We’re firmly in the age of the customer, where customers - not executives - decide how customer-centric their companies are. And while good customer experiences can help control costs, executives are more interested in their potential to fuel sustainable top-line growth.
Forrester defines CRM as:
The business processes and supporting technologies that support the key activities of targeting, acquiring, retaining, understanding, and collaborating with customers.
CRM is the foundational building block of a company's customer experience strategy to win, serve, and retain customers. It enables new business strategies, integrates to many technologies and is constantly rejuvenated by new trends. Here are 4 of the 10 trends that we see in CRM in 2017.
If you’re in a B2B environment, you’ve undoubtedly noticed the changing behaviors of your customers in recent years. As a result, technologies have shifted their focus to get closer to the customer and I'm not talking about just CRM or SFA. With a flurry of acquisitions and new entrants to the CPQ market popping up regularly, we decided to tighten the aperture and evaluate the top 11 CPQ vendors in The Forrester Wave™: Configure-Price-Quote Solutions, Q1 2017. These vendors do the most to address the rising, empowered B2B buyer. Below are some of the key findings from the report:
Customer and buyer experiences become a priority. CPQ is not about engineers. It’s not even about sellers anymore. CPQ is about the customer, and in this case that means both the end buyer of your products and the customers of your technology (indirect channels selling on your behalf) expect easy and effective interactions. CPQ is now a key enabler to delivering a high quality customer experience.
CPQ has no channel limitations. CPQ is not, I repeat, is not a back office solution anymore. It’s long addressed the needs of front line sales reps, and now it extends its functionality to all available channels. This means companies can extend the same business rules and logic to indirect channels (i.e. partners, dealers, distributors, etc.), customer service reps, eCommerce sites, and even emerging channels like IoT devices.
Field service technologies are more than two decades old. Companies have leveraged them to coordinate the flow of work orders that came in as service requests to the contact center. They were able to reap real ROI by using these technologies to schedule technicians, manage their routes and their flow of work.
Today, with the rise in importance of delivering differentiated customer experiences, field service technologies are become increasingly important. This is because, the service tech who ends up on your doorstep, or at the site of faulty equipment represents the face of your company. They are your brand ambassadors. These interactions are by far the most personal channel for customer engagement, and they can help make or break a relationship.
This means that: (1) you want to equip your service techs with all the information and data that they need to easily address the reported issue, and (2) you want to use cutting edge technologies to deliver great engagement. These technologies include:
Mobility for field service effectiveness - Companies communicate to field techs, increasingly via mobile apps, the location, timing, and details of their jobs. They also allow techs to provide dynamic pricing of labor, parts, and products. Mobile applications must be easy for techs to use, often with gloved hands, in challenging conditions including low lighting and hazardous job sites. They must also work in disconnected environments.
Last week, nearly 170,000 business and technology professionals descended onto San Francisco for Salesforce’s annual conference, Dreamforce. The event itself was ripe with discussions on social responsibility and charity, but most attendees, including myself, attended for other reasons. We wanted Salesforce to pull back the curtains on what it saw for the future of sales.
Once things got underway, Salesforce’s Einstein took center stage… quite literally. We’ll get to Einstein in just a bit, but not to be overshadowed by Einstein, Salesforce unequivocally made their keynote about sales. 2016 was a landmark year for Salesforce and their commitment to sales. They closed on their acquisitions of SteelBrick and Demandware, and used Dreamforce as the stage to rebrand them as Salesforce CPQ and Commerce Cloud respectively. So what does all this mean? It means that regardless of sales channel, Salesforce is fighting harder than ever to be your selling platform of choice… and they make a pretty compelling case.
Let’s take a closer look at the case Salesforce is making. To do so, we must understand Salesforce’s pillars of technology supporting sales.
Sales Cloud delivers core CRM functionality for sellers. Sales Cloud is the bread and butter for Salesforce. For many of its customers, Sales Cloud represents the foundation of technology enabled selling processes. From account and opportunity management to pipeline management and white space analysis, Sales Cloud helps sales and sales leaders strategize and prioritize their sales efforts.
Posted in collaboration with Richard Joyce and Joe Stanhope, with Melissa Parrish.
With 150,000 customers, Salesforce, one of the world’s largest providers of customer relationship management (CRM) technology, is a trusted steward of its clients’ first-party customer and sales data. In acquiring Krux, a data management platform that ranked as a Leader in Forrester’s November 2015 Data Management Platform Wave, Salesforce supplements its capabilities with more substantial analytics, artificial intelligence tools, marketing data, and digital audience capabilities and positions itself as a significant competitor to other marketing cloud vendors like Oracle and Adobe. This is a smart acquisition for Salesforce, as Krux is a well regarded vendor in the DMP space, and it fills in a increasingly obvious hole in their Marketing Cloud offering.
The Krux buy, came in at a reported cost of $700 million, according to the Wall Street Journal.just about double the cost to Oracle of BlueKai 18 months ago. The DMP aggregates, normalizes, segments, and syndicates data for approximately 200 marketers and publishers, making 1st, 2nd, and 3rd party data available for marketing and advertising .
Horizontal CRM solutions — as mature as they are (and they have been around for 20+ years) — don't always do a good job at supporting industry-specific business processes. Consider these examples: CRM users in manufacturing need capabilities to track projects, schedules, time sheets, labor efficiencies, and equipment inventory in addition to core CRM attributes. Alternatively, a real estate professional would like to use CRM to track not only client contact information but also additional data elements such as properties, lease/sales comps, and stacking plans, which illustrate how healthy a property is in terms of tenants and leases.
So, over the years, CRM vendors have built vertical market software applications from the ground up for specific industries. Historic, heavyweight on-premises applications — like Oracle Siebel, with 21 built-on industry verticals — are giving way to newer, more agile software-as-a-service vertical offerings that offer scripted best practices. And other vendors have taken a different tactic and developed lighter-weight systems of engagement to consolidate and visualize data from disparate systems to drive better decision-making. This leaves a CRM buyer with three options to choose from:
Companies use complex software from different vendors to support customer service operations. They use:
Queuing and routing technologies. They capture the customer inquiry, which can be via voice, digital, or social channels, and route and queue the inquiry to the right agent pool.
CRM customer service technologies. They enable customer service agents to create and work the incoming service request.
Workforce optimization technologies. They record agent interactions with customers, evaluate the quality of these interactions, recommend targeted training based on quality scores, manage agent schedules, forecast future schedules and more.
This week Microsoft announced a new offering (available in the Fall): Microsoft Dynamics 365. Sound familiar? It should. Office 365, Microsoft Dynamics CRM, and Microsoft Dynamics AX all come to mind, and this was not done by mistake. Microsoft is bringing together the capabilities from these products, their intelligence tools, and third party or internally-built apps from its newly launched AppSource. Microsoft will use Dynamics 365 to provide disaggregated applications that serve the functional needs formerly delivered through CRM and ERP suites (e.g. sales, service, marketing, operations, etc.) atop is a common application platform and data model.
So what is Microsoft looking to achieve with these changes? Well, business doesn’t end with a customer interaction, and delivering superior customer experiences doesn’t end at the front office. Front office and back office apps need to talk to one another to make sure companies are able to win, serve, and retain customers. Microsoft aims to:
Give employees access to the right data and tools to perform their jobs. By utilizing a common data model, Dynamics 365 will show a consolidated view of the customer, inclusive of transactional data. This consolidated view delivered in the context of business apps will provide marketing, sales, and service professionals the appropriate context and functionality to serve their customers.
Salesforce announced today their intent to acquire Demandware for $2.8 billion – its largest acquisition to date. This move adds commerce to its CRM portfolio. It's an acquisition long due, with the question of why it took Salesforce so long to fill their gaping hole in CRM functionality – commerce functionality that its formidable CRM competitors such as Oracle and SAP already have - and that Microsoft sorely lacks.
Demandware offers an enterprise cloud commerce suite (digital commerce, order management, point-of-sale, store operations), and together, in conjunction with other Salesforce clouds – marketing, sales, service, communities, analytics and IoT – allows companies to support the end-to-end customer journey which include scenarios like asking a product question during an online purchasing process, or purchase a purchase a product or service during an online customer service interaction.
The positives of this acquisitions are:
It's a software category with a bright future. The market for B2C commerce suite technology is mature, yet it is growing, and set to exceed more than $2.1 billion in the US alone by 2019. This acquisition allows Salesforce to tap into a growing market, and coupled with their IoT cloud, allows them to also explore personal, high touch retail experiences.
CRM technologies are more than two decades old. In the early days of CRM, companies leveraged these solutions to provide "inside-out" efficiencies - operational efficiencies for sales, marketing, and customer service organizations. CRM aggregated customer data, analyzed that data, and automated workflows for front line personnel. Companies could easily argue business benefits by measuring operational metrics that were important for the company - like reducing marketing costs, increasing revenues from salespeople, decreasing sale cycle times, better pipeline visibility, decreasing service resolution times, and more.
Today, being successful at CRM builds on yesterday's internal operational and extends the power of these solutions to better support customers through their end-to-end journey to garner their satisfaction and long-term loyalty — a “customer-first” or “outside-in” perspective.
Our data at Forrester shows that good customer experiences correlate to customer loyalty. And loyal customers are more willing to consider another purchase from a company, are less likely to switch business to a competitor, and are more likely to recommend to a friend or colleague – all dimensions that have a direct impact on top line revenue.