Jan 28 2011

Take Stock of CRM Optimization Opportunities for Big Impact

With a new year upon us and an economy that is slowly improving, it is time to review your customer centric strategies to ensure that marketing+sales basics and the technology to leverage those basics are in place. While target marketing and sales follow up are key, the CRM optimization advances over the past few years have made it possible to better cultivate your top tier customers and grow their numbers as well as to increase dollar spent per customer.

Recently, for a global fashion and apparel client, we brought together demographic, lifestyle, wealth and other buyer profile data for the top 20 percent of the company’s customers. We noted two clusters within this group – ‘A’ & ‘B’ with ‘A’ customers buying almost twice as much as ‘B’ customers. We also identified several characteristics that helped predict buyer behavior of ‘A’ customers. Using this information, we sent targeted promotions to the top 20 percent ‘B’ customers with a goal to induce purchase behavior closer to ‘A’ customers.  We also reached out to customers in the lower 80 percent that displayed top tier profile characteristics but were not buying at the top tier levels. Finally, we used the top 20 percent buyer profile to target prospects and reduce acquisition costs. The result?  Increased revenues in all three sectors!

No matter the industry, analysis of external customer/market information coupled with internal customer transactional data can be used to create highly predictive propensity-to-purchase models. But it requires a robust CRM system that has integrated marketing and sales modules and real-time workflow tools to move data seamlessly between marketing and sales. It also requires a sales team that is well trained on the importance of accurate tracking and reporting in the CRM system. This closed-loop marketing/sales process is critical for generating key ROI insights that marketing personnel can utilize to evaluate future campaigns/initiatives and that sales can use to close additional business.

At the end of the day, it is a simple equation with big impact: marketing + sales + CRM = big impact. Read more in my February destinationCRM column, “Marketing + Sales + CRM = Big Impact”.

Tags: , , Posted by - Barton Goldenberg @ 1:22 pm

Jan 18 2011

Lookback at 2010 – Peek at 2011

As we begin a new year, ISM remains cautiously optimistic about the state of the CRM marketplace for 2011.

The long-term prospects of the CRM marketplace continue to be bright as Gartner predicts that the CRM market will continue to have a positive growth rate, considering the slowing economy.  The CRM market is poised for a “healthy growth” rate through 2012 when CRM software revenue is forecasted to reach a whopping $13.3 billion.  There are several reasons for this market growth, according to Gartner Research Director Sharon Mertz.  CRM continued to grow through 2010 because it added value to the bottom line of organizations needing to do more with less. Three keys to CRM success in an economic downturn were setting up low-cost customer service, analyzing and optimizing marketing, and finding sales leads through social-networking platforms. This combination, experts agreed, is making CRM software an indispensable tool within organizations.

However with the worldwide economies still beginning to emerge from the Great Recession, 2011 will be a trying year for the CRM industry.  CRM vendors will be more challenged by their clients to provide clear and specific ROI about the business value their CRM solutions can provide for the company.  CRM professionals cannot afford failed CRM projects, particularly in down markets when business survival may be at stake.  In 2011, “risk-proofing” CRM projects will near the top of the priority list for CRM professionals.  CRM professionals will have to sharpen their negotiating skills to get more value from their vendor relationships in the coming year. During 2010, companies began looking for ways to cut costs on technology and became more customer-centric as the U.S. economy went into a recession, which made on-demand CRM applications and Social Media tools popular choices for those looking to invest in CRM.  Stay tuned for future blog posts as I will review the major trends that are having a huge influence on the CRM market in 2011.

Tags: , , Posted by - John Chan @ 7:34 pm

Jan 10 2011

Why You Need a Social Media Policy

Facebook just surpassed Google as the most visited site on the web and your employees are on it – and Twitter, Myspace, YouTube, Linkedin, blogs and others.  Virgin Atlantic, the Philadelphia Eagles, and Brixx restaurant fired employees for negative Facebook posts about the company or customers. A Georgia teacher and New England Patriots cheerleader were fired for personal behavior posted on Facebook.  It’s critical to have a Social Media Policy that makes it clear what you expect from your employees online.

In fact, according to www.socialmediagovernance.com, best practice companies have two policies:  one for all employees, and a more detailed one for people who deal with social media as part of their job. You need to be clear with employees about:

  • What you consider to be company confidential (especially for public and regulated organizations)
  • Respecting customer privacy and respecting customers in general
  • Use of company logos/materials/copyright
  • Honoring your corporate values (honesty, transparency, accuracy, humility)
  • Being clear that while they work for your organization, the opinions they express are their own
  • Understanding that the Internet is forever

Most important, a Social Media Policy isn’t just about telling employees what they shouldn’t do — it’s also about encouraging them to become advocates for your organization.  Every employer has employees who are enthusiastic, positive, and passionate about their work.  The last thing you want is to discourage these people from communicating that enthusiasm and knowledge.  I have a Facebook friend who is a GM employee.  He regularly posts links to positive GM press and information.  Because of him, I know that GM is paying back one billion dollars it borrowed from the government.  And, his links are always prefaced with a positive, sometimes personal statement.

Encourage your employees to share their enthusiasm about their work.  Make it easy for them to repost or retweet good news about your company.  Talk to your internal experts about blogging, commenting on blogs, and generally sharing their expertise in a positive way.  Work with your recruiting department to collaborate with your employees LinkedIn accounts to find top talent. If you have a company blog or community, encourage employees to contribute.  If you notice someone is regularly making valuable comments or helping to create buzz around your company and its products, recognize them.  If someone slips up, let them know privately, quickly, and change your policy if it’s something you missed.  Finally, don’t overlook someone because they don’t have a senior position – in social media, personality and expertise count more than title.

Here are a few corporate social media policies I like:  Ford, Intel, Best Buy and Greteman Group. You can find them here:

http://socialmediagovernance.com/policies.php.

Tags: , , , Posted by - Kathy Barton @ 6:06 pm