Transform Business Processes For Breakthrough Customer Experiences

Blog post info and actions

Blog post body

I’ve just finished up several months of research digging into the best practices of how leading organizations aspire to implement outside-in, customer-focused, cross-functional processes that transform the organization and set it on the path toward continuous improvement. At the core of this trend is a desire by these organizations, especially in services industries, to domesticate their “untamed” or “invisible” processes that touch customers.

In talking with nearly 30 organizations, consulting companies, and solution vendors, I found that instead of deploying slow-to-change packaged applications or building difficult-to-change custom solutions, leading organizations are embracing business process methodologies — supported by process-centric IT platforms. They are striving to drive rapid process change, increased business engagement in IT projects, and achieve dramatic improvements in worker productivity.

In my new report, I define more than 30 best practices that organizations can use to support their transition to process-centric customer CRM. Here are few of them:

Read more

The Top Thirteen Customer Management Trends For 2012

Blog post info and actions

Blog post body

What are the key trends that CRM trends that business and IT professionals need to pay attention to in setting their plans during 2012? Here are the top trends that I am tracking. My full report that spotlights our latest research and recommendations for how to compete in The Age of the Customer will be published in late January.

1. Customer experience management will move beyond aspiration to strategy. More organizations will move beyond empty goals like becoming “customer-obsessed” to define clear and actionable customer experience strategies. The strategy must meet three tests: 1) It defines the intended experience; 2) it directs employee activities and decision-making; and 3) it guides funding decisions and project prioritization.

2. Brands will embrace the experience ecosystem. Firms will move to break free from their organizational silos, invest in understanding customer moments of truth through journey-mapping, and embrace the concept of the “customer experience ecosystem” — one that considers the influence of every single employee and external partner on every single customer interaction.

3. Experience management will emerge as a management discipline. There is increasing acceptance of the idea that customer experience management can be thought of as a discipline — a set of sound, repeatable practices such as those are defined in Forrester’s Customer Experience Maturity Framework.

Read more

CRM And BPM Solutions Converge To Domesticate Untamed Customer Processes

Blog post info and actions

Blog post body

I’ve just finished up several months of research digging into the best practices of how leading organizations aspire to implement outside-in, customer-focused, cross-functional processes that transform the organization and set it on the path toward continuous improvement. I found that these companies are moving from isolated business process management (BPM) and/or front-office customer relationship management (CRM) projects toward broader transformation initiatives across the organization. At the core of this trend is a desire by these organizations, especially in services industries, to domesticate their “untamed” or “invisible” processes that touch customers.

My report on the best practices for process-centric CRM will be published soon. A key finding is the growing convergence of data-centric CRM, BPM, and dynamic case management (DCM) solutions. The right mix of these solutions, of course, depends on the use cases you are designing for. For example:

Read more

Corporate Culture Clash Looms With Oracle’s Acquisition Of RightNow

Blog post info and actions

Blog post body

The acquisition of RightNow by Oracle makes sense for both companies’ CRM solutions strategies. Oracle wants to beef up its overall “cloud” portfolio. This is a strength of RightNow, one of the pioneers of the SaaS deployment model. It also needs a stronger play in the customer service sector — an area that salesforce.com targeted several years ago. This is the core domain strength of RightNow.

RightNow has had good success, posting strong growth over the last several years — but a $250 million software company found itself at an awkward size to compete against giants like Oracle, SAP, and Microsoft.

The big risk to this deal is that the corporate cultures of Oracle and RightNow could not be more different. Oracle’s bare-knuckle approach to sales and how it treats customers is the complete opposite of RightNow’s ethos of client centricity and flexibility.

Many clients that have chosen RightNow may not be happy to hear that Oracle is their new software supplier for customer service. And the employees at RightNow are likely to find working for Oracle an unpleasant contrast to Montana-based RightNow’s corporate ethos.

Are CRM Solutions Soon To Be Displaced By Dynamic BPM?

Blog post info and actions

Blog post body

As I mentioned in a blog post last April, in the midst of the buzz in the CRM technology world about “social” and “mobile,” I continue to see rising demand for customer management solutions that have a strong core of workflow and business process management capabilities. I call this phenomenon “CRM meets BPM.”

I have just launched a research cycle to delve into the topic more deeply and would very much like get your perspective on this trend.

This emergence of process-centric customer management solutions is being driven by an increasing recognition by companies, particularly in services industries, that if they want to deliver great customer experiences, they must learn how to get control over their “untamed processes” that touch customers.

My colleague at Forrester Craig Le Clair, who coined the term, says “untamed business processes form in the seams and shadows of the enterprise, require a balance of human and system support, and cross department, technology, information, and packaged application silos to meet end-to-end business outcomes.”

Classic untamed processes that touch customers in the financial services industry include all types of service requests, such as product change requests, customer onboarding, negotiated documents, proposals, product support, claims, underwriting, and loan origination. Another type is incident management — for example, dispute resolution, complaint management, and order exception management.

Here is the hypothesis that I am testing:

Read more

Four Ways To Deliver Breakthrough Customer Experiences

Blog post info and actions

Blog post body

Better customer experience drives improvement for three types of customer loyalty: willingness to consider another purchase, likelihood to switch business to a competitor, and likelihood to recommend to a friend or colleague. But how does that affect a company’s bottom line? Our models estimate that the revenue impact from a 10 percentage-point improvement in a company’s performance, as measured by Forrester’s Customer Experience Index (CxPi) score, could be in excess of $1 billion.

My colleague at Forrester, Megan Burns, spotlights in her research how companies are using best practices to improve their CxPi score and capture untapped revenue growth opportunities:

  • Create or enhance voice of the customer programs. Voice of the customer (VoC) programs help companies understand what customers want from their interactions and how customers think that current interactions stack up.
  • Implement customer-centric design processes. Too often, customer interactions are designed to meet business needs or are based on incorrect assumptions about what customers want. Customer-centric design processes solve that problem by putting well-researched information about customers into the right hands at the right point in the design cycle.
Read more

50 Best Practices For Implementing Mobile CRM

Blog post info and actions

Blog post body

“Mobile CRM” is a hot topic with my clients. 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 in every sphere of life, are all trends that serve to liberate IT from the desktop.

However, the state of mobile CRM solution support is fragmented. While there are platforms and solutions that cater to specific industries, no mobile CRM vendor currently offers out-of-the-box cross-industry functionality. The gap between the functionality available via desktop and mobile CRM applications is far from being bridged. And vendors sometimes adopt a single-device or single operating system (OS) strategy, limiting the range of devices and OSes available to companies.

To help define a path for navigating this complex landscape, I interviewed 25 CRM solution vendors, systems integrators, mobile solutions developers, and user compananies. My findings are summarized in a new report: Best Practices: The Right Way to Implement Mobile CRM.

A guiding principle for getting value out of “mobile” is to look for situations where you can integrate an mobile application into the normal execution of the day-to-day business processes of managers and frontline workers. Here are some additional tips:

  • Understand the opportunity to improve CRM and drive adoption. For example, will enabling workers to update the CRM system and tasks in real time throughout the day when they’re in the field — rather than doing it once they get back to their desks at the end of the day — make them more productive?
Read more

Welcome The Age Of The Customer — Look At Processes From The Outside In

Blog post info and actions

Blog post body

Josh Bernoff, one of Forrester’s leading analysts, spotlights in a new report that we have now entered the age of the customer.  Empowered customers are disrupting every industry; competitive barriers like manufacturing strength, distribution power, and information mastery can’t save you. In this age of the customer, the only sustainable competitive advantage is knowledge of and engagement with customers. The successful companies will be customer-obsessed, like Best Buy, IBM, and Amazon.com. Executives in customer-obsessed companies must pull budget dollars from areas that traditionally created dominance — brand advertising, distribution lockup, mergers for scale, and supplier relationships — and invest in four priority areas: 1) real-time customer intelligence; 2) customer experience and customer service; 3) sales channels that deliver customer intelligence; and 4) useful content and interactive marketing. Those that master the customer data flow and improve frontline customer staff will have the edge.

Read more

Add Voice Of The Customer And Social Metrics To Track CRM Success

Blog post info and actions

Blog post body

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”:

Read more

Adopt Mobile CRM Best Practices Now

Blog post info and actions

Blog post body

One trend in the CRM industry that is hot, hot, hot is mobile CRM. Mobile CRM solutions — the ability to use handheld devices to manage sales, sales contacts, and customer service activities — have clearly moved beyond their previous status as a specialized nice-to-have option and into the mainstream. Organizations are also rushing to find new ways to allow their customers to interact with them using consumer-owned mobile devices.

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?
Read more