This document summarizes trends in customer relationship management (CRM) and customer engagement as the business world transitions to a more customer-centric model. Key points discussed include the increasing speed of markets, higher business failure rates, the importance of understanding changing customer behaviors, embracing social media and customer collaboration, moving from a product-focused to customer-experience focused model, and the need for next generation CRM to manage increasingly complex customer relationships across multiple interaction channels.

1. gianluca ferranti | g.ferranti@reitek.com CRM Scenarios & Trends: Customer Management in a 2.0 Era !

2. Overview: The Business World has Changed Pre 90s Product/Demand driven corporate ecosystem Late 90s to nearly present Customer driven corporate ecosystem Present / Future Transition to customer ecosystem “ Era of the Social Customer”

3. Markets are speeding up New product (food, beverage, cars, …) market release: 1991 = 15.400 2001 = 32.025 Productive sectors classified by the U.S. government : Deleted 50 sectors, redefined 200 sectors 1972 -1987 Deleted 500 sectors, redefined 1000 1987 -1997 Companies failed in the U.S. : 1950 to1978 an average of 10.000/year Since1986 60.000/year Since1998 more than 73.000/year

4. The distruption Law The introduction of new technologies does not happen in a linear and continuous process, but through a break. The political changes, social and economic are incremental, while technological changes are exponential. Technology Social Economy/Business Political Time Change

5. Only 18% of tv ads generate positive ROI 100% increase in ad spending just to add 1% - 2% in sales 91% likely to buy on recommendation Mass market, segmenting, viral

6. Old 4Ps Paradigm 4Ps Value Creator Customer

7. New Paradigm 4Ps Value Innovator Customer Product Brand

8. Understand new consumer behavior patterns Support customer-to-customer interaction Embrace customers as co-creators Create Dialogue With Social Consumers

9. Collaboration : within and outside the firm. Wikis are gaining momentum. Social Networking: especially for service industries, referrals and networking are at the heart of their marketing strategies - " The Social Networking Convergence With CRM " Customer Centricity: Customer should really be in charge of who sees their information and what kind of goods and services they are in the market for Prosumer Behaviors : the inculcation of consumer behaviors into professional environments; the importance of style as a choice when choosing products and services Usability Improvements: AJAX, emphasis on processes rather than data, various areas targeted to how people within that department think and work Advocacy Metrics: g oing beyond just the Net Promoter Score (NPS ) to create richer metrics for measuring advocacy (2008-2009) Enterprise 2.0: m ore and more companies looking at the use of wikis, podcasts, blogs, and communiities behind and through the firewall (2008) Social Relationship

10. "C" …..like Change in CRM 4 Ps Vs. 5 Cs

11. Blogs Podcasts Video Blogging Video Sharing Photo Sharing Communicate

12. Social networks (Facebook, MySpace, LinkedIN,..) Mobile text messaging Instant messaging/Twitter Skype Connect

13. Wikis Consumer-Generated Media Open Source Software Creative Commons Mash-ups Collaborate/Co-Create

14. Every individual is unique Allow her to choose instead of forcing him to use what you have made Make him feel home RSS Widgets Virtual Worlds/Avatars Customization

15. Created by all of the above Fostered by common interests Built through conversations Community

16. The New Business Model Differentiators are no longer products & services Key differentiator is the customer’s experience with the company Provides a business value for the experience with the products/services

17. 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 care and yet, accommodate them to a degree But how do you deal with it when you have millions of customers? Understand the “typical” experience of a customer at every point And what they want But provide the tools for the customer to manage their own experience Information that allows them to make informed, empowering choices Characteristics of the Ecosystem

18. Next Gen CRM

19. Next Gen CRM

20. Next Gen CRM

21. CRM 2.0 The goal is to: Identify, engage, and enable the influential nodes that have the most “social value” in the network. In the new world of shifting and complex enterprise-to-customer social relationships, managing interactions with customers is highly strategic.

22. Interaction Channels Phone Web Mobile SMS Wap Video Portals Widgets Store Interactive windows Kiosk In store TV CTI – ACD Campaign Mgmt IVR Video IVR IVR outbound Avatar Call Back Click 2 Meet Chat Web-Form

23. Interaction Channels today © Copyright Dimension Data 2005-2007 Source: Global Contact Centre Benchmarking Report 2007

24. Interaction Channels 2010 Source: Global Contact Centre Benchmarking Report 2007 10x 3x 6x

25. Customer Service 2.0

26. Customer Engagement

27. Customer Engagement Harley-davidson lifestyle (riders) Mac – iPod - iPhone User Experience Linux Pro-sumer Nikon Beyond passion Starbuck User Experinece

28. CEM

29. Contact Center Business

30. 10 Ideas That Are Changing The World Common Wealth – national interests aren’t what they use to be. Our survival requires global solutions. The defining challenge of the 21st century will be to face the reality thet humanty shares a common fate on crowded planet The End of Customer Service – with self-service technology, you’ll never have to see a clerk again The Post-Movie-Star Era – ready for more films in wich the leading man is not “he” but “who”? Reverse Radicalism – Want to stop terrorism? Start talking to terrorists who stop themeselves ……… TIME 24 march 2008 http://www.time.com/time/specials/2007/0,28757,1720049,00.html

31. Il Partner Ideale per i tuoi progetti di Customer Interaction e Relationship Management

32. gianluca ferranti [email_address] +39 335 6500035 Skype g.ferranti.reitek.com