What The Hell Is Crm 2 2008

Skype 2005 – EBay purchased for $2.6 billion

The Social Customer

The Customer Ecosystem

This is a SOCIAL transformation that impacts all institutions – business among them – not exclusively

Sea change in use of technology
Gen Y first generation to spend more time on the ‘Net than watching TV
Implications for marketing staggering
40% of Gen Xers do research online
Only 10% of seniors
The Social Customer?

Source: A Typology of Information & Communication Technology Users – Pew Internet & American Life Project The Social Customer? Group Name Adult Pop. % Age Group Elite Tech Users 31% 20s - early 40s Middle-of-the-Road Tech Users 20% 30s – late 40s Few Tech Assets 49% 50s – 60s+

The Social Customer – The Rise
New definition of trusted source
2008 Edelman Trust Barometer (56%), most trusted – “a person like me.”
Not an industry expert or academician or financial advisor
Information available nearly instantaneously – either structured or unstructured via the web (Google, Yahoo, MSN)
On Demand software as a service
Enterprise value chain supersedes siloed supply, demand & support chains
Link between lifestyle and business – consumers adopt “sexy” content

The Social Customer – The Establishment
Social networks as active participants in effecting change (blogosphere, podcasting)
Collaboration between company & customers to provide useful value for each
Personal value chain subsumes enterprise value chain
Ubiquitous technologies leading platform
The Live Web (Web 2.0) (MySpace, Facebook)
Customer begin to include business as feature of life choice, not a separate factor – user generated content becomes part of business (Samsung open IP to engineers)
The social customer is increasingly a mobile customer

Each customer wants a personalized experience…
They couldn’t care less if they are high value or low value customers
They don’t know if they are high or low value to you
But you have to accommodate even low value customers because of what they can do to you if you don’t
But how do you begin to “know” millions of customers?
First, understand how they interact with you at every point, in every channel
That means detailed mapping, not just surveys, etc.
Ultimately, the tools for the customer to manage their own experience are paramount
Give them access to information that allows them to make informed, empowering choices which thus, provide value

Generation C – Cross-generation (source: Springwise)
C stands for:
Content-driven
Connected
Creative
Collaborative
Contextual
Communicative
Age is irrelevant to Gen C
Its nature and ease of information availability makes it empowered
The social customer engages businesses for personal agendas

Source: Brian Solis The Social Customer?

Definition

2008 SAP/EIU study found that currently 61% of businesses surveyed found CRM very important NOW
In 3 years, the number jumps to 86%
CRM YET…..

CRM is a strategic company-wide effort (30%)
CRM is driven by individual depts. (25%)
CRM is at the core of our business (12%)
CRM is focused on customer facing processes across multiple channels (12%)
CRM

“ CRM is a philosophy and a business strategy, supported by a system and a technology, designed to improve human interactions in a business environment” CRM 1.0

Managed customer relationships
Sales, marketing, support
Operational, analytic, collaborative
Data management
Business process management
Partner Relationship Management
Application Service Providers
Marketing’s 4Ps
Customer satisfaction
360° view of the customer
Intranet
Product and/or services company
Thin client
E-CRM a.k.a ecommerce
ROI
TCO
Product sales as economic outputs
On premise
Client/server
Customer focused corporate ecosystem
Old Terminology

“ CRM is a philosophy & a business strategy, supported by a technology platform, business rules, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.” CRM 2.0

Enterprise. 2.0
Web 2.0
Customer managed experiences
CRM 2.0/Social CRM
Unified communication
Social networks/user communities
Social customer
Social media
Wikis
Podcasts
Blogs
User generated content
Co-creation of value
Social bookmarking
Social tagging
Trusted sources
Twitter & microblogging
Return on customer
Customer value
Customer ecosystem
Customer advocacy
Service Oriented Architecture
On Demand
RSS
Transparency
Authenticity
Marketing as conversation
Personalization
Mashups
New Terminology

CRM 2.0 + Social CRM = 123,400
CRM =82,300,000
From CRM 1.0 to CRM 2.0

"CRM is no longer just a model for managing customers but one of customer engagement" From CRM 1.0 to CRM 2.0

Strategy/Business Model

Characteristics of the prototype
The lines between producer and consumer are blurred
The users and producers are engaged in the co-creation of value – they become collaborators
The users have the tools to configure and/or customize their personal experience with the product
The users and the producers encourage each other and mutually define the future directions of the specific products

Characteristics of the prototype (part deux)
The users and producers take advantage of the most advanced methods of communication within the global matrix (e.g. user communities within the worldwide web)
Even though the users are working on the product changes for their own experience, the changes to the product have universal and commercial value and drive the sales of the product
The producer is not just the publisher/manufacturer but operates as an aggregator for the user's creative activity
The user is an advocate of the experience and, directly and by extension, the company

Old School to New School
Innovation Toolkits online
15 telematics feature for future BMW models
Now ongoing
25 customer touchpoints identified and developed with the customers
Products developed with direct collaboration with customers

New Business, Little Fella:

Community retailing
Multiple brands
Established (Adidas, Vans)
Independent (The Kazbah)
Community of 800,000
Own clothing line (Sons of Liberty
Innovations

The Kazbah
Innovations

E-zine highlighting the independent designers from the Kazbah
Innovations

Innovations

Social Network by invitation for trend-setters
Innovations

Copyright BPT Partners & Cerado The Street Team
Innovations

Copyright BPT Partners & Cerado Street Team
Sign up, get unique code
Get friends to buy on the site using unique code
Discounts plus points for Street Team member
Street team member can upload photos, videos, earn points (community themes)
Return to member is cash & free clothes
Innovations
Over 8000 advocates for street team

Part of focused customer strategy
Concept stems from oldest form of communication – person-to-person word-of-mouth
Web form of word of mouth a.k.a. Internet buzz
Source: Simultaneous Media Usage Study, BIGresearch Source: Doubleclick Electronics Sales Influence Percentage Word of Mouth 42.6% Article 34.1% TV 32.3% Newspaper Insert 32.0% In-store promo 27.2% Media Influencer Non-Influencer Internet 39% 28% TV 18% 11% Radio 12% 9% Magazine 3% 1% Newspaper 2% 1%

The Cluetrain Manifesto: The End of Business As Usual
Markets are conversations
Markets consist of human beings, not demographic sectors
Networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge
There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone
Already companies that speak in the language of the pitch…are no longer speaking to anyone
Most marketing programs are based on the fear that the market might see what’s really going on in the company

Because the model is built on trust, the reputation of the company, not the message, becomes the brand
That means, both the perception but also the actual quantified assessment of the marketing practices as certified by third parties (TRUSTe, etc.)
The practical side would be an authenticated or accredited message that is validated by the ISP or whoever is transmitting it.
Marketing becomes the center point for engagement of the customer
Messages are not to be pushed at the customer about products and services;
Marketing uses the media tools that are available to engage the customer
But with authenticity (Walmart & Edelman screw-up)

Authenticity and trust is what matters – more than even the “consistency” of the message

Volume – amt. mentioned v. historic pattern
Tone – positive, negative, neutral
Coverage - # of sources generating conversation
Authoritativeness – qualitative ranking of source (reputation )
Hearing Whispers……. Source: How consumer conversation will transform business – PricewaterhouseCoopers, 2007

The Tools

Traditional
Salesforce automation tools
Marketing automation (e.g. campaign management)
Customer service (call center)
Dashboards
Features & functions
Social
Blogs, podcast, wikis
Social networks/communities
User generated content (rich media)
Social tags & social bookmarks
Features, functions, characteristics
Enterprise SOA (or WOA)
Enterprise Widgets
Master Data Management (MDM)
Business rules engine
Workflow
Analytics (customer analytics)
RSS feeds/Subscription services
Transaction Interaction Infrastructure/Platform

CRM 2.0: The Social Stack Source: Thomas Vander Wal, Personal InfoCloud

The Communities

There should be a solid business reason for having one beyond:
Everyone else is
Coolness
The strategy & purpose & plan for the social network should be clear before technology is chosen
But the platform needs to be solid & highly functional
Cheapness can’t be a factor
Social Networks/Communities

Content is what brings members back
It must be continually refreshed
The purpose of this whole endeavor is ongoing engagement
That means that peer-to-peer interactions need to be encouraged within the borders of the social network
Members should be encouraged to collaborate with the company (e.g. help find new routes)
Members need to feel valued continuously

Rules for the Social Network
There is an expectation of trust by members - the social network is a trusted peer – not abstract entity
Privacy is the secondary consideration w/in the confines of that trust
The member profile is licensed to the social network, not owned by the social network
The terms of that license need to be mutually agreed upon and transparent at all times
The member must feel that they retain control over their profile – MISSION CRITICAL

Rules for the Members
They have no inherent right to be a member.
There are risks associated there is no complete privacy guaranteed (what is it about “social” they don’t understand?)
While they retain ownership of their profile, by signing up, they are providing a limited license to the social network to use that profile as an asset – as defined by the terms of the agreement
That profile well may be used commercially with their permission

The Details: Don’t Sweat ‘Em, But There Are Quite a Few

Developing a Strategic Map
Mission
Vision
Objectives
Business case including costs/TCO
Business requirements
Process assessment/transformation
Risk assessment
Metrics/benchmarks/ROI
Culture
Communications (internal & external)
Vendor selection strategy
Model project (pilots)
Customer experience
CRM 2.0 Strategic Elements

The 360° view of the customer is no longer the holy grail. It’s a pre-requisite.

The new holy grail: A company like me

The Vendors

CRM 2.0 – getting closest
SAP
Oracle
Salesforce.com
Zoho (SMB market)
SalesLogix (SMB market)
Helpstream (customer service)
nGenera offering (Talisma)
SugarCRM (open source)
Loyalty Lab (marketing)
Not there…but moving closer
Microsoft
SAS (moving fast)
RightNow (customer experience)
Google
Aplicor (moving fast)
Not close…but still good
NetSuite
Maximizer
Entellium
Unica
Eloqua
The Vendors: Roadmap

Web 2.0 Integration with CRM: Baby Steps Begin
Neighborhood America (Enterprise Social Network)
Atlassian Confluence (wiki)
Google apps (salesforce.com)
Leverage CommunityConnect (salesforce.com)
Zoho (multiple own products with ZohoCRM)
The Vendors: Roadmap

Closing Time

Source: CRM 2.0 Wiki (http://crm20.pbwiki.com) CRM 1.0 Features/Functions CRM 2.0 Features/Functions Customer facing features - sales, marketing & support. Still isolated from back office, supply chain Fully integrated into an enterprise value chain that includes the customer as part of it Tools are associated with automating functions Integrates social media tools into apps/services: blogs, wikis, podcasts, social networking tools, user communities Automate interaction history for lead nurturing and relationship building Utilize knowledge in context to create meaningful conversations Models customer processes from the company point of view Models company processes from the customer point of view Recognizes that the customer relationship encompasses information-seeking and information-contributing behavior Resided in a customer-focused corporate business ecosystem Resides in a customer ecosystem Utilitarian, functional, operational All those plus style and design matter Marketing focused on processes that sent improved, targeted, highly specific corporate messages to customer Marketing is front line for creating conversation with customer - engaging customer in activity and discussion - observing and re-directing conversations among customers Business produces products & creates services for customer Business is an aggregator of experiences, products, services, tools and knowledge for the customer Intellectual Property protected with all legal might available Intellectual property created and owned together with the customer, partner, supplier, problem solver Business focus on products and services that satisfy customers Business focus on environments & experiences that engage customer Tactical and operational Strategic Customer strategy is part of corporate strategy Customer strategy IS corporate strategy Innovation from the designated Innovation from both internal and external sources Focus on Company <> Customer Relationship Focus on all iterations of the relationships (among company, partner(s), customer(s)) and specifically on identifying, engaging and enabling the "influential" nodes Company manages the relationship with the customer The customer collaborates with the company Technology focused around operational aspects of sales, marketing, support Technology focused on both the operational and the social/collaborative and integrates the customer into the entire enterprise value chain Relationship between the company and the customer was seen as enterprise managing customer - parent to child to a large extent Relationship between the company and the customer must be peer to peer (C2P or P2C so to speak) and yet the company must still be an enterprise in all other aspects. Definition is: CRM is a philosophy & a business strategy, supported by a system and a technology, designed to improve human interactions in a business environment Definition is: CRM 2.0 is a philosophy & a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It's the company's response to the customer's ownership of the conversation. Insights and effectiveness were optimally achieved by the single view of the customer (data) across all channels by those who needed to know. Based on "complete" customer record and data integration Insights are a considerably more dynamic issue and are based on 1. customer data with single view being important; 2. customer profiles and the social characteristics associated with them 3. customer participation in the activity acquisition of those insights

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 CRM Magazine 2008 Top Influencer PGreenblog: http://the56group.typepad.com Email: [email_address] Twitter: http://www.twitter.com/pgreenbe Cell phone: 703-551-2337 THANK YOU

http://the56group.typepad.com	178
http://crm20.pbworks.com	111
http://crm20.pbwiki.com	104
http://www.comparatif-crm.com	70
http://www.slideshare.net	55
http://www.jesushoyos.typepad.com	42
http://jesushoyos.typepad.com	19
http://www.marcomalandrino.com	11
http://www.brijj.com	8
http://tiborr.blogspot.com	6
http://www.the56group.typepad.com	4
http://www.jesushoyos.com	4
http://webbasedcrmsoftwareguide.com	3
http://74.125.65.132	2
http://static.slidesharecdn.com	2
http://74.125.47.132	1
http://www.health.medicbd.com	1

What The Hell Is Crm 2 2008

by Paul Greenberg on Aug 29, 2008

Accessibility

Categories

Tags

Upload Details

Usage Rights

17 Embeds 621

Statistics

What The Hell Is Crm 2 2008 — Presentation Transcript