how customer trends impact crm technologies and the vendor landscape
DESCRIPTION
How Customer Trends Impact CRM Technologies and the Vendor Landscape. CRM Expo 2011 , Sofia, 20.10.2011. On behalf of Ivan Maglić, Regional Director Gartner Adriatic / Calisto Janet Naidenova, M arketing P artner. This presentation is built based on research - PowerPoint PPT PresentationTRANSCRIPT
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
This presentation is built based on research
and insights developed by Gartner analysts!
On behalf of Ivan Maglić, Regional Director
Gartner Adriatic / Calisto
Janet Naidenova, Marketing Partner
CRM Expo 2011, Sofia, 20.10.2011
How Customer Trends Impact CRM Technologies and the Vendor Landscape
www.gartner.comGartner, Inc. is the world’s leading information technology research and advisory company. We deliver the technology-related insight necessary
for our clients to make the right decisions, every day.
From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors.
2010 Revenue: $1,28 Billion
Gartner has 650 analysts that are world class experts across the entire IT landscape. We field over 260,000 calls from clients like you each year.
Gartner analysts advise over 1,000 clients a day across 75 countries on the Information Technology industry...providing perspective, guidance and validation.
We see it all and can ensure you avoid pitfalls and harness best practices.
Our Clients
Gartner advises 60,000 business and technology professionals in over 11,000 client organizations around the world.
They tell us exactly what issues they are facing.
Ensure Success
As technology propels business in new directions, we are the indispensable partner that turns complex information into insight that ultimately determines the difference between success and
failure for our clients.
CRM Trends
Sales
Marketing
Customer Service
CRM Trends and interest change...
During 2010. changes in growth of three categories of CRM applications were changing due to:
•rapid rise in use of social networks;
•enterprises re-evaluating use of smartphones and tablets;
•increase in access to information for customers – "shift of power";
Social CRM is the hottest area of interest in customer service and marketing departments, followed by related areas like digital marketing and e-commerce.
CRM Trends and interest change...
• Majority of spending on CRM is still concentrated in: traditional sales force automation (SFA), campaign management and customer care in contact center.
• Software as a Service (SaaS) delivery represented approximately 26% of all CRM application spending in 2010.
• In sales applications, almost 50% was delivered via SaaS
• Mobile applications are priorities for sales in 2011 – interest has swung from the BlackBerry to the iPhone to Android, to the iPad and other tablets.
• In the short term, the Chief Marketing Officer (CMO) is under pressure to support improved digital marketing and need for social media tools.
• Social or community customer service became the hottest topic in customer service department in 2010. The interest is not uniform, but sectors such as high-tech, media, travel, telecommunications, retail and education are leading the way.
CRM Vision and Strategy
Putting the CRM Pieces Together to Generate Success
As the World Gets Smaller, Customer-Centric Strategies Get Larger
Communications
Convergence of Corporate Systems and Data
CollaborativePlatforms
LocationTechnology
SecurityMobile Devices• Ubiquitous
computing• Devices for life• Portable
computing power
• Convergence of communication
• Broadband, Wi-Fi and WiMAX
• Always accessible or online
• Real-time data• Unified view of the customer• Complete transaction history• Noncorporate data (satisfaction)
• Outside four walls
• Extend out to customer, back to suppliers
• Tagging• Proximity
monitoring
• Biometrics• Profiling
or access
The challenge in customer-centric strategies will move from giving customer-facing employees better tools, to putting the tools directly in the hands of customers.
CRM Applications Remain Fragmented:More Than 50 Submarkets
Sales
Field Service
Self-Service
E-Learning
WFO
Trouble Ticketing/Case Mgmt.
Analyzing
Managing
Monitoring
Communicating
Finding
Forming
Rewarding
Norming
Performing
Information &Infrastructure
Customer Data Integration
Information Mgmt.
BPM
App. Architecture
Application Infrastructure
Customer ServiceRFID/Telematics
Warranty Mgmt.
Parts Planning
Wireless Mobility
Contracts
Product Life Cycle
E-Commerce
Fraud Detection
Product Information Mgmt.
RFID
Inventory
Logistics
Analytics
Business Intelligence
Performance Mgmt.
Personal Productivity
Customer Value Analysis
Interactive Data Mining
In-Line, Event-Driven
Dashboards/KPIs
Marketing
Segmentation/Event Triggers
MRM
E-Marketing
Field Marketing
Promotions Mgmt.
CRM Application Value Chain
Field Sales
Inside Sales
Partner Management
Order ManagementConfiguration
Social Networking
Pricing
E-Commerce
Knowledge Management
Location-Based
The CRM market is too fragmented to start with a tools discussion. Strategy drives the decisions on tools and technologies.
Traditional Business Components of CRM
E-CRM
MarketingInfo. Systems
Field Sales
Telesales
Telemarketing
Customer ServiceDistribution& Logistics
Manufacturing
R&D
HumanResources
Finance
E-ERP
Customer-Centric ProcessesCustomer-Centric Processes
Extended CRM Enterprise
Integration WithBack-Office Functions
Integration AmongFront-Office Functions
Customer Insightand Understanding
E-Business
Partner Relationship Management
Supplier
Areas Covered Within CRMAreas Covered Within CRM
Acronym KeyCRM = customer relationship managementERP = enterprise resource planningSCM = supply chain management
More-Effective Customer InteractionsMore-Effective Customer Interactions
Customer-Satisfying BehaviorsCustomer-Satisfying Behaviors
Greater Customer AccessGreater Customer Access
Retail Sales
BusinessOrganized
AroundCustomer
DatabaseMarketing
Field Service
E-CRM
MarketingInfo. Systems
Field Sales
Field Service
Telesales
Telemarketing
Customer ServiceDistribution& Logistics
Manufacturing
R&D
Finance
E-ERP
Customer-Centric ProcessesCustomer-Centric Processes
Extended CRM Enterprise
Integration WithBack-Office Functions
Integration AmongFront-Office Functions
E-Business
Partner Relationship Management
Supplier
Areas Covered Within CRMAreas Covered Within CRM
More-Effective Customer InteractionsMore-Effective Customer Interactions
Customer-Satisfying BehaviorsCustomer-Satisfying Behaviors
Greater Customer AccessGreater Customer Access
Retail Sales
BusinessOrganized
AroundCustomer
DatabaseMarketing
The Reality of Customer-Centric Strategies
HumanResources
Customer Insightand UnderstandingThe old designations of operational systems, ERP,
SCM and CRM should be replaced by the concept of customer-centric strategies and other related strategies that will focus on process issues.
The Eight Building Blocks of CRM
1. CRM Vision
2. CRM Strategy
3. Valued CustomerExperience
4. OrganizationalCollaboration
8. CRM Metrics
7. CRM Technology
6. CRM Information
5. CRM Processes
The Eight Building Blocks of CRM: Much-Loved, but Apparently Forgotten
1. CRM vision
2. CRM strategy
8. CRM metrics
7. CRM technology
6. CRM information
5. CRM processes
3. Valued customerexperience
4. Organizationalcollaboration
Involving dataand Informationmanagement, customer-facing applications, and supporting IT infrastructure and architecture.
Building a market position against competitors with defined value propositions based on requirements, personified by the brand and communicated.
Constantly ensuring that the propositions have value to customers and the enterprise, achieve the market position, and are delivered consistently.
Managing customer life cycle processes and processes in analysis and planning that build customer knowledge.
Involving internaland external
measures of CRM success and failure.
Turning the customer base into an asset via delivery of customer value propositions.
Provides objectives and how resources will be
used in interaction.
Involving the changing of culture, structures
and behaviors to ensure that staff, partners and
suppliers work together to deliver what is
promised.
Ensuring that the right data is collected and the right information
goes to the right place.
Customer-Centric Generational Framework
Most organizations today:
First Second Third Fourth FifthFunction or
channeleffectiveness
More "joined up"thinking, but still
silo-oriented
Optimization atsilo level for cost and value reasons
Shared info. at silo level; insight
developing
Focus on silo efficiency; lacks customer focus
Changing culture and incentives;
silos
Understanding and focus at
silo level
Strongfunctionalitywithin silos
Value-network-enabled
Value-based collaboration formutual benefit
End-to-endprocess
optimization
Shared info. andinsight beyondthe company
Shared objectivesand balanced
metrics; aligned
Shared customer-centricity;
goal alignment
Understanding of wider scope;collaboration
Strong functionality;
integrated beyondthe company
Initial productivity
and visibility
Isolated projects;initiated from the
bottom up
Start optimizing for efficiency; silo-oriented
Team-based;fragmented;
minimal insight
Fragmented andlimited metrics;
operational focus
First signs of customer-
centricity; silos
Unknownconcept;
designs itself
Fragmented;limited
functionalityand focus
None
None
Inward focus;silo-oriented
Basic andfragmented
Few metrics;inward focus
Inward focus;silo
structures
Unknownconcept;
designs itself
Very fragmented;
weakfunctionality
Intracompanyintegration
Company-leveloptimization for cost and value
Shared info. andinsight acrossthe company
Company- andcustomer-focusedbalanced hierarchy
Customer-centric;reorganized by
segment
Understandingand focus acrosslines of business
Strong functionality
with company-level integration
Company-levelCRM program
CRM Vision
CRM Strategy
CRM Processes
CRM Information
CRM Metrics
OrganizationalCollaboration
Valued CustomerExperience
CRM Technology
Which technology trends will dominate and shape the CRM application environment to 2014?
How will CRM technology platforms, architectures, delivery methods and applications evolve to embrace these trends?
How will the CRM application vendor landscape evolve in response to the new architectures and technologies?
2011: CIO Business Priorities
Reimagining IT: The 2011 CIO Agenda
1 January 2011, ID: G00210688
2011: CIO Technology Priorities
Reimagining IT: The 2011 CIO Agenda
1 January 2011; ID: G00210688
What's Hot in 2011:CRM Priorities in Recovery
Sales Customer Service Marketing
Master data management
Partner, distributed and field marketingSales incentive comp. Web chat for service
E-Commerce/Web 2.0/B2B Loyalty managementWeb self-service
SaaS SFA Digital marketingSaaS CSS
Event-triggered marketingSales training Text mining
Marketing perf. measurementPrice optimization Real-time decisioning
Cross-CRM
Mobile marketingForecasting and pipeline Workforce optimization
Lead managementLead management Knowledge management for service resolution
Social media for marketingMobility — tablets/smartphones Social CRM/community
Predictive analyticsSales performance mgmt. Feedback management
Marketing resource mgmt.Social CRM sales Mobile support
Web analytics & advert mgmt.Sales effectiveness content Unified communications and collaboration
Multichannel selling VOIP and presence Integrated marketing mgmt.
Inbound marketingConfigure, price, quote Multichannel service BPM
Business process mgmt. Customer-centric Web
How will CRM technology platforms, architectures, delivery methods and applications evolve to embrace these trends?
Top 5 Technology Trends for CRM
1. Social and Interaction: More Than "Spare-Time Activity"
Listen and Learn
Participate and Communicate
Play and InteractShare and Broadcast
Evaluate and ShopChanging Business and Opinions
Customer serviceThe customer service works by relying on members of the network to provide answers to questions raised by others, and the company's small customer service team provides support for those issues that cannot be dealt with in this way, for example credit card issues. A forum on the website has an active community to answer routine issues, and integration with facebook and twitter was introduced in October 2010.
Giffgaff is a mobile phone service in the United Kingdom. It operates as a mobile virtual network operator using the O2 network and launched on 25 November 2009.Giffgaff differs from conventional mobile phone operators in that the users of the service may also participate in certain aspects of the company's operation, e.g. sales, customer service and marketing. In return for this activity, the user receives remuneration.
Social and Interaction:Digital Marketing Focus
Digital Advertising
Digital Video
Digital Signage
Digital Branding
In-Game Advertising
Podcasts
Search Marketing (SEO)
Mobile Marketing
Digital Recommendation Engines
Digital Analytics
Event-Triggered/Inbound
Augmented Reality Marketing
E-Mail Marketing
Digital Campaigns
E-Commerce
Product Reviews
Gift Registry
Cross-Selling, Upselling
Loyalty Marketing
Social Monitoring
Ideation Management
Social Campaigns
Social Engineering
Forums
Word of Mouth
Social Event Networking
Reputation Management
Digital Branding
AddressableAdvertising
SocialMarketing
TransactionalMarketing
ContextualMarketing
• E-commerce continues to grow; B2B and B2C.• Website style, innovation and ease of use drives adoption.• Mobile accelerates the trend.• Do you need an app store?
2. E-Commerce and Mobile: iPad, Android, and the rest…
• iPhone/iPad (and others): applications are easy, simple and fun.
• B2C and B2B customers are hungry for these innovations.
• Consumer-driven impact on enterprises.
By 2015, companies will generate 50% of Web sales via their social presence and mobile applications.
2. E-Commerce and Mobile: Context-Aware Computing
Context-Aware
OrganizationsProviders
Users
By 2015, context will be as influential to mobile consumer services and relationships as search engines are to the Web.
3. Business Intelligence and Analytics: Data Sources Will Shift
New MediaChosen
BehavioralData
CollectedDatabase Updated
CustomSegmentation
Developed
Unique Four"Ps"
PurchaseDecision
Marketing and Service Mix
Responseof
Choice
From DemographicData•Income•Gender•Socioeconomicstatus
Personal• Name• Marital status
Geographic• Country• Region• Address• Climate
To PsychographicData•Lifestyle•Personality•Attitude•Belief•Reputation•Actions •Implicit behavior•Explicit behavior
Behavioral• Brand loyalty• Product use• Personalongevity
Customer
Those responsible for the "customer" will need to shift from collecting personal data about individual customers toward collecting more complete and more relevant data around online persons and interactions: the analytics to make sense of this data will be a hot area for many years to come.
3. Business Intelligence and Analytics: Social CRM and MDM and Data
Upstream/OperationalSystems
Social Networks
Trusted External Data Sources
Voice of the Customer
Call Center Branches Internet
MDM Hub
Business Rules
Engine
Business Applications
Channels
An accurate, consistent and timely view is key to improved
business processes and decision making
Marketing Systems
Marketing and Data Mining Database(s)
Analysis and Campaign Management
Data Warehouse and Data Marts
BI and Performance Management
Downstream/Analytical
Information Services
4. Cloud and SaaS:The Role of SaaS With Cloud Computing
Vendor names are samples; this is not an exhaustive list.
System Infrastructure Services
Business Services
Application Services
App. Infrastructure Services
CloudEnablers M
gmt.
and
Sec
urityV-Cloud
IaaS
PaaS
SaaS
4. Cloud and SaaS:Integrating SaaS Into Existing Applications
Sales Force Automation
Opportunity
CustomerData
Browse and Search Products
(one-way dataintegration)
Product
Opportunity Info.Quote Info.
(Web Service)
Quoting
Order Management
AccountReceivables
Sales Configuration
Enterprise Firewall
CustomerMasterData
Performance Management
SaaS Provider A SaaS Provider B
Incentive Compensation
CustomerData
Two-Way Data SynchronizationSales
Forecast
SaaS
ERP On-Premises
Best-of-Breed On-Premises
Custom Application
75% of large-enterprise SaaS deployments will have at least five integration
or interoperable points to on-premises applications.
Systems of Record
Systems of Differentiation
Systems of Innovation
SentimentAnalysis Service
Open Innovation Submission Box
Product Review Service
RecommendationEngine
iPhone App
Droid App
Facebook Presence
Customer ServiceProcesses & Systems
ConfiguratorR&D & Product Development
Systems & Processes
Customer Product Supplier Order
5. BPM (Business Process Management) and SOA: Gartner's Pace Layers
Facebook, Twitter, YouTube, Communities, Portal, etc.
People are talking about us; what do we do?
How will the CRM application vendor landscape evolve in response to the new architectures and technologies?
L
H
Breadth
1999 2002MegasuiteVendors
FocusedVendors
2011MegasuiteVendors
Ecosystem
No-Man's Land
L HDepth L HDepth L HDepth
Megavendors Continue to Dominate
• Megavendors continue to extend their functional footprints into the "front office"
• End-to-end process integration being their differentiator
• Analytics, performance management, compliance being their lead reasons to buy
Sales, Marketing and Customer Service
• Microsoft Dynamics CRM: sound technology for multiple delivery models — SaaS, on-premises, partner-hosted; current version 5.0.
• SFA or customer service play first; CRM suite plays second.
• App platform; needs better segmentation messaging as there is confusion in the installed base regarding most appropriate choice.
• Legacy CRM applications covered by Applications Unlimited.
• Oracle Fusion Applications announced for sales and marketing.
• Siebel CRM — campaign management, loyalty managementand analytics are now the primary revenue drivers.
• SAP CRM 7.0 doubled live end users in the past 18 months.
• First 7.1 innovation pack delivered for flexible upgrades.
• Largely considered as an enterprise apps play, not a stand-alone.
• Momentum gaining in marketing.
• E-commerce, Customer Experience Suite and Project Northstar drive a focus on marketing.
• Acquisition focus: Unica, Coremetrics and SPSS.
2007
• 5square.com*
• Accept Software
• Eloqua
• Enkata
• Exploria*
• Hitwise
• Infonis
• InsideView
• KXEN
• Landslide
• Loyalty Lab
• NearbyNow*
• OpenQ*
• PowerReviews
• RLPTechnologies*
• Swivel*
• TOA Technologies
• Vistaar
• XpertUniverse
And…Cool Vendors Will Continue to Emerge
2008
• Advizor Solutions
• Aggregate Knowledge
• Cvent
• EveryScape
• The Fizzback Group
• GetAbby
• LandSonar
• Lemonade
• Orchestra Networks
• Saepio Technologies
• SalesCentric
• SupportSpace
• TopQuadrant
• Vitrium Systems
• Xmonic
• Ydilo
• Zoomix
*Industry specialists
2009
Sales
• Cloud9 Analytics
• Digby
• Makana Solutions
• Silent Edge
Marketing and Analytics
• dna13
• MuseWorx
• Pontis
• Visible Measures
Customer Service
• NexJ Systems
• Helpstream
• Reimage
• Vi-Clone
2010
Sales
• Artesian Solutions
• Jigsaw
• Prolifiq
Marketing and Analytics
• Thunderhead
• Balihoo
• NextStage Evolution
• Siri
Customer Service
• Transera
• QuickSeach
• The Selfservice Company
• Synthetix
Case study
PHOTOBOX
Gartner EMEA CRM Excellence Award 2010
In 2006, PhotoBox merged with its French equivalent, Photoways, to create a European market leader with 32% market share. Spurred by the merger and other planned expansions, PhotoBox migrated to a single Web platform that went live in early 2008. The migration included the launch of a new website.
However, insufficient customer input into the site planning led to poor customer feedback for the new site. PhotoBox acted quickly to turn the situation around and put the customer at the center of the business.
PhotoBox now has more than 11 million members.
PhotoBox won the Gartner EMEA CRM Excellence Award 2010 in the customer experience management category. Founded in 2000, PhotoBox aimed to help its customers transition to digital photography by providing an online service they could use to create personalized merchandise using their own images.
PhotoBox won the Gartner EMEA CRM Excellence Award 2010 in the customer experience management category. Founded in 2000, PhotoBox aimed to help its customers transition to digital photography by providing an online service they could use to create personalized merchandise using their own images.
Case study: Photobox
Key Findings
•It is impossible to provide exceptional customer service without understanding customer wants and needs.
•Don't underestimate the time and effort needed to set up analytics applications that can sort, validate and present customer information in an easy-to-digest format.
•Change management starts with improved employee cross-department collaboration — in this case, they were facilitated by "huddle meetings."
Case study: Photobox
The Challenge
•Customers felt confused and disoriented by the new website.
•Consumer activity on the new site declined by about 30%, compared with the prior year.
•In the week post-launch, Web issues drove an unprecedented and unforecast 29% increase in inquiries (about 6,000 more contacts within a month of the migration).
•The customer service operation became swamped.
•Customers using the new website became frustrated because they couldn't get through to customer support.
•PhotoBox had difficulty managing customers with multiple accounts. The company could link the accounts only if the inquiry included the incident number.
Case study: Photobox Approach •PhotoBox developed a customer experience strategy aimed at providing "spotless" customer experiences, thus reducing costs and increasing sales revenue. •The initial strategy had four goals and three principles.
Goals: •Reduce inbound contacts. •Reduce the number of customer contacts received as a percentage of the number of dispatched orders. •Increase customer advocacy and acquisitions via a "refer a friend" incentive. •Increase sales among existing customers
Principles: •Engage and listen — Consolidate customer data, make better use of customer surveys, co-create products with customers, and use additional beta and focus groups to test new ideas. •Learn and act — Institute a 30-minute post order "cooling off" period to allow customers to self-help with regards to any required order amends, simplify photo uploads and increase communications with customers. •Be accountable — Have one unifying metric for the team and weekly "huddles" to discuss issues and answers.
Case study: PhotoboxResults - PhotoBox's results from 2008 to 2009 included: •Customer base grew by 44.5% •Market share increased to 37.4% (from 32%) •40% customer growth per year •Increased overall sales among existing customers by 15% (not including new customers) •£240,000 in savings in cost-to-serve in 2009 •Customer care operational efficiencies enabled the company to reallocate two to three FTEs to other areas of the business. •Consistent, branded customer experience delivered in nine languages
In 2009, the "refer a friend" program delivered: •24% increase in new customers registered via refer a friend •45% increase (£260,184) in new referred customers placing their first order •15% increase in sales from existing customers •£260,184 in new orders •57,432 new registrations •39,534 first orders placed •81,092 unique people who referred a friend
Related Gartner Research
• How to Profit From Social CRM (G00206168)
• What's 'Hot' in CRM Applications in 2011 (G00211657 )
• Essential SaaS Overview and 2010 Guide to SaaS Research(G00200890)
• Reimagining IT: The 2011 CIO Agenda (G00210688)
• Case Study: Digital Photo Personal Publisher Improves Its Reputation With Customer Experience Management (G00212893 )
• Predicts 2011: CRM Enters a Three-Year Shake-Up (G00208813)
Find them at: www.gartner.com
Executive Programs team
Mr. Boris VrabecExecutive PartnerGartner Adriatic/[email protected]: +385 98 4416 896Tel: +385 1 6176 416
Mr. Awi LifshitzExecutive Client Manager
(EXP)Gartner [email protected]: +43 664 8851 2035Tel: +43 1 5332 3500
Gartner Adriatic – contacts
Gartner Adriatic /Calisto
Koranska 1b/I
10000 Zagreb
Tel: +385 1 6171 431
Fax: +385 1 6171 431
Mr. Ivan Maglić
Regional Manager
Mobile: +385 98 416 896
Mrs. Nataša Glavović
Sales and Marketing Executive
Mobile: +385 98 678 972
Calisto Adriatic / Gartner Bulgaria
6, Hubavka Str. 1111 SofiaTel: +359 2 971 14 01
Fax: +359 2 971 14 02
Alexander Zahariev
Country Manager
Mobile: +359 87 7677113
Gartner
Thank you!