CUSTOMER VALUE MAP

Prof. Dr. Peter Mattheis

Managing Consulting Companies
Presented By Sarthak Khanna .
Challenge CRM Managers
Organizations must first determine a customer strategy and a supporting work plan
in order to ensure that customer relationship management implementations are
efficient and provide the most returns.

Strategy Create and

Mission
Protect Value
+

Execution Projects Process

Vision
Aligned

Acceptable
Returns Stakeholders &
Communicate
Shareholders

Now we ask : Are we getting this proposition?

How can we ensure generating of value?
Content

What is it about?
Generating Shareholder Value
Deloitte Value Map

How is it Structured?
Value Drivers
Improvement Levers
CRM Dimensions
Actions

How can we use it?

Work Top - Bottom
Work Bottom - Up

Summary
Conclusion
 Generating Shareholder Value
Value Map is a management methodology that combines techniques and tools to
ensure generating shareholder value. This is the mentality of having to integrate
the results with the financial activities in other perspectives of management:

How to What are the

Shareholders "right things" that
maximize we need to do? 
returns to
shareholders?
CEO / Board Are we doing
Which is the enough of "right
things"? 
best way to
allocate capital? Are we doing
Business
Units / Area
the "right
things"
How to improve correctly? 
performance? 
Operations 

What are the key

measures and
targets? 
Generating Shareholder Value – Deloitte CRM Value Map
“Value Map is a unified framework not a software tool. Is a picture of the CRM. The
map shows what the CRM is at the moment and what he has to do better”.
Maria Fomina
CRM Supervisor | Brand and Business Development
Deloitte CIS, Russia
Value Map Structure
Value Improvement
1 2
Drivers Levers

CRM dimensions Actions to

3 4
improve
performance
 How value is created?
The objective of all companies is create value. To achieve this, business activities
must ensure generating shareholder value. This is possible throw 3 Value Drivers:

1 Value Drivers

Operating Margin Asset efficiency

Refocus Resources on Higher- Reduce Total Cost of Improve Asset

Margin Products and Customers Customer Interactions Productivity

Measure of efficiency – what is the company Value of assets used in running the
ability to turn the demand for its products and business – How well invested resources
customers into profits?- contribute to profits?

Revenue Growth

Grow Current Create New

Customer Relations. Customer Relations

Measures the performance of

customers relationship activities
-How well the company identifies
and fills a need in its markets?-
 Where and how to move a driver?
There are several steps that an organization can follow to enhance generating
shareholder value.

Improvement Levers and Sublevers 2 Improvement Levers

Objectives What you can do?
•Improve Business Processes efficiency and
performance Grow Current
•Increase  Assets productivity Value Driver
•Develop and strenghten Organizational Capabilities Customer
Relantionship

Improvement Increase LENGTH of Increase VOLUME of Increase BREADTH of

Current Relationships Current Relationships Current Relationships
Levers

Evolve Improve Leverage

Improve Service Provide Volume Cross- Sell/
Sublevers Products and Sales
Incentive Brand Up Sell
services Effectiveness Effectiveness
Which are the Business Processes Groupings?
Dimensions of Human Capital include 4 major areas of activity related solutions to
leverage the business strategy.

3 CRM Dimensions

Refocus Resources
Improve Execution
Strengthen Brand
Increase Value to Customers,
Partners and Employess
.
Which actions means these?
Improvement actions are the real measures that a company can develop to
increase shareholder value. We develop a cause-effect relationship with other
elements of the map value. Actions to improve performance
Grow Current
Customer Relantionship
How can you do it? 
4
Increase LENGTH of Increase VOLUME of Increase BREADTH of Individual actions are at the bottom
Current Relationships Current Relationships Current Relationships
of the map. A company may make
Evolve Improve Sales Provide improvements by identifying the
Products and Improve Service Leverage Cross- Sell/
Volume
make - the shares.
Effectiveness
Effectiveness
services Incentive Brand Up Sell

Improve Identification of
Volume Expansion
Oppoortunities Provide Incentives to Build Product Build Product
Expand Volume
- for Profitability into Profitability into Sales
Profitable Products Product Bundles Methods and Incentives

Improve Campaign
Execution
Provide Competitive
Intelligence
Using the CRM Value Map
Determining the value of a company is both a science and an art

+
Types of Approaches
 Work from Top to Bottom
INCREASE SHAREHOLDER VALUE

Top to bottom
Revenue Growth
Answer the
question:

Grow Current Create New

Customer Customer
“How will we
Relantionship Relantionship improve this?”

Increase LENGTH Increase VOLUME Increase BREADTH

of Current of Current of Current
Relationships Relationships Relationships

Evolve Provide
Improve Sales Leverage Cross Sell/
Reduce Volume
Products and Effectiveness Brand Up Sell
Defections Incentive
services
 Work from Bottom to Top
INCREASE SHAREHOLDER VALUE

Revenue Growth
Bottom – Top
Answer the
question:
Grow Current Create New
Customer Customer
Relantionship Relantionship
“Why are we
doing or
Increase LENGTH Increase VOLUME Increase BREADTH
of Current of Current of Current considering this?”
Relationships Relationships Relationships

Evolve Improve Provide Leverage

Reduce Cross Sell/
Products and Sales Volume Brand
Defections Up Sell
services Effectiveness Incentive
Conclusion
Generating value is a challenge
In general work with CRM Value Map should be ...
Work with Senior Management to set objectives aligned with business priorities.
 Develop a culture of measurement designed to evaluate the results.
 Have the mentality to understand the impact of CRM resource activities to
create value.
 Align actions with strategy and prioritize them according to business value
generation.

“CRM Value Map is not rocket science and it is not

complete,
but it can jump-start the process of focusing
on the things that matter most
and then choosing practical ways to
get them done”
References

Deloitte. (n.d.). Enterprise Value Map. Retrieved April 2009, 20, from
michaelsamonas:
http://www.michaelsamonas.gr/resources/Enterprise_Value_Map_2_0.pdf
Deloitte. (n.d.). Enterprise Value Map for Human Capital. Retrieved April 23,
2009, from Deloitte: http://www.deloitte.org/dtt/cda/doc/content/Enterprise
%20Value%20Map%20for%20Human%20Capital.pdf
Deloitte. (n.d.). How to eat the CRM elephant. Retrieved April 23, 2009, from
Deloitte: http://www.deloitte.com.mx/documents/hablemos_claro/Book2.pdf
emeraldinsight. (n.d.). CRM. Retrieved April 24, 2009, from emeraldinsight:
http://www.emeraldinsight.com/10.1108/14637150310496758
Gholson, E. S. (2006). Driving Growth and Shareholder Value. Washington DC:
Deloitte.
Lambe, P. (n.d.). Knowledge-Based CRM: A Map. Retrieved April 18, 2009,
from http://www.greenchameleon.com/:
http://www.greenchameleon.com/thoughtpieces/kcrm.pdf
Nelson, S. G. (2001). The 2001 CRM Hype Cycle. Gartner.
 
Thank you