understanding crm as a technology and a process€¦ · irce ecommerce technology workshop 2014: 4...

IRCE Ecommerce Technology Workshop 2014: 4 CRM

Understanding CRM as a

Technology and a Process

Karen Humphries Sallick – President, The Priority Group

Pamela Kruse – Director of Ecommerce, XO Group

Bernardine Wu – CEO, FitForCommerce

#IRCE @FitForCommerce


CRM – What’s It All About? CRM is growing exponentially. What are the stats? What should you know?

CRM offers an average return of $5.60 for every $1 spent

$5.60

Gartner anticipates that CRM will be worth 36.4 billion worldwide by 2017

$36.4 bil

Overall CRM usage increased from 56% in 2012 to 74% in 2013

74%

CRM leads all enterprise software categories in projected growth showing a

15.1% CAGR from 2012 to 2016 15.1%

Source: Sales Loft, Nucleus Research, Buyer Zone


CRM – Are You There?

of CRM customers that realize they use less than half of the features of CRM

43%

of CRM users say they enter data into their systems manually when handling CRM

integration 35%

of respondents in a DiscoverOrg survey are not using any CRM system

24%

of marketers say having disparate data sources is a main reason why they can’t glean useful insights from customer data

30%

Source: Gartner, Sales Loft


Social CRM – Is Your Business Ready?

of people integrate their CRM with social data

6%

of consumers had interacted with companies via social media in 2012;

it was 19% in 2011

36%

of all marketers found a customer through Facebook in 2013; 43% found a

customer through LinkedIn

52%

of adult cell phone owners use the device to go online

63%

Source: SalesLoft, Oracle, MyCustomer, PewReasearch


CRM providers to IR Top 1000

VendorNumber of Top

500 ClientsRepresentative Retailers Vendor

Number of Second

500 ClientsRepresentative Retailers

Oracle Corp. 19Staples Inc. (No. 3),

Bass Pro Shops (No. 98)Salesforce.com Inc. 18

Gemvara.com (No. 503),

Simple Truths LLC (No. 669)

NetSuite Inc. 14Groupon Goods (No. 44),

Fab.com (No. 183)Netsuite Inc. 17

Envelopes.com (No. 505),

Pure Modern LLC (No. 662)

eBay Enterprise 12Dick's Sporting Goods Inc. (No. 72),

Radioshack Corp. (No. 317)Magento (eBay Inc.) 4

ShopJimmy.com LLC (No. 509),

Golda's Kitchen Inc. (No. 794)

Merkle Inc. 6Urban Outfitters Inc. (No. 48),

The Limited (No. 241)SAP AG 4

The Betty Mills Co. (No. 592),

BlendTec (No. 819)

Microsoft Corp. 6Wine.com Inc. (No. 242),

GiftCard.com (No. 385)Zendesk Inc. 3

BulkReefSupply.com (No. 636),

DNA 11 Inc. (No. 827)

In-house 331Amazon.com Inc. (No. 1),

Wal-Mart Stores Inc. (No. 4)In-house 161

ApplianceZone (No. 501),

Heels.com (No. 512)

TOP CRM PROVIDERS TO

NORTH AMERICA'S LARGEST E-RETAILERS


About XO Group, Inc

• XO Group, Inc. is a leading media and

technology company dedicated to

providing information, products and

services to couples planning their

weddings and future lives together.

• XO Group, Inc’s flagship brand, The

Knot serves 8 out of 10 engaged

couples each year through our award-

winning website, mobile apps,

magazines, books and broadcast

platforms.


About The Priority Group, Inc.

• The Priority Group is a customer

experience and employee engagement

consulting firm founded in 1996 that

uses analysis, market research, training

and change management to create

customer and employee loyalty

• We specialize in helping our clients find

the right technology and the application

of customer information to drive

marketing, profit and customer

engagement objectives

• Some current clients include the

Hudson Bay Companies, Vineyard

Vines and Ferragamo


TECHNOLOGY

Unified CRM Platform Operational Integration

Social Integration Big Data Enrichment Business Intelligence

PROCESS

Sales & Service Experience Enabled Brand Stewardship

Enterprise Collaboration Measurement Change Mgmt

PEOPLE

Executive Support Outcome Focused

Service Culture Skills Alignment

Continuous Training Agile for Change

CRM Success

Technology Enablement for CRM Success


$35B+

wedding day

$11B

jewelry

$10B

registry and gifts

$6B

honeymoons

$4B

attire

$70 billion is spent on weddings annually

Additional categories include, but are not limited to:

$0.8B stationery (1%) and $0.3B beauty (1%)

Source: The Knot Market Intelligence; NCHS: National Vital Statistics Report, Number of Marriages, 2008

Jan 6% Feb

6% Mar 7%

Apr 7%

May 9%

Jun 10%

Jul 10%

Aug 10%

Sep 10%

Oct 9%

Nov 7%

Dec 7%

monthly distribution of weddings

XO Case Study: Weddings are a big business, all year long


• She’s 29 and he’s 31 (average age)

• Educated: 74% college-grad (4-yr+)

• Employed full-time: Nearly 3-in-4 (74%)

• Household Income:

─ Median HHI: $61,733

─ Average HHI: $84,206

• All wedding budget levels…

• Under $10,000 (26%)

• $10K to $60K (69%)

• $60,000+ (5%)

• She’s mobile:

• 85% of our brides own a smartphone

XO Case Study: meet our millennial bride

Source: The Knot Market Intelligence; 2012 Real Weddings Study


Our brides use The Knot for inspiration, planning/checklist resources, local

vendors, free wedding websites, single-list registries and shopping for wedding

favors and supplies

• 60% of our members join immediately upon getting engaged

• The average length of engagement is 14 months

• 75% of our traffic is direct, 22% is organic

• Our #1 form of communication is email and we are sending brides an email a

day beginning 13 months out from their wedding date

XO CRM Strategy: Building & engaging


CRM Strategy: Extending the life of membership

CURRENT STATE OF CRM TECHNOLOGY

• Data warehouse – membership data not passed to commerce site

• Recommendation engine – important but not optimized but we required a

taxonomy update

• Paid media partners - re-capture and prospect for new members and shoppers

• Email provider – manage trigger and promotional emails

QUESTIONS WE ARE TRYING TO ANSWER

1. How do we use member data to organically personalize her experience?

2. How do we segment our strategy based on the acquisition channel?

3. What is the right way to recommend higher-value areas of the site?

4. How do I migrate my brides to the other areas of my brand after the wedding?


Critical Steps in the CRM decision process

• Clear understanding of people, process and technology relating to CRM – Conduct current and future business needs and objectives sessions

– Conduct in-depth GAP Analysis against your current solution

• Answer the in-house versus outsourcing question based on key CRM

success factors

• Profile potential vendor or software partners for inclusion based on key

gaps, future scope, budget expectations and fit

• Start change management with the kick-off of the selection process

13


Assess Your Organization’s Technology Readiness

• Does your organization have world-class abilities to manage customer data? • Hygiene (nationally, globally)

• House-holding

• Data enrichment

• Are you able to move quickly with changing technology that makes sense for

your business? • Structured data to unstructured data

• POS to mobile

• Word of mouth to social media

• Will your all of technology platforms support each other to allow you to

scale? • 10 segments per email to truly personalized offer and content

• Data capture and offer delivery on Tuesday at 11 am to Black Friday

• Is there a strong enterprise data integration solution that unifies all

information that impacts the customer experience? • Customer service

• Associate interactions

• Customer expectations


Honestly Assess your Company for CRM Success

• Is CRM ranked at the top of IT initiatives with committed staff? • How is intelligence about your customers shared? • Will people change what they do based on that intelligence? • What percent of your company’s conversations about performance are related to

product versus customer? • Have people been trained in the right way use customer information to achieve

the company’s CRM objectives?


Understanding Software Providers versus MSPs

16

Software Providers Provides software as primary business

Implementation: Assists the MSP with mapping/integrating the database to software.

Ongoing: Provides software updates and enhancements.

360o Customer View Database

Marketing Tools Marketing and Campaign Management

Tools to manage the definition, workflow, and execution of marketing campaigns across multiple channels for the enterprise. Includes audience criteria management, integrated

testing, and response management.

Analytics and Business Intelligence Tools to create and manage marketing and customer insights, performance measurement,

decision support, reporting, and dashboards.

External Data 3rd party demographic and

enrichment data -

Social and external digital data -

External Big Data overlays

Internal Data Customer, transaction, profiling, digital activity,

campaign, response and operational data

Marketing Services Providers (MSP)

Provides Services

Implementation: Builds database, integration with sources, and aligns the chosen tools in the solution.

Ongoing: Cleans, updates, and maintains the client data in the CRM database. Hosts the database and tools. Can also provide ongoing analytical, campaign, and strategy services.


In-House vs. Outsourcing – Key Decision

17

Advantages Disadvantages

In-House CRM Management

• Control of staff and resources • Accountable for own direction

and results • Not limited to vendor-specific

relationships and biases • Business and technical

flexibility • Brand knowledge and intimacy

• Risk of IT and business team(s) conflict

• Talent sourcing challenges • Limited domain and technical

expertise • Low accountability for project

and cost overruns • Slower time-to-market • No R&D to leverage – never

“ahead of the curve”

Advantages Disadvantages

MSP Outsourcing

• Accountable to signed service agreements

• Speed-to-market • Access to specialized talent • Demonstrated innovation via

new technology and R&D • Proven industry solutions • Ability to leverage vendor best

practices and modernization from other clients

• Big data capabilities and partnerships

• Global knowledge and reach

• Limited ability to control vendor staff and account teams

• Risk of poor contract obligations

• Risk of static solution • Vendor biases often influence

decisions

Ad-Hoc Managed Services Full Outsourcing

Types of MSP Service Models

MSP provides specific services based on either one-time requests or at regularly scheduled intervals

The MSP is integrated with the enterprise and performs specific functions of CRM resulting in a hybrid solution

The MSP is accountable for the role of CRM marketing including technology, analytics, BI, strategy and execution

Where do you need to be on the service spectrum?


Evaluating Vendors

• Profile potential vendors for inclusion based on learnings, scope, budget

expectations and fit

• Customize assessment points based on identified gaps

• Include your own organization

18

Vendor Data Mgmt Advanced

Analytics

Campaign

Mgmt

Campaign

Self Service

Industry

Experience

Addresses

Key Gap 1

Addresses

Key Gap 2

Addresses

Key Gap 3 Price

Large MSP 1 $$$

Large MSP 2 $$$

Mid-Tier MSP 1 $

Mid-Tier MSP 2 $$

Software 1 $

Software 2 $$

Internal $$


TECHNOLOGY

Unified CRM Platform Operational Integration

Social Integration Big Data Enrichment Business Intelligence

PROCESS

Sales & Service Experience Enabled Brand Stewardship

Enterprise Collaboration Measurement Change Mgmt

PEOPLE

Executive Support Outcome Focused

Service Culture Skills Alignment

Continuous Training Agile for Change

CRM Success

Technology Enablement for CRM Success


Q&A

Pamela Simon Kruse

XO Group, Inc

[email protected]

Karen Humphries Sallick

The Priority Group Inc

[email protected]

Bernardine Wu

CEO, FitForCommerce

[email protected]

understanding crm as a technology and a process€¦ · irce ecommerce technology workshop 2014: 4...

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