Kate Leggett, Vice President, Principal Analyst WEBINAR Ten CRM Trends For 2016 And Beyond That Will Earn You Loyal Customers Kate Leggett, Vice President, Principal Analyst March 21, 2016. Call in at 12:55 p.m. Eastern time

Agenda The current state of CRM Ten CRM trends for 2016 What this means

Agenda The current state of CRM Ten CRM trends for 2016 What this means

Customers control the conversation that they have with businesses Source: “The CIO’s Blueprint For Strategy In The Age Of The Customer” Forrester report

Good customer experiences are good for business Retention loyalty Enrichment loyalty Advocacy loyalty The likelihood that a customer will keep existing business with the company. The likelihood that a customer will buy additional products and services from the company. The likelihood that a customer will recommend the company to others. Source: “What Drives A Profitable Customer Experience” Forrester report

The CRM software category was a $24B category in 2015. Two thirds of companies use CRM as a foundation for customer engagement. The CRM software category was a $24B category in 2015. It is projected to grow by 20% in 2016 and 13% in 2017. Source: “The Business Applications Landscape 2016 To 2020: SaaS Disruption And Vendor Proliferation” Forrester report

But, CRM success can be elusive Source: “Benchmark Against Best Practices To Optimize CRM Performance” Forrester report

CRM is purchased for the wrong reasons CRM provides: Better customer visibility Better pipeline management More efficient service Better campaign targeting Better management reporting CRM is sold: As a list of features and functions To better support an organizational silo How is CRM supporting a customer trying to get something done?

What is the future of CRM? Source: “Navigate The Future Of CRM In 2016” Forrester report

What is the future of CRM? Source: “Navigate The Future Of CRM In 2016” Forrester report

Agenda The current state of CRM Ten CRM trends for 2016 What this means

No. 1: Companies will make self-service easier 75% say that buying products or services for work from a website is more convenient than buying from a sales representative. Source: “Brief: Systems Of Engagement Take Center Stage” Forrester report

84% use help or FAQs on a company website or mobile website — more than any other channel. Source: “Brief: Systems Of Engagement Take Center Stage” Forrester report

No. 2: Companies must support the customer through their journey CRM categories are blurring Source: “Death Of A (B2B) Salesman” Forrester report

No. 3: CRM is componentized Marketing Customer service Sales

Example: An ecosystem of tools is used by sales Source: “CRM Sales Automation Software For Every User” Forrester report

What is the future of CRM? Source: “Navigate The Future Of CRM In 2016” Forrester report

No. 4: Companies will tackle untamed processes to influence outcomes Source: “Smart Process Apps — One Year Later” Forrester report

No. 5: The CRM ecosystem verticalizes and fragments 5,000+ users 1,000 users 500 users 100 users 10 users Enterprise Increased verticalization Increased fragmentation Midsize Small

No. 6: Analytics power offers, decisions and connections Predictive engagement Understand the quality of leads Pinpoint the right prospects Recommend effective sales collateral Streamline the sales process Connect the salesperson to the right contact

Pinpoint the right hire Pinpoint target market Predictive engagement Understand the quality of leads Pinpoint the right prospects Recommend effective sales collateral Streamline the sales process Connect the salesperson to the right contact Identify cross-sells and upsells Pinpoint discounting thresholds

No. 7: Companies will operationalize insights from connected devices Image source: SlideShare (http://www.slideshare.net/)

What is the future of CRM? Source: “Navigate The Future Of CRM In 2016” Forrester report

No. 8: Our world is tipping to a subscription economy Relationships are becoming more important Image source: Zuora (https://www.zuora.com/) Product focused Relationship focused

Companies must support the customer’s journey with your product during their life cycle Recognizing expansion opportunities Converting trials Onboarding Driving adoption

No. 9: Companies will use feedback to strengthen the customer bond Email Forums Phone Web Social Customers and agents work virtual bookmarks Linked In activity Forum Posts Service manager Derive Insights Analyze Collect Improve Behavioral data Interaction Content utilization People performance Experience effectiveness

No. 10: CRM will empower workers to concentrate on relationships, not tool sets

Agenda The current state of CRM Ten CRM trends for 2016 What this means

What this means

Kate Leggett Vice President, Principal Analyst kleggett@forrester.com Twitter: @kateleggett

Selected Forrester Research February 3, 2016, “Navigate The Future Of CRM In 2016” February 1, 2016, “The Business Applications Landscape 2016 To 2020: SaaS Disruption And Vendor Proliferation” January 19, 2016, “Benchmark Against Best Practices To Optimize CRM Performance” September 12, 2014, “The CIO’s Blueprint For Strategy In The Age Of The Customer” June 27, 2014, “What Drives A Profitable Customer Experience” May 16, 2014, “Brief: Systems Of Engagement Take Center Stage” December 10, 2013, “Smart Process Apps — One Year Later”