On Marketing Technology, Castles, And Moats

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Rob Brosnan

Over the weekend, an experience with Apple prompted me to think about marketing technology’s role in creating economic moats. According to Warren Buffet:

In days of old, a castle was protected by the moat that circled it. The wider the moat, the more easily a castle could be defended, as a wide moat made it very difficult for enemies to approach. A narrow moat did not offer much protection and allowed enemies easy access to the castle. To Buffett, the castle is the business and the moat is the competitive advantage the company has. He wants his managers to continually increase the size of the moats around their castles.

The moat around Bodlam Castle, a medieval castle built in 1385.

Apple’s retail presence is both a revenue engine and a cornerstone of its customer experience strategy. Retail pulls in average revenue of $10.8 million per store for Q3, 2011, generating the highest retail sales per square foot of all US retailers. Importantly, the stores guarantee the company a beachhead from which the company can educate consumers and resolve problems directly. For the quarter, 73.7 million people visited Apple stores.

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You Need Customer Engagement To Meet The Rising Expectations Of Empowered Customers

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Connie Moore

It’s The Age Of The Customer, according to Forrester Research and others who track and shape business trends.

Or is it???

Somebody please tell that to my health insurance company, which has annoyed me greatly this week. I’ve been receiving increasingly threatening letters from them, starting a few weeks ago just before I headed out for a long vacation. I didn’t think too much about it at the time but, a week after returning from vacation, I noticed the letters were now coming from a law firm. Yikes!  I called them.

Turns out, my physical therapy claims for a chronic condition were under scrutiny. Microscopic scrutiny. “Could it have been the result of an automobile accident, and the other driver was at fault?” they asked. Or “Were you injured at work and should be filing for worker’s compensation?” Or was it some other kind of accident with nefarious connections of some sort? The claims subrogration unit was on the case and determined to make another party pay.

Exasperated, I told them that it was for a chronic condition diagnosed several years ago and all the information was on file and up to date, since I regularly see physicians for that condition and had been referred by a physician to physical therapy. Then they asked me to spell out the condition. I had steam coming out of my ears at that point. Why bother to have a file about me if they aren’t going to look at it, make it available to people calling me, and keep it up to date? Could they have worked this into their process before sending threatening letters and calling me?

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Predictions And Plans For Business Analytics In 2011

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James Kobielus

I love reporters. As someone with an M.A. in journalism who then evolved into an analyst, I recognize that both professions occupy approximately the same tier in the industry food chain. In fact, many IT industry analysts were trade press reporters at one point in their careers, and it’s not uncommon for analysts to go back into media institutions later on.

When great longtime IT reporters, such as Computerworld’s Jaikumar Vijayan, call me up to get my thoughts, I’m just as interested in their take on what’s important. Jai recently published an excellent article with my predictions, plus those of another analyst, on the year ahead in analytics. To the jaded reader, these sorts of year-end look-ahead articles may feel like perfunctory rehashes of stuff we’ve been telling them for quite some time, perhaps with a trendy new buzzword thrown in to keep it remotely glance-worthy.

I try not to repeat myself too much. Rather than regurgitate the statements I made in the phone interview with Jai, I’ll highlight how I’m addressing the principal business-analytics trends that I discussed with him — self-service, pervasive, social, scalable, cloud, and real-time—in our 2011 Forrester research agenda:

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Want To Change Your CRM Game? Push Customer-Facing Processes Into The Social Cloud

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James Kobielus

As the year comes to a close, it’s good to put a wrap on it by reviewing all the shifts — both subtle and seismic — that have rocked the world of enterprise architecture (EA). I really enjoyed Gene Leganza’s recent look back — and look ahead — on the top 15 EA technology trends, and not just because he incorporated findings from my recent Empowered reports on social network analysis and analytics-driven engagement in multichannel customer relationship management (CRM).

You can read those Empowered reports to get a deep dive on how those trends evolved in 2010 and what we see on the horizon for 2011 and beyond. Fundamentally, Forrester considers deep customer engagement through social media as a hallmark of the leading-edge customer service operation. A growing range of companies have established social-media-based customer communities for service and support, involving various blends of social media, blogging, and other approaches.

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Use Advanced Analytics To Spotlight People Who Have The Biggest Impact On Customer Satisfaction

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James Kobielus

Community is an ideal toward which all social networks should aspire. In a true community, everybody is pulling for everybody else, sharing whatever assistance, expertise, and insight they possess with anybody who might benefit.

We all know that most communities are a bit more one-sided than that. In most communities, most people are essentially there for the ride, contributing little while benefiting from whatever resources the more generous among them have chosen to share. This is not necessarily a criticism of individuals or of society in general, but rather a recognition that as communities scale beyond close personal relationships, the bonds of reciprocity and altruism often grow weak.

This truism applies just as much to customer communities as to any other. Enterprises have avidly adopted social networks as virtual extensions to such customer relationship management (CRM) functions as call centers and user groups. In the new world of social-network customer communities leveraging blogs, Twitter, Facebook, and other channels, it is not uncommon that a handful of individuals post most of the useful content and feedback while the majority simply consume without contributing. And that’s fine, as long as you keep encouraging and incentivizing these actively engaged individuals —whom Forrester refers to as CRM highly empowered and resourceful operatives (HEROes) — to keep the useful content coming. In the final analysis, these are the sorts of individuals — expert customer service professionals, longtime customers, or even highly enthusiastic hobbyists — who can spell all the difference between true community and a haphazard scattering of nominally affiliated strangers.

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Key Data Analytics Projects For Building Your Process Optimization Program

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James Kobielus

Rome was not reinvented in a day. Your enterprise business processes won’t turn around overnight either. You’ll need to re-engineer processes while you continue to run an ongoing business concern — albeit one with many buried layers, some splendid ruins, and many construction projects that cause never-ending traffic snarls.

Business process optimization is not a project you can deliver in a fortnight, nor is it a specific architecture or business model. Rather, it’s an ongoing program under which you implement various transformative technical projects in order to enable greater agility, efficiency, and effectiveness throughout key processes.

What are the key components of a business process optimization program? Forrester recommends that you establish an ongoing initiative that involves all business stakeholders, at all levels in the organization. Just as important, you will need to establish tight collaboration between business stakeholders and the myriad change agents, business architects, process architects, business analysts, data stewards, and analytics professionals upon which the success of your optimization efforts depends.

Enterprises should establish cross-functional programs under which to prioritize business process optimization projects around the following key pillars:

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Advanced Analytics Help You Nurture Customer Service Excellence

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James Kobielus

Superior customer service is an ethos that pervades the best companies. Everybody who comes into contact with the customer must go that extra mile to make sure customers’ needs come first. Likewise, everyone in the back office must stand ready to swing into action to fulfill orders, resolve technical issues, correct billing anomalies, and generally ensure an all-around great customer experience.

If you’ve been paying attention to business management gurus these past 30 years, you’ve had the foregoing philosophy drummed into your heads. Chances are good that you’ve bought their books, attended their courses, and paid them big bucks to give pep talks at your corporate retreats. Leading management consultants have also brought you up to speed on what exemplar corporate case studies have done to become 100% customer-focused.

In other words, you’re in the choir and would greatly appreciate it if you weren’t being preached at quite so often. If you’re managing a company of any size, what you really want to know is how you can transform your organization into one of these customer-centric juggernauts without the secular equivalent of a religious conversion. Do you really need to subscribe to any particular consultant’s holy writ — or can you simply identify your more customer-focused employees, hold them up as shining examples, and encourage them to share their best practices with colleagues? Can you nurture superior customer service practices that spring organically from your current operations, while at the same time supporting these efforts by encouraging operational personnel to apply the latest information technologies (IT) in new and creative ways?

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Planes, Pains, and Multichannel Engagement

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Stephen Powers

Recently on a cross-country flight, I was just waking up when the flight attendant asked me what I wanted for lunch. She was a little annoyed because I kept her waiting while I  looked  through the magazine for food choices, and gummed up the whole works. And who could blame her for being annoyed? She had a whole bunch of people to get serve. I made a hasty selection and mistakenly picked the healthy snack box (organic pumpkinflas granola and apple slices instead of pepperoni and a chocolate chip cookie).

About an hour later, I had some serious hunger pains and would have killed for one of those old-school gummy chicken casserole airline dinners.

What would have solved this? A proper online engagement architecture, naturally. I usually print my boarding passes out ahead of time. So why doesn’t an airline print out the food choices under the boarding pass, or distribute via mobile devices as people increasingly use them for check-in? The airlines could provide other information, too, like how full the flight is, and whether NBC in the Sky will show something good like “The Office” or something not-so-good like “The Marriage Ref”.

So, what’s the problem? Content management and delivery systems aren’t unified.  There are all kinds of opportunities to present rich, consistent, engaging multichannel experiences by integrating technologies such as content management, customer relationship management, document output management, email campaign management, and others. But these are still siloed, due to legacy issues as well as market dynamics (there is no unified solution on the market).

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The Inside Scoop On How The CRM Vendors Stack Up

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William Band

The most frequent question I get every day is, “What is the best CRM technology solution for my company?” To respond, I worked with a team of five other Forrester analysts (Boris Evelson, Rob Karel, Jim Kobielus, Craig Le Clair, and Roy Wildeman) to evaluate 19 leading CRM solutions against more than 500 product feature, platform, and market presence criteria. Here’s a sneak peek at the key findings from two new reports: “The Forrester WaveTM: CRM Suites For Large Organizations”, and “The Forrester WaveTM: CRM Suites for Midsized Organizations”.

Oracle Siebel CRM and SAP CRM still offer the most complete solutions, with improved usability. SAP has been steadily working to fill out its CRM offering, resulting in end-to-end process integration support that no longer comes at the expense of missing CRM functionality. Meanwhile, Oracle Siebel CRM is still the most full-featured CRM solution, with a breadth and depth of functionality for many industry verticals. Both vendors have moved to address key complaints: poor usability, high cost, and long implementation times. Siebel 8.1 features the Siebel User Interface, which can be highly personalized and is task-driven. The SAP CRM 7.0 UI is flexible to support varying roles and offers drag-and-drop personalization that allows any section of any page to be rearranged by the end user. Both vendors are working to lower total cost of ownership (TCO) for their customers by introducing more preintegrations with other solutions from within their respective corporate families and offering “rapid implementation” methodologies and tools to reduce upgrade costs.

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Social CRM: Yes, It's the Real Deal, But That Hand's Still Being Dealt

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James Kobielus

In the continuous hype cycle that is all things tech, “social” has become the latest flavor of everything. 

For sure, we as IT industry analysts are major players in this cycle, albeit sometimes inadvertently. Even when we individually attempt to provide sober, nuanced, balanced, fact-based discussions of some new “social” this-or-that, we’re often stoking the popular mania. The bottom line is that yet another analyst is paying attention and tweeting thoughts on some trendy “social” topic. This fact can and often does get wrenched out of context and escalated wildly in the minds of some people who follow us. 

Social CRM is still climbing the hype curve, and events such as this week’s Forrester CRM Jam on Twitter (#CRMjam, Wed. March 24- 1-3 p.m. USA EDT) will undoubtedly fuel that combustion. Of course, yours  truly contributed to the buzzing conversation last week with this blogpost on the analytics component of social CRM. I hope you found that discussion useful—with enough new information to help you align social CRM with your analytics initiatives. 

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