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Follow Grandma Sallys Traditional Recipes to bring in Real Customers and keep em comin back in a Virtual World
Michele Bartram
Digital Diva/ E-business Evangelist, WebPractices.com Senior Vice President, Commerce /Commerce Czar, iVillage.com Email: mjb@webpractices.com As Presented at the eCRM Summit, Carmel, California, May 17, 2000
(c) 2000 Michele Bartram, mjb@webpractices.com 0
AGENDA
Background Real Requirements from Real People Grandmas eCRM readiness tests and examples Grandmas Recipes for eCRM success Final Advice from Grandma Resources
The New Customer is Really the Same Old Customer with a New Twist
Problem: Customers today want old-fashioned service where everybody knows your name and sound, neighborly advice, but also want new-fangled tools and convenience eCRM Solution: Sail the Seven Cs
You must Combine relevant Customized Content, Community and Commerce to provide Control and Convenience. With commerce based on her own stated preferences, she wont want or need to shop anywhere else!
What is CRM?
TO YOU: Talking with not at customers and responding to their needs throughout your organizations lifecycle with them:
Acquire & Retain Understand & Differentiate Develop & Customize Interact & Deliver
TO YOUR CUSTOMERS: You know me no matter where or when I deal with you. You treat me better the more you know me, and give me personal, friendly service.
(c) 2000 Michele Bartram, mjb@webpractices.com 5
Goals of eCRM
Reduce
costs of marketing
Improve
accuracy and relevancy of recommendations customer satisfaction
Increase
conversion rate, i.e., Turn browsers into buyers customer retention and frequency order size customer response competitiveness through differentiation profitability, ROI
Customers Desires
Convenience: One-stop shopping, tools, online services Relevance: all community, content, products and services around a topic Simplicity: usability, ease-of-use Choice: Selection of products/ services and way they are presented Voice: Interaction with and responsiveness of merchant Reinforcement: community, ratings / reviews Safety: of credit card and other personal data Control: over use of her private data, plus offers, content Recognition: Remember and apply my unique name & preferences. (Ex. Women surveyed insisted they wanted to be known as unique not part of a group.)
(c) 2000 Michele Bartram, mjb@webpractices.com 8
Breaking promises (fast service, easy terms) Treating them as part of a group, not an individual Not allowing them to access and change their own data Poor or non-human customer service
I asked the wisest real person I know, my Grandma Sally from Kentucky, whos worked in the customer food service field for over 65 years, to advise me on what it takes to provide the best customer experience and keep em comin back for more. All companies could learn from her 82 years of experience .
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Follow along with my Grandma Sallys conventional Kentucky wisdom for customerdriven success
(c) 2000 Michele Bartram, mjb@webpractices.com
and test your companys ability and readiness to walk the path of total customer relationship management.
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They give advice by the bucket but take it by the grain. Empty cans make a lot of noise. If wishes were horses then beggars would ride. Im busier than a one-armed paper hanger My mind is like a sieve! Dont buy a pig in a poke. Grandma knows best. One mans junk is another mans jewel. Talkers aint doers.
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To hear a secret is human, to air it is divine! One-size-fits-all dont fit nobody good. Dont start choppin til youve treed the bear. You dont know the worth of water until the well runs dry. Dont muddy up the well that you get your water from. Im so durned glad to be home, Im glad I went.
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There never was a road that didnt have a turn in it. He who pays the fiddler calls the tune. The post always wears out before a hole. You cant put scrambled eggs back in the shell. Stoppin at third base dont add no more to the score than strikin out. No more chance than a grasshopper in a chicken coop.
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CUSTOMER SEGMENTATION
Squeaky wheels get the grease.
e.Piphany says there are 3 types of customers: Great customers, potentially profitable ones and eternally unprofitable ones. Many companies spend all their time, money and resources on unprofitable customers. Dont spend $ on poor customers, but on great customers and on developing your potential greats. Unless you measure this, you wont know.
Retention Models
(Retention, Lifecycle, Response)
Growth Models
(Cross-sell, Up sell)
Program Execution
Customer Engagement Implement Program Measure & Analyze Wrap-Up Test Program Program Planning Identify Opportunity Develop Program
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PRIVACY: Giving out my information makes me as nervous as a long-tailed cat in a roomful of rockin chairs.
Dont betray her trust by misusing it. Keep it safe No exceptions.. Collect and use her explicit data only with express, advance, opt-in permission. Let her know the source of her data when you use it, and let her access and update it from an easy, prominent user profile. (Ex. McAfee )
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LISTENING: Seems companies always give advice by the bucket and take it by the grain.
Listen and respond, not just talk. (Ex. All managers and employees should have to work customer phones or email one day a month or quarter.)
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TOOLS: You like the apples more if you have to shake the tree.
Provide interactive tools, planners, calendars, registries to get the user involved in the buying experience. (Ex. TheKnot.com , iVillage Shopping Lists )
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USABILITY: A poorly designed web site is as useless as two buggies in a one-horse town.
In testing, some users couldnt even add products to shopping carts! Many got lost in navigation and abandoned carts or sites. Test all design in advance with real users, not your own people. New eyes see differently.
DESIGN VS. USABILITY: Beauty is only skin deep, but ugly is pure to the bone.
Dont allow design shops to add beauty in expense of utility. Research shows customers, particularly, want speed over beauty. Only make it pretty if you can do it without losing ease-of-use.
NOTE: Join www.CreativeGood.coms newsletter, and see their (c)superb Holiday mjb@webpractices.com 2000 Michele Bartram, 99 Report. Also available to Shop.org 27 members.
PERSONALIZATION
Evolution of Personalization
Identify customers individually and addressably. Differentiate customers by value and needs.
Great ones, Potential great ones, Eternally unprofitable ones, Personal Profile Users Shopping Mode
Interact with customers (at reduced cost and increased efficiency). Customize some aspect of your enterprises behavior on a general basis. Personalize response for each individual customer.
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Types of Personalization
Environmental: demographic, geographic, psychographic
(Ex. 100percentgirls.com customized to tween girl talk)
Preference-based personalization: user enters requirements Collaborative filtering: recommendation engines Behavior-based: on website, in store, with catalog Rules-based: match offers/ content to fixed business rules
Purchasize: Offer fries with that burger
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What to Personalize
Search results Product mix Recommendations Offers
Sales, discounts, bundles, cross and up-selling, pricing
Personal accounts
Banks, clubs, etc.
Customer service
Specialists, type of service (phone, chat, email)
Fulfillment options
Shipping, billing,
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Collaborative filtering Mass customization Personalized tools- wish lists, reminders, calendars, calculators Ratings: Community, Editors
Surveys and polls Email & Ad Targeting Entitlements Event-based Matching Alerts Matching agents Observation Rule-based Matching Personal web pages User Profile
User-defined and controlled Localization- language and geography
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STRATEGY
MARKET ANALYSIS: Dont take your ducks to a poor market.
Assess value of market youre attempting to win in and determine cost of entry and domination. Find a niche.
COMPETITION: If you cant stand the heat, get out of the kitchen.
Look at all competitors for your customers share of time as well as wallet, not only online but offline as well. Determine the market gaps you can address to gain first or best mover advantage.
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BRAND VS DIRECT RESPONSE: Seeing is believing. vs. Put your money where your mouth is.
Measuring Clickthroughs undercounts branding success, yet overcount direct response. Know your goals.
Brand builders (Buy later): Buy Branding campaigns and measure CPMs only. Direct marketers (Buy now!): use Click to Buy and measure conversion to sales.
Examples:
B-to-C: Direct response: online catalogs, banner ads or links with Buy Now. Branding: Sponsorships, articles, events, plain banners, all print or non-direct TV ads. B-to-B: Direct response: Configurator tools, ordering Extranets. Branding: all print and non-direct TV, trade fairs.
(c) 2000 Michele Bartram, mjb@webpractices.com 35
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CUSTOMER RETENTION
RETENTION: You dont know the worth of water until the well runs dry. and Dont muddy up the well that you get your water from.
Spend generously to keep your best customers with superior service, rewards, and recognition. You cant afford to lose your great ones.
REWARDS: You catch more flies with honey than with vinegar.
Reward your best current customers differently than new ones. Customers pet peeves include getting discounts for new subscriptions and none for loyal readers (Ex. Most print magazines give you discount when you sign up as new reader, then charge full price for renewal, penalizing loyal customers).
(c) 2000 Michele Bartram, mjb@webpractices.com 38
IMPLEMENTATION
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People
What skills,training, roles, authority, & incentives are needed to do these jobs? Include in-house and outsource jobs, with e-biz/ marketing, content/ design & tech. who need
Customer
Who are/should be your customers & what are their requirements and preferences for your organization in products and services? drives
Intelligence
What intelligence (research, reports, information) is needed to allow people to analyze the results, predict the outcome or decide a course of action?
Strategy
is comprised of What are the e-business policies and differentiating set of activities that your organization needs to deliver a unique mix of value to customers? What customer needs should/ not you meet? drives
supported by
Automation
What steps of these processes can be completed faster, better, or cheaper by using computers or equipment? supported by
Process
What is the series of action steps, tasks & business rules that is required to complete the desired e-biz strategies and polices? dictates
Data
What numbers, characters, images or other recorded information is needed to provide intelligence to make decisions? supported by
Organizational Structure
What is the most logical grouping of jobs & individuals needed to support the business processes effectively?
Technology
What hardware/ software is needed to to best capture, store, process, & distribute data & automate the processes?
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Customer-Driven Enterprise
(Source: Dialogos, Inc.) Significant integration will be required to become customer-centric. However, the resulting institutional base of knowledge will provide exponential returns.
Customer(s)
Direct Channels
Indirect Channels
Internet
DEMAND
Customer Service
Retail
Distributors
Intermediaries Sales
Information Management
Customer dBase
SUPPLY
Operations dBase
Human Resources
Finance
Manufacturing
Distribution
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PHASED APPROACH:
You cant put one foot in two shoes at the same time.
5 Core Areas of Business Transformation
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Customer Service
E-gain, Kana
eBusiness Architecture
(Source: Dialogos, Inc.)
Customers
Order Entry Warehousing and distribution Manufacturing
Web
Web Server Observation Ad Search Fraud Mgmt & Server Mgmt Engine Detection Reporting
Financial Systems
E-commerce Engine
Content Mgmt
Data Observation Mart Marts Order Mart Cross-sell Mart Segmentation Mart
Business Rules Engine Data and Rules Publication Business Rules Repository
Business Partners
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Freshness Matters
Ex. At Xerox.com (using Broadvision), 120 contributors worldwide update site daily
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CONTACTS
Email: mjb@webpractices.com Phone: 917-326-4198 Download this eCRM presentation and others on blueprinting for your e-business success, and find e-business resources at my web site at:
http://www.WebPractices.com/
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RESOURCES
NOTE: The following software applications and companies are listed for information purposes only and do NOT imply an endorsement of the companies or products or results that may or may not be achieved.
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Customer Interaction:
BlueMartini.com
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