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Customer Relationship Management Tools for the Virtual Community Model By Dawn Marie Yankeelov [email_address] 20 September 2000

The CRM Industry Corporate CRM Spending >$1 Trillion (U.S.) Consumer 100,000 Independent CRM Vendors ($700 Billion) Data Management Fulfillment TV Radio Print Advertising Direct Marketing Call Centers: Inbound Outbound

What is CRM? CRM ties together all of a company’s front office customer touchpoints: sales (contact management, product configuration), marketing (campaign management, telemarketing), and customer service (call center, field service) Via multiple, interconnected delivery channels (telephony, email, Web, and direct interaction) YOU ARE TRYING TO TRACK ENTIRE HISTORY OF RELATIONSHIP WITH YOUR CUSTOMER OR CLIENT

Defining CRM Options “ Small and mid-sized businesses would never have been candidates for enterprise applications in the past. Nobody seems to know what is going on and the customer often has more knowledge than the company. That is the Achilles’ heel of businesses today.”—Steve Papermaster, founder of Agillion.com Trends to Watch: --CRM for All Levels --Small Business Use --Web-based Application Proliferation --ASP Models Appealing from Small Communities to Personal Sites

Industry Problem Buyer Dilemma Lack of Industry Knowledge 100,000+ Vendors Product Complexity Rapid Change in CRM Technology Limited Project Management Resources Seller Dilemma Lack of Efficient Marketing Channels Large Capital Investment in Technology No Central Marketplace Intense Competition Inefficient Marketplace = High Search and Maintenance Costs

How to Make Your CRM Initiative Succeed Identify and set clear business requirements Institute a common planning process Obtain Senior-Management Buy-In and Understanding Pinpoint functional differences in culture and success measures and bridge the gaps CRM is a Business Philosophy MarchFirst Consulting

Tribulations: The Barriers Changes in business processes slow IT delivery capability Unwillingness to change sales processes and incentives can stall acceptance of new systems The rate of technology change can be too quick for people to absorb it and adapt

Turn to External Services Provider? Andersen Consulting, Deloitte and Touche, and PriceWaterhouse Coopers meet leadership in category criteria from Gartner Group More than 600 dedicated CRM consultants A minimum of 20 implementations in each of sales, marketing and service multichannels A geographic presence in North America, Europe, and Asia Pacific Integration between the service and industry practices ---www.cio.com/content/gartner/crm

CRM Shifts Cause: Relationship Management Becoming Critical Effect: CRM to satisfy any appetite Cause: No Time to Learn It or Teach It Effect: Simplification in Web-based models Cause: Demand for Analysis & Tracking Continues to Rise Effect: Point ‘n Click Stats on Demand Cause: Spending Getting Scrutiny of VCs Effect: ASP Models Stand a Chance to Deliver CRM

Eye-Openers Spending on ASP services will grow to $7.7 billion in four years, from $30 million this year. However, this is not new monies, just a reallocation of funds. Software vendors are expected to see revenues diminish. --- IDC Corporation Forecast, ASPNews.com, 8/17/2000 CRM, education and training—less than a third now using ASP model --- Zona Enterprise Usage Study, 2000

Metrics for Purchases Should Remain the Same Research Includes: A Look at Problem Found/Solution Provided Depth of Company’s Products—Vaporware vs. Delivered Technology Complexity in Use and Implementation Financial Soundness of Product to Be Purchased—Will it Really Be Around in Two Years? Product Specialization by Industry

Tap the Potential of eCRM—Web-based all the Way Create Interactions—decide if it is advantageous to be the creator of a new community or better to join forces; integrate all sales and marketing channels with back office financials Operate at Internet Speed—real time data gathering, analysis and response is approaching as the standard Analyze Data—Turn massive amounts of data into insight to retain customers Integrate Customer Information Access Across Systems --Montgomery Research, Inc. 2000

Total Cost of Ownership Server Hardware & Software Server w/disks, RAID Fault Tolerance, Memory Backup software Basic Server Installation & Integration Configuration of Server in Hours Service Agreement on Hardware Service Agreement on Network System

Total Cost of Ownership Server Installation & Maintenance Upgrades in a three-year period Man hours for upgrades Migration of platform issues Upgrades to Network Operating System Server Troubleshooting Emergency Service—Actual Hours Consultant Assistance (one day every fourth week) Assistance w/ maintenance

Total Cost of Ownership End User Install & Maintenance Upgrading old PCs User Administration Hidden downtime & Support Costs Courses and Internal Training Software Licensing Security & Telecommunications Employee Infrastructure

CRM Mainstream Migration Contact Mgmt. --most offline 80s 90s 2000 2002 Personalization—using web Customer Relationship Mgmt.—expensive, non-integrated software Database Tracking of Entries Call Centers (most not Internet-friendly) Sales Automation Marketing Automation Web-based Conferencing/Telephony Analytics Relationship Mgmt. In ASP format Synchronous Customer Management (multi-channel managed via web or wireless device)

CRM Marketers Break with Tradition Major Players Reinventing Product Line to Serve Lowend Web-based Solutions for all Industries New Technology Platforms Breed New CRM methods—I.e. Release of Windows 2000 platform Free Is the “Winner to Take All” Plays Geography is Meaningful in Seizing Market Share and VC Dollars—Look in Your Backyard for Answers ERPs Migrating to ASPs That Can Go Live Within Days

High-End Marriages Outside The Product Class Example: Siebel Mid-Edition (first shipped July 19, 2000) and Great Plains Partner Status Features Include: Customer Applications including ecommerce functions, 24/7 self-service, and online marketing info; Employee Applications including features for front-office employees; and Partner Applications for partner organizations (i.e. sales channels)

New Low-Cost Web Entries E-business Dashboard—Free personal homepage. Keeps tabs on customers, includes personal organizer and headlines Tasks and Email—Tracks Tasks and Personalized Email Acct. Activities and Notes—Permanent searchability on customer activity Group Calendar—Review and update daily, weekly or monthly on the web schedules $29.95 per month/per user Personal Pages—password-protected websites Shared Contacts—Customer Interaction Database that allows users one secure, central place to store and access customer information and activity Product Offerings Low-cost Web-based CRM with messaging functions. Product The company is aimed at small businesses Product: Agillion.com

Moderate-Cost Entries Example: Worldtrak.com Works with Microsoft Outlook Account Opportunity Mgmt. Enterprise Forecasting Activity Tracking Enterprise Lead Mgmt. Enterprise Data Synchronization & Remote Access

Consider Scalability for Community Onyx.com Products for Enterprise Users --30,000 concurrent users—sub-second response --High-Ticket Item

Websites for Research on CRM Crmguru.com Searchcrm.com Crmassist.com CRMcommunity.com ASPNews.com ASPIsland.com www.microsoft.com/europe/industry/crm

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