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