SOA and the Enterprise 2.0

see my post in the SOA blog:

http://soa2-0.blogspot.com/2008/09/giles-nelson-about-soa-and-enterprise.html

This is relevant to CRM as it outlines the technology changes required to implement a CRM 2.0 application based on a SOA.

I find Giles statement about the next generation of users very important. They will expect all the Web 2.0 applications at their jobs - that is why this time the innovation comes from outside the enterprise, not the other way around.

This might be a proof that the customers are more and more empowered and the enterprise has to adopt in order to be successful in the future... CRM 1.0 days might be gone soon!

Human Nature

"People like doing business with people they like and trust"

This is a very true statement and seems to be written in human DNA.
In the past, many CRM solutions did not consider this simple fact at all and focused on collecting customer data and make them available in many different forms and at any place. With the right strategy, this can help build fruitful customer relations and create an environment of trust and cooperation. But a pure CRM installation is not the guarantee of success!

Sales reps appreciate a tool that delivers data of the customer but they are not keen on entering a lot of data into an application that is not helpful for them to win deals or generate leads. Social applications connected to such an application can help improve leveraging the social intelligence that improve these flaws. Additionally the Web 2.0 applications can improve the communication with the customer and build a better relationship from which both sides profit.

But again, tools or applications is only one side of the medal. It it necessary to back that up with a bullet proof and well thought through CRM 2.0 strategy. Software can only help building and maintaining relationships better and more effective, they can not replace real people talking to real people - people they trust...

CRM 1.0 vs. CRM 2.0

• Starts with a (ready developed) product
  
• Strong Focus on SFA
  
• Gathers information about the customer
  
• Where is the Customer Relation?
  
• Where is the value (+experience) for customers?
  
• Process focused (Inside-Out view)

• Provide content to engage consumers in a conversation
  
• Collaborate on products and services
  
• Listen to users and customers
  
• The consumer engagement will lead to loyal customers
  
• This will create a Meaningful Customer Relationship that brings value to both sides!

Technorati Tags: CRM 2.0, process flow, loyal customers, meaningful customer relationship

Viral Marketing and CRM 2.0

Viral Marketing (did I mention that I don't really like that term?) can be a powerful marketing tool, especially if the budget is somewhat limited...

...but...

this shot can easily backfire!

Candians PCWorld has put together a list with 'viral' marketing campaigns that really did not deliver the expected result.


What about risks in CRM 2.0 using social networks?

Similar to Viral Marketing, CRM 2.0 utilizes social networks to gather information about the customer and establish a ralation - ideally making customers loyal to the brand or product.
What happens if the engagement in social networks fail or even show negative results (i.e. consumers run away or make fun of the products)?

A very important part of a CRM 2.0 strategy must be a management of the engagement in social networks that allows to intervene if thing start running out of the rudder. As high as the gains of CRM 2.0 can be, as high are the risks.
This shows the importance of a well defined CRM 2.0 strategy that does not blindly engage customers and use the nice&new Web 2.0 world, but create a concept that will bring real value to consumers and make them loyal to brand or products.

Technorati Tags: CRM 2.0, Strategy, social networks, risks

CRM 2.0 - Vendor selection process

Here are my thoughts about vendor selection process and implementation phases - any comments highly appreciated!



Phase 1 „Daydreaming“

• Determine Business Needs
• What are the challenges?
• What was the initial reason to think about a new CRM strategy?
• Get help from an external advisor if necessary.
• Define the ideal CRM solution
• Outline the Hi-Level requirements
• See the company from a customers‘ perspective

Phase 2 „Talk Turkey“

• Come back to reality – you can not archieve everything you wish (what about ROI?)
• Sync with existing CRM strategy and business processes – approve a project
• Priotize the wishlist – separate the crtitical points from the nice-to-haves
• Discuss with customers, employees and advisors
• Identify the technology to be used (i.e. SaaS)

Phase 3 „Issue RFI, RFP“

• Create a list of required functionality
• Send this list to anumber of vendors (4-8)
• Find a rating scheme and qualify the returned answeres
• Ask the vendors to create a proposed solution
• Asses and compare the outlined solutions
• Find the two (or three) best fitting vendors
• Focus on the vendor rather than the product
• Technology must fit the strategy!

Phase 4 „Compare Vendors“

• Does the corparate culture fit?
• Is the vendor financial stable and is the roadmap promising and complete?
• Is the product future proof (technology, platform), can it grow with your company?
• Pricing model and license cost
• Cost of implementation and customization
• Required Hardware

Phase 5 „Proof of Concept“

• Find a business process that covers as much technical aspects as possibe but can be implemented within a three week timeframe
• Ask vendors to implement this business process with their product on site
• Have IT and business people supervise the customization and administration process – get their buy-in!
• Finish with a workshop where the vendor presents the PoC and answers questions how it was done
• Try to estimate the efforts for the full project

Phase 6 „Implementation“

• Keep business involved - gather feedback from future users during the implementation phase
• Create reusable application code
• Keep future upgrades in mind
• Involve customers as beta-testers
• Favor a staged approach for a ‚big bang‘

Phase 7 „Rollout“

• Let users decide, not the contract – usability is the most critical factor...
• Design DOES matter!
• Provide detailed information to users (employees and customers)
• Training
• Collect feedback and keep improving the functionality and business processes

Technorati Tags: CRM 2.0, vendor selection, implementation

Social Networking Wars

Awesome :-D

Next Best Action (NBA)

Just came across an article from Anette Mitchell (Architect of O2's NBA) and that reminds me of some requirements we came across when selling Amdocs CRM to Telco customers.

First we tried to implement a solution ourselves but soon recognized that it requires quite a bit of code and analytical CRM capabilities to suggest a product or action (could be a campaign or agent script) based on the customers history and customers that were in similar situations.

Some actions are pretty obvious and can be added 'manually' (like customers with a high probability of churn would get special churn scripts) - but for the complex decisions it requires a sophisticated analytical CRM technology that is able to find patterns in customers behavior and predict in real time what the contact might be looking for.
It must be real time as the current interaction with the customer might have massive influence on the NBA...

NBAs have the power to turn the call center from a cost center into a profit center. This has can massive influence on the customer experience but requires well trained staff and a technology generating high quality predictions. It is also crucial that such a system learns from customer decisions, e.g. do not offer same or similar products if already declined by a customer.

All this help to approach (inbound) customers only with offers that potentially generate value for them.

Technorati Tags: CRM 2.0, NBA, Concepts, Marketing

Oracle pushes Social CRM Applications

Oracle introduced the new Sales Prospector on sales.com. Although this is focused on SFA (and there is so much more to social CRM and CRM 2.0...) this is a good first step and shows that Oracle is listening to its customers (or at least to the analysts :)

Technorati Tags: CRM 2.0, CRM Platforms, SFA, Oracle

[fun] ROI Charts

Sam Lawrence created some nice ROI charts :)
http://gobigalways.com/10-roi-charts-you-cant-live-without/

Technorati Tags: CRM 2.0, fun, ROI

Asking the right questions...

Carly Fiorina, ex HP CEO, says that good leadership requires asking the right questions:

I totally agree with that! And further it is important whom you are asking these questions... and like she says, the customer always knows that something is wrong. And even if a customer cannot exactly tell what - listening to customers is crucial to detect the need for adjustments and change. A good leader will know what to do from her/his experience even if it is not articulated correctly.

Having an outstanding leader saying this, emphasizes the need of a customer centered Corporate Strategy. This might be the essence of CRM 2.0...?

See also Christo Norden Powers book on Powerful Questions to learn how to ask the right questions - although this is more focused on a one to one environment. For a company, analytical CRM will deliver the answer (when having asked the right questions to the software :).

Technorati Tags: CRM 2.0, Leadership, Powerful Questions