S i l CRM N t Y F th ’ S i l CRM N t Y F th ’ Social CRM: Not Your Father’s Social CRM: Not Your Father’s Customer Relationship ManagementCustomer Relationship Management

Inbound Marketing Summit ‘08Inbound Marketing Summit ‘08

Brent Leary, CRM Essentials LLCBrent Leary, CRM Essentials LLC

Defining Defining CRM CRM –– Traditionally SpeakingTraditionally Speaking

What Is What Is Customer Relationship Management?Customer Relationship Management?What Is What Is Customer Relationship Management?Customer Relationship Management?

CRM is your approach and attitude for CRM is your approach and attitude for findingfinding, , ti titi ti dd k ik i dd tt ANDANDcaptivating captivating and and keepingkeeping goodgood customers...customers...AND AND

its strategy for its strategy for being found by thembeing found by them..

High Level ChallengesHigh Level Challenges

Are you having problems Are you having problems responding to customerresponding to customer

Having trouble finding Having trouble finding customer information quickly?customer information quickly?responding to customer responding to customer

requests?requests?

A l iA l i

customer information quickly?customer information quickly?

Any issues sharing customerInformation across the company?Are you closing Are you closing

enough deals?enough deals?the company?

Lost any good Lost any good customers lately?customers lately?

Are you losing to Are you losing to competitors?competitors? Are your sales people Are your sales people

always in the office?always in the office?

yy

Do email campaigns Do email campaigns work for you?work for you? Is the sales pipeline full?Is the sales pipeline full?

CRM or CIM? Customer Information MgmtCRM or CIM? Customer Information Mgmt

Traditional CRM’s FocusTraditional CRM’s FocusCentralize Customer DataCentralize Customer DataOperational EfficiencyOperational EfficiencyForecastingForecastingAAActivity ManagementActivity ManagementReportingReportingBut What About THE CUSTOMER???But What About THE CUSTOMER???But What About THE CUSTOMER???But What About THE CUSTOMER???

Sales & Marketing Challenges Sales & Marketing Challenges

The ProblemAvg. Business has Avg. Business has 7%7% awarenessawareness90%+ 90%+ of market not ready to buyof market not ready to buyAwareness = Awareness = 66--77 touches per yr touches per yr 80% of new sales take80% of new sales take 88--15 contacts15 contacts to gain to gain interestinterestAvg. salesperson abandons after 1Avg. salesperson abandons after 1--2 calls2 calls50%50% of all leads buy of all leads buy –– in in 66--1818 monthsmonthsResultResult–– Huge numbers of missed opportunitiesHuge numbers of missed opportunities

* Source: Cargill Consulting Group, Inc., Griffin Consulting Group, Sales & Marketing Mgmt Magazine, Harvard Business Review, Dartnell Institute

“Social” “Social” challengeschallengesgg

Finding time to turn Finding time to turn good customers good customers into into advocatesadvocatesFinding Finding enoughenough good good customerscustomersCreating opportunities for Creating opportunities for meaningfulmeaningfulexchangesexchangesggCreating opportunities for prospects to Creating opportunities for prospects to find usfind usNeed Need to to automateautomate time consuming tasks time consuming tasks ggkeeping you from creating advocates:keeping you from creating advocates:–– Creating Creating attractiveattractive content appealing content appealing

to good to good prospectsprospects–– RespondingResponding to Leads Quickly,Quickly,

Correctly and EffectivelyCorrectly and Effectively–– Closing more good deals Closing more good deals efficientlyefficiently

“Social” “Social” challenges… to challenges… to The CustomerThe Customergg

Finding time to turn Finding time to turn searches searches into into answers/solutionsanswers/solutionsanswers/solutionsanswers/solutionsFinding Finding enoughenough trusted trusted informationinformationFinding trusted vendorsFinding trusted vendorsFinding vendors who Finding vendors who valuevalue themthemCreating opportunities for Creating opportunities for Creating opportunities for Creating opportunities for meaningfulmeaningful exchangesexchangesNeed Need to to automateautomate time consuming time consuming t k k i f ti t k k i f ti tasks keeping you from creating tasks keeping you from creating advocatesadvocates::

•• Each customer wants a Each customer wants a personalized personalized experienceexperience……

•• They They couldn’t care lesscouldn’t care less if they are high if they are high They They couldn t care lesscouldn t care less if they are high if they are high value or low value customersvalue or low value customers

–– They don’t know if they are high or They don’t know if they are high or low value to youlow value to you

–– But you have to accommodate even low But you have to accommodate even low value customers because of what they value customers because of what they can do to you if you don’tcan do to you if you don’t

•• But how do you begin to “know” millions But how do you begin to “know” millions of customers?of customers?

–– First, understand how they interact First, understand how they interact with you at every point, in every with you at every point, in every channelchannel

•• That means detailed mapping, not That means detailed mapping, not j j just surveys, etc.just surveys, etc.

–– Ultimately, the Ultimately, the tools for the customer tools for the customer to manage their own experience are to manage their own experience are paramountparamount

•• Give them access to information Give them access to information Paul Greenberg - 2008

•• Give them access to information Give them access to information that allows them to make that allows them to make informed, empowering choices informed, empowering choices which thus, provide valuewhich thus, provide value

Social Customers Social Customers In ActionIn Action

Source: Forrester Research, Inc.

The Social Customer The Social Customer -- Tools Tools

Source: Brian Solis

Enter the Social CustomerEnter the Social Customerte t e Soc a C sto ete t e Soc a C sto e

Social CRM BasicsSocial CRM Basics

“People “People likelike doing business doing business

Soc a CR as csSoc a CR as cs

People People likelike doing business doing business with people theywith people they likelike……

…and …and lovelove doing business doing business with people they trust!”with people they trust!”

Social CRM ChallengeSocial CRM Challenge

How do you get people to How do you get people to liklik h h

Soc a CR C a e geSoc a CR C a e ge

likelike you when:you when:

•• TheyThey don’t know you existdon’t know you exist•• TheyThey don’t live near youdon’t live near you•• TheyThey don’t live near youdon’t live near you•• YouYou don’t have a big don’t have a big YouYou don t have a big don t have a big

marketing budgetmarketing budget

Social CRM ExampleSocial CRM Examplepp

Social CRM: Barack 2.0 Social CRM: Barack 2.0 –– An ExampleAn Example22 pp

This… is the Social CustomerThis… is the Social Customer

Automating the Acquisition ProcessAutomating the Acquisition Processto at g t e cq s t o ocessto at g t e cq s t o ocess

Traditional CRMTraditional CRMAccount

Campaigns LeadsGenerates Convertsinto Opportunities ForecastFeeds

Into

Contacts

Analyzed to determine successAnalyzed to determine success

Automating the Automating the ConversationConversation ProcessProcess

Enter Social CRMEnter Social CRM

Converting Converting contentcontent into into conversationsconversationsExtending Extending conversationsconversations into collaborative into collaborative experiencesexperiencesTransforming Transforming experiencesexperiences into meaningful into meaningful relationshipsrelationships

Social CRM:New Dimension to Traditional Focusew e s o to ad t o a oc s

AddAddAdds...Adds...Playing easy to getPlaying easy to getDale Carnegie 2.0Dale Carnegie 2.0The Three AsThe Three As

Build quality business relationships Analyze the effectiveness of relationship-

The Three AsThe Three AsAAutomationutomationAA al sisal sis building activities (blogging, twittering,

email marketing, etc.), and Create audacious content that grabs the attention of those you want to engage in

AAnalysisnalysisAAudacityudacity

attention of those you want to engage in conversations

Example of a Small Business Sales CycleExample of a Small Business Sales CycleExample of a Small Business Sales CycleExample of a Small Business Sales Cycle

MarketingCollateral

10% Lik lih d f i i10% Likelihood of winning

NeedsAnalysis

20% Likelihood of winning20% Likelihood of winning

Presentation40% Likelihood of winning

ClosedLost

Proposal60% Likelihood of winning

C t tContractSubmitted

80% Likelihood of winning

NegotiationClosedWonNegotiation

90% Likelihood of winning

Automating Content Creation & Automating Content Creation & DistributionDistributionst b t ost b t o

Automating Content Creation/DistributionAutomating Content Creation/DistributionAutomating Content Creation/DistributionAutomating Content Creation/Distribution

Don’t ForgetDon’t ForgetDon’t Forget....Don’t Forget....UserUser--generated Contentgenerated ContentCoCo--creationcreationGoing beyond traditional Going beyond traditional contentcontent

Website GraderWebsite GraderTwitter Profile GraderTwitter Profile Grader

Monologue or Dialogue?Monologue or Dialogue?o o og e o a og e?o o og e o a og e?

Traditional KPI’s: Key Performance IndicatorsTraditional KPI’s: Key Performance IndicatorsRevenue Enhancements Cost ReductionsSales Force Automation Sales Force Automation

Traditional KPI s: Key Performance IndicatorsTraditional KPI s: Key Performance Indicators

Inc. avg. revenue/saleInc. customer retention rate Inc. close rate/win rate

Reduced training costReduced administration costsReduced communication costs

Inc. # sales opportunitiesImproved new rep performance

Reduced rep turnoverReduced order errors

Marketing AutomationI i t

Marketing AutomationR d d t i iti tInc. conversion rate

Inc. number of campaignsInc. customer loyalty

Reduced customer acquisition costReduced advertising cost

Customer Service/Support Customer Service/SupportCustomer Service/SupportInc. customer retention rateImproved new agent performance

Customer Service/SupportReduced cost of providing serviceReduced training costsReduced average call timeg

Analysis: The New Metric SystemAnalysis: The New Metric Systema ys s: e ew et c Systea ys s: e ew et c Syste

WebAnalyticsDemystified.com 2008

Measuring Random Acts of Measuring Random Acts of Web SocialismWeb Socialism

• Brand driven sessionsBrand driven sessions

• Either originating directly or from “branded” “branded” search terms– • ““brentbrent learyleary””, ““crmcrm blog”blog”, “social “social crmcrm””, etc.

– • anyone coming directly or searching for my name is already fairly engagedalready fairly engaged

•• Measured eventsMeasured events

• Pre-determined non-commerce events• Pre-determined non-commerce events– • Email meEmail me, comment on my blogcomment on my blog, download a PDF,

DiggDigg me, StumbleUponStumbleUpon me, MixxMixx me, etc.

FeedburnerFeedburnereedb eeedb e

Tweetburnerweetb e

The Audacity of CRMThe Audacity of CRMe dac ty o CRe dac ty o CR

Jigsaw: Open Data Initiative and YouTubeJigsaw: Open Data Initiative and YouTubeJ gsaw: Ope ata t at ve a d o beJ gsaw: Ope ata t at ve a d o be

Benefits of Social Media on Customer Benefits of Social Media on Customer Relationship ManagementRelationship ManagementRe at o s p a age e tRe at o s p a age e t

Avanade – June 2008

Pyramid of Customer LoyaltyPyramid of Customer Loyaltyy y yy y y

Thank You!Thank You!a o !a o !

Brent LearyBLEARY@CRM-ESSENTIALS.COMBlog– WWW.BRENTLEARY.COM

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