How Bad Data Management Kills Revenue

Michele Goetz

I'm not one to normally publicly gripe on a vendor, but a recent customer experience with an online purchase is a great example of why organizations can't ignore data management investments.

I have been a regular user of a note-taking app for several years. All my discussions with clients, vendors, and even notes from conferences wind up here. I put in pictures, screen shots, upload presentations, and capture web pages. So it isn't a surprise that this note-taking vendor wants to move me up into a premium version. And for $50 a year, it's not a big deal for me to do even if it just means I'm paying for more space rather than using all the features in the premium package.

So, this morning, I click the upgrade button and voila! My order is taken and shows up in my iTunes account order history.

As this app is web-, desktop-, and device-based and the vendor is born out of the app age, the expectation is that my account status should just automatically convert. I mean, every other business app I have does this. Why shouldn't this one?

As it turns out, my purchased premium service is nowhere to be found. To get immediate support, as only offered in premium service, you need to be able to log in as a premium customer. So instead of an easy and quick fix, I spend over an hour trying to get answers through a support site that shows the issue but an answer that doesn't work. I also see that this is an issue going back for over a year. I try entering in my issue through "contact us" only to find that I get routed back to the support forum and can't even log a ticket. I find an obscure post where the vendor's Twitter handle for support is listed and fire off a frustrated tweet (which goes out to my followers as well, which I'm assuming is not something this vendor would prefer).

So let's break down the data management issue:

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It's time to fall back on the loyalty basics

Emily Collins

Blogged in collaboration with Samantha Ngo, Senior Research Associate, serving Customer Insights professionals.

As a kid, I loved going back to school. The beginning of September always meant new classes, new classmates, and of course new notebooks, pens, and pencils. And even though I’m not in school anymore, I still see September as an opportunity to turn over a new leaf, and approach things — both personally and professionally — with a fresh perspective. So, in honor of the first few weeks of Fall, let’s all take some time to study the loyalty basics. Process, while not the most exciting aspect of loyalty marketing, is necessary for building a sound foundation. Without processes, your ability to execute on your loyalty strategy is shaky at best and sudden changes to the market or unforeseen obstacles may leave you in disarray.

To avoid loyalty strategy failure, you must streamline processes around these three objectives:

  1. Building a deep understanding of customer needs and motivations. Loyalty starts with knowing your best customers and asking for their input. But, if gathering data from your customers, make sure you use it. They will expect it.
  2. Preparing for relentless adjustment. Digital business is booming, and loyalty can’t miss out on opportunities to innovate. Test and learn new customer engagement tactics on a small scale. Don’t be complacent with your strategy, but don’t over spend on improvements that won’t last.
  3. Establishing enterprise wide alignment. Do you know who your key internal stakeholders are? Identify them then build teams and processes to help create seamless customer experience.
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Is email dead? Perhaps in the SCRM world. If not, follow these email best practices

Kate Leggett

Consumers generally hate email for customer service - so much so that some analysts have said that email is dead, and has been replaced by the live assist channels like chat or SMS/MMS. Or in the new world, there is Twitter and customer service from Facebook.

Why does email get such a bad rap? It's because we don’t trust this channel – we have all had the experience of emailing a company’s customer service department and not getting an answer back. Or getting an answer that addressed only half of our question.

Email’s poor performance as a customer service channel is typically a result of the tool’s history.  These systems were typically deployed years ago and have had little care and feeding to maximize their productivity, or align operations to best practices.

Yet, customer service managers want you to use email. It’s a cheaper alternative than live-assist channels. And the automation features built into modern tools make email processing quick and reliable.

So, even with history working against you, if you are offering email to your customers, make sure it works. Follow these these basic steps to restore your customers' faith in this communication channel.

  • Make email part of your multichannel strategy - Don’t think of email as a siloed channel. Provide escalation pathways between your web self-service site and email, and be sure to have a single source of knowledge that is used across all your communication channels. That means that your customers will get the same answer across all touchpoints.
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Customer Service Vendor Spotlight: KANA Makes A Move

Kate Leggett

KANA Software, most well known for its suite of enterprise-class multichannel customer service software (email, knowledge) released last year a new type of solution: Service Experience Management (SEM). This product allows the extension of business process management to the front office and is poised to compete with solutions offered by Pegasystems and Sword Ciboodle. BPM coupled with customer service is a trend that Forrester is seeing, as it enforces agent consistency, productivity, and compliance with policy; we have just published a research paper about this trend.

KANA announced today that it has reached a definitive agreement to purchase a company called Lagan, which is a leader in case management solutions for government, specifically local governments. Lagan has solutions for Web self-service and case management that are used in cities like Toronto, Boston, and Vancouver for 311 (informational) calls.

This acquisition holds geographic coverage promise — it will allow KANA to increase its European footprint, which has recently been very small, and Lagan to gain a good foothold in the US and compete in larger government opportunities.

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333 Rule To Keep Your BI Apps In Check

Boris Evelson

Over the last 25 years in the business I heard my share of BI horror stories: “we have over 20 different BI tools”, or “we have a few thousand reports in our BI application”. BI is very much a self fulfilling prophecy – “build it, and they will come”. As we popularize BI, and as technology becomes more scalable, more stable, more function rich and user-friendly  - BI spreads like wildfire and often becomes uncontrollable.

I can’t help but to quote from one of my favorite books by a British author Jerome K. Jerome “Three Men In A Boat, To Say Nothing Of A Dog”. One of the reasons I love the book, in addition to it being one of the funniest novels I ever read, is that I can almost always find a very relevant humorous quote to just about any life or business situation. At the beginning of the book three British gentlemen are planning a vacation on a river boat. As they plan for how much food and supplies they should carry, they quickly realize that there isn’t a boat big enough to fit the dimensions of the Thames river to carry all that junk.

“How they pile the poor little craft mast-high with fine clothes and big houses; with useless servants, and a host of swell friends that do not care twopence for them, and that they do not care three ha'pence for; with expensive entertainments that nobody enjoys, with formalities and fashions, with pretence and ostentation, and with - oh, heaviest, maddest lumber of all! - the dread of what will my neighbour think, with luxuries that only cloy, with pleasures that bore, with empty show that, like the criminal's iron crown of yore, makes to bleed and swoon the aching head that wears it!

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BI In The Cloud? Yes, And On The Ground, Too

Boris Evelson

Slowly but surely, with lots of criticism and skepticism, the business intelligence (BI) software-as-a-service (SaaS) market is gaining ground. It's a road full of peril — at least two BI SaaS startups have failed this year — but what software market segment has not seen its share of failures? Although I do not see a stampede to replace traditional BI applications with SaaS alternatives in the near future, BI SaaS does have a few legitimate use cases even today, such as complementary BI, in coexistence with traditional BI, BI workspaces, and BI for small and some midsize businesses. 

In our latest BI SaaS research report we recommend the following structured approach to see if BI SaaS is right for you and if you are ready for BI SaaS:

  1. Map your BI requirements and IT culture to one of five BI SaaS use cases
  2. Evaluate and consider scenarios where BI SaaS may be a right or wrong fit for you
  3. Select the BI SaaS vendor that fits your business, technical, and operational requirements, including your tolerance for risk

First we identified 5 following BI SaaS use cases.

  1. Coexistence case: on-premises BI complemented with SaaS BI in enterprises
  2. SaaS-centric case in enterprises: main BI application in enterprises committed to SaaS
  3. SaaS-centric case in midmarket: main BI application in midsized businesses
  4. Elasticity case: BI for companies with strong variations in activity from season to season
  5. Power user flexibility case: BI workspaces are often considered necessary by power analysts
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Bottom Up And Top Down Approaches To Estimating Costs For A Single BI Report

Boris Evelson

How much does it cost to produce a single BI report? Just like typical answers to most other typical questions, the only real answer is “it depends”. But let’s build a few scenarios:

Scenario 1: Services only. Bottom up, ABC approach.

Assumptions.

 

  • Medium complexity report. Two data sources. 4 way join. 3 facts by 5 dimensions. Prompting, filtering, sorting ranking on most of the columns. Some conditional formatting. No data model changes.
  • Specifications and design – 2 person days. Development and testing - 1 person day. UAT – 1 person day.
  • Loaded salary for an FTE $120,000/yr or about ~$460/day.
  • Outside contractor $800/day.

Cost of 1 BI report: $1,840 if done by 2 FTEs or $2,520if done by 1 FTE (end user) and 1 outside contractor (developer). Sounds inexpensive? Wait.

 

Scenario 2. Top down. BI software and services:

Assumptions:

  • Average BI software deal per department (as per the latest BI Wave numbers) - $150,000
  • 50% of the software cost is attributable to canned reports, the rest is allocated to ad-hoc queries, and other forms of ad-hoc analysis and exploration.
  • Average cost of effort and services - $5 per every $1 spent on software (anecdotal evidence)
  • Average number of reports per small department - 100 (anecdotal evidence)
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Podcast: Transparency: The Next Step In Compliance

Craig Le Clair

Our latest featured podcast is Craig Le Clair's "Transparency: The Next Step In Compliance".

 

In this podcast, BP&A Principal Analyst Craig Le Clair advises listeners to prepare for the next regulatory onslaught. One way to do this, he recommends, is by converging BPM and BI.

 

 

We look forward to your questions and comments.

 

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SAP and TIBCO? Too Juicy Of A BI Rumor Not To Comment On

Boris Evelson

Boris Evelson By Boris Evelson

I typically don’t like to comment on rumors, but this one is too juicy (from the BI point of view) to pass by. Even though TIBCO’s business is primarily in application and process integration, enterprise service bus, middleware, messaging, etc., Business Intelligence implications of the rumored SAP/TIBCO merger are huge! By acquiring TIBCO SAP will get:

 

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Meet One-On-One With Forrester Analysts At Our Business & Technology Leadership Forum 2008

Sharyn Leaver

Consistently rated as one of the most popular features of Forrester Events, one-on-one meetings give you the opportunity to discuss the unique technology issues facing your organization with Forrester analysts. Business & Technology Leadership Forum attendees may schedule up to two 20-minute one-on-one meetings with the Forrester analysts of their choice, depending on availability. Registered attendees will be able to schedule one-on-one meetings starting on Monday September 15, 2008. Book early!

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