Today, Oracle announced that it will acquire Eloqua, a marketing automation firm. Oracle positions the deal as a comprehensive customer experience cloud that enables business to create an integrated, end-to-end process of marketing, sales, service, and support. I look forward to insight from my colleague Lori Wizdo on what the Oracle-Eloqua deal means for a marketing and sales alignment.
I think the deal has larger ramifications for the future of all customer relationship marketers and marketing vendors. Here’s my take on the deal:
Today, the gap between customers’ expectations and the service they receive can be huge. There’s an explosion of communication channels that customers use—voice, digital channels like email and chat, and social channels like Facebook and Twitter. There’s also an explosion of touchpoints, like smartphones, tablets, and self-service kiosks. Customers expect efficient, consistent, personalized service experiences across these channels and touchpoints.
There’s no denying that mastering the service experience is hard to do. Yet focusing on leveraging digital channels is one way customer service leaders can move the needle on customer experiences.
I recently spent a few days in Connecticut, USA, with Pitney Bowes. So why, you ask, is a CIO advisor who spends most of his time talking about the future of business technology in Asia Pacific spending time with a company that makes machines that stamp mail? That is a good question, and one I hope to answer while at the same time showing where I believe Pitney Bowes can help in your organisation.
So Pitney Bowes stamps mail. Yes — but they see it differently. They see that they enable communications with customers. Interesting. But mail is declining — right? Yes, it is, and Pitney Bowes has made many acquisitions to position itself as the leader in the digital mail space. And they have gone from just providing the communications capability to working across the entire customer lifecycle. Acquisitions of Portrait Software, MapInfo, Group 1 Software and many of the other firms they have acquired in the last 10 years have given them the ability to do:
- Customer profiling and segmentation
- Data preparation and composition
- Multi-channel customer output
- Customer response management
- Response analysis
There is no single metric against which to benchmark the performance of your customer service organization. It’s like flying a plane—you can’t do it by just looking at your altitude settings. This means that most organizations use a balanced scorecard approach, which includes a set of competing metrics that balance the cost of operations against satisfaction measures. For industries with strict policy regulations, like healthcare, insurance, or financial services, adherence to regulatory compliance is yet another metric that is added to the list.
The set of metrics that you choose also depends on your audience. Customer service managers need real-time, granular operational data. Yet your executive management team needs high-level data about key performance indicators (KPIs) that track outcomes of customer service programs.
So where should you begin when choosing metrics? It’s best to start by understanding the value proposition of your company. For example, do you compete on customer experience, where satisfaction measures are of primary importance, or do you compete on cost, where efficiency and productivity measures are most important?
Once you understand your value proposition, choose the high-level KPIs that support your company’s objectives. These metrics are the ones that you will report to executive management and include overall cost, revenue, compliance, and satisfaction scores. Next, choose the operational metrics for your organization that link to each of these KPIs and support your brand. For example, if you compete on cost, handle time and speed of answer will become your primary metrics. However, if you are focused on maximizing customer lifetime value, first contact resolution will rise to the top.
This is a guest post from Anjali Yakkundi, a Researcher at Forrester Research. It originally appeared on destinationCRM.
By now, everyone knows that engaging and dynamic customer experiences are a key competitive advantage, and “business as usual” will no longer suffice to support these engaging digital experiences. Organizations that don’t embrace this customer-focused thinking will risk missing out on important opportunities and will lose strategic advantages.
From a technology standpoint, the key to success will be integrated, best-of-breed customer experience management (CXM) solutions. This includes technologies such as Web content management (WCM), CRM, eCommerce, digital asset management (DAM), site search, and Web analytics.
We recently completed an evaluation of the DAM market. DAM is a key process-based solution that focuses on managing rich media content (e.g., videos, images, graphics, and audio). Despite the well-documented importance of rich media in cross-channel customer experiences (consider the amount of video and images on the Web or in marketing content now versus just five years ago), DAM solutions have long been overshadowed by other CXM technologies. These solutions have traditionally been relegated to niche, rich-media-heavy industries such as media, publishing, and entertainment. But as more and more organizations understand the importance of a cross-channel rich-media strategy to improve customer experiences, DAM for customer experience is experiencing a revival in interest across verticals.
SugarCRM was kind enough to invite me to its analyst day and conference — a three-day event packed with product, strategy, customer, and partner information. The firm’s focus was clearly on its momentum into the enterprise. Here are my thoughts:
The CRM market still has room to grow. Sugar used IDC’s numbers to project CRM market growth: $18.74 billion for 2012, $19.97 billion for 2013, and $21.37 billion for 2014. Even though CRM vendor solutions are mature, the CRM market has not stagnated.
The SugarCRM 6.5 product. Today, SugarCRM has 1 million users, has seen 11 million downloads, is used by 80,000 organizations, and has 350 partners on five continents supporting the product. Its newest release focuses on usability and performance enhancements. It offers simplified navigation, an enhanced UI design, a new search framework with integrated full-text search, new calendaring and scheduling capabilities, IBM platform support, and deeper integration with third-party apps. Although the product lacks advanced social features and robust analytics, it does provide solid, well-rounded CRM capabilities.
The open source focus. Open source is more than a movement. It provides results by allowing its 30,000-large developer ecosystem to evolve the product in line with customer demand. “Open” is also part of Sugar’s culture — for example, pricing is readily available on its website, and you can try the product for free.
Empowering customer service agents with relevant, complete, and accurate answers to customer questions remains one of the major challenges in contact centers today. The past 10 years have seen efficiency and productivity gains squeezed out of the mechanics of routing and queueing a call to the right agent pool, screen-popping the customer information to the agent’s desktop, case management, and workforce optimization. Less attention has been placed on allowing agents to access information and informally collaborate with one another. Its no wonder that more than 70% of the time of an average call is spent locating the right information for the customer.
In many contact centers, content is created by groups of authors who are disconnected from the day-to-day conversations that agents are having with customers and who are unfamiliar with the language and terms that customers use. All content follows the same basic create-edit-publish cycle, irrespective of its usefulness in answering customer questions.
Just over 3 months ago, I made note of three things I'd tell your CIO, all of which focused on your need to build a software development competency to help your firm thrive in this age of software-fueled, consumer-led disruption. Since then, we've heard from a number of clients stating that they're having a tough time convincing their executives, from COOs and CFOs through to CIOs, that they need to stop looking at software and app development as a commodity.
Vendors you work with aren't helping. System integrators and consultancies continue to tell your CFO and CEO to outsource your software development work to them, that they can deliver more quickly, and more cheaply, than you can. Software application vendors build their marketing around needing no customization, even "no software." This helps fuel the perception and myths many executives hold that software development, especially app dev, is a commodity.
Recent research published by Phil Murphy and survey data we recently collected in our Forrsights Software Survey, Q4 2011 can help you bust those perceptions and myths and help you show your executives the importance of software development.
In a conversation with Alex Bard, CEO of Assistly (now desk.com, part of salesforce.com), I learned a few interesting things about customer service solutions for small to medium-size businesses (SMBs): (1) Companies can be too small to have customer service organizations; (2) the main competition of vendors of SMB customer service solutions is not each other, but Post-It notes and Gmail; and (3) the service that SMB customers demand is exactly like the service that enterprise customers demand.
So what do each of these points mean?
Companies can be too small to have customer service organizations. Without a formal customer service organization, customer-facing personnel such as customer relations managers, CEOs, and marketing folks are on the hook to answer customer inquiries. These employees wear many hats, are on the road a lot, and communicate constantly with one another. And, more than likely, their companies also don’t have formal IT organizations. This means that customer service software must be tailored to a business user: easy to deploy, easy to configure, and supporting a multitude of mobile devices. Customer service software must also have built-in collaboration features, alerts, and notifications allowing personnel to quickly work together on a customer issue for quick resolution.
We live in a world of increasing complexity: an increasing number of communication channels, an explosion of social data, the intertwining of sales, marketing, and customer service activities, and a growing amount of information and data that customer service agents need to answer customer questions. These issues complicate the challenge of being able to provide customers the service that is in line with their expectations — service that keeps customers loyal to your brand yet that can be delivered at a cost that makes sense for your business.
Being able to deliver the right customer service involves: