The establishment of the mutual fund in the 19th century was on the basis of mutual benefit. Although this key concept remains, its expression has changed significantly with Old Mutual`s listing and its drive to meet the needs of the knowledge economy in the new millennium.
Cedric Downard, customer relationship programme manager at Old Mutual said at the Global Technology Business Intelligence (GBI) Customer Relationship Management (CRM) conference: "An organisation that is not changing continuously in order to attract and satisfy customers will not survive. Becoming increasingly customer-centric means giving better value and service to get a more profitable business."
Downard expands his proposition, by suggesting that the complexities of an organisation`s legacy and structure compound with growth and change and that the appropriate use of data and technology can enhance customer-focussed initiatives. To date, Old Mutual has implemented eight call centres as a major part of the infrastructure to meet customer needs, but this is an infrastructure, not a complete CRM offering. An overall plan that encompasses marketing, sales and service functions within the group for the deployment and management of people, information and technology is imperative to become fully customer focussed.
Downard identifies a number of key challenges that are intrinsic to a major change in strategic direction. In Old Mutual`s case the catalyst was the decision to demutualise and list. Challenges included:
Business unit and group tension
. Focus on the value of the share price needed to be given real expression through everyone in the company pulling together, looking for and actualising opportunities.
Client and life cycle value orientation
. By combining a wide range of product and service offerings, it is possible to align with the changing needs of the client over his/her full life cycle. If a household view is adopted as a model, a better match of product to business opportunity and client need is possible. This turns into a profitable and mutually beneficial business relationship.
Client relationship and information ownership
. In an organisation consisting of multiple product and distribution units the issue of who owns the relationship with the client and who owns the client data is complex. Business rules evolve and change with the organisation`s changes. There can be a reluctance to share client information as each stakeholder manoeuvres for competitive advantage and also has concerns about client confidentiality. The effect on the customer relationship has to be a key driver as their interests are best served where the benefits of co-ownership improve stakeholders` value offering to the customer. Other challenges are associated with the logistical problem involved in managing a relationship with huge numbers of clients, who have the expectation of being personally recognised.
Use of data
. Application of appropriate business intelligence software enables data mining and market segmentation. This assists in increasing sales, increasing customer retention and developing market segmentation strategies. The application of demographic, behavioural and attitudinal methodologies are enabled. For instance, behavioural dimensions such as clients` preferences as to degree of personal interaction with the company (telephone, Internet, mail), the level of personal financial discipline and the client`s level of financial knowledge provide useful insight in the development of suitable propositions. Downard says, "the ongoing monitoring of client attitudes in relation towards the Old Mutual brand provides feedback. Continuous change is essential for the maintenance of a healthy and competitive organisation."
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