Word Search

A B2B Integrated Optimization Approach: Resource Allocation Strategy

Description
This papers explains an integrated approach to the B2B World - A "Resource Allocation Strategy". Resources are limited. Change happens even more rapidly than at the breath-defying pace of the 2000's. Creating an integrated, data-based,
Categories
Published
of 8
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
  1 MiddleAccounts MinorAccounts MajorAccounts Number of Accounts    The Current Situation: secrets no longer  It’s no longer a secret. The evidence is compelling. It is well documented, both at the academic level and in practice. Enterprise-wide Customer Relationship Management  when properl! implemented - can achieve impressive results. The primar! results" • Increased sales E##ectiveness and E##icienc! • Increased Customer$Emplo!ee %atis#action • &ecreased cost-to-serveThe second 'secret( is that virtuall! ever! organi)ation has limited resources. *ptimi)ation o# the respective coverage models - sales, customer service, mar+eting and channels - is not well studied. The models and tools o# the eCRM practitioner provide almost a dot-to-dot li+e template with which to assure coverage optimi)ation and hence optimal use o# the #irm’s limited resources. The third 'secret( is that our customers represent a port#olio o# assets that we must proactivel! manage in order to maimi)e shareholder and sta+eholder value. The Business Issue hether the resource is time, mone!, or people, the optimal allocation o# resources is a critical issue, a critical challenge, #or almost ever! business organi)ation. %ince noenterprise has unlimited resources, it is worth investigating how customer relationship mar+eting models can provide a critical +e! to unloc+ the answer to this problem.In no #unctional area o# business is this resource allocation problem more true than in sales, mar+eting, and servicing customers and$or prospects. In #act, the search Quantify Customer Equity: (Understanding the worth of your Ideal, Best customers has ecome talesta!es for "irtually e"ery firm#$ hat is the net presentvalue o# a particular customer  eisting or potential  to !our compan!/ot 0ust toda!, but #or theduration o# the relationship nd what should it cost !outo ac2uire and$or retain eachsuch relationship, over time The answer to those two questions are !ey to a numer of critical decisions%among them: • hich potential customers should we pursue, with what investment o# resources • 3ow much should we invest in development o# additional business, #rom which customers, and in developing and retaining their current business • 3ow much e2uit! do we have in current customers • 3ow much should we invest in ac2uisition o# +nowledge about our customers • hat are reasonable goals#or 'port#olio growth( #or our business 4considering our e2uit! in our customersto be the contents o# our port#olio5 • hat investment is reasonable to achieve those growth ob0ectives The tem&tation is to followthe sim&lest route toma!ing thosedeterminations: 'ccount 6C bu!s 78 dollars o# widgets per !ear. That’s their potential value tous. I# we can land 1,999 such customers, we’ll be a :rice:ressureMargin:ressure *ptimi)e !our %ales, Mar+eting ; %ervice Coverage Models"Reduce costs< increase revenue< and delight !our customers By: 'ic! oulos  =  n n GV = N [   ∑ Θ τ π τ ) δ τ ]   −Ν   ∑ Α τ + Ρ τ ) δ τ   τ = 1 τ = 1 >alue o# customer segment or group4?>5  veragevolume o# purchasesper period4@5Margin per averagepurchase4A5 verage cost o# ac2uisition development ; retention4&R5 verageduration o# purchasestream4tB1n5/umber o# customersin group$segment4/5&iscountrate or cost o# capitaldB1$41DC*C5  o!al %witcher Competitive argeMedium%mall/ew in Categor!  F n n CE = N [ ∑ Θ τ π τ ) δ τ −∑ ∆ τ  + Ρ τ ) δ τ   Α 1 ]   τ=1 τ=1 Customer E2uit!4CE5>olume o# purchasesthis period4@5Margin per unit per purchasea#ter ta4A5&uration o# purchasestream4tB1n5Customer ac2uisition,development; retentioncosts4&R5&iscountrate or cost o# capitaldB1$41DC*C5 Monthl!%tatementRatein2uir!Teller transactionRatead0ustmentTeller transaction%tatement:roblemresolved ccountapplicationTeller Transation/ewGobMarriageCompetitor promotion/ewhomeChildrenCompetitor promotion/ewhomeChildrenTo collegeCompetitor promotionRetirement )The Customer Corridor* Customer E2   uit!4CE5>olume o# purchasesthis period4@5Margin per unit per purchasea#ter ta4 π)Προβαβι   λιτψ οφ πυρχηασειν περιοδ τ(Π) Χυστοµ   εραχθυισιτιον,δεϖελοπµεντ& ρετεντιονχοστσ(Α∆Ρ)∆ισχουν   τρατε ορχοστ οφχαπιταλ   =1/(1+ΧΟΧ  H 4dB .I915Cumulative presentvalue andac2uisition"costratio 4$@ π ) Χυµυλατιϖε ϖαλυε οφ ∃1 ατ10% χοστ οφ χαπιταλ +#,-.#/+.#0--#1/-#0+0#/20#,/3#-2,#/.4#2 4,30-.+/, 3 0 - . + / 1 2 ,4 Jears 6rea+-Even &urationCustomers /ot CreatedE2ual %ource"a!landand Cole, Customer Connections Moderatel!pro#itable>er!pro#itableho are thesecustomers 3owdo we +eep themand attract moreli+e themhat can be done todevelop thepro#itabilit! o# thesecustomersModestl!pro#itable or brea+ evenKnpro#itableh! are the!unpro#itable Canbehavior or cost bechanged %houldwe disengage 5ean Standard 6e"iation7alue &er Customer :  L ccount Cue *pportunit! Management unnel  1c2uisition o# valuable newcustomer relationships&evelopment  o#  e,isting customer relationshipsRetention o# valuablecustomer relationships?rowth in #irm value  1 simple linear model o# port#oliogrowth suitable #or illustrating the principles can be e,pressed as" ;<=aC n  > : (C n $? @ =drC e E > 6(CC e $? > =(,>r$ C e E @ A(C e$ ? InquiriesField Follow-up PresentationClosingSaleInactiveProspect ListFuture Follow-upInactive: Reason: A, B, C...Send LiteratureNewslettersNews Releasesec!nical "pdatesPro#otional Articles Select Names for Mailing R E Q U A L I F I  A ! I " N SR E F E R R A L SQualified   "pportunities to   t#e Field Space Advertising, $irect %ail, rade S!ows, &''( In)uiries, Re*errals, Card $ec+s, tc. Sales "pportunit$ %eneration Acti&ities Mar'eting (ata)ase "pportunit$ Qualification *rocess I( : Needs, Applications, i#e Fra#es, $ecision %a+ers, Budgeting, Procedures Reports  . Source Code Analsis /. 0pportunit Prospect List  1. 2uali*ied 0pportunities in t!e Field 3. 4ception Reports  Follow UpFollow-upFollow-up!o Mar'eting (ata)ase
Search
Similar documents
View more...
Tags
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks