Tag Archives: CRM
This blog post initially appeared on CMSwire.com and is reblogged here with their consent.
Friends of mine were remodeling their master bath. After searching for a claw foot tub in stores and online, they found the perfect one that fit their space. It was only available for purchase on the retailer’s e-commerce site, they bought it online.
When it arrived, the tub was too big. The dimensions online were incorrect. They went to return it to the closest store, but were told they couldn’t — because it was purchased online, they had to ship it back.
The retailer didn’t have a total customer relationship view or a single view of product information or inventory across channels and touch points. This left the customer representative working with a system that was a silo of limited information. She didn’t have access to a rich customer profile. She didn’t know that Joe and his wife spent almost $10,000 with the brand in the last year. She couldn’t see the products they bought online and in stores. Without this information, she couldn’t deliver a great customer experience.
It was a terrible customer experience. My friends share it with everyone who asks about their remodel. They name the retailer when they tell the story. And, they don’t shop there anymore. This terrible customer experience is negatively impacting the retailer’s revenue and brand reputation.
Bad customer experiences happen a lot. Companies in the US lose an estimated $83 billion each year due to defections and abandoned purchases as a direct result of a poor experience, according to a Datamonitor/Ovum report.
Customer Experience is the New Marketing
Gartner believes that by 2016, companies will compete primarily on the customer experiences they deliver. So who should own customer experience?
Twenty-five percent of CMOs say that their CEOs expect them to lead customer experience. What’s their definition of customer experience? “The practice of centralizing customer data in an effort to provide customers with the best possible interactions with every part of the company, from marketing to sales and even finance.”
Mercedes Benz USA President and CEO, Steve Cannon said, “Customer experience is the new marketing.”
The Gap Between Customer Expectations + Your Ability to Deliver
My previous post, 3 Barriers to Delivering Omnichannel Experiences, explained how omnichannel is all about seeing your business through the eyes of your customer. Customers don’t think in terms of channels and touch points, they just expect a seamless, integrated and consistent customer experience. It’s one brand to the customer. But there’s a gap between customer expectations and what most businesses can deliver today.
Most companies who sell through multiple channels operate in silos. They are channel-centric rather than customer-centric. This business model doesn’t empower employees to deliver seamless, integrated and consistent customer experiences across channels and touch points. Different leaders manage each channel and are held accountable to their own P&L. In most cases, there’s no incentive for leaders to collaborate.
Old Navy’s CMO, Ivan Wicksteed got it right when he said,
“Seventy percent of searches for Old Navy are on a mobile device. Consumers look at the product online and often want to touch it in the store. The end goal is not to get them to buy in the store. The end goal is to get them to buy.”
The end goal is what incentives should be based on.
Executives at most organizations I’ve spoken with admit they are at the very beginning stages of their journey to becoming omnichannel retailers. They recognize that empowering employees with a total customer relationship view and a single view of product information and inventory across channels are critical success factors.
Becoming an omnichannel business is not an easy transition. It forces executives to rethink their definition of customer-centricity and whether their business model supports it. “Now that we need to deliver seamless, integrated and consistent customer experiences across channels and touch points, we realized we’re not as customer-centric as we thought we were,” admitted an SVP of marketing at a financial services company.
You Have to Transform Your Business
“We’re going through a transformation to empower our employees to deliver great customer experiences at every stage of the customer journey,” said Chris Brogan, SVP of Strategy and Analytics at Hyatt Hotels & Resorts. “Our competitive differentiation comes from knowing our customers better than our competitors. We manage our customer data like a strategic asset so we can use that information to serve customers better and build loyalty for our brand.”
Hyatt uses data integration, data quality and master data management (MDM) technology to connect the numerous applications that contain fragmented customer data including sales, marketing, e-commerce, customer service and finance. It brings the core customer profiles together into a single, trusted location, where they are continually managed. Now its customer profiles are clean, de-duplicated, enriched and validated. Members of a household as well as the connections between corporate hierarchies are now visible. Business and analytics applications are fueled with this clean, consistent and connected information so customer-facing teams can do their jobs more effectively.
When he first joined Hyatt, Brogan did a search for his name in the central customer database and found 13 different versions of himself. This included the single Chris Brogan who lived across the street from Wrigley Field with his buddies in his 20s and the Chris Brogan who lives in the suburbs with his wife and two children. “I can guarantee those two guys want something very different from a hotel stay,” he joked. Those guest profiles have now been successfully consolidated.
According to Brogan,
“Successful marketing, sales and customer experience initiatives need to be built on a solid customer data foundation. It’s much harder to execute effectively and continually improve if your customer data is a mess.”
Improving How You Manage, Use and Analyze Data is More Important Than Ever
Some companies lack a single view of product information across channels and touch points. About 60 percent of retail managers believe that shoppers are better connected to product information than in-store associates. That’s a problem. The same challenges exist for product information as customer information. How many different systems contain valuable product information?
Harrods overcame this challenge. The retailer has a strategic initiative to transform from a single iconic store to an omnichannel business. In the past, Harrods’ merchants managed information for about 500,000 products for the store point of sale system and a few catalogs. Now they are using product information management technology (PIM) to effectively manage and merchandise 1.7 million products in the store and online.
Because they are managing product information centrally, they can fuel the ERP system and e-commerce platform with full, searchable multimedia product information. Harrods has also reduced the time it takes to introduce new products and generate revenue from them. In less than one hour, buyers complete the process from sourcing to market readiness.
It Ends with Satisfied Customers
By 2016, you will need to be ready to compete primarily on the customer experiences you deliver across channels and touch points. This means really knowing who your customers are so you can serve them better. Many businesses will transform from a channel-centric business model to a truly customer-centric business model. They will no longer tolerate messy data. They will recognize the importance of arming marketing, sales, e-commerce and customer service teams with the clean, consistent and connected customer, product and inventory information they need to deliver seamless, integrated and consistent experiences across touch points. And all of us will be more satisfied customers.
As we renew or reinvent ourselves for 2015, I wanted to share a case of “imagine if” with you and combine it with the narrative of an American frontier town out West, trying to find a new Sheriff – a Wyatt Earp. In this case the town is a legacy European communications firm and Wyatt and his brothers are the new managers – the change agents.
Here is a positive word upfront. This operator has had some success in rolling outs broadband internet and IPTV products to residential and business clients to replace its dwindling copper install base. But they are behind the curve on the wireless penetration side due to the number of smaller, agile MVNOs and two other multi-national operators with a high density of brick-and-mortar stores, excellent brand recognition and support infrastructure. Having more than a handful of brands certainly did not make this any easier for our CSP. To make matters even more challenging, price pressure is increasingly squeezing all operators in this market. The ones able to offset the high-cost Capex for spectrum acquisitions and upgrades with lower-cost Opex for running the network and maximizing subscriber profitability, will set themselves up for success (see one of my earlier posts around the same phenomenon in banking).
Not only did they run every single brand on a separate CRM and billing application (including all the various operational and analytical packages), they also ran nearly every customer-facing-service (CFS) within a brand the same dysfunctional way. In the end, they had over 60 CRM and the same number of billing applications across all copper, fiber, IPTV, SIM-only, mobile residential and business brands. Granted, this may be a quite excessive example; but nevertheless, it is relevant for many other legacy operators.
As a consequence, their projections indicate they incur over €600,000 annually in maintaining duplicate customer records (ignoring duplicate base product/offer records for now) due to excessive hardware, software and IT operations. Moreover, they have to stomach about the same amount for ongoing data quality efforts in IT and the business areas across their broadband and multi-play service segments.
Here are some more consequences they projected:
- €18.3 million in call center productivity improvement
- €790,000 improvement in profit due to reduced churn
- €2.3 million reduction in customer acquisition cost
- And if you include the fixing of duplicate and conflicting product information, add another €7.3 million in profit via billing error and discount reduction (which is inline with our findings from a prior telco engagement)
Despite major business areas not having contributed to the investigation and improvements being often on the conservative side, they projected a 14:1 return ratio between overall benefit amount and total project cost.
Coming back to the “imagine if” aspect now, one would ask how this behemoth of an organization can be fixed. Well, it will take years but without management (in this case new managers busting through the door), this organization has the chance to become the next Rocky Mountain mining ghost town.
The good news is that this operator is seeing some management changes now. The new folks have a clear understanding that business-as-usual won’t do going forward and that centralization of customer insight (which includes some data elements) has its distinct advantages. They will tackle new customer analytics, order management, operational data integration (network) and next-best-action use cases incrementally. They know they are in the data, not just the communication business. They realize they have to show a rapid succession of quick wins rather than make the organization wait a year or more for first results. They have fairly humble initial requirements to get going as a result.
You can equate this to the new Sheriff not going after the whole organization of the three, corrupt cattle barons, but just the foreman of one of them for starters. With little cost involved, the Sheriff acquires some first-hand knowledge plus he sends a message, which will likely persuade others to be more cooperative going forward.
What do you think? Is new management the only way to implement drastic changes around customer experience, profitability or at least understanding?
This was a great week of excitement and innovation here in San Francisco starting with the San Francisco Giants winning the National League Pennant for the 3rd time in 5 years on the same day Saleforce’s Dreamforce 2014 wrapped up their largest customer conference with over 140K+ attendees from all over the world talking about their new Customer Success Platform.
Salesforce has come a long way from their humble beginnings as the new kid on the cloud front for CRM. The integrated sales, marketing, support, collaboration, application, and analytics as part of the Salesforce Customer Success Platform exemplifies innovation and significant business value upside for various industries however I see it very promising for today’s financial services industry. However like any new business application, the value business gains from it are dependent in having the right data available for the business.
The reality is, SaaS adoption by financial institutions has not been as quick as other industries due to privacy concerns, regulations that govern what data can reside in public infrastructures, ability to customize to fit their business needs, cultural barriers within larger institutions that critical business applications must reside on-premise for control and management purposes, and the challenges of integrating data to and from existing systems with SaaS applications. However, experts are optimistic that the industry may have turned the corner. Gartner (NYSE:IT) asserts more than 60 percent of banks worldwide will process the majority of their transactions in the cloud by 2016. Let’s take a closer look at some of the challenges and what’s required to overcome these obstacles when adopting cloud solutions to power your business.
Challenge #1: Integrating and sharing data between SaaS and on-premise must not be taken lightly
For most banks and insurance companies considering new SaaS based CRM, Marketing, and Support applications with solutions from Salesforce and others must consider the importance of migrating and sharing data between cloud and on-premise applications in their investment decisions. Migrating existing customer, account, and transaction history data is often done by IT staff through the use of custom extracts, scripts, and manual data validations which can carry over invalid information from legacy systems making these new application investments useless in many cases.
For example, customer type descriptions from one or many existing systems may be correct in their respective databases however collapsing them into a common field in the target application seems easy to do. Unfortunately, these transformation rules can be complex and that complexity increases when dealing with tens if not hundreds of applications during the migration and synchronization phase. Having capable solutions to support the testing, development, quality management, validation, and delivery of existing data from old to new is not only good practice, but a proven way of avoiding costly workarounds and business pain in the future.
Challenge 2: Managing and sharing a trusted source of shared business information across the enterprise.
As new SaaS applications are adopted, it is critical to understand how to best govern and synchronize common business information such as customer contact information (e.g. address, phone, email) across the enterprise. Most banks and insurance companies have multiple systems that create and update critical customer contact information, many of them which reside on-premise. For example, insurance customers who update contact information such as a phone number or email address while filing an insurance claim will often result in that claims specialist to enter/update only the claims system given the siloed nature of many traditional banking and insurance companies. This is the power of Master Data Management which is purposely designed to identify changes to master data including customer records in one or many systems, update the customer master record, and share that across other systems that house and require that update is essential for business continuity and success.
In conclusion, SaaS adoption will continue to grow in financial services and across other industries. The silver lining in the cloud is your data and the technology that supports the consumption and distribution of it across the enterprise. Banks and insurance companies investing in new SaaS solutions will operate in a hybrid environment made up of Cloud and core transaction systems that reside on-premise. Cloud adoption will continue to grow and to ensure investments yield value for businesses, it is important to invest in a capable and scalable data integration platform to integrate, govern, and share data in a hybrid eco-system. To learn more on how to deal with these challenges, click here and download a complimentary copy of the new “Salesforce Integration for Dummies”
Customers don’t always like change, and new product launch offers variety of changes so it’s important to showcase the value of the change for customers while launching a product. One key ingredient that can fuel the successful Product launch is leveraging the rich, varied, multi-sourced, readily available information. Yes, tons of information which is like a gold mine and is available to us more easily/readily than ever before from various different sources. Industry experts call it Big Data. Today Big Data can pull gold out of this information gold mine and positively impact a product launch. What follows are 3 secrets of how Product Marketers can tap the power of Big Data for a successful product launch.
Secret #1: Use Big Data to optimize content strategy and targeted messaging
The main challenge is not just to create a great product but also to communicate the clear compelling value of the product to your customers. You need to speak the language that resonates with needs and preferences of customers. Through social media platforms and weblogs, lots of information is available highlighting views/preferences of buyers. Big Data brings all these data points together from various sources, unlocks them to provide customer intelligence. Product Marketers can leverage this intelligence to create customer segmentation and targeted messaging.
Secret #2: Use Big Data to identify influential customers and incent them to influence others
One of the studies done by Forrester Research indicates that today your most valuable customer is the one who may buy little but influences 100 others to buy via blogs, tweets, Facebook and online product reviews. Using MDM with Big Data businesses can create a 360 degree customer profile by integrating transaction, social interaction and weblogs which help in identifying influential customers. Companies can engage these influential customers early by initiating a soft launch or beta testing of their product.
Secret #3: Use Big data to provide direction to ongoing Product improvement
Big Data is also a useful tool to monitor on-going product performance and keeping customers engaged post-launch. Insights into how customers are using the product and what they enjoy most can open the doors for improvements in future launches resulting in happier and loyal customers.
Zynga, creator of most popular Facebook game Farmville, collects terabytes of big data in a day and analyzes it to improve the game features and customer services. As indicated in a WSJ article after Version 1 launch of the game, the company analyzed customer behavior and found that customers were interacting with animals much more than the designers expected. So in the second release game designers increased the game offerings with more focus on animals keeping customer’s more engaged.
Big data is proving to be a game changer for product managers and marketers who want to deeply engage with their customers and launch products with a memorable and valued customer experience.
One thing we all have in common in this modern world, is that we have all, at some point in our lives, been on the receiving end of poor customer service.
Don’t get me wrong, a career in customer service is not an easy one, and I’m sure there are many service providers out there who have been wrongly on the receiving end of an angry customer, for reasons out of the businesses hands, that’s another topic in itself. It is hard, however, to ignore that one thing companies often fail on heavily is providing a timely, easy to access and appropriate level of service for their customers. (more…)
In my last blog post I discussed why an understanding of corporate financial concepts is so important to data quality success. In this blog, I will examine knowledge of commercial enterprise applications as a key enabler of effective data quality delivery.
Packaged applications for ERP, CRM, MRP, HCM, etc. were first introduced decades ago to provide tightly integrated business management functions, standardized processes and streamlined transaction processing. While one can argue whether or not these applications have lived up to all of the hyperbole, the reality is that they have been successful and are here to stay. As these backbone systems continued to evolve and mature, lessons learned from thousands of implementations were incorporated into the model solutions as best practices. These best practices spawned industry standard processes and specialized variants were born (e.g. vertical systems solutions). With the widespread adoption of these solutions, the days of custom building an application to meet the business’s needs have largely disappeared (although exceptions do persist to support specialized needs). (more…)
I’m at Barcelona this week for the European Gartner MDM Summit. I had a chance to catch up with one of the Gartner MDM analysts before the event, and we had a discussion about the growth of MDM. He mentioned that MDM will become pervasive within the enterprise as organizations expand its use as a necessary foundation for governing all of their business-critical master data such as customers, products, and so on.
To solve their business problems accurately, companies seek targeted MDM solutions. For e.g., retail, distribution, and manufacturing companies use PIM for merchandising, distributing products, and supplier on-boarding, while financial services, healthcare, and high tech companies use customer MDM with their CRM, such as salesforce.com, for improving customer segmentation, cross-sell , and up-sell. (more…)
According to a 2011 Ovum survey, 85% of respondents cited ballooning data sets as the cause of application performance problems. Many IT organizations fell short in 2012 letting unmanaged data growth impact the business. This year, Informatica is witnessing a surge of interest in Enterprise Data Archive solutions. This interest is being created because executives want to invest in innovative technologies for real-time and operational analytics. Yet, with little to no IT budget increase, IT leaders are getting creative.
Businesses are moving from on premises applications to Software as a Service (SaaS) freeing up time and resources – yet the legacy application being replaced all too often stays in the data center consuming costly resources. IT leaders are recognizing the quick win of retiring legacy applications. An application retirement strategy supports data center consolidation and application modernization initiatives – while ensuring data is retained to meet regulatory compliance and business needs. Significant cost savings are realized because mainframe systems can be turned off, maintenance costs go away. With this new source of revenue, executives can fund their analytics projects and drive competitive operations. (more…)
The terms “Single View of a Customer” (SVC) and “360-degree view of your customer” are often bandied about amongst marketers and sales people. Day-in and day-out, we collect information about our customers to use for analysis, forecasting and budget planning.
The first thing a sales person is required to do after being introduced to their territory is to find out everything there is to know about their accounts. What did their customers buy? What “pain point” did the product address? How much did the customer pay for it? Did they pay on time? Were there any issues with delivery/implementation of the product? (more…)
Last week I posted this blog, OppenheimerFunds Dreamforce Story: Lay a Foundation of Trusted and Complete Customer Information for Salesforce.
Another superb Dreamforce story was delivered by Interstate Batteries’ director of Market IQ, Mike Darr.
Did you know Interstate Batteries is the number one replacement brand battery in North America? Did you know batteries were perishable? These were some facts that I learned during Mike’s presentation at Dreamforce 2012. (more…)