1 CRM systerms and their implementation Shell and CRM: one database for 20 milli

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1 CRM systerms and their implementation Shell and CRM: one database for 20 million customers Interview by Peter Olsthoorn with Ruud van Munster, European Loyalty and CRM Manager for Shell Using overly expensive IT driven CRM projects, other companies pved the way for Shell. is one of the opening remarks made during an interview with Ruud van Munster, Shells Europcan Loyalty and CRM Manager. The oil compamy has learned from its failures and has chosen not to implement CRI on a Europe-wide scale, bu: instead to take a step-by step A country-by-country basis Shell has elected to expand is CRM programme on a country-by-country basis and is currenly (2004) active in nine out of seventeen targeted countries. Munster. "We first wan: to prove that someching works on a small scale before we invest in something huge. There are too many CRM failures in the world. There are already soo many projects in which the IT focus is too strong. Componies stare at huge CRM systems with abundars possibilities for which they have no sound applicarion. Ií you do not knoe how touse them to creace customer and company value and just climb aboard the CRM train, you vwill not succeed. According to van Munster, too many companies have also implemented a call centre without first formulacing a proper business case. 'In our organisation IT follows and we only insialil a call centre if we are cocvinced it wall improve sales. We spend as little as pos sible on operations, Besides, a European CRM system is not nocessary in our organisation since there are only a few customers that fill up their cars across the border and those that do are normally less brand loyal: Shell currently maintalns its own Shell (Club) Smart programme in thirteen countries and a 'coalition programme in four countries: Air Miles in the Netherlands, Happy Days in Belgium, Thrumf in Norway and Smiles in France. The fuel card that can be used to pay for the fael can also be soen as a logalry countries programme and is in use in the Scandinavian Shell has created a three-layered CRM organisation: A loyalty competency centre in Hungary with IT and CRM knowledge. Van Munster: Hungary is known for the quality of lts IT people, in addizion to being one of the most AEuropean teamofCRM experts; each ofthe team members has strategic responsibility and successful coantries for the Shell loyalry programme for a cluster of countries The local loyaly and CRM groups in the countries, who implemens the programmes have succeeded in creaing value. Van Munster: Centralisation has absolusely paid off. Ie was here that we developed our standard huilding blocks that we can apply to the countries, A few years ago we needed one hs If it is up to mak- year per country to implement a peogramme; now we do it in three mont van Munster, CRM spplications will be further simplified and standardised in 2004, ing implementation easier for local CRM teams. Practical efficiency is the goal. Perhaps i will become possble at some point to prodace a single European or even global catalogue insiead of national versions, and the articles can be sourced a lower cost

Explanation / Answer

3. Based on the information given in the case, Shell’s CRM roadmap can be reconstructed in the following points:

4. The business case for Shell’s CRM system project are:

5. A standardised global CRM may not be very useful for initial implementation at Shell since the nature of the business requires Shell to maintain relationship with customers locally. A standardised system will suit those businesses where relationships are maintained centrally and where services across the divisions/countries are high in volume and critical to the business strategy. However, with the maturity of local CRM systems, a link can be made through intranet portals and other analytical systems, thereby de facto standardising the system.

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