Overview
  
   Most companies claim to be customer-
   centric, but are not in reality
  
   Traditional CRM fell short of promise, 
   because of process automation at the 
   tactical / departmental levels
  
   Customer Portfolio Management – a strategic 
   approach to deploying CRM
        Customers: Assets or 
           Marketplace?
  
   Customers are revenue producing assets
  
   Not an undifferentiated marketplace
  
   Do you know your customer segments?
  
   What metrics do you use to measure 
   customer relationships?
  
   Few companies measure CR according to its 
   strategic goals
  
   Fewer companies measure CR in terms of 
   cost and capital to acquire and retain them
     The Transition from Market Share to 
               Customer Share
  “The best 20 percent of customers account for 150 
    percent of total profits. The worst 20 percent 
    typically lose money equal to 75 percent of profits.” 
    - Geoffrey Colvin (Angel Customers & Demon 
    Customers)
  Companies must focus more on identifying and 
    preserving valuable customers instead of retaining 
    and growing market share
  Acquisition of AT&T Wireless by Cingular
  The real motive was AT&T’s customers
  Each AT&T customer was worth $1,860 to Cingular
          Do You Have Any Unprofitable 
                     Customers?
   
     bottom 20 percent of a company’s 
    customers account for losses of up to 75 
    percent of total profits
   
     cost of customer acquisition is much more 
    expensive than the cost of selling to the 
    existing base.
   
     Classify customers based on key metrics 
    such as 
    Needs, profitability, cost to serve, buying trends, 
      and strategic value
   AGF – Investment Management Company
  
   Facing a mature market, not much room for 
   growth
  
   Used analytics to find that
  
   29% of customers were responsible for all 
   asset growth
  
   Yet, only 50% of them were receiving 
   adequate support
  
   Was able to design programs that used 
   resources more appropriately