What are the right metrics to track the success of a CRM initiative? I just updated my report on this topic for 2011. The report illustrates over 70 different metrics and describes how to link them to business strategies and tactics.
What’s new in the report? My clients are incorporating new measures into their portfolio. In addition to traditional operational metrics, they are adding externally focused customer perception metrics. In particular, I see a rise in adoption of voice of the customer (VoC) metrics and “social metrics”:
Forrester’s book Groundswell made the power of social media tangible with real-world examples and laid out a framework to help onboard organizations. However, many companies today still struggle to benchmark their social media journey, manage bottom-up social activities, and prove the ROI of social media activities. The new chapters published in the just-released expanded and revised edition of Groundswell highlight some best practices. Here are some of them:
Understand why you are embarking on the social journey, and connect social media objectives to the company strategy. Ask hard questions like “Will my social presence help move the customer satisfaction needle?”, “Will it help sell more products?”, and “Will it deflect costs from my service center?”.
Treat social media as another channel in which to engage customers. Customers still want to call you (a surprising 67% of the time), email you, and chat with you. Make sure that your processes, policies, and communicated information are the same across all channels — traditional and social.
Connect your social media efforts. There may be many social media technologies used within your company. Ensure that there is some level of coordination between internal organizations so that you can uphold a consistent experience and brand for your customers.
Start small and staff social media initiatives with existing employees who understand your customers and your business. This is important to help extend your brand — your DNA — to your social channels.
The emergence of ubiquitous high-speed broadband connectivity, smartphones, and tablet devices with enormous computing power and longer battery life, along with increased employee adoption of touchscreen devices (iPhone/iPad/BlackBerry) in every sphere of life, are all trends that serve to “liberate IT from the desktop.”
I am currently midway through a major research cycle on the topic, talking with CRM vendors, systems integrators, and end users. My goal is to define mobile CRM best practices and spotlight the pitfalls that can get in way of capitalizing on the mobile technology revolution.
I recently talked with Model Metrics, Wipro’s CRM consulting practice leaders, and Tata Consultancy Services’ CRM practice leadership team. These consulting and development firms are all doing a lot of mobile CRM projects for their clients. We brainstormed about the critical considerations that that must be addressed when defining a mobile CRM strategy:
Who are the intended users and targeted business community for mobile app use?
The Customer’s Bill of Rights: The Right to Choose
Customers know what good service is and expect it from every interaction they have with a company’s customer service organization, over all the interaction channels that the company supports. More often that not, they are disappointed, and are quick to voice their disappointment. And in this world of social media, this disappointment gets amplified — which leads to brand erosion.
Let’s focus on the way customers want to interact with your customer service organization:
Customers expect to interact over all the channels that customer service organizations offer, including the traditional ones like phone, email, and chat, and the new social ones like Faceboook and Twitter.
Customers expect the same experience over all the communication channels that they use.
Customers expect the same information to be delivered to them over any channel.
Customers expect to be able to start a conversation on one channel and move it to another channel without having to start the conversation over.
Customers expect you to know who they are, what products they have purchased, and what prior interactions they’ve had with you.
Customers expect you to add value every time they interact with you.
Customers expect you to offer them only new products and services that make sense to them and fit with their past purchase history.
NetSuite was kind enough to invite me to the analyst day at its SuiteWorld 2011 user conference — an event packed with product, strategy, customer, and partner information. The focus was clearly on its platform and ERP solutions. Here are my thoughts and takeaways:
NetSuite wants to ride the SaaS wave into the enterprise. NetSuite is the only SaaS-based ERP suite of scale. It reports that its data centers get 2.2 million unique logins and 4 billion customer requests a month. However, NetSuite wants to do better. It wants to take its well-tested and well-adopted solution in the midmarket and extend into the enterprise. The timing is right, as Forrester reports that enterprises are ready to consider SaaS-based ERP solutions. In fact, NetSuite reports that sales to enterprise customers increased 37% between 2009 and 2010.
NetSuite has a solution package targeted at the enterprise. NetSuite announced a new “Unlimited” package for about $1 million, which includes all modules, unlimited storage, applications, SuiteCloud customizations, subsidiaries, and unlimited users. The exact pricing is based on functionality and number of users (which starts at 500), and scales up from there. It is a package targeted to compete with traditional on-premise ERP vendors as well as SAP’s on-demand solution, Business ByDesign.
In the midst of all the buzz in the CRM space about “social” and “mobile” CRM spotlighted in my recent reports, I am observing another important trend. There is a convergence of customer relationship management (CRM) and business process management suite (BPMS) solutions to support better customer experiences and deeper customer engagement.
Our research shows that only 10% of companies deliver outstanding customer experiences. The laggards have a choice: They can either continue to whistle while passing the graveyard, or make a bold, sweeping stroke by focusing on deeper engagement with their customers. How? By taking a hard look at business processes that traverse organizational silos, bringing the back office closer to the front office while transforming strategic cross-functional processes.
Customer service managers in particular struggle to balance customer experience and cost: siloed communication channels, impersonal service, and an inability to enforce company processes or meet regulatory compliance negatively affect satisfaction and increase costs.
To resolve this dilemma, there is continued interest in traditional “record-centric” CRM solutions, but I also see more adoption of “process-centric” BPMS solutions. In fact, the characteristics of these two are converging in the latest releases from the respective vendors.
The right knowledge, delivered to the customer or the customer service agent at the right time in the service resolution process, is critical to a successful interaction. When done correctly, knowledge personalizes an interaction, increases customer satisfaction, reduces call handle time, and leads to operational efficiencies.
Embarking on a knowledge management project is hard. Concerns include:
Worries about cultural readiness and adoption. Many executives don’t understand how activities done by a knowledge team translate into real business outcomes and don’t support these programs with the adequate resources for success.
Concerns about making content findable. The best content is useless if it can’t be found when needed. “Findability” has to do with search technology, a solid information architecture, and giving users alternate methods to search for retrieving knowledge.
Questions about keeping content timely. Knowledge must be kept current, and new knowledge must be published in a timely manner so that it can be used to answer new questions as they arise.
Today, salesforce.com announced the intent to acquire Radian6, a leader in the social media monitoring space. You can find the details of the definitive agreement here. What I want to focus on is what this acquisition means to customer service.
First, the social listening vendor landscape is crowded and ripe for consolidation. Salesforce.com has just picked off the best vendor in this category of vendors, according to a recent Forrester Wave™ report. Radian6 helps salesforce.com extend its core customer service capabilities to the social channels like Facebook and Twitter, which are becoming increasingly important for companies looking to offer a differentiated customer service experience. This is not the first acquisition of this type; however, it is the most significant one, based on salesforce.com's market share and customer base. Expect to see similar acquisitions by CRM and customer service vendors in the future.
Ironically, while the CRM pundit hysteria about “social CRM” seems to be abating a little bit, many concrete use-cases are emerging that demonstrate the business value of the social web phenomenon. I just published a new report that defines the key characteristics of social CRM and provides examples of how Social Computing technologies expand the possibilities for delivering customer and company value through the key business processes of targeting, acquisition, retention, understanding, and collaboration. Forrester's annual Groundswell Awards provide over 130 examples of how organizations use Social Computing to engage and collaborate with customers in new ways.
Here are some highlights:
Customer targeting. Social media channels such as Twitter and YouTube and communities such as Facebook and Groupon offer new ways to communicate with customers through an Internet community context. And we now see the rising use of community-based market research techniques. For example, Godiva Chocolatier created a private, invitation-only community so Godiva could better understand its chocolate consumers. The community led Godiva to create an affordable product line, individually wrapped chocolates called Gems, and sell them in a new channel — grocery and drug stores. Gems was the biggest global launch ever for Godiva, ringing up $35 million in its first year.