

has a high willingness to change brands, especially when customers do not feel as if they are Volatile receiving special treatment.

is both tech-savvy and impacted by tech, open to early adoption of new technology, uses tech to Tech-innate make the world more predictable and tends to see technology as reliable and people as unreliable.

06 New business models 2

As customer behaviors and expectations profitability and turning recent adopters change, companies experiment with into loyal long-term customers. If a new business models to create new company’s approach does not live up to revenue streams. Well-known examples the consumer’s expectations, they are are various Freemium business models very likely to abandon the company (e.g. Spotify), pay-per-use models with ecosystem entirely – without generating costs occurring only if the service is used enough revenue for the company to be or revenue models through relatively lucrative or break even on acquisition low monthly subscriptions (e.g. Netflix). costs. Building long-lasting relationships In each of these models, continuous with customers is therefore a crucial customer engagement is key to generating success factor for these new business sustainable revenue streams, reaching models.

Technology 3

Technology is at the heart of Digital resources based on data insights and CRM. Once a company has defined its track progress of initiatives using tradi- CRM strategy, modern technology is the tional and customer-based KPIs. Digital enabler of that strategy and absolutely touch points along the customer journey crucial to meeting contemporary custom- enable companies to bring their customer ers’ expectations. Today’s CMOs need to identity management to life and gather collaborate closely with CIOs to create an insights about the anonymous as well as outstanding customer experience that is the known customer, taking the company’s grounded in data and incorporates tech- customer strategy and latest data protec- nological advances. Technology enables tion regulations into account. In addition them to gain transparency about mar- to digital touch points, companies need keting spending, customer engagement to integrate traditional touch points along and satisfaction. State-of-the-art CRM the customer journey as seamlessly as tools make the process of relationship possible. building internally transparent, allocate

07 Transparency 4

Marketers have seen their budgets grow their growing investments and provide over the past years and further growth transparency about the ROI. CRM leaders is expected. While priority of traditional have to rely on digital communication media decreases, more than 50 percent channels that generate reliable, valuable of marketing budgets are expected to customer data and establish advanced be spent on digital marketing by 2023. analytics capabilities to demonstrate This increase in marketing spending performance and effectiveness of CRM puts greater pressure on CMOs, who measures. are increasingly also in charge of the overall customer experience, to justify

New business models Changing customers

Technology Desire for advances transparency

08 Digital CRM enables companies to get their core ready to satisfy expectations with meaningful and value-adding relationships.

09 Study Results

 Customer relationship management continues to play an important role. 92 percent of the topic leaders in our survey cited CRM as a key priority for enabling their business strategy and, as a result, discussed it at board level. However, CRM still seems to be treated as a  Profitable relationships are created by focusing technology-focused topic, ignoring the impact on value-adding customers at every touch point of other perspectives on success. We herewith and through various channels. At the same time, provide guidance by sharing our point of view our research shows that the often cited “omni- on what Digital CRM is and how it impacts an channel experience” has yet to become reality organization. in most cases and companies are still building relationships without insights on customer profitability. In the following pages, we elaborate on how companies can achieve consistent touch points, while also considering their brand, and putting customer value at the core of relationship building measures.

 Fortunately, the days of managing customers with Excel files are over. Today’s technology enables personalized customer relationship management at scale. Although the opportunities are huge, many companies struggle to make use of them. Our examples show how developing the right systems can enable the business strategy and explain what factors need to be considered when integrating Customer relationship management is heavily a system into the enterprise architecture and affected by increasing legal regulations. Although how to ensure a solid data quality. 57 percent of topic leaders revealed that the impact of GDPR was not as strong as they expected, compliance with the regulations has become a key topic on corporate agendas. That said, 71 percent of CRM leaders still feel that the operating model with legal departments needs to evolve to enable closer collaboration.

10  Meaningful insights are key in developing meaningful relationships. We see more and more companies trying to use their analytical capabilities at scale to provide personalized and context-based touch points. Still, we found that a lot of industry players never go beyond a personalized email subject. We offer a set of key A company’s structure relies on the people who building blocks to make companies more data plan and execute the initiatives that make or driven and explain why customer analytics is break customer relationships. By contrast, our essential in personalization activities. interviews showed that organizational structure is still a key challenge on the way to achieving digital CRM maturity. Although there was often a fluency in agile project execution at the operational level, leadership teams were stuck in their old structures and struggled to adapt to new roles within an agile way of working. That is why we included best practices for CRM operating models and organizational ways of working.

In the past, companies spent a significant amount of money on their customer relationship management capabilities. Our research shows that, because of the huge importance of the topic, this is unlikely to change in the future. Our discussions and project insights reveal that transparency about the success of those spendings is becoming increasingly important. But: How do we define success in CRM? And how can it be measured? You can find the answer at the end of our study when we summarize the topic of CRM measurement.

CRM still seems to be treated as a technology-focused topic, ignoring the impact of other perspectives on the success.

11 Digital CRM Definition

With today’s changing customers, new on data insights and use traditional and business models, emerging technologies customer-based KPIs to track the progress and greater need for transparency about of their initiatives towards the defined and spendings, companies are obliged to communicated target. further develop their CRM capabilities. But what does it mean to go one step further? Digital CRM provides the structural Organizations already pursuing digital foundation for building and managing the customer relationship management do capabilities and processes required for not see CRM as just another tool. They see interactions from strategy to operations. it as a strategic guidance for building It is driven from an inside out (company) lasting and profitable relationships with orientation and therefore different from their customer base by providing person- the concept of customer experience man- alized and context-based interactions agement, which focuses on the outside, throughout the customer journey. They i.e. human/company interactions. There is, put the customer in the spotlight and however, some overlap and the distinction identify the mindset and capabilities between the two concepts is still fairly needed to enhance the experience of fuzzy. Companies need to be aware of each individual’s interaction with this both the customer and the company per- organization. Furthermore, they make the spective and combine them to meet the process of relationship building internally customer’s expectations. transparent, allocate resources based

Strategic Guidance

Profitability

12 In order to meet customer expectations, organizations will have to

Understand … Develop … Align …

… CRM value drivers and hurdles from … a consistent method of measurement … their operating model with the customer various perspectives. Management needs for individual customer value and allocate journey. CRM requires a cross-functional to strategically address functional, tech- resources for relationship building accord- and flexible way of working from top nological and regulatory factors to ensure ingly to focus on high value customers or management to the operational level. a proper fit in terms of the direction and potentials. This goes hand-in-hand with Top management in particular needs to operationalization of the customer jour- adequate analytical capabilities to gather understand its new roles & responsibilities neys they design. insights and personalize the customer in an agile setup. journey.

Leverage … Integrate … Ensure …

… its CRM technology to the fullest extent. … legal knowledge into day-to-day opera- … proper measurement of CRM perfor- Tools and analytics act as a foundation for tions to leverage the potential of CRM to mance. Companies need to continuously automated channel orchestration, insight the fullest degree, while ensuring compli- prioritize agile project teams for effective generation & personalization. In order to ance with authorities and regulations. resource allocation and communicate function as expected, companies need their results with full transparency to to establish a data governance model justify high CRM spending. to ensure data gathering, quality, and availability for each business use case. Transparency about journey performance requires consistent measurements at each touch point.

Transparency

Customer Experience

13 Digital CRM provides the structural foundation to create the required capabilities and processes to build lasting and profitable customer relationships.

Adapting CRM for the digital landscape perspective might become a bottleneck goes beyond technology. Companies need for overall success. For this reason, it is generalists capable of considering various essential to drive CRM initiatives jointly and CRM perspectives and understanding the ensure consistency in the level of maturity different underlying value contributors, of an organization’s CRM capabilities. especially at management level. On the following pages, we will describe our In reality, subjective priorities often vary observations and pair them with the best depending on the organizational or practices we have seen according to those functional unit. Distribution managers six perspectives. Each modular section cannot overcome their dependency on an can be read individually and is distinct underlying tech platform and marketing from each of the other ones. However, leaders struggle to understand the legal we recommend that you take a holistic regulations affecting their campaigns. view of the key challenges and potential approaches in each perspective. The level of maturity in and integration of all six perspectives are key to overall Digital CRM success, because otherwise, one

14 Setting direction for CRM Providing insights for activities and ensuring journey automation and consistency along touch points decision-making A gy na te ly a ti tr cs S asureme

Me nt n

o

i

t L a

e z g i a n l a g r Competitive advantage O Ensuring fit of operating by integrating legal model, processes expertise into projects and culture along the customer journey Technology

Providing transparency about CRM performance Integration of tools and consistent data layer with enterprise architecture

15 Key topics in a nutshell – what you will read in the next chapters

A gy na te ly a ti tr c • Interaction consistency S s asureme Me nt • Moments that matter

• Identity management n

o

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e z g i a n l a g r • Touch point personalization O • Data-driven decision-making • Customer value management Te y chnolog • Balancing the amount of interaction

• Way of working • CRM target operating model • Customer-centric processes

• Role of technology • Architectural decisions • Master data management and data quality

• GDPR impact on CRM • Legal operating model & new roles and responsibilities

• Technology to achieve transparency • Deriving & visualizing core KPIs • Integrating performance measurement into CRM procedures

16 Strategy

Based on our project experience and various discussions with topic leaders, a Interaction consistency well-crafted CRM strategy is crucial for CRM According to our interviews, companies know that in order to build success. Matching business goals with cus- superior relationships with customers, they need to evolve their tomer expectations, a strategy must deter- conversations from unidirectional to bidirectional. They understood mine to what extent CRM can contribute to that the foundation for the relationship between their brand and the organization’s business objectives and prioritize accordingly. By incorporating a the people with whom it interacts is an interactive dialogue at each strong vision and mission, a CRM strategy touch point along the customer journey. However, our research also clearly communicates the purpose of shows that there are three key challenges impeding success. pending investments and unites the parties impacted in their shared objectives.

Success depends on avoiding disparities Lack of overview & between the strategy and the execution. 1. responsibilities 2. Lack of guidance By creating prioritized journeys with suffi- cient detail, it becomes feasible to actually In our observations, we found that func- On the other hand, companies struggle operationalize them. Organizations should tional groups are often unable to take a to align each interaction with the brand also grow awareness on who is currently step back and consider the bigger picture experience they hope to offer. Every brand experiencing the journey by focusing on of the journey they are a part of. They has a specific scope of needs it can credibly customer identity factors in the journey neglect how codependent the different cover, based on a company’s strengths, design. This enables effective persona- touch points are and focus instead on weaknesses or history. Every interaction lization and leads to a more superior cus- optimizing each touch point individually. By needs to reflect this to meet customer tomer experience in every interaction. contrast, customers focus on the cumula- expectations towards the brand and the tive product/service and brand experience company. Additionally, companies need to across multiple touch points and channels. understand what is driving their customers’ This becomes particularly important when needs and what their priorities are. That looking at the various new interaction said, this knowledge must be applied con- points available — new channels, devices, sistently across the organization to ensure applications, and more. And when new eco- consistency along the journey. system partners are included, it takes the complexity of the game to the next level. That is why it is so important to manage the journey as a whole instead of individual touch points. Lack of feedback gathering 3. and sharing

Companies often stop the interaction design process after the first implementa- tion. It is unrealistic, however, to assume that a first iteration is the perfect fit. And as customer expectations and the brand perception changes, it is very likely that the design will be outdated in only a couple of months. That is why organizations need to incorporate processes to continuously test and iterate with real customers to integrate feedback.

17 We observed three main success factors for consistent customer interactions:

Prioritized Journeys

A stack of prioritized journeys, potentially each owned by a dedicated team member, helps to align the organization towards a common target picture and breaks up silos. Experience maps help to give guidance to each department involved about their roles & responsibilities.

CRM Principles

A common understanding of customer needs and their respective priority act as a foundation for journey design and maintenance. Clearly communicated brand attributes and easy-to-access content management ensure brand consistency.

Trial-and-error Mentality

Testing interaction designs with a small group of customers helps an organization to develop best practices and align them closer to their target group. For this to work effectively, however, companies need the courage to adopt a trial-and-error mentality and effective processes designed to share the insights gathered.

18 We see four major steps organizations can take to ensure consistency along the journey

Define your territory of 1. customer needs

Beliefs and values steer our behavior For companies, it is important to step back and perception as customers and have a and see the whole person in a broader strong impact on each individual’s core context of their daily lives and their core needs. Those interactions with a company needs. Afterwards, companies can align that reflect the way we see ourselves interaction activities by identifying the resonate with our personal values and territory of customer needs it wants to meet our underlying core needs to address. Those are derived from the make us feel satisfied. Understanding implicit and explicit needs of humans, the landscape that underlies a person’s the competition, and the brand itself. subconscious reactions allows companies Adherence to this territory in every to systematically address motivational customer interaction helps address goals when designing relevant customer relevant customer needs while remaining interactions. The sum of all interactions unique and true. highly influences the way in which humans value a relationship. This is the point where branding meets interaction design and CRM. Persona Need Sphere®

Adventure

Excitement 1

Achieve transparency about the Enjoyment territory of customer needs that Autonomy you want to address when building a relationship with them. Make sure to understand the broader context.

Security

Discipline

19 Design the experience to 2. contribute to those needs

We observe quite often that the interplay of touch points and channels does not reflect a company’s territory of customer needs or lacks logical consistency with other interaction points. Customer journey maps can help set the stage to tackle this very common issue. They display the aggregation of interactions and the related experience of a human. Based on extensive customer research What is happening? – Interaction design and cross-functional knowledge, they can be used as a target picture for all of an organization’s contributing departments. Who is responsible? – Capabilities They provide a common understanding of how the actual customer relationship How to execute? – Processes is built and they also help to identify the “Moments that Matter“ in the journey of a human, which highly influence a Which systems are involved? – Tech stack relationship. What data do we need? – Data layer On the other hand, experience blueprints visualize the relevant actions, processes and departments affected by an Build an interaction framework that aligns relevant interaction with the customer. They are interactions for each persona with every phase of the derived from customer journey maps customer journey and visualizes which processes and and provide an excellent overview about 2 supporting capabilities are necessary to enable the what needs to be done by whom in interaction. Focus on “moments that matter”. each specific situation. Both concepts together provide a holistic overview about what and who is necessary to make a certain interaction happen and what it should look like in order to build strong relationships with customers.

In practice, we see a lot of companies successfully making use of this concept to better manage each interaction.

20 Enable individual interactions 3. matching context, channel and customer segment

Once a company understands customer Unplanned interactions are difficult to effective an interaction is and therefore needs and visualizes potential touch foresee and are characterized by a very the experience the customer has. Not points, it can start designing detailed individual context, in which the customer every channel is the right fit for every interactions. An interaction plan can help initiates the interaction. Although these situation. A complex complaint might be to structure the relevant factors – e.g. interactions are complex to manage and better managed by calling the customer target group, occasion, channel. difficult to integrate into an interaction directly, rather than writing an email. It is important at this juncture to plan, they often have a very high impact Companies need to factor in these differentiate between two kinds of on the relationship between a company considerations for each interaction in their interactions: planned and unplanned and its customers. Therefore companies interaction plan and ensure that their interactions. might find it useful to define principles technology platform can facilitate them. that ensure consistency in unplanned Planned interactions can be derived customer interactions. and designed based on customer needs and predicted touch points. Using high The channel selection is important for quality customer insights and accurate both kinds of interactions. Every channel context data, they can be personalized has its own characteristics, benefits and context-based to guide the customer and disadvantages which need to be along his journey and build relationships considered. Being cautious in channel specifically. selection can strongly impact how

3 Set of needs

Create an interaction plan which translates needs into value-adding interactions across channels. Carefully consider the different contexts of an interaction, the channels required and the segment you serve to enable the interaction.

21

4. Test and iterate to improve

Optimizing a company’s ability to perform value-adding interactions is an ongoing and extremely important process, which involves continuous testing and innova- tion. A changing brand perception, evolv- ing customer needs or new technological advances enabling new channels can be factors that require changes and improve- ments at all levels of an organization in terms of customer interaction. Concepts working exceptionally well today might be obsolete tomorrow. A flexible organization with an agile mindset must therefore continuously tailor its interaction strategy to the customer to enhance customer relationships.

Delight Customers Continuously test and iterate 4 customer interactions to adapt to changing needs or improve by using new technologies.

Learn from Test early and mistakes and often communicate gained insights

Design Interactions

22 Deep Dive – Moments that matter

Companies, and especially marketers in How to win? Steps those companies, are often obsessed • Focus on people’s subconscious feelings with understanding the demographics, and needs by using ethnographic and feelings, behaviors or interests of their observational approaches instead of targeted (potential) customers to design surveys personalized ads or interactions and drive IDENTIFY sales. Although personalization based • Always consider a customer’s broader on the characteristics of an individual context. Excellent opportunities to matters, the extent to which a customer delight a (potential) customer can often benefits from an interaction will depend be found before he even knows that he DESIGN more on the context. needs a certain product

• There will be many potential micro The context of a situation comprises its moments. Assign them to specific specific characteristics and is experienced groups, e.g. to the customer lifecycle as an individual moment. The key to suc- TEST phases, to maintain an overview cess is identifying those moments which have the highest impact on a human – the • Moments that matter come as fast as “moments that matter”. they go. Try to focus your content on the intent of the specific moment to really REFINE When companies recognize those make an impact. A good landing page, moments, and make the right moves, they which takes 30 seconds to open, is not a create strong, lasting relationships with good landing page their customers, because they are sup- • The moments with the strongest porting them in emotional situations. SCALE emotional attachment and potential impact on the relationships occur when This is the reason why companies need to something goes wrong. How a company identify those moments and learn how to handles customer issues or complaints design them in the most human-centric way. can actually create huge value and trust, or completely destroy a relationship Focusing on those moments along the journey not only benefits customers. It also helps companies prioritize their inter- action design and focus on the capabilities that enable really important interactions. Technology trends like the Internet of Things (IoT) pave the way by collecting the relevant data.

Retail Journey

“I am not sure “The shirt got torn “I need an outfit which size to but I need it for the immediately” order” moment birthday party in two moment days” moment John, 34 Online shopping advocate Online Offline 23 Customer identity management

A consistent, personalized journey with The purpose of identity a firm focus on moments that matter management is to provides a strong foundation for all CRM efforts. It is just as important, however, 1. consciously handle a customer’s identity to know which specific customer is at a spectrum depending on the context certain touch point. Why? Because inter- of a touch point and the customer’s actions depend on the person involved preferences and the immediate context. How can an airline offer superior customer service to 2. make personal data reliably available a customer without knowing that he just for each interaction by identifying cus- entered the airport? It cannot, unless he tomers in a fast, precise and convenient somehow exposes his identity. That is why manner identity management is so essential for companies, especially for their relationship Although identity plays an integral part with the customer. Customer identity in successful journey management, most management is not, first and foremost, a touch points today still offer an unsatisfy- technology issue. It is the decision where ing user experience. and how a company facilitates and incen- tivizes customers to disclose their digital Today’s customers are also ambivalent identities. This is an often overlooked when it comes to their digital identities. prerequisite to providing a personalized On the one hand, they expect highly per- customer journey while also ensuring that sonalized and context-based interactions the customer can handle his data with the both online and offline. On the other hand, expected sovereignty. they often want to restrict the access to their data depending on the situation and are suspicious when it comes to disclosing their (digital) identities due to security or data protection issues.

The topic becomes even more challenging when it comes to offline touch points, where customers cannot be easily identi- fied via cookies or SSO logins. Also identi- fication across ecosystem partners makes the situation more complex.

24 Personalization opportunities

Unknown – A human for Anonymous – Set of data Registered – Set of data available based which there is no addi- available based on IP and on IP and cookies. Further information tional information besides cookies. Reference to data based on user-generated data. his IP address. based on anonymous ID. If necessary, the human can be verified No reference to real identity. (e.g. PostIdent).

High Potential for personalization for Potential

Low Low Customer Details High

Customers benefit from an enhanced experience and the chance to take back control over their data. Companies can leverage the potential for better sales performance along the customer journey.

25 Increasing customer expectations force companies to find a way to leverage personal interactions even as the customer remains anonymous – a perfect paradox. What is a company to do?

Provide and communicate benefits Integrate identification in your touch Based on different tracking results, com- Organizations need to clearly communicate point design – on- and offline panies can create profiles for anonymous what the benefits are for customers when Depending on the context and the chan- potential customers and link them to a they disclose their identity. And sometimes nel, the ease of identification procedures generated ID. If they can successfully track they even need to incentivize it. This does varies. Make sure to provide identification the data over time and analyze emerging not automatically include monetary ben- procedures that fit the touch point design. patterns, companies can find the right efits or complimentary services. It is often Unless absolutely necessary, do not force moment to interact with users and collect enough to communicate clearly how the identification to avoid losing a customer in the final pieces of information – their per- customer experience will improve. the process. sonal contact details.

Depending on the situation and the 97 percent of the visitors to an average Making identity management and identifi- expected net value of a customer, a website, however, are anonymous, i.e. cation processes transparent is a win-win company might find it more or less advan- not part of a company’s CRM. That is why situation. Customers benefit from the tageous to take it one step further and companies need to collect and analyze improved experience with personalized develop more sophisticated or persuasive customer data to turn unknown custom- and context-based interactions and the incentives. Ask yourself: do I see any ers into known customers. To nurture a ability to take back control of their data. benefits for me that give me a reason to rich customer profile, companies can track Companies, on the other hand, can lever- identify myself? micro actions from three areas: age the potential for better sales perfor- mance along the customer journey. Put a focus on data sovereignty 1. Self-reported data from web forms and Customers often feel like they have lost online questionnaires control of their data. The simple solution is to give back control by providing trans- 2. Digitally collected data through brows- parency. Explain why you need a certain ing activity tracking, reverse IP identifi- set of data along the journey and let them cation and geo-locations manage the data set afterwards. Also let 3. Profiled data from third-party data them configure to what extent they want sources, data onboarding, cookie- their data to be used for the purposes matching technologies, and contextual of personalization or advertisement. targeting Customers will be willing to share more information when they feel that they can take back control later.

26 Case Study – Identity Management as a core enabler for omni-channel

One of our automotive clients recognized that their customers were increasingly demanding a consistent experience across all digital marketing touch points. Their communication with actual and potential customers, however, was organized in silos structured by channel, which produced inconsistent messages, an inefficient marketing spend and missed sales opportunities. One key challenge we identified early on was how to manage partially unknown or anonymous identities across the various onsite (own website) and offsite (third-party website) touch points and to potentially link them to existing records of known customers. As a result, the company was unable to offer a high degree of personalization and relevant content to the touch point visitor.

In order to connect the dots, Deloitte The integrated DMP now allows for supported the challenging project by consistent customer data management Automotive |identifying and prioritizing across the different channels for unknown organizational, |legal and IT prerequisites and anonymous visitors and links the data necessary to deliver on the client´s with the company’s known customers in its customers expectations. already established CRM system.

In the next step, we developed a use case- As a result, our client could measurably driven target picture and collaboration increase customer satisfaction by providing model between |business units to align more personalized and relevant content, and orchestrate customer communication leading to a top line improvement through on digital marketing touch points onsite, increased conversion. From a bottom line offsite and for registered customers. perspective, our client was able to decrease From a technology perspective, we his online media spending by increasing provided a status quo target system efficiency in targeted initiatives. and data architecture |with AI-based analytics and implemented an end-to-end |Data Management Platform (DMP).

We also established a business case tool to plan, but also to |measure project results, allowing the client to create momentum for softening silos by communicating early project success throughout the organization. GDPR compliance of relevant tools and procedures across markets was ensured from the start of the project by including legal skills in the core project team.

Identity Management

27 Sidebar – Disclosing identity requires trust and blockchain can help

As mentioned before, there are several Thanks to this identity verification service, ways to improve identity management for participating companies in the ecosystem customers across touch points. One of can provide services to customers without them is to leverage blockchain technology. having to go through separate registration Why? It can be used to harmonize identity and verification processes. This will not management within an ecosystem and only streamline and harmonize customer support customer data sovereignty by identification across the ecosystem, giving them control over how, when, companies can also provide personalized and with whom, their data is shared. services without the burden of handling This is difficult to achieve with current sensitive customer data on their own. technologies that require companies to enter into individual partnerships to Customers, on the other hand, benefit enable this kind of service, usability and from increased data sovereignty, security data sovereignty. and overall privacy, as none of the detailed identity information is shared between Working with the Deloitte Blockchain participants of the ecosystem. Institute, we defined an identification procedure that provides solutions for the By setting up a network with other common challenges organizations face. businesses, organizations can create an In our case study, the identity manage- ecosystem, in which customers profit from ment service is tailored towards telco a seamless user experience across all operators, because they already have a participating vendors. This also opens up big customer base, relevant customer new business opportunities for companies data and the necessary infrastructure to participating in the network, such as the provide identity services. As soon as an opportunity to broaden the customer ID generated by the company is verified base through strategic partnerships or by an endorser, customers can use their new revenue streams and loyalty benefits digital identity to seamlessly authenticate from providing IDaaS (ID as a Service) to services. This could, for example, be partners and customers. To learn more renting a car through a shared mobility about the Deloitte Blockchain Institute provider or unlocking a hotel room with- and the identity management as a service out prior authentication at reception. The case, please click here1. blockchain layer uses a customer’s digital identity to automate know your customer (KYC) checks and can also handle payment transactions quickly and economically.

1 "How Telco Operators can improve their customer engagement with Blockchain Technology", 28 Deloitte, https://www2.deloitte.com/de/de/pages/innovation/contents/blockchain-telco.html. An interoperable, secure identity layer could allow frictionless communication across providers and technologies as well as contract handling

New identity information can be added, securely stored, and retracted as Identity attributes securely applicable stored on a blockchain

Telco creates a digital identity (device/person)

Trusted third parties verify and endorse key ID attributes

Customer uses endorsed identity to seamlessly authenticate service

Automated due diligence (KYC) checks are undertaken by verifying supplied information

29 Analytics

Applications for analytics range from Personalizing touch points strategic decision-making to operational journey enhancement and automation. This becomes particularly true for CRM Since the paradigm shift to digital communication, many leaders. The dependence on customer companies aspire to addressing customers in a personalized insights and the responsibility for (at least) manner yet they also want to convey their standardized digital interactions with the customer make personality. analytical know-how a top priority, even beyond the current CRM structure. Making analytics the core of an organization Engage in real-time as well as Think forward about ethics and requires a lot of effort, but also pays off predictive analytics compliance in enhanced decision-making and an When creating personalized touch points, New analytical capabilities and ways to improved customer experience. companies should offer their customers engage with customers present ethical opportunities to communicate with challenges that lead to laws like the General In addition to becoming an insight driven them on their own terms. For example, Data Protection Regulation (GDPR). Compa- organization (IDO), it is crucial to develop a always-on support functionalities such as nies should therefore proactively address deeper understanding of customer value conversational commerce offer meaningful, regulatory requirements, define their own and a more precise planning of interaction instantaneous customer interaction and standards and position themselves as best frequencies on an individual level in order systematically record real-time customer practice examples. We will dig deeper into to prioritize customers and contact them data. To truly become data-driven and cus- this topic in the chapter “Legal”. in the best possible way. tomer-centric, businesses are also looking at predictive analytics. Organizations can use patterns and forecasting to identify next steps in their customer’s journey with predictive models.

Embrace interpersonal touch points Traditional human interaction, however, can be the deciding factor when it comes to personalized customer experiences. Individual touch points with a motivated workforce can lead to positive real-time experiences. At the same time, this means sales staff in stores or call center agents are exposed to varying customer expectations, for which support from analytics tools could be beneficial. These enabling ser- vices allow them to make communication between people more personalized while still complying to the organization’s set guidelines at the commercial (personalized offers) or brand level (brand consistency) – even when speaking to numerous different customers each day.

30 Importance 62 percent of CMOs believe they will increase their budget for marketing and customer analytics in 20192

Targeted Differentiation Companies often offer the same level and quality of service to all customers, leading to customer dissatisfaction as well as missed opportunities for targeted cross- Expected by selling and up-selling customers 88 percent of managers state that their customers and prospects expect a personalized experience3

CX Focus 72 percent of managers see opportunities of personaliza- tion in improving the overall customer experience4

2 "CMO Spend Survey 2018 - 2019", Gartner, 2018. 3 "2018 Trends in Personalization", Researchscape International, 2018. 4 "Evolve Now To Personalization 2.0: Individualization", Forrester Research, 2017. 31 Data-driven decision-making

Although personalization is already often In contrast to other, less data-savvy That said, our observations show that used to tailor a customer journey to an organizations, an IDO … analytical insight gathering is still not a core individual, it is only one example of how value in most organizations. Although the analytics insights can be used. In order … understands the value of analytics in reasons for the status quo differ across the to fully leverage the potential of data decision-making and journey organization, the symptoms are painfully analytics in CRM, organizations need to automation. obvious in a company’s CRM due to inac- consider the broader context. Insight curate prioritization and customer under- based decisions must arrive at the core of … ensures that the analytics vision aligns standing. That is why CRM leaders need to today’s organizations. with and supports corporate objectives. drive efforts to enable a more insight-driven structure along five building blocks: strategy, We call organizations that have succeeded … constructs scalable technical capabilities. people, process, data and technology. The in embedding analytics, data and reason- Deloitte IDO approach facilitates this pro- ing into its decision-making processes By leveraging those analytics capabilities, cess. More information on this topic can be Insight Driven Organizations (IDO). the generated insights can also benefit a found by following this link5. Their capability goes far beyond data company’s CRM by increasing customer generation and interpretation, taking into understanding and improving strategical account technological resources, strategic and tactical decision-making. Employees alignment, talent, leadership, business need to decide on a regular basis which processes and the entire information content should be communicated via lifecycle to elevate the effective generation which channel at what time, always taking and application of insights from data in all the specific customer value of an individ- areas of the enterprise. An IDO sees the ual into account. use of data-driven insights as a core capa- bility across its organization rather than a project with a start or end date.

The five building blocks of an Insight Driven Organization

Are the right people Have we created a engaged & ready to clear line of sight from implement the right business decisions to initiatives? data sources? Strategy Process Technology

People Data

What does it mean Have we designed a Have we constructed for our business suitable process to an integrated & when we become control the delivery of scalable technology an Insight Driven insights? architecture? Organization?

5 "Analytics & Information Management", Deloitte, https://www2.deloitte.com/de/de/pages/ 32 technology/solutions/information-management-and-analytics.html. Customer value management

In most cases, investing in customer Companies need to start allocating Different perspectives of relations generally pays off for a company. resources for relationship building based customer value To allocate these investments efficiently, on the value they can potentially derive however, it is crucial for companies to have from a customer. This becomes particu- knowledge about the value composition of larly important considering that more its (potential) customer base. On average, and more companies are transforming 20 percent of customers generate over their business models. With subscription 100 percent of profits for a company6. or pay-per-use models and increased Understanding which ones actually con- flexibility for customers, companies need Customer lifetime value tribute towards a company’s bottom line to invest continuously in CRM efforts to Present value of future profits generated is a challenge that many companies feel retain customers. That said, investing from a customer over his or her life of the overwhelmed by. in low-value customers can result in a business with the firm lack of resources to retain the high-value Our interviews showed that few com- ones. Companies may, however, imple- panies have the capability in house to ment measures to transform low-value transparently measure the value they customers to high-value customers while can derive from a customer relative to measuring the success – always based on the costs incurred in serving them. As a individual customer value insights. result, they overspend on customers that Customer referral value will, in fact, never generate a positive ROI Once a company understands the value Value derived from extrinsically motivated (return on investment) over their lifetime composition of its customer base, it can customers referring a company to and underestimate the non-financial value focus on individualizing its relationship potential customers a customer can generate. Moreover, the building initiatives based on those framework underlying CLV (Customer insights. Companies that understand and Lifetime Value) calculations is often based can accurately predict the value generated on several different KPI definitions and by each customer are in a stronger posi- measurements due to structural silos. This tion to make informed judgements about makes an organization-wide calculation of how to allocate resources and how to best CLV impossible or at least misleading. develop their customer portfolio. Customer influencer value Value derived from intrinsically motivated On top of that, it is important not to meas- customers interacting with actual and ure the value derived from a customer in potential customers terms of bank notes. Companies need to include other perspectives on customer value to adequately measure indirectly generated value. Although a single cus- tomer might be unprofitable from a purely financial perspective, he or she could indi- rectly generate exponential value by influ- Customer knowledge value encing friends or social media contacts Value of information a customer provides and therefore growing brand authenticity towards the company (e.g. ideas for and sales. improvements)

6 Converting Customer Value from Retention to Profit (John Wiley & Sons Ltd, 2006). 33 Balancing the right amount of interaction

Strong customer relationships promise with customers through activities which loyalty and retention but their strength is are customized to their interaction pref- influenced by various parameters such as erences. For example, if both the firm and contact frequency, relationship duration customer are willing to invest resources and customer preferences among others. (e.g. time, money, efforts, passion and Today, analytics provides an array of tools manpower) in their relationship, an idea to help organizations engage with their contest or a company’s own online com- customers at the right moment with the munity would be suitable venues for both right content. For example, customer partners to derive value from each other. behavior analysis gives insights not only by collecting customer data but also by To create meaningful customer interac- clustering customers into segments in tions, companies should focus on the order to approach them in a standardized value they can deliver to their customers yet personalized manner. Furthermore, through interactions instead of fixating on natural language processing allows you the financial value they might extract from to review past conversations to gather a customer relationship through mere insights into customers’ levels of satisfac- contact. If customers cannot see the value tion. These can be used in the future to in engaging with a firm, the firm might lose address them with their preferred content their share of engagement. Also, if the and style. contact is too frequent, CRM resources will not be used efficiently and customers may Besides utilizing analytical tools, firms become dissatisfied and annoyed. can engage in various value-generating activities with their customers. These activities can be customer-driven or company-driven depending on each par- ty’s level of engagement. The illustrated activities should inspire firms to interact

34 Typology of interaction

High

Customer-Driven Hashtagbased True Collaborative content aggregation Web forum Firm created online community Online reviews Idea contest

Customercreated Wearables online community Webinar

Social media Gamification brand page Customer investment Firm blogging

Sweepstakes Online video channel Exclusive offers

Email campaign Low Passive Firm-Driven

Low Firm investment High

35 Organization

The basis of successful CRM is an organi- zation that enables the customer experi- Operating model ence. It must be fully aligned towards the customer journey to ensure a seamless Today’s CRM organizations must be able to CoEs can provide advice tailored to the and personalized experience. Our inter- quickly adapt to changing customer needs specific situation to make the decision- views show that most topic leaders high- and serve them consistently along the jour- making process more effective. For this light how important it is for companies ney. This requires a move from functional setup to succeed, close collaboration is to have the right structure and operating silos to flexible cross-functional teams particularly important along with subse- model to achieve CRM success. responsible for the customer’s end-to-end quent knowledge sharing for other journey journey. teams. Co-location of functional teams and Companies understand that they need CoEs in combination with regular their organizations to become more agile, Depending on the journey and its potential knowledge-sharing events will help to quicker to react and more insight-driven touch points, these teams include various ensure close collaboration. to meet the customers’ changing needs. skill sets from UX design to analytics and This requires an interdependent operating incorporate deputies of the different And yet, even the best way of working model derived from the customer journey CRM-related disciplines such as marketing cannot succeed without the right culture. that brings people, processes, technology or customer service. Companies must Culture is defined as the “way we do and data together to serve the customer establish a common direction and continu- things around here”, a system of values in the best possible way. ously orchestrate the journey to deliver a that shapes the behavior of leaders and consistent brand and customer experience. employees across the organization. By The way the various contributing CRM strategy teams have to give guidance trying to make an organization more functions work together becomes a key by providing principles and governance to customer-centric, CRM leaders must success factor in this construct. Organi- each journey responsible. Many of our change that system of values. This will zations must use the right incentives and clients have adopted this model and require their full attention and persis- establish the right culture to delegate successfully aligned their workforce towards tence to communicating the purpose of clear end-to-end responsibility for each the customer journey, resulting in improved the change. When people have a clear journey and ensure that all relevant customer experience and less friction ambition, they have a target picture to departments make an effective contribu- between the departments involved. work towards. Finally, a clear incentive tion to the overall experience. scheme based on a mixture of traditional To strengthen each cross-functional team’s and customer-centric KPIs helps to align By working in small, agile teams that skill set, companies can build centers of each employee’s actions with the overall have the right skill set, organizations can expertise (CoE) for insight gathering and strategy. stay flexible and thus better cope with legal advice. Although each team should changing business environments. To con- already have a basic set of skills for both, tinuously improve CRM efforts, companies also need to start incorporating feedback and lessons learned into the project teams at an early stage.

The legacy process landscapes of tradi- tional organizations should be re-designed to serve the goal of customer satisfaction, taking the established operating model into account. Combined with a sufficient degree of process automation, companies can achieve a lean, effective process design that benefits the bottom line by reducing costs and improving customer experience.

36 Way of working as part of the overall CRM Operating Model

Journey-aligned way of working

Strategy

Legal Advice Account Opening Referral Journey Journey Enabling Departments

Journey Marketing Orchestration

Sales

Insight Gathering

Service

Product Upgrade Contract Extension Journey Journey Product

Provides infrastructure and expert advice

IT & Data Platform

Functional end-to-end journey responsibility Center of Expertise for legal and insight gath- in cross-functional teams, incl. IT, Business, UX, ering supporting operational and strategical Analytics, Legal considerations 37 Companies understand that they need their organizations to become more agile, quicker to react and more insight-

In order to succeed, the new way of working combined with a customer-centric driven to meet the customers’ culture will build the foundation for col- laboration. Companies need to ensure changing needs. This requires that this foundation is well integrated into the overall target operating model in order an interdependent operating to provide sufficient backup with data, technology and customer-centric pro- cesses. Based on our experience and in model derived from the customer summary of the topics discussed before, we have identified nine key characteristics journey. that support a tailored operating model aligned with the customer journey:

1. Focus on prioritized journeys and 5. A dedicated team providing customer 9. Customer-centric processes with a moments that matter with the highest insights based on customer and focus on automation and journey impact on customer satisfaction and journey data either on a request or orientation. Although most companies relationship-building opportunities. on a self-service basis. This ensures try to improve processes, we have a common understanding about the seen that it often makes more sense to 2. Cross-functional groups with a diverse customer and reduces the amount of reimagine processes by deriving them skill set that assume end-to-end “gut feeling” decisions. from the customer journey. This natu- responsibility for specific journeys. rally cuts traditional silos and reveals Additionally, new management roles & 6. Further enabling functions will ensure opportunities for process simplification responsibilities like vision & mission that the relevant customer-centric pro- and streamlining. design, impediment disposal and feed- cesses and journey overarching tasks back provision become key to success. are executed. CRM leaders need a long breath to drive this organizational change. A good 3. A governance body ensuring 7. A common data layer providing the starting point is the use of pilots with a cross-journey orchestration, strategic necessary raw data for insight gen- small amount of key journeys which are direction, brand consistency and flexi- eration incorporating customer and backed up with small and agile project ble skill allocation. journey data. organizations and the minimal amount of tech infrastructure behind. By communi- 4. Center of excellence unit responsible 8. A tech stack integrated with the under- cating early success, the benefits of this for guidance on legal issues. A key lying data layer capable of covering the change process become visible and create success factor is a healthy trade off capabilities needed to facilitate the cus- momentum which can be used to drive between “staying safe” and trying new tomer journey in terms of technology. the organization in the right direction. ideas. Legal must broaden its scope from being only the organization’s safeguard to assuming a clear-cut guid- ance role advising the teams on what is possible from a legal perspective.

38 Data Collection 1

Relevant Channels

6

4 2

Legal Advice Account Opening Referral Journey Journey 3 Journey Orchestration 5

Insight Gathering

Product Upgrade Contract Extension Journey Journey

Way of Working

9 Processes

8 Technology

7 Data

Data Processing

39 Customer-centric processes

While competing in the new arena of CX, policies and processes with customer companies need to derive their processes priorities cause negative buzz in many from the customer journey and link them to situations. Developing processes starting their operations to deliver superior value. with the customer interactions will help to avoid this unpleasant situation. This will not Today’s customers expect integrated pro- only benefit the customer, but will also help cesses from a company across products, to identify and fix inefficiencies, directly subsidiaries or communication channels. In affecting a company’s bottom line. reality, misalignment of products, services,

We identified two major success factors for achieving organizational goals.

Journey-based process design Service experience blueprints clarify roles & responsibilities at every touch point and can be used as a starting point for a customer-centric process landscape. By designing processes from a customer point of view, organizations can streamline processes and eliminate the waste that is currently impeding efficiency. One important factor to consider here is that companies often have inefficiencies in their operating model that need to be solved first before you can bring the new customer-centric process landscape to life.

Process automation Today’s technology enables companies to facilitate or even automate a significant amount of their processes. Adapting process automation for CRM purposes is beneficial from two perspectives, as it decreases process cost (manual handling) while improving process performance (cycle time, faster process output). Although primarily adapted for trivial, highly repetitive tasks, some companies already started to automate more sophisticated processes using the current opportunities of AI in a mix with defined business rules. Common applications are “next best offer” processes or excluding currently unsatisfied customers from cross-selling and up-selling initiatives.

40 Exemplary service experience blueprint for process design

“I am not sure which size to order”

Journey Based Process Design

Capability Layer – Who is delivering?

ead Management Performance Tracking Campaign Management

Customer Service Recommendation

Process Layer – How are we delivering?

Manual

Automated

System Layer – Which systems are relevant?

CDM

CRM

Website Backend

Data Layer – Which data is required?

3rd Party Demographic Sales Product Behavioral

41 Technology

Technology enables effective CRM at scale We see further potential in the area of by building the foundation of today’s opera- data quality management. Although data tional CRM efforts. Using this potential to is the basis for a lot of CRM use cases, the the fullest extent can give companies a availability and quality of data is still a key competitive advantage. In order to make area for further improvement. A clearly this a reality, companies need to ensure defined master data management and the systems are properly integrated into governance approach across the organi- the overall enterprise architecture. This is zation can ensure that the data used is the only way it can really act as an enabler actually reliable and available. However, along the journey by providing the right this will require companies to focus on data and the right functionalities. Architec- this topic and ensure inter-organizational tural considerations therefore become alignment of data owners and users. more and more crucial for companies willing to lead in the area of CRM.

Role of technology

Today’s companies want to treat each cus- a superb human experience grounded tomer as an individual by understanding in data. This ensures a seamless orches- his/her preferences and behaviors. Analyt- tration of channels and therefore an ical and cognitive capabilities highlight the enhanced experience at every touch point. context of customer needs and desires, identifying the optimal way to engage with We have seen, however, that many organi- them. An organization’s tech stack builds zations tend to develop a “tech only” per- the foundation to achieve this at scale. spective when it comes to CRM. Although technology is the final enabler of the organi- The ability to gather and process data is key zation, it must go hand-in-hand with other for understanding customers and making perspectives like strategy, analytics or legal sophisticated decisions regarding CRM at to ensure a proper fit. the strategic (e.g., journey design, product development) or the operational level (e.g., This is also the reason why re-engineering next best offer). At an operational level in a company’s current tech stack does not particular, companies can facilitate and mean ripping out all of the legacy technol- automate processes, resulting in lower ogy and replacing it with shiny new tools. costs and less time to enable the experi- Rather, the goal should be to integrate the ence of a customer. technologies and processes that can make the existing systems smarter with the clear Technology is the enabler of a company’s goal of providing real-time and seamless customer strategy and absolutely crucial interactions with customers, closely aligned to satisfy today’s customer requirements. with the CRM strategy and the business CRM leaders need to work in tandem with goals of a company. their company’s tech leaders to enable

42 Architectural decisions

Clients often tell us that they have issues with the quality and integration of data between new internal and external/ third-party systems and legacy systems, which is key for realizing their CRM vision The availability and of superior customer experience across all touch points. As a result, the technological platform that enables CRM processes quality of customer needs to be thoroughly defined and suitable vendors need to be selected. data plays a particularly

Each architecture must be tailored to important role in the given situation. However, the generic architecture blueprint we provide can be used as a starting point. Eventually, realizing the CRM vision. companies need to define and compre- hend which exact requirements they have across the following assessment dimensions:

•• Functional requirements: •• Non-Functional Requirements: ––Processes & roles: ––Costs: Which CRM processes and roles does Monetary costs of implementation the system need to enable employees ––Implementation time: and customers? Duration of implementation ––Analytical aspirations: ––Agility & extensibility: To what extent is it necessary to track Flexibility to react to change and new or and analyze customer behavior? additional requirements ––Data availability & consistency: Consistency of data across all systems, synchronization speed and clarity of integration concept ––GDPR compliance: Ease of finding, writing and deleting customer data across all systems ––Political landscape: Political and/or organizational aspects that impact the platform

The availability and quality of consumer data plays a particularly important role in realizing a CRM vision. Solutions available on the market range from all-in-one to ded- icated Customer Master Data Management or Customer Data Platform solutions.

43 Omni-Channel Retail Platform Blueprint

The technology required to implement a digital CRM strategy uses a set of different solutions that need to be integrated effectively. The front-office solutions represent those solutions that are in direct or indirect contact with the customer and are therefore particularly important for a successful customer experience.

Custom Reporting, Data Science & Warehousing Store Online Shop CRM Performance Marketing

Market- Web Social Media Marketing place(s) Identity Analytics Access A/B- Recom. Search Social Media InStore App SEA/Display Manage- Testing Engine Engine Management ment Tag SEO Manager Content Marketing Payment Customer Marketplace POS-System Service Content Management Affiliate Marketing Engine Provider Service

Front oce/Channels Front eCommerce PIM E-Mail Marketing

Dashboarding Data Reporting Science

Micro-Service/API ayer Based ET-Tool (Batch) “Data ake” Synchronous/Real Time Asynchronous Integration

Data Warehouse Cubes

Product Master Customer Master ERP Standard (egacy) Reporting Data Management Data Management Back oce

44 Custom Reporting, Data Science & Warehousing Store Online Shop CRM Performance Marketing

Market- Web Social Media Marketing place(s) Identity Analytics Access A/B- Recom. Search Social Media InStore App SEA/Display Manage- Testing Engine Engine Management ment Tag SEO Manager Content Marketing Payment Customer Marketplace POS-System Service Content Management Affiliate Marketing Engine Provider Service

Front oce/Channels Front eCommerce PIM E-Mail Marketing

Dashboarding Data Reporting Science

Micro-Service/API ayer Based ET-Tool (Batch) “Data ake” Synchronous/Real Time Asynchronous Integration

Data Warehouse Cubes

Product Master Customer Master ERP Standard (egacy) Reporting Data Management Data Management Back oce

Core Platform Custom Analytics 45 Master data management & governance

We see many organizations facing the same issues in terms of customer data. They have problems building a holistic under- standing of their customers and adequately synchronizing the relevant customer data between all customer facing systems. A well defined master data management concept brings structure in the often confusing situation. At its core, master data is data that does not change frequently and is relevant to many or all systems to run the business. As such, master data represents the core of data relevant for CRM. As depicted in the illustration, master data can have different levels of relevance. While M1 is relevant for all systems, M2 is only relevant for at least two systems and M3 is not relevant to any other system except the producing system.

Master Data Entities Exemplary Customer Master Data Master Data Governance Master data can come in various forms, Referring to the different relevance levels Data quality is a never-ending story. Once it which are called entities. Taking a retailer, of master data, core master data could be has been built, a master data management the most important ones are customer a customer’s name, address, phone, email system is always undergoing constant and product entities. If those entities are and permissions. This data set is particu- change. After all, companies and their not properly maintained and synchronized larly relevant for all or most customer- customers constantly change, as do their across all producing and consuming facing systems, because otherwise systems and data requirements. To stay systems, companies cannot achieve their customer processes would not work and successful in data quality, companies omni-channel strategies. Imagine the requests from customers would not be need to set up a dedicated data quality situation that customer permissions are answered. committee consisting of one representative not available in all systems and a customer of each relevant system and sufficient has no chance of changing them via management support. The committee the call center. That is why master data meets regularly to discuss a dedicated data management must be at the core of every quality report based on defined measures implementation. and to take action if the quality of the data becomes unacceptable.

46 M3 M2 M3

M1 M2 M2

M3

M1 = Golden Record7, shared across many/all systems M2 = Data shared by at least two systems M3 = Data only relevant to one system

Systems generating & consuming data

7 Golden Record = True data. 47 Customer MDM Implementation Option

While a dedicated MDM solution guarantees the highest data quality and stability, a full MDM implementa- tion can be expensive and time-consuming. It is therefore worthwhile investigating options like the use of a central CRM system to build the golden customer record. Four options are the most common ones and their advantages and disadvantages are briefly discussed below.

Dedicated MDM Solution CRM based MDM Solution

CRM System, CRM System, MarTech MarTech eShop & Store e.g. Salesforce eShop & Store e.g. Salesforce Systems Systems Service Cloud Service Cloud

Integration Integration

Dedicated MDM Solution, e.g. Reltio MDM

Stable and tested approach to create the golden record Cheaper, as no additional system has to be bought 

Dedicated data quality workflows and dashboards Data is directly available in the CRM system 

Complex integration project A CRM system is not made for MDM and needs to be   customized High costs of marketing leading vendors Is often lacking true MDM capabilities like complex   matching & merging as well as workflows Data requests will increase heavily and need to be  factored into the CRM license plan

48 Customer Data Platform MarTech Solution

CRM System, CRM System, MarTech MarTech eShop & Store e.g. Salesforce eShop & Store e.g. Salesforce Systems Systems Service Cloud Service Cloud

Integration Integration

Customer Data Platform

Combines capabilities of a data lake, MarTech Data is directly available for marketing activities solution and MDM Generation of insights and full 360° customer profile Depending on MarTech stack integration complexity can be reduced Often overlaps with existing MarTech solutions Is often lacking true MDM capabilities like complex matching & merging as well as workflows Creates duplicated functionality and increased Depending on the provider, the integration back to the implementation complexity source system can be complex Is often lacking true MDM capabilities like complex matching & merging as well as workflows

49 Legal

Although traditionally not a CRM capa- bility per se, companies have started to The GDPR dilemma consider their legal capabilities more seriously and invest more in them since New stricter data privacy regulations in the wake of prominent data violations the announcement of the new European clash with increased customer inter- such as the Cambridge Analytica Scandal General Data Protection Regulation action and data processing or the NSA surveillance disclosure. (GDPR). CRM is heavily dependent on data The processing of personal data falls gathering and processing, so deep knowl- under the EU General Data Protection Due to the risk of high penalties, compa- edge on how to leverage customer data in Regulation (GDPR)8, which has been in nies have focused on compliance in recent the existing guidelines and regulations will force since May 25, 2018. Entities from months, especially through appropriate make or break its success. all sectors are affected by the changes – documentation. This was also confirmed in not only EU companies but also foreign our interviews with CRM leaders. Although Companies who want to succeed with their companies offering products or services in the internal documentation efforts were CRM activities need to acknowledge how the EU. The goal of the GDPR is to provide very time-consuming, there was very little important legal skills are to their teams a unique regulation framework that gives interest and inquiries from customers. and establish workflows that ensure customers more rights, increases com- business support but also compliance mitment to compliance and simplifies the In terms of these stricter data privacy with new regulations. This will require a exchange of personal data within the EU, regulations, digital transformation leads new degree of legal expertise in traditional but also establishes rules and procedures companies to focus more on increasing business functions with occasional advice for damage control and recovery situa- customer engagement to stay competitive of legal experts. tions. Although GDPR is valid for all com- and offer a more personalized customer panies operating in the EU, there may be experience. New technologies enable us to Although skilled resources are scarce local laws in the respective countries that collect, store and process huge amounts and moving towards a close collaboration go beyond the legislation and companies of personal data for a variety of purposes. between legal and traditional CRM func- must take account of them. Forward-looking digital technologies such tions will take time and effort, it definitely as big data, AI and Industry 4.0. make data pays off. Companies integrating legal Companies have increasingly become available in completely new qualities and knowledge into their teams and ensuring subject to varying industry, country and quantities, and offer diverse ways to use expert advice for critical or unclear corporate privacy regulations in order it, which is directly related to the new data decisions can make their legal capability a to protect their customer data from privacy rules. USP and stay ahead of the competition by unauthorized sharing, data breaches and offering the experience and transparency misuse. Simultaneously, customers have For more information on the GDPR and its customers expect. become wary about how their data is used implication, visit our website8. thanks to heightened media attention

GDPR – What is it about? 261 Recitals Pages 173 Words 99 54096 Articles

8 "EU General Data Protection Regulation - What remains? What changes?", Deloitte Legal, 50 https://www2.deloitte.com/dl/en/pages/legal/articles/eu-datenschutzgrundverordnung.html. Outsized management expectations The stricter data protection regulations The operating model established by most and complex regulations can lead to complicate the contextualization of companies, with data privacy and legal high employee dissatisfaction and customer data. This poses a challenge departments as separate advisors to even jeopardize competitiveness especially in the digital world, where cus- business departments, leads to high inef- As the law has only been valid a short tomers can be identified and tracked at ficiencies, excessive demands, lack of con- while, there are only a few additions and almost every touch point. More and more sultation and time lags due to the lack of best practices and a lot of uncertainty. data processing use cases require the respective know-how in business depart- This poses a challenge for data protection explicit consent of the customer. However, ments and to the lack of capacity in the officers deciding how to handle data use since this ratio is very low, a lot of CRM use data privacy and legal departments. As cases, as there is often no right or wrong cases are not profitable. This consent is our interviewees agreed, this longstanding answer. Most of our interviewees claim therefore a top priority for our inter- problem is being made worse by stricter that their companies interpret the law viewees, but most do not yet agree on legislation, growing digital customer more defensively and therefore reject a how to differentiate consent across interactions and stronger dependencies lot of data use cases. Of course, this has channels or business units. Due to misin- between systems and channels. an impact on customer experience (e.g. terpretation of the GDPR, there is a heavy transactional emails without visuals to reliance on consent for which another reduce commercial character) and thus on legal basis for a business use case might the companies’ competitiveness. be likewise applicable.9

GDPR puts large companies more on the defensive when it comes to handling data use cases, which can lead to competitive disadvantages in the worst case

Getting the full view of a customer is increasingly becoming an ambition rather than a reality

Companies need to revise existing legal operating models with data privacy and legal departments as advisors

Leading state-of-the-art CRM tools are not fully GDPR compliant and therefore need to be adapted

9 "The GDPR: Six Months after Implementation", Deloitte Legal, 2018, https://www2.deloitte.com/bg/en/pages/legal/articles/gdpr-six-months-after-implementation-2018.html. 51 Legal & data privacy engineering

Companies need to rethink their legal prioritization and documentation of operating model and make transpa- overall efforts with a link to legal questions rent data processing a USP to avoid duplicated work and ensure First of all, companies need to rethink consistency, for example when it comes to and evaluate their legal operating model. changes in legal texts. Based on our project experience, we rec- ommend better integrating the legal and In order to streamline processes, compa- data privacy departments into business nies can adapt agile procedures. Rather projects. They have to see themselves than building on full assessments, agile as a business enabler and switch to a quality gates with reality checks, pre- solution-oriented mode when advising assessments and assessments often lead business departments. A best practice of to better results. one of our interview partners is to co- locate data privacy and legal responsible Another opportunity that has not yet been teams with the project organization in an fully leveraged is the implementation of open space environment. Another best support systems. These are the status practice is to integrate legal and data pri- quo in the collaboration between other vacy experts already in the design phase, functional departments like marketing in order to identify feasibility of use cases and sales, but not many companies have right from the start (pre-assessment). adopted systems that digitalize workflows and manage assets in a legal context. Building on those quick wins, companies can further ensure efficient business Finally, we see huge potential for com- success in compliance with regulations by panies using transparency as a unique defining new roles & responsibilities. For selling point to convince customers to give example, a legal and data privacy coach their consent in order to receive more could be responsible for ongoing training personalized service. This can be achieved of employees impacted by legal decisions in the form of transparency campaigns, in close alignment with a company’s legal information websites and understandable department. Another important role legal texts. Moreover, the introduction of a could be a legal and data privacy mediator modular consent opt-out option minimizes working in cross-functional project teams complexity for the customer and gives and mediating between business goals customers the ability to only have the and legal restrictions. We often observe interactions they want. that a lot of the friction in decision-making comes from a simple misunderstanding of Further best practices can be found in one and the same use case. Furthermore, the Deloitte study “The GDPR: Six Months a legal and data privacy coordinator could after Implementation”10. be responsible for the orchestration,

10 "The GDPR: Six Months after Implementation", Deloitte Legal, 2018, 52 https://www2.deloitte.com/bg/en/pages/legal/articles/gdpr-six-months-after-implementation-2018.html. Legal Operating Model

Organization Tools

egal Data Privacy

Legal Engineer

Projects Projects

Business

Processes

Pre-Examination Documentation Evaluation

Pre-examination of Detailed use case docu- Evaluation of an appro- possible legal basis mentation with a template priate legal basis

53 Performance Measurement

Today’s technology paired with the increasing amount of available data is Using technology to achieve able to shed light on CRM performance transparency measurement. Our research shows that upper management is demanding trans- parency about the ROI of increasing CRM In the past, CRM and marketing outcomes Using more complex algorithms, mar- spendings. At the same time, CRM leaders were often impossible to measure and keters have transformed from reactive need to prioritize efforts due to the sheer “success” was hard to define. As market- to proactive planners. Advanced AI quantity of potential investment areas. ing budgets grow, company leadership solutions enable AI algorithms not only Both call for transparency along the jour- is under more pressure to justify their to help understand and harmonize vast ney. Therefore, companies need to revise spending and make their achievements arrays of data that are generated at their performance tracking and reporting visible and measurable. An increase in various digital touch points, but also to processes to achieve a more granular the number of data sources, objective automate analytical tasks – with greater picture of what is actually happening along metrics and advanced analytics make it speed and complexity than any human the journey – end-to-end. possible to quantify the impact of CRM could ever manage. Predictive and pre- initiatives and achieve transparency. scriptive statistics enable companies to use existing data to fill in missing informa- A shift towards more advanced analytics, tion about customers, to predict future i.e. predictive and prescriptive statistics, actions like next-most-likely purchase or has a strong impact on how CRM data is churn rate and to determine the custom- used to measure the success and failure er’s next steps. This allows companies to of a company’s CRM activities. target customers more effectively and place next best offers or next best action In the past, companies gathered and measures. This ultimately produces analyzed data mainly to condense raw better marketing data and better cus- data, enable marketers to interpret it and tomer knowledge, which leads to more describe how successful their initiatives successful CRM tactics and an improved have been. It did not matter when the customer experience. campaign took place – whether it was one minute or two years ago – as long as the event happened in the past. Descriptive methods allow marketers to learn from past customer behaviors and experi- ences and use this knowledge for future predictions.

54 Early 1950s Back in the days when sales reps collect business cards and the number of sales is the most important indicator for success.

1980s With the evolution of computer science and a shift to database marketing, new metrics such as customer lifetime value gain popularity.

1990s Vendors like Oracle, SAP enter into the CRM market and provide a broader range of services including mobile CRM. Performance tracking becomes automated and accessible 24/7.

2000s The era of a cloud-based CRM begins and with it the rise of social media. New KPIs like sentiment ratio move into the focus of marketers.

2010s Cloud-based and SaaS CRM solutions continue to gain popularity. Almost all vendors offer CRM analytics modules to analyze the gathered data, track KPIs over time and gain in-depth insights.

From now on … Whereas in the past, performance tracking has been about analyzing past data, new technologies allow to predict what might happen in the future and advise on future outcomes.

55 Determination of a successful CRM measurement

Changing customers, new business Project phases for building a models, evolving technology and an holistic CRM Measurement11 increasing need for transparency about marketing spending require companies to further develop their CRM approach. To achieve the desired transparency in terms of customer relationship management Definition Phase performance, companies need consistent 1. Strategy, logic & KPIs measurements at each touch point. Our interviews reveal the importance of, but also the challenges posed by achieving a holistic CRM measurement that reflects actual performance and uses insights to Basis Phase adapt efforts accordingly. 2. Preparing the foundation for measurement This chapter explains how to establish a CRM performance measurement frame- work along four project phases and one optimization phase based on the result of Analysis Phase various Digital CRM projects. 3. Analysis, visualization and interpretation of data

Rollout Phase 4. Integration into CRM procedures

Continuous optimization 5. Optimization to ensure relevancy and validity of measurement

11 "Holistic Marketing Measurement", Deloitte Digital, 2018, 56 https://www2.deloitte.com/de/de/pages/technology/articles/ganzheitliches-marketing-measurement.html. To achieve the desired transparency in terms of customer relationship management performance, companies need consistent measurements at each touch point.

57 Definition Phase 1

Derive primary KPIs from business User and customer journey strategy simulations help to choose the right Literature and practice provide marketers secondary KPIs with a never-ending list of potential KPIs. Companies can use the customer The key to success is selecting KPIs that journeys they designed to facilitate this accurately back up and realistically reflect process. Along the whole journey, every their strategic goals. Organizations are touch point must be equipped with the therefore better off starting their meas- KPIs reflecting consumer behavior (e.g. urement plans top-down by assessing reaction to a newsletter), feelings (e.g. their strategic goals (what do I want to net promoter score), or buying decisions measure?) and then assessing which KPIs (conversion rate). Consistent coverage accurately reflect them. with relevant KPIs is key to track the suc- cess of a company’s end-to-end delivery In order to better understand what really to a customer. The key in this process drives a company’s primary “outcome” is to ensure causality towards the more KPIs, which would represent the strategic strategic KPIs. The spread KPIs along the goals (e.g. increase market share by journey should always refer to or explain 30 percent), they should back them up a primary KPI and reflect the major goals by secondary goals (e.g. increase new of the business. customers by 50 percent) as an enabler to reach the primary target. A simulation of the customer journey should therefore be performed in As a result, companies can design a advance. There are various approaches tree-like KPI structure that allows them to from classic marketing theory that can be understand outcomes (primary KPIs) and used here. The consumer cycle (Attrac- the respective drivers (secondary KPIs) of tion, Consideration, Conversion, Loyalty, their CRM efforts. The question remains, Advocacy) is one suitable example for an however, which KPIs are relevant. initial basic discussion.

However, difficult to measure channels (e.g. offline) or technical hurdles often prevent CRM practitioners from actually measuring the KPIs they have defined. That is why a continuous plausibility check to see if relevant data is available and accessible is already relevant at an early stage of performance measurement to avoid problems at a later point. For KPIs that are not directly measurable, companies can apply assumptions to employ proxy KPIs. Although that may make sense, companies are cautioned to avoid making decisions on the basis of wrong assumptions.

58 Customer-centric KPI approach (Exemplary measurement questions and KPIs along the customer journey)12

Attraction Measurement Question KPIs

• Reach Awareness • Brand awareness Does the campaign yield • Campaign awareness sufficient awareness by prospects? • Number of clicks Interest • CTR (click through rate) • Number of new visitors

Consideration

• Time spent Information • Bounce rate Is the campaign motivating the • On-site events prospects to inform themselves? • Number of soft conversions Buy Decision

Conversion

• Number of conversions Purchase Are sales targets met? • Conversion rate • New customer quota

Loyalty

• Retention rate Customer Loyalty • Number of visits per customer Are customers satisfied with the product/service? • Share of voice Customer Satisfaction • Number of positive reviews • NPS (net promoter score)

Advocacy

• Number of referrals Do customers actively advocate Recommendation • Number of positive comments for the product/service? • Number of fans, followers

12 "Holistic Marketing Measurement", Deloitte Digital, 2018, https://www2.deloitte.com/de/de/pages/technology/articles/ganzheitliches-marketing-measurement.html. 59 Basis Phase 2

Raw data is provided from various the systems and measurement errors and internal and external data sources and possible redundancies should be detected systems. Knowing where the “truth” lies and removed at an early stage. is important, because variations between measurement systems are to be expected Sufficient preparation and aggregation of up to a certain percentage and can lead data facilitates an accurate measurement to time-consuming discussions later. along the journey. Through harmoniza- Therefore, the measurement differences tion, for example, codes and synonyms between systems should already be are standardized in data records in order examined during the setup and roll-out of to strengthen the consistency of the data.

Analysis Phase 3

Visualize, analyze and interpret data planning file based on historic data and Dashboards provide the user with a quick findings, or derived or calculated using overview of the results of the aforemen- algorithms and statistical models from tioned micro and main conversions and business intelligence and data science. If no enables a more in-depth analysis if required. historical data is available, target values can Therefore each organizational level requires be generated from test phases, e.g. within a its own metrics to provide an appropriate Test & Learn Center. understanding of how well their objectives are being achieved. Therefore, KPIs should By comparing target and actual values, it is also be mapped against their possible possible to classify the current status organizational use cases. of the CRM campaign or analyze weak points in the performance and to generate Companies also need to plan target recommendations for actions that might values. The planning can, for example, be increase the success of the campaign, for generated manually using an excel-based example.

60 Customers Owners Customer Churn Customer 2,323,124 132,4 48,34 Nurturing 3 4 2 User Customers by Customer Churn Retention A Overview number of purchases 1,124 New B Inflow 5,213 Retention 412,103 Participation Churn 2,323,124 Conversion 1 2 3 4 5 … Retention Customer Re-purchase Ratio of Owners (By Owned Model Vehicle age) C Nurturing Membership Model A 4,1 After Sales Model B 3, Model C 3,5 Satisfaction Model D 3,3 CXJ Tracking Model E 2,5 Model F 2,4 Model G 2,3 Y1 Y2 Y3 Y4 Y5 Y Y Y8 Y9

A B C From overview … … to focus topics … … to in-depth Make use of high level dashboards for a full Drill down on the drivers of overall overview of CRM performance. performance by looking at more specific understanding. dashboards. Learn which KPIs might jeopardize reaching the overall target value and identify corrective measures. E.g., identify why audience behavior is stagnating on specific channels by looking at more specific KPIs such as audience behavior by product and demographic segments.

61 Roll-out Phase 4

Embed insight-based decisions in the stakeholders at the beginning. This will organization’s DNA only work if later users understand the The design and implementation of a measurement logic, the KPIs have been measurement logic is not sufficient to defined in a collaborative and target- successfully implement a CRM measure- oriented manner and the optimization ment. An essential aspect is the inte- routines are practicable. Users will be gration into the daily business of the prepared to adapt it to their usual day-to- different stakeholders. day work.

For this, companies must plan target val- To further ensure the adoption of the ues, analyze KPIs and derive optimization new CRM processes and usage of the measures to be integrated into the exist- dashboard, managers can make them ing CRM processes. A dashboard is the part of employee target agreements. appropriate tool to establish optimi- zation routines, but the challenge is to A holistic change management approach create its greatest possible understand- will aim to adjust the employees' mindset ing and buy-in within an organization. following four paths and will help to achieve sustainable acceptance of the This can be reached through employee new CRM approach. involvement from an early stage of the implementation, e.g. through KPI definition workshops with the respective

Continuous Optimization 5

The CRM environment changes – so will the requirements for keeping trans- parency along the journey. Continuous revision of core KPIs and reporting proce- dures, especially after an adjustment of business or CRM strategy, helps to ensure validity and relevance of the measured results. Although often neglected in the daily routine, continuous optimization of performance measurement is key for management and CRM professionals.

62 Required change management dimensions13

Change the Mindset

Communicate Advocate Build a compelling picture of the future Develop a cohort of leaders across the business that motivates people to follow who are advocates for the changes

Engage Mobilize Identify key figures across the business to Initiate the right team to design the solution, plan establish ownership of the changes the activities and support the changes

13 Deloitte internal. 63 Overview of important KPIs

Want inspiration? Here are some core KPIs.

Traditional disciplines

Discipline Marketing Sales E-Commerce Customer service

• Acquire more customers • Improve profit margins • Increase cross-selling/ • Increase customer • Improve campaign response • Grow revenue • up-selling • satisfaction Goal • rates • Improve efficiency • Improve conversion • Lower customer service costs

• Campaign response rate • Number of new customers • Wallet share • Net promoter score • No. of responses by cam- • Number of retained cus- • Basket abandonment • Voice of customer scores paign tomers • User goal completion rate • Average number of service • No. of purchases by cam- • Amount of new revenue (web) requests by type paign • Amount of recurring reve- • Page visits • Average time-to-resolution • Revenue generated by cam- nue • Top landing pages • Complaint time-to-resolution paign • Time-to-close by channel • Unique visitors • Propensity for customer

Metrics • No. of new customers ac- • Margin • Traffic sources defection quired by campaign • Sales stage duration • Conversion rate • Average service cost per • Customer retention rate • Sales cycle duration • Churn rate service interaction • CLTV • Purchase frequency • Cost per lead • No. of views of branded content on social site

64 Customer centricity

Discipline CX Customer social listening metrics

• Create a unified view of the customer • Measure social engagement • Customer retention Goal • Improve revenue

• Customer satisfaction scores • Social media engagement • Customer service interactions • Social sentiment • Likelihood to switch to a competitor • Conversation buzz • Churn rate • Conversation value • Likelihood to recommend referrals • Conversation volume • Ratings • Demographics • Customer experience index score • Influencers

Metrics • Brand preference • Reach • Share of voice • Topic frequency • Virality

Literature and practice provide marketers with a never-ending list of potential KPIs. The key to success is selecting KPIs that accurately back up and realistically reflect their strategic goals.

65 Digital CRM Study Takeaways

It is important to maintain an overview of the different perspectives (strategy, technology, organization, etc.) that affect CRM success. Companies should therefore always start with their customers, design their journeys and derive the relevant capabilities necessary to enable meaningful relationships.

Keep focus and structure Enable the right culture and Companies must ensure that their CRM operating model strategies enable the overarching busi- Culture is a key factor to consider when ness strategies by giving a clear vision striving for superior CRM. Otherwise, and a coherent prioritization of efforts every customer-centric initiative will be towards a shared target picture. In order impeded by the legacy organization. to align those towards the customer, they Engaging each and every employee, should start with prioritized journeys and no matter whether front or back office, break them down towards an actionable is crucial to successfully changing the granularity, always ensuring consistency way the humans think and behave in between touch points, customer experi- an organization. In addition, the entire ence and brand coherence. operating model, comprising the various functional departments that contribute Go for insight-based decisions to CRM, must be aligned with the cus- Although data is considered as “the new tomer journey. It becomes crucial to suc- oil”, deriving relevant insights and apply- cess that responsible team members take ing them in decision-making and journey end-to-end responsibility for the journey. operations should be the ultimate goal of leaders driving CRM efforts. By putting analytics at the core of an organization and making insights easily accessible, companies can improve their custom- ers’ experiences while reducing costs incurred by irrelevant procedures.

66 “Although we do not have the fanciest tech stack, it is well integrated into the organization and therefore sufficient to meet our needs along the customer journey” CRM leader in the telecommunications industry

Align your tech stack along the Integrate legal advice in CRM journey business decisions A company’s technology stack enables Companies are not operating their CRM customer experience at scale and is the operations in a legal vacuum. Especially backbone for data processing and CRM after the introduction of GDPR in 2018, operations. However, it is not always the the effective use of legal skills can help fanciest tools and functions that provide maximize the opportunities of CRM, while the most value towards employees and preventing the potential damage caused customers. It is far more important to by non-compliance. The CRM depart- ensure that the most relevant function- ments must therefore have a basic set of alities are working properly and relevant legal skills, seeking additional legal advice data is available. from experts when needed. Just as basic technological skills became essential for Having an adequate amount and quality of various departments in the past, the same relevant data is what drives the value com- is true today when it comes to legal skills. panies can derive from the technology. As in reality, a car without enough fuel, or low quality fuel, will get you nowhere. Track performance and derive That is why data governance is a key actions consideration for effectively implementing Today’s CRM leaders are forced to be technology to meet business goals. transparent about their performance. In order to effectively allocate budgets and resources, and to adjust the direction, if necessary, they are dependent on a well- crafted set of KPIs that display realistic quantitative and qualitative metrics.

67 In cooperation with…

Digital technology has changed the face To navigate the future with confidence, The Deloitte Blockchain Institute is of business. Deloitte Digital combines organizations need to make the right Germany’s center of competency Deloitte’s globally recognized strength in choices: clear, timely and inspirational for blockchain technology. We are business transformation and technology choices that deliver growth in a dynamic, focused on the creation of solutions implementation with the capabilities of a disrupted world. Monitor Deloitte’s based on blockchain technology. The world-class digital agency to support our strategy practitioners combine deep institute covers all industries and is clients in achieving their business strategy. industry insights with cutting-edge tightly connected on a global level with Its digital capabilities connect strategic methods to help leaders resolve their specialists groups across Deloitte. experience, agile delivery methods, and most critical decisions, drive value and We combine our firm’s technological, innovative thinking, with digital enabling achieve transformational success. industrial and strategic expertise with technologies. our ecosystem of external cooperation partnerships.

Find more about our services on https://www.deloittedigital.de

68 We would especially like to thank our interview partners for sharing their opinions about current CRM developments with us and the whole Deloitte Digital team for creating this study. www.deloittedigital.de

69 This communication contains general information only not suitable for addressing the particular circumstances of any individual case and is not intended to be used as a basis for commercial decisions or decisions of any other kind. None of Deloitte Consulting GmbH or Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

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Issue 09/2019