www.psgroup.com the customer company patricia seybold group advisors to customer-centric executives...

www.psgroup.com The Customer Company

Patricia Seybold GroupAdvisors to Customer-centric Executives

© 2003 Patricia Seybold Group

Challenges in Delivering Challenges in Delivering Multi-Channel CRMMulti-Channel CRM

Patricia B. SeyboldPatricia B. SeyboldPatricia Seybold GroupPatricia Seybold Group

CRM Technology DecisionsCRM Technology Decisions

February 12th, 2003February 12th, 2003




• Why Multi-Channel CRM?Why Multi-Channel CRM?

• Technical ChallengesTechnical Challenges

• Organizational ChallengesOrganizational Challenges

• Realistic SolutionsRealistic Solutions

CatalogCall Center

WebE-Mail

Partners

RFQ/RFP

E-Markets

Brand Personality

Innovation

Core Driving Idea

Differentiation

DedicatedRetail Store

S tore

Multi-Supplier Retailers/B-

Tailers

Customer’s Self-Concept

Customer Relationship

The Goal of CRM/CMR: Deliver a Great Quality of Customer ExperienceSM

©2002 Patricia Seybold GroupBrand Identity

IntegrityValue

Trust

Efficient Use of My Time Ease of

Doing BusinessEase of

Interactions

Reliable Fulfillment, Delivery, and Support Ease of

Decision-Making

Mobile/Wireless




What are the Technical What are the Technical Challenges?Challenges?

• Different Infrastructures for Contact Centers, Different Infrastructures for Contact Centers, E-Commerce, Portals, Point-of-SaleE-Commerce, Portals, Point-of-Sale

• Different Systems or Applications for Direct and Different Systems or Applications for Direct and Indirect Sales, Field Service, Pre- and Post-Sales Indirect Sales, Field Service, Pre- and Post-Sales Customer Support, Marketing, E-interactions, Customer Support, Marketing, E-interactions, Order Entry, Billing, Warranties, LicensingOrder Entry, Billing, Warranties, Licensing

• Multiple Repositories of Customer InfoMultiple Repositories of Customer Info

• Lots of Redundancies, Seams, and Black HolesLots of Redundancies, Seams, and Black Holes




Current Application ArchitectureCurrent Application Architecture“Stove-pipe Oriented”“Stove-pipe Oriented”

Business Processes

Software Applications

Information

Business Processes


Information

Business Processes


Business Processes


Information Information

IT Infrastructure

IT Infrastructure

Business Processes


Information

S tore




The Messy RealityThe Messy Reality

• Web Sites Designed Independently of Contact CentersWeb Sites Designed Independently of Contact Centers

• Branch/Store Systems Are Completely SeparateBranch/Store Systems Are Completely Separate

• Separate InfrastructuresSeparate Infrastructures

• Inconsistent InformationInconsistent Information

• Redundant ApplicationsRedundant Applications

• Often Separate Customer DataOften Separate Customer Data




Why Can’t You Just Buy a Single Why Can’t You Just Buy a Single Cross-Channel System?Cross-Channel System?

• They Don’t Exist!They Don’t Exist!

• Most CRM Suppliers don’t offer E-Commerce Most CRM Suppliers don’t offer E-Commerce SolutionsSolutions

• Many Do Offer Web Self-ServiceMany Do Offer Web Self-Service

• Some don’t Support Disconnected/Laptop Some don’t Support Disconnected/Laptop UsersUsers

• None Support Point of Sale/RetailNone Support Point of Sale/Retail




Why Can’t You Just Integrate Everything Why Can’t You Just Integrate Everything at the Back End?at the Back End?

• Common Solutions:Common Solutions:– “Single” Customer Database – Integration with Transactional Systems – Customer Self-Service Portals that Access Operational Systems

• These Solutions don’t Offer Persistent Decision-Making These Solutions don’t Offer Persistent Decision-Making or Support Tools that Cross Channelsor Support Tools that Cross Channels

• How do I begin the decision-making process and move How do I begin the decision-making process and move smoothly into transactional mode across channels and smoothly into transactional mode across channels and touchpoint? touchpoint? – Do the simulation online, print out the results– Do the application online, start all over again– Do the configuration online, order online, talk to a person by

phone




What are the Organizational What are the Organizational Challenges?Challenges?

• CRM Strategies that are Inward-facing; CRM Strategies that are Inward-facing; not Designed from the Customer Innot Designed from the Customer In

• Product Line Silos, Customer Segment SilosProduct Line Silos, Customer Segment Silos

• Territorial FiefdomsTerritorial Fiefdoms

• Sales & Operations vs. Customer Service & Sales & Operations vs. Customer Service & MarketingMarketing

• Making our Numbers! (revenue-focused; not Making our Numbers! (revenue-focused; not customer experience-focused)customer experience-focused)




The Customer OWNS the Customer!The Customer OWNS the Customer!Key Issue: Who Owns the Customer?Key Issue: Who Owns the Customer?




A High-Level Exec Needs to be Responsible A High-Level Exec Needs to be Responsible for the Quality of Customer Experiencefor the Quality of Customer Experience




How do You Solve this Problem How do You Solve this Problem (Technically) ?(Technically) ?

• Do your CRM-Integration at the Services LayerDo your CRM-Integration at the Services Layer

• Not Web Services Not Web Services per seper se

• Identify which underlying application functionality Identify which underlying application functionality perform key services, wrap that functionality into perform key services, wrap that functionality into services and give each an XML/WSDL interface:services and give each an XML/WSDL interface:– Configuration Service– Inventory Availability Service – Loan Application Service– Credit-Checking Service – Approval Service– Order Processing Service– Fulfillment Service




Web Services vs. Service-Oriented Web Services vs. Service-Oriented ArchitectureArchitecture

• A Web Service is application functionality that has an A Web Service is application functionality that has an XML/WSDL Interface XML/WSDL Interface

• It can perform a service for a requesting application and It can perform a service for a requesting application and return a resultreturn a result

• It is asynchronous—Doesn’t require a stable connectionIt is asynchronous—Doesn’t require a stable connection

• Pure Web Services use the SOAP protocol and may be Pure Web Services use the SOAP protocol and may be registered in a UDDI Directoryregistered in a UDDI Directory

• Real Architects don’t use Pure Web Services; they’re too Real Architects don’t use Pure Web Services; they’re too slow; They use XML & WSDL to expose application slow; They use XML & WSDL to expose application functionality and use the protocol & interface that makes the functionality and use the protocol & interface that makes the most sense from a performance standpointmost sense from a performance standpoint




Why “Services” are the best way to Why “Services” are the best way to Think about your IT InfrastructureThink about your IT Infrastructure

• Helps you to embrace the “Web Services” evolutionHelps you to embrace the “Web Services” evolution

• It’s the Right Level of Abstraction to Describe the capabilities It’s the Right Level of Abstraction to Describe the capabilities of your current systemsof your current systems

• It let’s you standardize on a single service whenever possibleIt let’s you standardize on a single service whenever possible

• Some examples of “services”:Some examples of “services”:– Search, Configuration, Order Entry, Pay-per-Use, Inventory Availability,

Authentication, Authorization, Directory, Customer Profiling, Personalization, Transaction Processing…..

• IT Services do not need to be Web Services, but XML-based IT Services do not need to be Web Services, but XML-based self-disclosing interfaces are the right way to goself-disclosing interfaces are the right way to go




Adding (Web) Services to Existing Adding (Web) Services to Existing Applications Applications

Order Processing

Logistics Warehouse

New Business

Transaction Cuts Across Stovepipes

Services Enable

Access to Stovepiped Functions




Service-Oriented ArchitectureService-Oriented Architecture

Order Processing

Logistics Warehouse

Web Services turn Stovepipes into Flexible

Collections of Business Services




Example: ManufacturerExample: Manufacturer

• Sells B2B; Both Direct & Thru Franchised Sells B2B; Both Direct & Thru Franchised DealersDealers

• Also Sells B2C Direct (via the Web)Also Sells B2C Direct (via the Web)

• Iterative Small Wins—Led by E-Channel Iterative Small Wins—Led by E-Channel OrganizationOrganization

• Uses a Services-Oriented Architecture Uses a Services-Oriented Architecture approachapproach

• Highly Pragmatic & Re-Usable Highly Pragmatic & Re-Usable




A “Single” A “Single” Consistent Set of Consistent Set of

Services to Support Multiple Services to Support Multiple ConstituenciesConstituencies

Snap-On’s Goal:Snap-On’s Goal:




Snap-On’s Key Customer Snap-On’s Key Customer ScenariosScenarios

• Snap-On Dealer Needs to Place an Order for a Snap-On Dealer Needs to Place an Order for a Customer (or Set of Customers)Customer (or Set of Customers)

• Navy Procurement Officer Needs to Prepare for a Navy Procurement Officer Needs to Prepare for a Submarine Coming in for Service in 60 DaysSubmarine Coming in for Service in 60 Days

• Ford Motor Dealer Needs to Replenish InventoryFord Motor Dealer Needs to Replenish Inventory

• Father Wants to Buy his Son a Great Present for his Father Wants to Buy his Son a Great Present for his 2121stst Birthday Birthday

• Auto Mechanic’s Wrench Just Broke; He Needs a Auto Mechanic’s Wrench Just Broke; He Needs a Replacement ASAP!Replacement ASAP!




Key Services that Snap-On Key Services that Snap-On Implemented Implemented

• AuthenticationAuthentication

• AuthorizationAuthorization

• Appropriate Product SelectionAppropriate Product Selection

• Inventory AvailabilityInventory Availability

• Dynamic Pricing Dynamic Pricing

• Order PlacementOrder Placement

• Order FulfillmentOrder Fulfillment

• Order TrackingOrder Tracking

AuthenticationService Authorization

Service

Product SelectionService

Inventory Availability

Service

Dynamic PricingService

BAAN ERP

Oracle Databases

Oracle Financials

Regional Distribution

Center’s Product

Inventory

Directory

DirectoryService




Example: Large BankExample: Large Bank

• Retail, Small Business, and Wholesale (Large Retail, Small Business, and Wholesale (Large Business) CustomersBusiness) Customers

• Leader in E-Business & Seamless Customer Leader in E-Business & Seamless Customer ExperienceExperience

• Working on the Second Generation: Rewiring Working on the Second Generation: Rewiring the Infrastructure Using a Service-Oriented the Infrastructure Using a Service-Oriented Architecture—5 Year ProjectArchitecture—5 Year Project

• Still facing Organizational ChallengesStill facing Organizational Challenges




Here’s the Problem:Here’s the Problem:S tore

Consumer Small Business Large Business

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

Pro

duct

Lin

e

S toreS tore




Here’s the Problem:Here’s the Problem:

RFQ/RFP

S tore

• 90 Separate IT Projects90 Separate IT Projects

• Different Funding SourcesDifferent Funding Sources

• Fragmented Customer Experience across Interaction Fragmented Customer Experience across Interaction TouchpointsTouchpoints

• Multiple Customer Log-Ons Required Across Product Multiple Customer Log-Ons Required Across Product Lines & Web Sites Lines & Web Sites

• No Way to Maintain State as Customer Moves from No Way to Maintain State as Customer Moves from Channel to ChannelChannel to Channel

• Not Leveraging Common Services across Business UnitsNot Leveraging Common Services across Business Units




Critical Customer ScenariosCritical Customer Scenarios®®

• Small Business Owner Needs a Line of Credit ASAPSmall Business Owner Needs a Line of Credit ASAP

• CFO of Large Firm wants to Establish a New Banking CFO of Large Firm wants to Establish a New Banking Relationship in order to:Relationship in order to:– Obtain Line of Credit – Working Capital $500K– FX– Wire Transfer– Ability to take online payments – Lease back…

• Consumer Customer wants to Apply for a Home Equity Loan Consumer Customer wants to Apply for a Home Equity Loan & Open an Account for College-bound son& Open an Account for College-bound son

..




All of these Scenarios Cross Interaction All of these Scenarios Cross Interaction Touchpoints & Require State ManagementTouchpoints & Require State Management

In Each Scenario, the Customer wants to:In Each Scenario, the Customer wants to:

• Research online, begin to apply onlineResearch online, begin to apply online

• Continue application process on the phone or in personContinue application process on the phone or in person

• Receive approvals, Get status updatesReceive approvals, Get status updates

• Iterate Choices both online and in personIterate Choices both online and in person

• Change his mind, or circumstances changeChange his mind, or circumstances change

• Add new services or conditions of satisfactionAdd new services or conditions of satisfaction

• Check status, receive proactive notificationsCheck status, receive proactive notifications




Identify Services Using Customer ScenariosIdentify Services Using Customer Scenarios®®

Customer

I want to... I want to...I want to...I want to...

SuccessfulOutcome:

We

Should...

Employees

We Can...

We

Should...

We Can...

We

Should...

We

Should...

CustomerDatabase

RulesEngine

Credit Database

CustomerProfile Metadata

AuthenticationServices

EntitlementServices

Credit ScoringService

Pre-Approval Service Alerting

Service

FulfillmentService




Prioritize Technology Services Across Prioritize Technology Services Across Customer ScenariosCustomer Scenarios

Inventory

ProductContent

Database

MarketingContent

Database

CustomerDatabase

CustomerProfile Metadata

Service

Service

Service




Prioritize Core Services Based on Prioritize Core Services Based on Customer ValueCustomer Value

Customer Customer ScenarioScenario

ServicesServices Customer Customer SegmentSegment

Customer Customer ImpactImpact

Customer Customer Value*Value*

PriorityPriority ProjectProject

Authentication Authentication & &

AuthorizationAuthorization

Application Application Pre-FillPre-Fill

Pre-ApprovalPre-Approval

Pre-enrollPre-enroll

Credit Credit CheckingChecking

AlertingAlerting

* * Customer Profitability, Revenue Opportunity, Customer Retention




Example 3: RetailerExample 3: Retailer

Meet Customers’ Occasionally-Meet Customers’ Occasionally-Connected Needs by Re-Architecting Connected Needs by Re-Architecting

Using ServicesUsing Services• Super Market Giant with 500,000 occasionally-Super Market Giant with 500,000 occasionally-

connected customersconnected customers

• Issues: Issues: – How to Support Remote Client Software & Continuously

Update it– How to Make Real-Time Offers & Promotions– How to Support Mobile, Wireless Access & Updates to

Orders-in-Process




Web Services at Tesco Online GrocerWeb Services at Tesco Online Grocer

Chuck

I want to ordergroceries for

dinner tonight.

I want to ordermy usualexcept noWheaties,

plus whatevermeat is on

special today.

I want tospecifydelivery

between 6:00-7:00 tonight.

Hand-HeldDevice

We canprovidewirelessordering.

We can keepa standing

order on filefor each

customer.

We can makeit easy to addto and deletefrom standing

order.

We canTrack theStatus ofdeliveryrefunds.

We canquickly

validate andcommit to this

order anddelivery.

I want aRefund on my

last

delivery.

I wantverification ofmy order and

a deliverypromise.

CustomerProfile Inventory Promotions

We canprovide

information onspecials andpromotions.

Inventory Availability

Order Processing Services

Real-TimePromotions

CustomerProfiling Services

Credit Refunding

Service




Next: Improving Customer Service Next: Improving Customer Service Across Touchpoints Across Touchpoints

I want to be sure that I be sure that I get a refund for the get a refund for the item I didn’t wantitem I didn’t want

I want to find out when I go to the store

I want to call and check on the refund

I want to find out when I go to the Web site

If it hasn’t been credited, I want to talk to someone

I want it credited immediately

I want an apology and an explanation




What About Customer Portals?What About Customer Portals?




Use a Service-Oriented Architecture Use a Service-Oriented Architecture Approach to Rationalize Portal Design & to Approach to Rationalize Portal Design & to

Offer the Same Services to Customers’ Offer the Same Services to Customers’ ApplicationsApplications

• Many Firms are Taking this ApproachMany Firms are Taking this Approach

• Common in Complex B2B Environments—Common in Complex B2B Environments—

– Portals within Portals– E.g. Medco/Blue Cross Blue Shield/Large

Company/Employees– Common Services Needed: Authentication, Eligibility,

Claims Processing, Alerting, etc.

• Common among High Tech Companies that are Common among High Tech Companies that are Rationalizing Portals/Web Sites: Sun, Dell, etc. Rationalizing Portals/Web Sites: Sun, Dell, etc.




Why are Portals Hot?Why are Portals Hot?

• They let you Redesign your Organization from the They let you Redesign your Organization from the Outside inOutside in

• They Let you “layer over” your internally-facing They Let you “layer over” your internally-facing applications and processes with a new set of scenarios applications and processes with a new set of scenarios that are designed to support a group of stakeholdersthat are designed to support a group of stakeholders

• You can (and should) re-use the same services over You can (and should) re-use the same services over and over again across constituencies and scenariosand over again across constituencies and scenarios

• You’ll need a way to maintain context, session, and You’ll need a way to maintain context, session, and state throughout each scenario (missing in today’s state throughout each scenario (missing in today’s portal platforms)portal platforms)




The Same Customer ScenariosThe Same Customer Scenarios®® Will Appear in Several PortalsWill Appear in Several Portals

CustomerCustomer

MySupplier.com

XYZ Company123 CorpABC Inc.

SSOrder Pricing

Inventory & Availability

MyFactory.com

Order Replacement

Parts


S Order Pricing



SS Order Pricing


Manufacturing Mgr

Order Replacement

Parts




The Best Way to Think About Portals:Containers for the Customer Scenarios® that

Get Tasks Accomplished

MySales.com

ABC

Schedule a Customer Meeting

Prepare a ProposalSchedule a Customer Meeting

CompanyBenefits.com

ABC

Health InsuranceAbsenceRetirement


TravelPlanning.com

FlightsCar RentalHotelsBudget

Sales PersonSales Person

Submit a Health

Insurance Claim

Request Paternity

LeavePrepare a Proposal

Plan a Trip

AuthenticationService

AuthorizationService

Product Configurator

Service

CalendaringService

DirectoryService

Dynamic PricingService

EligibilityService

Itinerary ManagementService

SchedulingService

Customer ProfileService




Another Approach: Evolution to Web Another Approach: Evolution to Web Services Via PortalsServices Via Portals

E-Mail

Hand-HeldDevice

2.

Fir

ew

all

Application

3.

Eligibility W

SD

L

MySales.com

ABC

Schedule a Customer Meeting

Prepare a ProposalSchedule a Customer Meeting

CompanyBenefits.com

ABC



TravelPlanning.com

FlightsCar RentalHotelsBudget

Sales PersonSales Person

Submit a Health

Insurance Claim

Request Paternity

LeavePrepare a Proposal

Plan a Trip

1.




Services & PortalsServices & Portals

Think of Portals as a (Web) Services’ Way StationThink of Portals as a (Web) Services’ Way Station

• You can use Services to Link Application Functionality You can use Services to Link Application Functionality to Portalsto Portals

• You can use Services to Access Application You can use Services to Access Application Functionality that has been delivered to PortalsFunctionality that has been delivered to Portals

• You can use Web Services interfaces to communicate You can use Web Services interfaces to communicate between Portletsbetween Portlets

• You should use a Services Backplane to Deliver a You should use a Services Backplane to Deliver a Unified Portal ArchitectureUnified Portal Architecture




Take-AwaysTake-Aways• Design from the Customer InDesign from the Customer In

• Identify the Scenarios that Matter the Most to CustomersIdentify the Scenarios that Matter the Most to Customers

• Identify the Services that are required to Deliver the ScenariosIdentify the Services that are required to Deliver the Scenarios

• Use the Services you Already have in your existing CRM, E-Use the Services you Already have in your existing CRM, E-Commerce, Point of Sale, and operational systems; Standardize Commerce, Point of Sale, and operational systems; Standardize on Services that impact the customeron Services that impact the customer

• Implement those Services in the most pragmatic way possible—Implement those Services in the most pragmatic way possible—use XML & WSDLuse XML & WSDL

• Leverage the same Services across channels Leverage the same Services across channels

• Focus on Maintaining the Customer’s Session across channels!Focus on Maintaining the Customer’s Session across channels!




Questions???Questions???

Patricia Seybold Group85 Devonshire Street, 5th FloorBoston, MA 02109-350401 617-742-5200www.psgroup.com

Patty Seybold, [email protected]

Free Downloads: Free Downloads: www.psgroup.comwww.psgroup.com• Customer-Centric Exec Guide to CRMCustomer-Centric Exec Guide to CRM• Customer-Centric Exec Guide to Web ServicesCustomer-Centric Exec Guide to Web Services




Thank You!Thank You!

Customer-centric executives’ 1st choice for:Customer-centric executives’ 1st choice for:Patricia Seybold Group

• Strategic InsightsStrategic Insights

• Info Technology GuidanceInfo Technology Guidance

• Best PracticesBest Practices

• Customer ScenarioCustomer Scenario®® methodology methodology

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