Setting up Customer Relationship System

Rising customer expectations was the most important trend, and meeting customer requirements was ranked as the number one logistics objective In essence, logistics company should enable itself to satisfy its customers’ needs, increase sales and maximize its profitability. However, as customers become ever more demanding and critical, traditional manual or not well designed system often fail when pursuing strategies to satisfy customers


The key CRM objective of our company is to achieve maximum profit by lifting up the efficiency of sales performance. In order to achieve maximum profit, we must first identify the key parameters. Total profit is derived from total revenue minus total necessary cost. Let us go into the details of each of these elements, with an attempt to identify where we need to improve to maximize our profits. We also must perform regular measurement to ensure we are working in the right direction.

Reduce total operating cost

Identifying consolidation opportunity including slot exchange, co-loading and partner opportunity can reduce operating cost.

Customer Segmentation by percentage of sales, by percentage of potential sales, by product, by service level, by satisfaction level, product transported, top ten customers, new customers, inactive customers, growing customers, lost customers and transport routing.

Increase Revenue

Segment customers into Top, Medium, Small, Inactive, Prospective and Possible. Top 20 customers are the most valuable customers, giving us 50% of our total revenue. Medium customers are the second most valuable customers, giving us 30% of our total revenue. Small customers generate a balanced 20% of revenue. Other clients fall into the categories of inactive, prospective and possible, which presently generate no revenue for our organization.

By using customer performance metrics to segment customers into different categories, we want to move up possible, prospective, in-active and small clients to become top or medium customers. Ultimately, we increase the number of our Top and Medium Customers, and we apply CRM to keep all these valuable customers with us.

Maintain Existing Revenue and Increase New Revenue

Measure Customer satisfaction in terms of different customer segmentation including the level of shipping instruction standardization can help to sustains business and to develop new business opportunity, pipeline, get back lost customer by providing full information, complain, claim & compensation, KPI given by customer, self measure KPI

Measure customer loyalty and reduce the risk of unabsorbed idle costs

Measure customer loyalty in terms of share of sales, single source, 2nd leg forwarder, referral, partnership, monopoly transport routing, interface capability, packaged service and length of business to ensure reliability of business and less risk of over commitment to carriers/vendors.

Increase in Revenue by change in incentive program or other pricing strategy

Measure customer profitability and its relationship to incentive program to ensure our pricing strategy is effective

Provide full information for pricing, payment term, payment on behalf, collection on behalf to explore market opportunity by considering customer profitability, consolidation opportunity, customer satisfaction and customer loyalty under different customer segments.

Increase in revenue from new customer or new customer's customer or/and vendor

Explore market opportunity of new business by sales following up on new customer, level of share of business of new customer, cross selling, packaged sales, premium service, customer's customer or/and vender.

Maintain existing business by gathering competitor's information

Gather as much competitor information as possible for business strategy purpose including but not limited to KPI measurement, pricing and non-price strength

Maintain existing business by allocating appropriate resource and Budget Pipeline to explore volume discount and to avoid unabsorbed idle costs

prepare a customer focused plan/Pipeline to move possible, prospective, inactive and small customers up to become top and medium customers. We would try to increase top and medium customer share from 20% of customers giving 80% of volume/revenue, to 40% of customers giving 95% of volume/revenue. Resources will be allocated to on satisfying the top 20

Set up Fast response Pricing Model, e.g. Mobile solution

Revenue is generated by the sales of vessel spaces to ship cargoes from country to country. The best revenue model is obtained by filling all the available vessel spaces, with the highest total revenue against the lowest total cost. In the liner shipping industry, profit is evaluated based on contribution per container. Contribution is the net profit per container after deducting costs from revenues. The total revenue is made up of the volume of containers shipped and the applicable total freight paid by customers. The greater the volume and the higher the applicable freight rate level, the higher the total revenue. In order to generate maximum volume and freight, we need to have a customer base that could give us the best volume and freight rate level on a continuous basis.

Measure the effectiveness of Sales channel to reduce processing costs

Sales and customer service could be achieved by using the Internet and a CRM/ERP application system. Marketing and customer service costs could be reduced if e-business technologies were used correctly. The time when to market a new service is very important to reduce idle unabsorbed costs

Check CRM effectiveness by measuring profits before and after CRM implementation