SAP Executive InsightLeadership in Times of Crisis: A Series
GET CLOSER TO YOUR BEST CUSTOMERS
A SHIFT IN CUSTOMER STRATEGIES IN A TIME OF CRISISThe extraordinary circumstances of the current economic crisis have changed the operating rules for companies of every size, in every industry. Tactics used in past recessions are less likely to work in a downturn that is more widespread and perhaps more enduring. Today companies face a unique opportunity to reexamine traditional business practices and make much-needed changes - changes that will help them survive the downturn and flourish with the inevitable upturn.
An unsettled economy requires a different approach to managing revenues. The distinction between "good" revenues (those that translate to cash) and "uncertain" revenues (those that may dissolve into delinquencies) becomes critical. Companies must reidentify their most profitable customers and the most effective marketing and sales vehicles for reaching them. As budgets shrink, companies are forced to rethink lean sales and marketing execution. And shifts in customer spending demand a fresh look at the value proposition of current products and services.
Executives across best-run companies are now asking themselves:. H ow do I stay close to my customers as their requirements change?. H ow can I align my strategy and organization to best support my customers' new needs?. H ow do I monitor execution to achieve results in today's economy?
2 SAP Executive Insight - Get Closer to Your Best CustomersEXECUTIVE SUMMARY
AT A GLANCE
A New Look at Customer Value Leadership Makes the Difference ing gained from measuring and com-In difficult times, customers look for in Times of Crisis paring the actual performance of reliable, trustworthy, and cost-effective companies across a wide range of business partners. Best-run companies One thing is for sure: with every eco- sizes and industries.are proactive in adjusting their customer nomic crisis comes opportunity. Some relationship philosophy, processes, and companies will go from good to great, SAP conducts benchmarking and systems to stay in tune with the realities and others will just fade away, making best-practice studies in many busi-of the marketplace. In doing so, they are room for more innovative competitors. ness areas including supply chain, not only better prepared to weather the To be among the winners, executives manufacturing, finance, human capital near-term storm but also positioned for should strongly consider best practic- management, shared services, sales greater profitability when the tide turns. es that provide a balanced approach and marketing, compliance, and IT. Specifically, there are three key actions to moving forward by including both Analyzing the performance of industry company executives should take now: cost reductions and smart invest- leaders offers executives the metrics . Stay close to your customers. Take ments. SAP developed a series of needed to assess their own compa-a new look at your customer base. Executive Insights that highlight strate- ny's past successes and guide today's Their needs have most likely changed. gies your business can use immedi- crucial decisions. Consider, for exam-Monitor and understand their require- ately to run more efficiently and ple, these findings revealed by previ-ments so that you can serve them in improve the customer experience by ous benchmarking studies:new and better ways. helping you: . Companies with customer relation-. Seize the opportunity to innovate. . Get closer to your best customers ship management (CRM) technolo-Now adjust your customer-facing (this paper) gy have close to 40% higher strategies, such as for product, pric- . Manage cash more systematically revenue growthing, and promotion, to the new reality. . Run leaner operations . Companies where CRM systems Realign and create incentives for your . Drive compliance activities are integrated with reporting and organization accordingly. . Optimize your human capital analytical tools have 20% more . Monitor your progress. Ensure that . Protect and nurture your brand sales representatives achieving you have the right tools in place to . Build a best-run IT organization quotaprovide frequent pulse checks of your . Gain deeper insight from your . Companies that integrate sales and updated strategies. You will need to business information marketing close 35% m... [download for more]
