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(c) 2000 Michele Bartram, Cook up a Bright Future in Customer Relationship Management… by passing the Grandma Test! Michele Bartram.

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Presentation on theme: "(c) 2000 Michele Bartram, Cook up a Bright Future in Customer Relationship Management… by passing the Grandma Test! Michele Bartram."— Presentation transcript:

1 (c) 2000 Michele Bartram, mjb@webpractices.com0 Cook up a Bright Future in Customer Relationship Management… by passing the Grandma Test! Michele Bartram Digital Diva/ E-business Evangelist, Senior Vice President, Commerce /Commerce Czar, Email: As Presented at the eCRM Summit, Carmel, California, May 17, 2000 Follow Grandma Sallys Traditional Recipes to bring in Real Customers and keep em comin back in a Virtual World

2 (c) 2000 Michele Bartram, mjb@webpractices.com1 AGENDA 4 Background 4 Real Requirements from Real People 4 Grandmas eCRM readiness tests and examples 4 Grandmas Recipes for eCRM success 4 Final Advice from Grandma 4 Resources

3 (c) 2000 Michele Bartram, mjb@webpractices.com2 How to create E-commerce for real people? 4 Q: How can you add online commerce that supports your user community and business partners yet helps real people solve real problems in their lives? 4 A: See where the bar has been raised in customer experience by: –analyzing the current Best Practices in eCRM and –adding your own new customer relationship functions to differentiate you from the rest.

4 (c) 2000 Michele Bartram, mjb@webpractices.com3 Fond Remembrances Back to the Future 4 In this age of impersonal technology, do you yearn for your Grandmas time before "cookie cutter" malls when… : 4 the store owner on the corner knew you, your family, and your tastes and set aside for you that special something he just knew youd like, 4 you could find merchandise that reflected your own individual needs and tastes quickly and easily (or the merchant did for you!), 4 you could get friendly, useful advice when and where you needed it, from the store clerk, other shoppers, family or friends, 4 the shopping experience was personal and friendly, and 4 you got service with a smile before and after the sale? 4 Do you... want all that, plus modern speed, access, selection, convenience and one-stop shopping?

5 (c) 2000 Michele Bartram, mjb@webpractices.com4 The New Customer is Really the Same Old Customer with a New Twist 4 Problem: Customers today want old-fashioned service where everybody knows your name and sound, neighborly advice, but also want new-fangled tools and convenience 4 eCRM Solution: Sail the Seven Cs –You must Combine relevant Customized Content, Community and Commerce to provide Control and Convenience. –With commerce based on her own stated preferences, she wont want or need to shop anywhere else!

6 (c) 2000 Michele Bartram, mjb@webpractices.com5 What is CRM? 4 TO YOU: Talking with not at customers and responding to their needs throughout your organizations lifecycle with them: –Acquire & Retain –Understand & Differentiate –Develop & Customize –Interact & Deliver 4 TO YOUR CUSTOMERS: You know me no matter where or when I deal with you. You treat me better the more you know me, and give me personal, friendly service.

7 (c) 2000 Michele Bartram, mjb@webpractices.com6 Why bother with CRM? Its the numbers*! 4 It costs six times more to acquire a new customer than keep an old one. 4 The odds of selling a product to a new customer are 15%, while the odds of selling it to an existing customer are 50%. 4 One dissatisfied customer typically tells eight to ten people about his or her experience. 4 70% of complaining customers will do business with the company again if it quickly takes care of a service snafu. 4 More than 90% of existing companies do not have the necessary integration of sales and service processes and systems to support e- commerce. 4 A company can boost its profits 85% by increasing its annual customer retention by only 5%! * Source: Sybase Customer Asset Management,

8 (c) 2000 Michele Bartram, mjb@webpractices.com7 Goals of eCRM 4 Reduce –costs of marketing 4 Improve –accuracy and relevancy of recommendations –customer satisfaction 4 Increase –conversion rate, i.e., Turn browsers into buyers –customer retention and frequency –order size –customer response –competitiveness through differentiation –profitability, ROI

9 (c) 2000 Michele Bartram, mjb@webpractices.com8 Customers Desires 4 Convenience: One-stop shopping, tools, online services 4 Relevance: all community, content, products and services around a topic 4 Simplicity: usability, ease-of-use 4 Choice: Selection of products/ services and way they are presented 4 Voice: Interaction with and responsiveness of merchant 4 Reinforcement: community, ratings / reviews 4 Safety: of credit card and other personal data 4 Control: over use of her private data, plus offers, content 4 Recognition: Remember and apply my unique name & preferences. (Ex. Women surveyed insisted they wanted to be known as unique not part of a group.)

10 (c) 2000 Michele Bartram, mjb@webpractices.com9 Customers Pet Peeves against online commerce 4 Opt-outs vs. opt-ins 4 Unsubscribes that dont work or are hard to find or use 4 Incomprehensible web design and check-out processes 4 Repeating themselves (e.g., retyping account numbers) 4 Not asking permission –Amazons dynamic recommendations –Spam and junk mail 4 Breaking promises (fast service, easy terms) 4 Treating them as part of a group, not an individual 4 Not allowing them to access and change their own data 4 Poor or non-human customer service

11 (c) 2000 Michele Bartram, mjb@webpractices.com10 Where to find a solution that all customers will find compelling? 4 Question: Who buys your products or services? 4 Answer: Real people, not manufacturers or marketers. –So, ask REAL PEOPLE what they really want. 4 I asked the wisest real person I know, my Grandma Sally from Kentucky, whos worked in the customer food service field for over 65 years, to advise me on what it takes to provide the best customer experience and keep em comin back for more. 4 All companies could learn from her 82 years of experience.

12 (c) 2000 Michele Bartram, mjb@webpractices.com11 Passing The Grandma Test To succeed in a future with eCRM, companies must pass the Grandma test and provide ease of use, safety, convenience, simplicity, and good value Follow along with my Grandma Sallys conventional Kentucky wisdom for customer- driven success and test your companys ability and readiness to walk the path of total customer relationship management.

13 (c) 2000 Michele Bartram, mjb@webpractices.com12 Grandma Sallys eCRM Wisdom 4 Like the egg teachin the chicken. 4 Squeaky wheels get the grease. 4 Know what side of the bread is buttered on. 4 Get it straight from the horses mouth. 4 Run it up the flagpole and see who salutes it. 4 Weve howdied, but we aint shook. 4 As nervous as a long-tailed cat in a roomful of rockin chairs. 4 They give advice by the bucket but take it by the grain. 4 Empty cans make a lot of noise. 4 If wishes were horses then beggars would ride. 4 Im busier than a one-armed paper hanger 4 My mind is like a sieve! 4 Dont buy a pig in a poke. 4 Grandma knows best. 4 One mans junk is another mans jewel. 4 Talkers aint doers.

14 (c) 2000 Michele Bartram, mjb@webpractices.com13 More of Grandma Sallys eCRM Wisdom 4 They made me as welcome as a roomful of Howdys. 4 Save a penny, earn a pound. 4 You like the apples more if you have to shake the tree. 4 Its as about as fun as watchin grass grow. 4 I feel like Im caught between a rock and a hard place. 4 Its as useless as two buggies in a one-horse town. 4 Beauty is only skin deep, but ugly is pure to the bone. 4 To hear a secret is human, to air it is divine! 4 One-size-fits-all dont fit nobody good. 4 Dont start choppin til youve treed the bear. 4 You dont know the worth of water until the well runs dry. 4 Dont muddy up the well that you get your water from. 4 Im so durned glad to be home, Im glad I went.

15 (c) 2000 Michele Bartram, mjb@webpractices.com14 Final List of Grandma Sallys eCRM Wisdom 4 You catch more flies with honey than with vinegar. 4 Make hay while the sun shines. 4 Call a shovel a shovel and start diggin. 4 He doesnt have enough studs for his dry wall. 4 Like a hog on ice. 4 You cant put one foot in two shoes at the same time. 4 There aint no time like the present. 4 There never was a road that didnt have a turn in it. 4 He who pays the fiddler calls the tune. 4 The post always wears out before a hole. 4 You cant put scrambled eggs back in the shell. 4 Stoppin at third base dont add no more to the score than strikin out. 4 No more chance than a grasshopper in a chicken coop.

16 (c) 2000 Michele Bartram, mjb@webpractices.com15 CUSTOMER KNOWLEDGE MUST PRECEDE STRATEGY FORMULATION Creating a strategy without knowing your customers is like the egg teaching the chicken.

17 (c) 2000 Michele Bartram, mjb@webpractices.com16 CUSTOMER SEGMENTATION 4 Squeaky wheels get the grease. –e.Piphany says there are 3 types of customers: Great customers, potentially profitable ones and eternally unprofitable ones. Many companies spend all their time, money and resources on unprofitable customers. Dont spend $ on poor customers, but on great customers and on developing your potential greats. Unless you measure this, you wont know. 4 Know what side of the bread is buttered on. –To find out who are your most profitable customers, what made them great and attract new ones like them, you must perform a customer segmentation study to assess their value to you and their preferences in products, services, advertising/ communications, etc. (Ex. US Mint, Unilever, credit card companies like American Express)US MintAmerican Express –Allow customers to self-segment but verify.

18 (c) 2000 Michele Bartram, mjb@webpractices.com17 Customer Segmentation Study Business Objectives Program Execution Segmentation Requirements Audit Enterprise Segmentation Lifecycle Segmentation Value Segmentation Other Segmentations Marketing Strategy / Master Planning Acquisition Models (Customer Profile, Response, Conversion) Retention Models (Retention, Lifecycle, Response) Growth Models (Cross-sell, Up sell) Marketing Solutions focused Business Intelligence focused Behavioral Segmentation Program Planning Customer Engagement Identify Opportunity Test Program Develop Program Measure & Analyze Implement Program Wrap-Up Source: Dialogos, Inc.

19 (c) 2000 Michele Bartram, mjb@webpractices.com18 RESEARCH & TESTING 4 Get it straight from the horses mouth. –You cant assume you know more than your customers. –Use focus groups for ALL web usability and new products and surveys for customer satisfaction and new strategies (current AND future customers). 4 Run it up the flagpole, and see who salutes it! –TEST, TEST, TEST constantly and consistently! –Use REAL users, not your own people, before, during AND after launching a new strategy. –Web-based research is fast and free and builds loyalty, so use it constantly as an integral strategy. –(Ex. iVillage Surveys and polls, Candies Trend Spotters )Candies Trend Spotters

20 (c) 2000 Michele Bartram, mjb@webpractices.com19 PROFILING, RECOGNITION & PRIVACY 4 INCREMENTAL PROFILING: Weve howdied, but we aint shook. –To overcome natural reluctance to give info to strangers, treat data gathering like a dating process, collecting data from and repeating learnings about the other person incrementally as you get to know her. –Allow self-profiling and personalization. (Ex. Travelocity )Travelocity 4 RECOGNITION: Dont make me repeat myself! –Extend this relationship by repeating data back to the customer in useful and meaningful ways. Dont make her repeat data entry. –Consolidate data across all touch points (Ex.Not AAA application.) 4 PRIVACY: Giving out my information makes me as nervous as a long-tailed cat in a roomful of rockin chairs. –Dont betray her trust by misusing it. Keep it safe No exceptions.. –Collect and use her explicit data only with express, advance, opt-in permission. –Let her know the source of her data when you use it, and let her access and update it from an easy, prominent user profile. (Ex. McAfee )McAfee

21 (c) 2000 Michele Bartram, mjb@webpractices.com20 HONESTY, LISTENING & CONVERSATION 4 HONESTY: Honesty is the best policy. –Only make promises that you can keep. Fess up when something goes awry. (Ex. IBM launched a splash page and coupon during site outage.) 4 LISTENING: Seems companies always give advice by the bucket and take it by the grain. –Listen and respond, not just talk. –(Ex. All managers and employees should have to work customer phones or email one day a month or quarter.) 4 VALUABLE CONVERSATION: Empty cans make a lot of noise. –Abandon old-style advertising speak in your copy. Customers see through it and dont believe it. Participate in real multi-way conversations and use a natural speaking style in your editorial. –Have something valuable to say when you speak. Encourage your best employees to chat with customers regularly. (Ex. )Dell.

22 (c) 2000 Michele Bartram, mjb@webpractices.com21 OLD-TIME CUSTOMER REQUIREMENTS: They Want It All If wishes were horses then beggars would ride!

23 (c) 2000 Michele Bartram, mjb@webpractices.com22 CONVENIENCE & REMINDERS: 4 CONVENIENCE: Im busier than a one-armed paper hanger! –Customers, particularly women, are busy! They prize convenience and short-cuts above all, even deals. –Combine all useful, essential functions, even from competitors. Create shortcuts. Provide data in all formats (Ex. My iVillage, My Yahoo!, My ZDNet, Switchboard, Amazons One-click.)My iVillage My YahooMy ZDNetSwitchboardAmazons One-click 4 REMINDERS: My mind is like a sieve! –Customers have a lot to do, and remembering to use your site may not be top of mind. –Use email, pop-up boxes, link to calendars/ reminders, calculators and other event and time-based triggers that the customer can set herself. Link to relevant commerce. –(Ex. Lifeminders, iVillage Reminders and newsletters. )LifemindersiVillage Remindersnewsletters. )

24 (c) 2000 Michele Bartram, mjb@webpractices.com23 DEEP PRODUCT RESEARCH & RECOMMENDATIONS 4 DEEP PRODUCT INFO: Dont buy a pig in a poke. –The higher the price, anxiety or confusion produced by a product or service the more research the customer requires. –Particularly true for women, and health, family and relationship matters, high- ticket items like cars, houses. Also for clothing care. –Make your customer know shes made the right choice by providing detail.Smart buys for smart women at iVillage Shopping Central.iVillage Shopping Central –(Ex. iBaby detail, ConsumerNet & ConsumerWorld)ConsumerNetConsumerWorld 4 RECOMMENDATIONS: Grandma knows best. –Highest rated requirement from women along with convenience is recommendations. Need help to sort thru choices, but not only from you! –Provide extensive ratings, reviews, recommendations and collaborative filtering to link customers with external experts and others like them to help them choose. (Ex. Amazon, CNET)AmazonCNET

25 (c) 2000 Michele Bartram, mjb@webpractices.com24 CONTENT, COMMUNITY & COMMERCE IN CONTEXT 4 COMMERCE IN CONTEXT: One mans junk is another mans jewel. –Ads or communications for products they dont want or need are considered junk mail or spam. –Let use determine what ads she sees when through context and explicit requests. (Ex. Tire ads in the Sunday paper: you toss them when you dont need tires, and are mad when you cant find them if you do need new tires.) –Non-targeted ads can cause severe negative reaction if randomly served to sensitive community or content areas. (Ex. Displaying random Baby ads near Infertility boards or junk food ads near diet area.) –Only display relevant ads or communications based on context (area of site) and customer permission (from her profile). –(Ex. Epicurious recipes with Williams-Sonoma ads)EpicuriousWilliams-Sonoma 4 CONTENT + COMMUNITY + COMMERCE –Display all related Commerce, Content and Community together, in context with the topic she is researching. (Ex. MSN Carpoint)MSN Carpoint

26 (c) 2000 Michele Bartram, mjb@webpractices.com25 COMMUNITY AND HUMAN TOUCH 4 COMMUNITY PARTICIPATION: Talkers aint doers –Customers want to talk with people whove actually used the product or service in real life. They may need additional support and learning to use your product or service, or knowledge on which to choose. Create support opportunities like chat, clubs, posts and discussion groups to aid utility. (Ex. iVillage Web Store Reviews, Fit by Friday discussion groups, CNET user posts)iVillage Web Store ReviewsCNET 4 HUMAN-TO-HUMAN CUSTOMER SERVICE: They made me as welcome as a roomful of Howdys. –SERVICE QUALITY OUTWEIGHS PRODUCT QUALITY! Customers will return to businesses with average but CONSISTENT quality if the service is outstanding. EX. Have you ever returned to a restaurant with great food and lousy service? No, but you keep going to one with okay food that treats you great. –Consumers want GREAT RETURN and GUARANTEE policies. Theyre more likely to take a chance on your unknown products or services if you do. –They also want to speak with a human being, not a machine, when they need help. Limit auto-replies to confirmations, not for involved service questions. –Include live customer service in all your plans, via live chat with a representative or phone service to differentiate and create absolute loyalty. (Ex. iVillage Personal Shoppers, WomenOutdoors live service)iVillage Personal ShoppersWomenOutdoors

27 (c) 2000 Michele Bartram, mjb@webpractices.com26 DEALS, TOOLS & ENTERTAINMENT 4 RELEVANT DEALS: Save a penny, earn a pound. –Women see (some) shopping as fun, with getting a great deal top in enjoyment. –Present offers that are in context and relevant to her needs (wants $ off vs. free trial, etc.) (Ex. E-centives customized, event-driven newsletters)E-centives 4 TOOLS: You like the apples more if you have to shake the tree. –Provide interactive tools, planners, calendars, registries to get the user involved in the buying experience. (Ex., iVillage Shopping Lists )TheKnot.comiVillage Shopping Lists 4 ENTERTAINMENT: Its about as much fun as watching grass grow. –While men seek out games as a primary activity online, women tend to want their fun and relaxation, their wanna dos, once theyve completed their gotta dos or errands. Content about their interests is counted as fun. –Solution: Include entertainment in your site, such as quizzes, polls, games, screensavers, etc. that complement your brand. –(Ex. US Mint Screensaver & games, iVillage Music Network)US Mint ScreensavergamesiVillage Music Network

28 (c) 2000 Michele Bartram, mjb@webpractices.com27 USABILITY & DESIGN 4 SIMPLICITY: I feel like Im caught between a rock and a hard place. –Keep the experience easy to use and adjusted to the users level of experience, such as a Grandma. (Ex. ) 4 USABILITY: A poorly designed web site is as useless as two buggies in a one-horse town. –In testing, some users couldnt even add products to shopping carts! Many got lost in navigation and abandoned carts or sites. Test all design in advance with real users, not your own people. New eyes see differently. 4 DESIGN VS. USABILITY: Beauty is only skin deep, but ugly is pure to the bone. –Dont allow design shops to add beauty in expense of utility. Research shows customers, particularly, want speed over beauty. Only make it pretty if you can do it without losing ease-of-use. 4 NOTE: Join www.CreativeGood.coms newsletter, and see their superb Holiday 99 Report. Also available to

29 (c) 2000 Michele Bartram, mjb@webpractices.com28 PERSONALIZATION One-size-fits-all dont fit nobody good CUSTOMERS WANT TO BE RECOGNIZED AS INDIVIDUALS, NOT PART OF A GROUP

30 (c) 2000 Michele Bartram, mjb@webpractices.com29 Evolution of Personalization 4 Identify customers individually and addressably. 4 Differentiate customers by value and needs. –Great ones, Potential great ones, Eternally unprofitable ones, –Personal Profile –Users Shopping Mode 4 Interact with customers (at reduced cost and increased efficiency). 4 Customize some aspect of your enterprises behavior on a general basis. 4 Personalize response for each individual customer.

31 (c) 2000 Michele Bartram, mjb@webpractices.com30 Micheles User Shopping Modes 4 The Speedy Hunter: Im looking for a specific product or service and I want it fast! Offer express Buy Now one-click buttons and full product search capabilities. 4 The Category Killer: I know I need something for myself in a category, like a white blouse or car tires. Help me find the best one. She needs categories and sub- categories and information about the options. 4 The Gift Giver: I need to buy a gift for my sister-in-law who wears size 8, likes powder blue and sunflowers, is a mother of a toddler, and I don't want to spend more than $50. Give me personalized recommendations based on these criteria. 4 The Impulse Buyer: I just have some money burning a hole in my pocket and want to spend it... let me "flip thru the catalog" or "browse the aisle" to see what I want. This person needs a fun online tour to simulate the browsing the aisle feel of a shopping trip or flipping through a physical catalog. 4 The Problem Solver: "I have a problem or issue and don't know how to solve it. Show me information and research about how others like me have solved it, and then give me product and service recommendations that match the solution I determine is the right one for me." This buyer needs detailed content, research, expert recommendations and products. 4 The All-in-One Buyer: Any one buyer may fall into one or all of these profiles in one user session.

32 (c) 2000 Michele Bartram, mjb@webpractices.com31 Types of Personalization 4 Environmental: demographic, geographic, psychographic –(Ex. customized to tween girl talk) 4 Preference-based personalization: user enters requirements 4 Collaborative filtering: recommendation engines 4 Behavior-based: on website, in store, with catalog 4 Rules-based: match offers/ content to fixed business rules –Purchasize: Offer fries with that burger 4 Analytics-based: pattern analysis thru segmentation –Offer salad to customers who are on a diet, not the fries

33 (c) 2000 Michele Bartram, mjb@webpractices.com32 What to Personalize 4 Search results 4 Product mix 4 Recommendations 4 Offers –Sales, discounts, bundles, cross and up-selling, pricing 4 Web pages 4 Email 4 Ads 4 Editorial voice 4 Personal accounts –Banks, clubs, etc. 4 Customer service –Specialists, type of service (phone, chat, email) 4 Fulfillment options –Shipping, billing, 4 Personal productivity tools –calendars –email –reminders

34 (c) 2000 Michele Bartram, mjb@webpractices.com33 Ways to Personalize Content 4 Search –By Keyword –By Attribute (Ex. Gift) –By Event –By Category –Full Text –By Preference 4 Collaborative filtering 4 Mass customization 4 Personalized tools- wish lists, reminders, calendars, calculators 4 Ratings: Community, Editors 4 Surveys and polls 4 Email & Ad Targeting 4 Entitlements 4 Event-based Matching 4 Alerts 4 Matching agents 4 Observation 4 Rule-based Matching 4 Personal web pages 4 User Profile –User-defined and controlled –Localization- language and geography

35 (c) 2000 Michele Bartram, mjb@webpractices.com34 STRATEGY 4 MARKET ANALYSIS: Dont take your ducks to a poor market. –Assess value of market youre attempting to win in and determine cost of entry and domination. Find a niche. 4 COMPETITION: If you cant stand the heat, get out of the kitchen. –Look at all competitors for your customers share of time as well as wallet, not only online but offline as well. –Determine the market gaps you can address to gain first or best mover advantage. 4 ALLIANCES: Feudin only benefits the undertaker. –If you cant beat em, join em. Create marketplaces of convenient, essential services from all over the web. (Ex. VirtualRelocation )VirtualRelocation

36 (c) 2000 Michele Bartram, mjb@webpractices.com35 BRAND VS DIRECT RESPONSE: Seeing is believing. vs. Put your money where your mouth is. 4 Measuring Clickthroughs undercounts branding success, yet overcount direct response. Know your goals. –Brand builders (Buy later): Buy Branding campaigns and measure CPMs only. –Direct marketers (Buy now!): use Click to Buy and measure conversion to sales. 4 Examples: –B-to-C: Direct response: online catalogs, banner ads or links with Buy Now. Branding: Sponsorships, articles, events, plain banners, all print or non-direct TV ads. –B-to-B: Direct response: Configurator tools, ordering Extranets. Branding: all print and non-direct TV, trade fairs.

37 (c) 2000 Michele Bartram, mjb@webpractices.com36 THREE PHASES OF CUSTOMER DEVELOPMENT 4 Acquisition: Attract new, profitable customers. –Differentiation, innovation and convenience 4 Enhancement: Make current customers more profitable. –Increased bundling, reduction of costs, improved customer service 4 Retention: Keep your profitable customers for life. –Delivering not what the market demands but what your customers want and more. –Enabling total listening and multi-way conversations between companies (including formerly isolated internal employee experts), customers, and trading partners.

38 (c) 2000 Michele Bartram, mjb@webpractices.com37 Customer Acquisition and Viral Marketing 4 CUSTOMER ACQUISITION: Dont start choppin til youve treed the bear. –Create differentiated offerings, particularly in convenience, to attract new profitable customers that are similar to your current best customers. 4 VIRAL MARKETING: To hear a secret is human, to air it is divine! –Use the natural tendency to spread the word (gossip) to your advantage. Incent customers to bring in others through recognition and rewards. –Ex. iVillage Send a Friend, Kira Points upon registration, user is told to get friends to sign up in exchange for Kira Points.Kira Points

39 (c) 2000 Michele Bartram, mjb@webpractices.com38 CUSTOMER RETENTION 4 RETENTION: You dont know the worth of water until the well runs dry. and Dont muddy up the well that you get your water from. –Spend generously to keep your best customers with superior service, rewards, and recognition. You cant afford to lose your great ones. 4 RECOGNITION:Im so durned glad to be home, Im glad I went. –Use integrated systems to remember your customer from all touchpoints. (Not done at AAA) –Make them feel at home with your business. (Ex. Hotel profiles, Hertz Gold Clubs, personalized home page ) 4 REWARDS: You catch more flies with honey than with vinegar. –Reward your best current customers differently than new ones. –Customers pet peeves include getting discounts for new subscriptions and none for loyal readers (Ex. Most print magazines give you discount when you sign up as new reader, then charge full price for renewal, penalizing loyal customers).

40 (c) 2000 Michele Bartram, mjb@webpractices.com39 IMPLEMENTATION You better make hay while the sun shines.

41 (c) 2000 Michele Bartram, mjb@webpractices.com40 STRENGTHS, INFRASTRUCTURE & FOCUS 4 BUILD OFF YOUR STRENGTHS: Call a spade a spade and start diggin. –Perform an e-CRM SWOT Analysis to assess Strengths, Weaknesses, Opportunities and Threats across all core areas of your business. Know your core competencies and build off them. Eliminate or downplay weaknesses that leave you open to the competition. –Blueprint your e-CRM project. Follow 9-step methodology once to map current business, then review what other best practices companies are doing at each step, then repeat 9-step to map your ideal e-business. 4 INFRASTRUCTURE: He doesnt have enough studs for his dry wall. –It takes time, money, people and integrated systems and processes to implement eCRM across the organization to create a Customer-Driven Enterprise (See chart). You cant afford NOT to do it, but do budget for it. 4 PRIORITIZATION: Companies who lack focus are like a hog on ice. –Most companies fail at eCRM by doing it all at once. Use a phased approach (see chart) and set the dominos up in order, knocking them down one at a time.

42 (c) 2000 Michele Bartram, mjb@webpractices.com41 9-Step E-Biz Blueprint Methodology Repeat 3 times to map Current, Best, & then Ideal Practices Customer Who are/should be your customers & what are their requirements and preferences for your organization in products and services? 1 drives Strategy 2 What are the e-business policies and differentiating set of activities that your organization needs to deliver a unique mix of value to customers? What customer needs should/ not you meet? Process What is the series of action steps, tasks & business rules that is required to complete the desired e-biz strategies and polices? 3 drives Organizational Structure What is the most logical grouping of jobs & individuals needed to support the business processes effectively? 4 dictates is comprised of People What skills,training, roles, authority, & incentives are needed to do these jobs? Include in-house and outsource jobs, with e-biz/ marketing, content/ design & tech. 5 Intelligence What intelligence (research, reports, information) is needed to allow people to analyze the results, predict the out- come or decide a course of action? 6 who need Automation What steps of these processes can be completed faster, better, or cheaper by using computers or equipment? 7 supported by Data What numbers, characters, images or other recorded information is needed to provide intelligence to make decisions? 8 supported by Technology What hardware/ software is needed to to best capture, store, process, & distri- bute data & automate the processes? 9 supported by 41

43 (c) 2000 Michele Bartram, mjb@webpractices.com42 Customer Relationship Management Strategic Development & Planning Market Intelligence & Research DEMAND Internet Sales RetailMail Customer Service Customer(s) Direct ChannelsIndirect Channels Information Management Product Management Channel Management MarCom Management Distribution Human Resources ManufacturingFinance Sales Intermediaries Distributors SUPPLY Operations dBase Customer dBase Channel Management Customer-Driven Enterprise (Source: Dialogos, Inc.)Dialogos, Inc 4 Significant integration will be required to become customer-centric. However, the resulting institutional base of knowledge will provide exponential returns.

44 (c) 2000 Michele Bartram, mjb@webpractices.com43 PHASED APPROACH: You cant put one foot in two shoes at the same time. 5 Core Areas of Business Transformation by Melinda Nykamp as seen on ITtoolbox Portal for CRM at

45 (c) 2000 Michele Bartram, mjb@webpractices.com44 eCRM Questions You Must Answer 4 Be a Customer advocate or unbiased infomediary? 4 Marketplace or monopoly? 4 Be a partner with your customers not an adversary? 4 Talk with your customers or talk at them? 4 Allow employees and business partners to talk to customers or control flow and content of info? 4 Multi-channel or mono-channel? 4 Mass customization (Levis) or one size fits all? 4 Personalization vs. collaborative filtering? –Personalization = customer told you explicitly what she wants (e.g., –Collaborative filtering = recommendations based on others likes and dislikes (e.g.,

46 (c) 2000 Michele Bartram, mjb@webpractices.com45 Big Decisions: Technology Architecture 4 Build, buy or borrow? 4 Create an enterprise-wide customer-centric architecture. 4 Choose technology based on strategy needs: –Attract new customers, e.g., Ad serving: Doubleclick, 24X7, Engage, AdForce, AdSense Incentives: Coolsavings, Ecentives –Convert visitors to customers Angara, Engage –Develop and retain customers Personalization: Broadvision, NetPerceptions, Personify, Epiphany, Siebel –Customer Service E-gain, Kana –Content-serving & customer interaction Vignette StoryServer; Chat tools like iChat

47 (c) 2000 Michele Bartram, mjb@webpractices.com46 eBusiness Architecture (Source: Dialogos, Inc.)Dialogos, Inc.) Customers Financial Systems Manufacturing Warehousing and distribution Order Entry WebE-mail Ad Mgmt E-commerce Engine Data Marts Observation Mart Order Mart Cross-sell Mart Segmentation Mart Intelligence Engine Reporting Engine Business Rules Repository Business Rules Engine Data and Rules Publication Analysis and Business Rule Developm ent Search Engine Web Server Mgmt & Reporting Fraud Detection Observation Server Content Mgmt Business Partners

48 (c) 2000 Michele Bartram, mjb@webpractices.com47 Final eCRM Advice from Grandma before shell buy from you

49 (c) 2000 Michele Bartram, mjb@webpractices.com48 ACT NOW: Doin Shouts, Talkin Whispers 4 Build a Unique Boutique –Ex., 4 Provide intelligent selection –Relevancy of offers and content –Ex. CircuitCity, (Broadvision) 4 Give Personal attention –Automated: Ex. NetPerceptions at –Human: Live customer help Ex.

50 (c) 2000 Michele Bartram, mjb@webpractices.com49 Ask but Dont Tell 4 Accumulate Detailed Data from all Media with Permission & Integrate 4 Require only progressive profiling = Gather data gently –Environmental data- geography, browser, operating system Ex. –Implicit data- keep private but inform: pages visited, purchases Ex. –Explicit data- collect incrementally and with advance permission Ex., 4 REMEMBER AND ACKNOWLEDGE ME!

51 (c) 2000 Michele Bartram, mjb@webpractices.com50 If It Aint Broke, Dont Fix It: Keep Applying Lessons Learned 4 Commerce in context drives buying 4 Personalization works –Sites using see 39% increase in bottom line Ex., (Broadvision), 4 Rewarding good behavior is effective –Ex. MyPoints, Ecentives, CyberGold, 4 Freshness Matters –Ex. At (using Broadvision), 120 contributors worldwide update site

52 (c) 2000 Michele Bartram, mjb@webpractices.com51 Learn your ABCs 4 5 Cs for Companies to attract Customers: Combine Customized Content, Community and Commerce 4 4 Rs for Providing Helpful Advice: Relevant ratings, reviews and recommendations 4 3 Ps of Choice for Consumers: They will select your product/ service for its Personality, Profile, and Performance

53 (c) 2000 Michele Bartram, mjb@webpractices.com52 Remember the person in personalization 4 Ask permission… and forgiveness if necessary 4 Explain why youve recommended something –You see this because you asked for this. Click here to change. 4 Give ownership and responsibility –Allow them to access and update their own data ( ) 4 People are not profiles –Combine what theyve done (implicit) with who they are (explicit) –Generate relevant offers that relate to her specific needs. (Ex. Amazon) 4 Nothing substitutes for a real human interaction –Use live, human service whenever possible –Connect customers with others with whom they want to link, such as affinity groups like clubs or families. (Ex. iVillage FamilyPoint clubs, Support groups)

54 (c) 2000 Michele Bartram, mjb@webpractices.com53 URGENCY WITH EXCELLENCE 4 URGENCY: There aint no time like the present. 4 FLEXIBILITY & CONSTANT CHANGE: There never was a road that didnt have a turn in it. 4 TURN YOUR COMPANY OVER TO YOUR CUSTOMERS: He who pays the fiddler calls the tune. 4 FOLLOW THROUGH TO THE END: The post always wears out before a hole. 4 RIGHT MOVER VS. 1ST MOVER: You cant put scrambled eggs back in the shell so get it right from the get-go. 4 GO FOR WOW: Stoppin at third base dont add no more to the score than strikin out.

55 (c) 2000 Michele Bartram, mjb@webpractices.com54 Grandmas eCRM Recipe For Success 4 Start with recreating the personal service with a smile and convenience of the past 4 Mix in futuristic speed and automation 4 Shake (your organization) well 4 Season to taste (of your customers through personalization and customization) 4 Bake up an online experience that Grandma will say is better than offline! –Serves 1 : 1

56 (c) 2000 Michele Bartram, mjb@webpractices.com55 The Moral of the Story: Grandmas know that companies who dont implement eCRM aint got no more chance than a grasshopper in a chicken house.

57 (c) 2000 Michele Bartram, mjb@webpractices.com56 CONTACTS 4 Email: 4 Phone: 917-326-4198 4 Download this eCRM presentation and others on blueprinting for your e-business success, and find e-business resources at my web site at: –

58 (c) 2000 Michele Bartram, mjb@webpractices.com57 RESOURCES NOTE: The following software applications and companies are listed for information purposes only and do NOT imply an endorsement of the companies or products or results that may or may not be achieved.

59 (c) 2000 Michele Bartram, mjb@webpractices.com58 RESOURCES: eCRM Software 4 eCRM Software: –E.PiphanyE.Piphany –BroadvisionBroadvision –NetGenesis: cross-co datamart and intelligenceNetGenesis –NetPerceptions: realtime personalizationNetPerceptions Ex., Ticketmaster, –Magnify - predictive modeling & segmentation clustersMagnify Ex.,

60 (c) 2000 Michele Bartram, mjb@webpractices.com59 RESOURCES: e-Commerce Software 4 E-Commerce Software: – Transact –Bea WebLogic Commerce: www.bea.comBea WebLogic –Trilogy Multichannel Commerce www.trilogy.comTrilogy 4 Customer Interaction: –

61 (c) 2000 Michele Bartram, mjb@webpractices.com60 RESOURCES: e-Business / eCRM Consultants 4 E-Business Blueprinting – – – Global Services E-business

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