Gartner CRM Excellence Award Winner: Boise Cascade
Published: 1 November 2001 ID:CS-14-7440
Analyst(s): Beth L. Eisenfeld | Claudio Marcus
With a vision to leverage new technologies into increased customer value, Boise Cascade Office Products capitalized on an opportunity to enhance its competitive position by implementing a comprehensive CRM strategy.
This research is provided for historical perspective; portions of this document may not reflect current conditions.
What You Need to Know
BCOP's pursuit of CRM is a best-practice study in CRM business transformation. The process included not only the system integration and implementation of the necessary applications, but also a thorough, enterprisewide training program that changed its culture. BCOP proved it could leverage exceptional customer service to build stronger, more-lucrative customer relationships. Employing processes, technologies and instituting organizational change, all driven on a common goal, has resulted in personalized, proactive service based on a real understanding of each customer's unique needs. Return to Top
Boise Cascade Office Products (BCOP) is a multinational distributor of office and technology products, office furniture and paper products headquartered in Itasca, Illinois (see Note 1). With FY00 sales approaching $4 billion and projected FY01 annualized online sales of $800 million, BCOP strives to be a leader in B2B e-commerce by capitalizing on its strengths, including a well-developed, integrated, state-of-the-art office products distribution network. In the office products industry, there are four major contract stationers competing in an approximately $40 billion to $60 billion market. Tight competition has caused margins to shrink as the products and services are increasingly viewed as commodities. This highly competitive market, where differentiation has not been readily apparent, makes increased market penetration more difficult to achieve. With an eye toward differentiating itself from its competitors, BCOP is pursuing CRM. Return to Top
Business had grown through acquisition, with a concentration on operations and sales. Separate, branded business units were set up to serve different size customers (with overlap). The business units (i.e., technology, paper and furniture) operated separately and were not fully integrated into BCOP's core distribution network. There was an overall pressure on margins as customers take a commodity view for office products. Return to Top
BCOP's goal was to increase value to customers while streamlining internal operations by using CRM strategies, processes and technologies to achieve the following objectives: Consolidate operations, business strategies and brand identities of all domestic business units. Integrate business units (i.e., furniture, technology and paper) into the core distribution network to provide customers with seamless access to all products and services. Accelerate profitable growth by attracting, retaining and growing B2B customers in each office size segment. Increase margins by creating greater value for customers and increasing retention, thereby moving away from commodity pricing. Reduce operating expenses by improving efficiencies in processes and reducing duplicate efforts across business units. Improve customer experience by increasing the frequency of the first contact resolution and using one-to-one marketing techniques to communicate with customers based on their individual needs and preferences. Leverage customer service to build stronger, more-lucrative customer relationships by employing processes and technologies that facilitate personalized, proactive service based on a real understanding of each customer’s unique preferences and needs. Return to Top
BCOP understood that to achieve CRM in the long term, it was necessary to develop a vision and strategy...
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