Paul Greenberg Author: CRM at the Speed of Light

Caveat #1: I’m not an economist

Caveat #2: CRM is not a panacea

Why a Problem? Poor economic conditions do change customer behaviors (transactions) Customers desire to spend greatly diminished Makes it easier to do nothing – or bolt Your ability to spend on customers reduced It can affect customer attitude but not always (interactions) Your business has some control over this

Why a Problem?

Poor economic conditions do change customer behaviors (transactions)

Customers desire to spend greatly diminished

Makes it easier to do nothing – or bolt

Your ability to spend on customers reduced

It can affect customer attitude but not always (interactions)

Your business has some control over this

Why Develop Strategy? Acquisition costs much higher Traditionally, 6 to 13X the cost of retention David’s Bridal – shift in view of customer Loyal customers will continue to spend with you because they trust you and are comfortable with you

Why Develop Strategy?

Acquisition costs much higher

Traditionally, 6 to 13X the cost of retention

David’s Bridal – shift in view of customer

Loyal customers will continue to spend with you because they trust you and are comfortable with you

Advocates are the paradigm – even in a downturn Committed customers will help you acquire new customers Because they will market and sell for you Community retailing – Karmaloop, Threadless

Advocates are the paradigm – even in a downturn

Committed customers will help you acquire new customers

Because they will market and sell for you

Community retailing – Karmaloop, Threadless

Community Retailing – Karmaloop Combination of name brand & independently designed clothes Community building (nearly million) key focus via UGC, indie design exposure, and street teams who are incented to sell – and to be involved in community building 20% discount One percent of that community drives 15% of their total revenue through buying and WOM 2006 - $4 million 2008 - $40 million (with 30% reduction in original forecast due to recession)

Community Retailing – Karmaloop

Combination of name brand & independently designed clothes

Community building (nearly million) key focus via UGC, indie design exposure, and street teams who are incented to sell – and to be involved in community building

20% discount

One percent of that community drives 15% of their total revenue through buying and WOM

2006 - $4 million

2008 - $40 million (with 30% reduction in original forecast due to recession)

Investigating your situation Find out what customers want – and need What have they been buying is important here too How? Call them up; email them; tweet them if you’re so inclined Determine what you have to give them – and what you need to do Obviously price/cost is a consideration Clean out ineffective processes – those with no value to you or your customer Using Web 2.0 tools to provide customers with what they want.

Investigating your situation

Find out what customers want – and need

What have they been buying is important here too

How? Call them up; email them; tweet them if you’re so inclined

Determine what you have to give them – and what you need to do

Obviously price/cost is a consideration

Clean out ineffective processes – those with no value to you or your customer

Using Web 2.0 tools to provide customers with what they want.

Developing your strategy Decide whether acquisition or retention is at the core? Or a mix …. Recognize that your customer moves from being a “client” to a “partner” – or needs to be Understand that there are three things that you have to do for the customer Communications Value Service

Developing your strategy

Decide whether acquisition or retention is at the core? Or a mix ….

Recognize that your customer moves from being a “client” to a “partner” – or needs to be

Understand that there are three things that you have to do for the customer

Communications

Value

Service

Adjusting approach What can you do to keep engaging customer? What can you do to intensify loyalty w/customer as a partner? What kind of value can you provide customer when price takes center stage? Think in terms of operating as a business leader not just a sales organization

Adjusting approach

What can you do to keep engaging customer?

What can you do to intensify loyalty w/customer as a partner?

What kind of value can you provide customer when price takes center stage?

Think in terms of operating as a business leader not just a sales organization

Economic Communications Engagement (Loyalty) Engagement (Value) Technology Doing it Wrong Doing it Right

Economic

Communications

Engagement (Loyalty)

Engagement (Value)

Technology

Doing it Wrong

Doing it Right

Price moves to front of the line as part of overall experience Provide discounts where possible to: Customers directly Partners in your business ecosystem if large enough Financing options Give customer payment options based on what you can do Large company – multiple financing options Small company – informal options to avoid difficulty Sometimes, you have to compromise

Price moves to front of the line as part of overall experience

Provide discounts where possible to:

Customers directly

Partners in your business ecosystem if large enough

Financing options

Give customer payment options based on what you can do

Large company – multiple financing options

Small company – informal options to avoid difficulty

Sometimes, you have to compromise

Communications Plan Find out how customers want to control their engagement - frequency, channel etc. Opt-in, not opt-out Find out where they congregate (e.g. Facebook, local bar) Stay in touch - outreach

Communications Plan

Find out how customers want to control their engagement - frequency, channel etc.

Opt-in, not opt-out

Find out where they congregate (e.g. Facebook, local bar)

Stay in touch - outreach

Communications Plan Find out what they want from you during downturn Their interests will matter Make clear what your own situation is (transparency) But don’t forget your own business plan – customer needs to be partner – and understand you too (authenticity)

Communications Plan

Find out what they want from you during downturn

Their interests will matter

Make clear what your own situation is (transparency)

But don’t forget your own business plan – customer needs to be partner – and understand you too (authenticity)

If you have loyalty program: Adjust loyalty program to fit need but Be sure you fulfill obligations you already made If you don’t: Provide best customers with some unsolicited awards – small tokens of appreciation are fine “ Thanks for sticking with us during these difficult times”

If you have loyalty program:

Adjust loyalty program to fit need but

Be sure you fulfill obligations you already made

If you don’t:

Provide best customers with some unsolicited awards – small tokens of appreciation are fine

“ Thanks for sticking with us during these difficult times”

Operate as business leader, not sales person Treat customer as human partner, not object of sale subject to your desperation Provide information on how to cope with bad economy – both as business, and personal Large company – do webinars; provide ebooks; send out targeted emails to customers on how to handle specific issues; corporate blogs, podcasts; create communities Small company – send links to articles of interest; blogs and podcasts; phone calls to key customers

Operate as business leader, not sales person

Treat customer as human partner, not object of sale subject to your desperation

Provide information on how to cope with bad economy – both as business, and personal

Large company – do webinars; provide ebooks; send out targeted emails to customers on how to handle specific issues; corporate blogs, podcasts; create communities

Small company – send links to articles of interest; blogs and podcasts; phone calls to key customers

Use of CRM tools On demand v. on premise Good financing terms Customer service Social media tools Blogging tools either server-based or SaaS Podcasting tools Community creation for larger companies

Use of CRM tools

On demand v. on premise

Good financing terms

Customer service

Social media tools

Blogging tools either server-based or SaaS

Podcasting tools

Community creation for larger companies

High End Cruise Line Sent out letter to prospects that began with scare tactics about economy Stressed stress and said solution to the stress was to effectively engage nature – by traveling with them Letter was signed “personally” by the owner of the company and addressed to “Dear Traveler”

High End Cruise Line

Sent out letter to prospects that began with scare tactics about economy

Stressed stress and said solution to the stress was to effectively engage nature – by traveling with them

Letter was signed “personally” by the owner of the company and addressed to “Dear Traveler”

Car dealers in Midwest Providing multiple financing options outside standard “vehicles” Working with local & smaller regional banks to get financing Preparing leaseholders in advance on their options so that they aren’t surprised Sports teams Nets free tickets to unemployed fans Resumes posted to Nets website Resumes go to team sponsors

Car dealers in Midwest

Providing multiple financing options outside standard “vehicles”

Working with local & smaller regional banks to get financing

Preparing leaseholders in advance on their options so that they aren’t surprised

Sports teams

Nets free tickets to unemployed fans

Resumes posted to Nets website

Resumes go to team sponsors

Caretaker of the Islands of the Great Barrier Reef – Tourism Queensland Dissecting the elements Watched a podcast on the job availability which is primarily to blog for 6 months. Marketing Manager talks about “word of mouth being important now.” Your relevant experience is to be highlighted in 60 second uploaded video (UGC) The video is voted on and commented on by visitors to site (UGC) 10 finalists chosen by committee; one “wildcard” by visitors

Caretaker of the Islands of the Great Barrier Reef – Tourism Queensland

Dissecting the elements

Watched a podcast on the job availability which is primarily to blog for 6 months.

Marketing Manager talks about “word of mouth being important now.”

Your relevant experience is to be highlighted in 60 second uploaded video (UGC)

The video is voted on and commented on by visitors to site (UGC)

10 finalists chosen by committee; one “wildcard” by visitors

Most important to remember, these tips/tactics aren’t only for a downturn Downturn simply helps filter the selection due to the emotional/mental state of the customer The type of likely customer experience is what determines which approaches, tactics, etc. you use AND, remember, I’m NOT an economist BUT I do know something about customers & CRM

Most important to remember, these tips/tactics aren’t only for a downturn

Downturn simply helps filter the selection due to the emotional/mental state of the customer

The type of likely customer experience is what determines which approaches, tactics, etc. you use

AND, remember, I’m NOT an economist

BUT I do know something about customers & CRM

Author: CRM at the Speed of Light (4th Edition, February 2009) President: The 56 Group, LLC Managing Partner/CCO: BPT Partners, EVP: National CRM Assn. Co-Chair: Rutgers CRM Research Center Named #1 CRM Influencer (Non Vendor) by InsideCRM 2007 Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008 CRM Magazine 2008 Top Influencer PGreenblog: http://the56group.typepad.com ZDNET Blog: http://blogs.zdnet.com/crm Email: [email_address] Twitter: http://www.twitter.com/pgreenbe Cell phone: 703-551-2337 THANK YOU