Transcription

Top 5 CRM and CEMresources of 2013

Top 5 CRM resources of 2013We’ve entered an era where glowing praise or scathingreviews can be instantly viewed by millions of consumers,and companies have taken note.ContentsBut how exactly are companies tackling this new challenge?Salesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureInside, read core strategies and customer experiencemanagement best practices that businesses are currentlyapplying to their CEM.Five customerexperiencemanagement lessonslearned from 'BreakingBad'Salesforce vs. Siebel faceoff: Salesforce inventing CRM’sfutureBy Denis PombriantNew contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesThis is one side of a Salesforce vs. Siebel debate. The other side argues thatOracle Siebel is a more established, more versatile product.Coke or Pepsi? Ford or Chevy? Betty or Veronica? Siebel or Salesforce? Ifonly it was that easy.Truth be told, I have done consulting work for each company in my careerand have been impressed with the products, the people at both companies(they tend to migrate) and the seriousness that they apply to their missionsas customer relationship management vendors.Perhaps the best way to understand the comparison is not to start withfunctionality but with the markets each company serves. The markets looksimilar but are vastly different. Both companies court sales in small, mediumand enterprise spaces. Because Siebel has been around longer, it becamethe early standard in the client-server era, and the company has worked formany years to upgrade from that platform to something more social andmobile.On the other hand, Salesforce.com practically invented cloud computing -- itcertainly marketed it into existence. So Salesforce has a more moderninfrastructure, especially given the multi-tenant back end.Page 1 of 22

Top 5 CRM resources of 2013ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesThese facts determine the kinds of customers each company attracts, andthey drive long-term decisions about product evolution. Siebel (and I meanOracle) has an older customer base and a more conservative one too. TheSiebel customer is more likely to have started life in client-server and movedone upgrade at a time to a browser interface.Today, each company has customers up and down the ladder, but Siebel isthe one that tries to move customers into the future of computing, whileSalesforce is the product already there and, to be fair, is inventing a lot ofthat future.Siebel is the older solution, and its customers have dug in deeply, installing,tuning, using and maintaining their implementations in many cases for morethan a decade. The talk at Siebel quickly gets into the bits and bytes ofschema, performance tuning and other geeky topics. Customers areinsulated from much of that in the Salesforce world and the perception isthat Salesforce is easier to use.Salesforce is the solution that companies access from the cloud, pay for bythe drip and manage. Unless a Salesforce user is into the procedural logic ofthe applications (or is building one from scratch), he or she will encounterthe front end of the Salesforce application and probably not much else.Both companies offer social and mobile products that are quite good. Butthe impression I get is that Siebel is trying to apply social to its applicationsand business practices, while Salesforce has already embedded it. That is abig difference and it goes directly to the platform underpinnings. Siebel hasthe Oracle Fusion platform for development and, over time, the applicationssuite will be completely rewritten in Fusion. Kudos to Oracle for makingFusion an optional approach for now, which gives users plenty of time toequilibrate. However, there is also some concern over Fusion's fitness, butthat will diminish with a few well-publicized successes.Salesforce has, almost from the beginning, exposed its platform and API forcustomization and de novo development and, as a result, it has north of1,700 partner applications sharing the same schema, tools, socialinfrastructure and login. So, to net out the situation, Siebel is built on thePage 2 of 22

Top 5 CRM resources of 2013premise that the customer will have a significant IT staff to keep it runningand to continue servicing the many customizations each user makes.ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesPage 3 of 22Salesforce is, at least in some ways, more standardized and that gives it asimpler operational profile. The company continues to gain share even inplaces where Oracle and other vendors are strong, especially in theenterprise. Some of Salesforce's marquee enterprise customers of late havemany other products installed including Oracle, Siebel and SAP. But whendecision-makers reach a point where they want to develop something suchas Web applications in Heroku or social apps like the ones at GE, Coke andToyota, Salesforce is making important inroads.That reveals an important advantage for Salesforce. The company now hasthe capability to surround older systems with modern cloud, social, mobileand other technologies. As a result, Salesforce can continue to chip away attraditional deployments one application or department at a time. This ismuch the same strategy we see today in ERP where Microsoft, SAP andNetSuite are promoting two-tier ERP strategies that keep the old installedsystems in place at headquarters but where all new development anddeployment in the regions is done on modern cloud platforms.Siebel is a product for more conservative organizations that are familiarwith the IT paradigm of the late 20th century. They are at home withversion releases, their applications and their business processes. On theother hand, Salesforce is the product of the clean slate. It is the product thatyou might throw away your conventional system for because it is such adeparture from late 20th century standards; its adherents are more likely tobe those who are comfortable with taking a judicious risk because with riskcomes reward. Salesforce customers, more than any others, are inventingthe future, inventing new business processes and often reinventingthemselves.

Top 5 CRM resources of 2013Five customer experience management lessons learnedfrom ‘’Breaking Bad‘By Lena J. WeinerContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesThe plight of chemistry teacher turned drug kingpin Walter White onTV's Breaking Bad can help businesses learn a great deal about customerexperience management, according to one software vendor.The incredibly popular television show Breaking Bad ended its run thismonth and for anyone living under a rock during the past half-decade, thepremise of the show is simple.After a sudden diagnosis of terminal cancer, the underpaid andunderinsured high school chemistry teacher, White, played by BryanCranston, chooses to make extra money by cooking and sellingmethamphetamine. With the help of a former student, Jesse Pinkman,White progresses from a simple, earnest man trying to take care of hisfamily to a tough, hard-hearted Machiavellian drug kingpin.There are many parallels between White's business and more mundane,above-board businesses, according to Kimberly Samuelson, director ofenterprise content management (ECM) strategy at Laserfiche, a companythat develops ECM and document management software."Walter White had founder syndrome," said Samuelson. "He was a geniusand a bit of a narcissist. He was really good at cooking crystal meth and hada lot of ego and pride wrapped around it.”Organizations that are interested in doing customer experiencemanagement correctly have some things to learn from Mr. White -- andshe's not talking about going back for a second dose of high schoolchemistry or drugging up your customers. Samuelson weighed in on fivecustomer experience strategies that Breaking Bad got right.Page 4 of 22

Top 5 CRM resources of 20131. Have a great productContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologies"Have a category killer," Samuelson said. "Walt's crystal blue methwas a very unique product no one other than Walt -- and later Jesse -could build."In the business world, a comparison would be to offer a product thatno one is truly capable of imitating -- for example, the StarbucksCorp.'s Frappuccino. Many have attempted to copy it, but somehowthey never quite capture the Starbucks experience.2. Provide flexible customer service and have an agile productRespond to the changing needs of your customers and the changing marketconditions. Walter White's trademark blue meth came into existence whenthe protagonist was unable to procure a key ingredient in the manufactureof methamphetamine: pseudoephedrine. Instead, Walter and Jessesubstituted methylamine, which contained a blue dye. While it slightlyaltered their product, it also meant that they were able to keep meetingtheir customers' needs, which kept the customers happy.Respond to the emerging trends of your clients by, for example, staying intouch with them using multichannel customer service and social mediamarketing.3. Be consistentIf a Breaking Bad meth head or drug dealer bought "Heisenberg's bluestuff," they knew they'd be getting a high-quality product each andevery time, proving that consistency is of key importance. This is truein the legitimate business world as well. A consistent product appealsto most customers. When people go to McDonald's, they can beassured that the Big Mac they purchase and consume today is goingto taste exactly the same as the Big Mac they bought yesterday -- orfive years ago. McDonald's Corp. intentionally tries to keep itsproduct consistent, because that's what their customers have cometo expect.Page 5 of 22

Top 5 CRM resources of 20134. Be responsive and have a far-reaching distribution channelContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesDistribution was always difficult for Walter, as it is for most sellers of illegalproducts. This issue eventually led him to team up with Gus Fring, who usedhis chain of chicken restaurants to help distribute the meth.Most legal business people don't have to worry about hiding behind a frontcompany to distribute their product. But it's important to ensure thatcustomers find ordering a product and contacting the organization easy.The usability of a website, ease of reaching a customer servicerepresentative and convenience are all factors that customers weigh whendeciding which companies deserve their loyalty. If customers feel it'sdifficult to get in touch with a drug cartel, or a legitimate company, they willlikely look for a more responsive and more professional organization.5. Keep employees happy"Walt, in his own sick way, always took care of Jesse," Samuelson said. Sure,Walt poisoned someone near and dear to Jesse and made it look like Gusdid it. But he also protected Jesse from Mexican drug lords and saved Jessefrom the horrors of addiction and the Aryan Brotherhood. Now there's aboss who goes the extra mile for employees.Employee engagement has increasingly become an indicator of customersatisfaction. Customers can tell if employees aren't happy in their jobs, butthey can also tell when they're enthusiastic and happy. Some companies,like Zappos, pride themselves on employee involvement and allowing thestaff -- both customer-facing and otherwise -- to just be themselves andhave fun at work. Additionally, providing training and a career path formotivated employees are great ways to ensure that employees feel like theybelong.Breaking Bad offered some great insight into the business world and lessonsanyone in any industry can take advantage of. The most important lesson,though? Do what you're good at. "Cooking meth is a lot like cooking eggs,"mused Samuelson. "There are a lot of ways to cook them, but it takes aPage 6 of 22

Top 5 CRM resources of 2013special chef to prepare them as a soufflé that will be awarded threeMichelin stars. Walter White would be that chef."ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesNew contact center metrics recommended to fit newcustomer channelsBy Aaron LesterIn the world of contact centers, the telephone has always reigned supreme.No other channel has rivaled its efficiency and power.But times are changing fast, and the metrics measuring agent and contactcenter performance must change with them if businesses are going todeliver the best possible customer experiences.Within five years, the number of social media interactions at contact centerswill be equal to the number of phone interactions, according to a newreport released by DMG Consulting LLC in West Orange, N.J. Of those socialinteractions, 70% to 80% will be service-oriented and require attention, thereport said."Contact centers are more than just about handling phone calls," saidDonna Fluss, president of DMG. "But many are still struggling with how tohandle all the new channels."Breaking from the pastPart of the struggle for contact centers is how best to use agent metrics toensure efficiency, productivity and quality in contact centers as more andmore customers use new channels to meet their customer service needs.Not that long ago, a call center -- as it was known -- fielded only telephonecalls from customers who had concerns about a product or service. Withonly one channel to measure, a call center agent's performance wasmeasured by time per call, how many calls handled a day, a customersatisfaction score and other hard data.Page 7 of 22

Top 5 CRM resources of 2013Now, as the name implies, a contact center uses many technologies toconnect with customers. As a result, contact centers not only analyze phoneinteractions but also email, chat and social media exchangeson Twitter and Facebook to gauge an agent's performance.ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesBut just like phone calls, Fluss said, these new customer interactions shouldbe treated like formal channels with formal key performanceindicators (KPIs) applied to agents who handle new customer channels.(KPIs evaluate factors that are crucial to the success of an organization, andthese can differ per organization. In business, for instance, KPIs may be netrevenue or a customer loyalty metric, while government might considerunemployment rates.)"Some KPIs can be applied to multiple channels, and some are specific tosocial media," she said.New contact center metricsThe metrics that gauge social media and other new channel interactions,however, are fundamentally different from those used in traditionalcustomer care, and each should be used accordingly, said Vit Horky, cofounder and managing director of Brand Embassy Ltd., a customer serviceconsulting firm with offices in London, Prague and Berlin.Contact centers should apply a set of KPIs for customer care that includesnot only traditional customer service metrics, like first-response time,solution time and volume of conversations, but also social media-specificmetrics, Horky said. Those include resolution ratio (the number ofconversations solved in a public space versus those turned into privateconversation) and sentiment analysis (the number of positive versusnegative social comments).But because many businesses haven't incorporated new channels under thecontact centerumbrella, these channels aren't measured with the samediscipline as traditional phone interactions, and often without consistentKPIs and key metrics, said Kate Leggett, an analyst at Forrester Research Inc.in Cambridge, Mass.Page 8 of 22

Top 5 CRM resources of 2013There is a lack of standardization across channels, Leggett said. "You want tomeasure all [channels] together. You want to understand the success ofall interactions -- why one channel is working better for certain kinds ofinteractions, for example."ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesIt's not the channel; it's the resolutionWhile many experts agree that using new customer channels will onlyincrease as mobile devices and social media become more commonplace inpeople's lives, others are not convinced adopting a new set of metrics isnecessary or effective."I'm a skeptic of newer metrics," said Art Schoeller of Forrester. "We're usedto [seeing contact center metrics] reports that are very black and white. Butnewer channels get into shades of gray."As self-service becomes more popular, he said, only the toughest customerservice interactions make it to an agent. As a result, "many contact centersare softening up on metrics like the speed of answering and other harddata. Instead, they are focusing on good, quality interactions and goodempathy by the agent during complex interactions."Besides, customers look for a lot of the same attributes in a customerservice interactionregardless of the channel, Schoeller said. "To someextent," he said, "it's universal."Mary Murcott, CEO of the Dallas-based Novo 1, agreed. "Actually, themetrics are the same," she said. "It's really about quality and effectiveness,or first contact resolution and productivity, no matter what channel."It's the ability of the contact center representative to solve a problem onthe first interaction that matters above all else, according to Murcott. To besure, some measure of efficiency must be accounted for as well, she said. SoKPIs such as contact handling time, time to answer and idle time play a role;it doesn't matter if the agent is responding to a chat, an email or a phonecall.Page 9 of 22

Top 5 CRM resources of 2013Time will tellContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesWhether new channel-specific or one-metric-fits-all, relevant KPIs and bestpractices for social, chat, video and other new channel metrics are stillemerging and evolving. Despite great pressure for customer serviceorganizations to develop these new channels, enterprises are only juststarting to adopt and deploy programs, according to a report produced byTelus International, a contact center outsourcer based in Vancouver, B.C.Metrics should ensure that contact center agents are achieving theirpotential and that operations are efficient and productive across allchannels.As Leggett of Forrester said, "If you're a customer, you don't care aboutchannel. You just want answers."From Disney to dishwashers: Digital CRM to changecustomer experienceBy Ashley SmithEnvision a Walt Disney World where no one has to wait in line. Ride timescan be booked in advance on the Web or a smartphone app.At this Disney World, parents wouldn't have to wander the park searchingfor their child's favorite character. They could book an appointment withMickey Mouse or Cinderella and -- like magic -- the character would greetthe child by name.Turnstiles, paper tickets and cash would be things of the past. Visitors woulduse data-encoded rubber bracelets to enter the park and buy food andsouvenirs. The bracelets would also serve as room keys and parking passes.The concept may sound like it belongs in Tomorrowland, but Disney isrolling it out now. The bracelet is a prime example of what analysts callthe next big wave of CRM: using digital technologies to enhancethe customer experience.Page 10 of 22

Top 5 CRM resources of 2013Companies in all sorts of industries are increasingly relying on computersand technology to make their customers happier, said Mitch Lieberman, aconsultant who has made a career of helping companies use digitaltechnologies to enhance customer experience.ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesElectric companies are rolling out smart meters that track customer usageby the minute, eliminating the need for meter readers. Customersostensibly benefit because, eventually, the smart meters will notify them viatext when a dryer is running during peak rate times or advise them to shutoff a washing machine during peak usage.Appliance companies are unveiling refrigerators that keep track ofexpiration dates and food supplies, and notify the owner when there's arepair issue -- often before the person detects it."You won't need to call the repairman -- the repairman will call you," saidLieberman, managing partner of DRI, a Portugal-based consulting firm withU.S. locations in Vermont and New York. "That's the next generation of CRM-- not social, but digital CRM."From digital CRM flows customer dataAn Oracle survey released in February revealed that, on average, businessesestimate they'll spend 18% more in the next two years on technologydesigned to improve the customer experience. The survey, "Global Insightson Succeeding in the Customer Experience Era," collected responses from1,342 senior executives in 18 countries.These digital technologies are designed to keep customers happy and loyal,of course. Disney created the MyMagic bracelets to help make park visitsmore enjoyable by eliminating some of the hassles that arise whilenavigating a crowded tourist attraction. And Disney benefits because happyvisitors tend to spend more and will return sooner.But the technologies also help companies collect a ton of customer datathat can be used toimprove marketing. Suddenly, companies have a muchclearer and broader picture of customer habits and preferences, knowingPage 11 of 22

Top 5 CRM resources of 2013exactly what they're buying and when, or perhaps what they're doing at agiven time.ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureFive customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsDisney, for instance, will know which characters you interacted with andexactly how many hot dogs you ate -- information that can be used to lureyou back. Disney declined to comment for this story.A smart refrigerator by Samsung can tell you how to make the most of a hotdog meal. It offers recipe suggestions based on what's inside the fridge. Thefront of the appliance has a tablet with preloaded apps that track food andallow families to collaborate in the creation of grocery lists. If someone athome adds mustard to the list, another family member who is shopping cansee the addition on a mobile device."Now I can use data and analytics to predict what you will like in the future,"Lieberman said. "It's a value exchange. The customer experience is betterand the company benefits."From Disney todishwashers: DigitalCRM to changecustomer experienceJim Dickie, managing partner of the Boulder, Colo.-based research firm CSOInsights, said the latest advancements in digital CRM also provide new salesopportunities. By contacting a customer when his or her refrigerator isbroken, an appliance company has the opportunity to sell repair service oran extended warranty, he said.Guide to customerexperiencemanagement bestpractices, technologies"That's just another way of reaching the customer when they're likely to buysomething," Dickie said.The customer perks of digital CRMGiant companies like Disney and Samsung are not the only ones making useof digital CRM. Dickie points to Jawbone, a San Francisco company bestknown for its portable Jambox speakers and Bluetooth headsets.Jawbone's newest product, the Up wristband, tracks all of a person's dailyactivity, including steps taken and calories burned, as well as sleep statisticssuch as total hours of sleep and the amount of time spent in certain sleepcycles.Page 12 of 22

Top 5 CRM resources of 2013Customers who choose to share that data with Jawbone get the curiosityquenching benefit of being able to compare their stats to those of theirpeers, while Jawbone gets valuable data it can sell to gyms, health foodstores, sleep clinics -- you name it.ContentsSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureThen there's 23andMe, a Mountain View, Calif.-based company that doesDNA analysis on saliva samples sent in by mail. The customer finds out if heor she has an increased risk of colon cancer or Alzheimer's, but 23andMehas the right to store that information in a database and sell it to marketers.Five customerexperiencemanagement lessonslearned from 'BreakingBad'This type of personal data collection is controversial, but consumers whodon't like it can choose to opt out. At Disney, use of MyMagic bracelets willbe optional, at least in the beginning.New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologiesExperts do caution that there should be limits to digital CRM.For smaller companies, Lieberman suggests automating inefficient thingsthat take time away from customers, but not direct customer interactions.Automate functions such as sharing email or making people aware ofcustomer satisfaction issues, but don't automate Tweets or Facebook posts.Also, never outsource customer communications, he said.Guide to customer experience management best practices,technologiesBy the SearchCRM.com Editorial TeamCustomer experience management (CEM) is a growing part ofcustomer relationship management, fueled by new technologies (e.g.,tablets and smartphones) and the influx of social media, such asTwitter and Facebook. Glowing praise or scathing reviews areinstantly viewed by millions of consumers, and companies have takennote.This guide consists of articles that shed light on the new technologiesshaping CEM today and offers advice on strategies and best practicesPage 13 of 22

Top 5 CRM resources of 2013organizations can use to optimize customer relations, increase profitand keep up with their consumers.TECHNOLOGIESContents1. Social media and other technologies that arechanging CEMSalesforce vs. Siebelfaceoff: Salesforceinventing CRM's futureSocial media tools such as Twitter and Facebook have influencedcustomer experience management in a big way, and companies arenow investing in new technologies to keep pace and maintain goodcustomer relations. These articles detail how organizations areincorporating social tools and customer experience management bestpractices into their operations.Five customerexperiencemanagement lessonslearned from 'BreakingBad'New contact centermetrics recommendedto fit new customerchannelsFrom Disney todishwashers: DigitalCRM to changecustomer experienceGuide to customerexperiencemanagement bestpractices, technologies Social media changing customer experience for the betterDennis Pombriant, CEO of Stoughton, Mass.-based Beagle ResearchGroup, believes customer experience is having a renaissance due tothe use of social media. He shares his opinion on which vendors areleading the charge with new CEM technologies.OPINION Experts say single view of customer makes communication moreefficientWith all the new technology out there, such as smartphones andtablets, companies are now communicating with customers throughmultiple channels. To do so more easily, they are using CEMtechnology to create a single view of the customer.NEWSPage 14 of 22

Top 5 CRM resources of 2013 Experts warn that companies need to have the technology to handlecross-channel communications without a drop in customer servicequality or consistency. Multiple channels should be viewed

Oracle Siebel is a more established, more versatile product. . as customer relationship management vendors. . infrastructure and login. So, to net out the situation, Siebel is built on the . Page 3 of 22 Top 5 CRM