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Finance and Customer Management

Driving value from customer acquisition, retention and management is critical to delivering business value, but many of the metrics and processes that have served front-office functions well in the past are no longer appropriate for today’s fast-moving competitive environment. Sales, marketing and customer service departments that continue to be driven by – and measured against – departmental or divisional goals may not tally with broader company objectives.
The finance function, with its depth of experience in measuring, managing and realigning, has a key role to play in helping realise the full potential of the customer base. As automation frees finance teams from the drain of day-to-day transaction processing, finance directors are able to turn their attention to this arena and bring a new understanding of cost and value to the management process.
This White Paper examines the emerging role for finance in helping deliver additional customer value. With numerous practical examples, it explains why finance lies at the heart of multiple front-office disciplines, including:

  • Customer profitability analysis
  • The interaction between sales and debtor management
  • Sales and key account management
  • Order management
  • Setting and monitoring service levels

The Paper advocates a pragmatic approach to technology adoption, which includes step-by-step implementations, a renewed focus on analytics and real-time access to customer information wherever it lies. It also argues that customer value can be effectively delivered where customer relationship management (CRM) projects are built alongside existing technology, including back-office systems such as finance, HR, and logistics. This requires an enterprise-wide view of both the business and the technology infrastructure that supports it.
From a practical perspective, technology projects are now subject to rigorous return on investment requirements – and examining business cases and providing sign-off is still one of the fundamental requirements for the finance director. In the conclusion to the paper we provide real-life examples of ROI figures that have been delivered.

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© Webster Buchanan Research 2013