Why a Traditional Siloed CRM Approach is Doomed

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<ul><li><p>8/6/2019 Why a Traditional Siloed CRM Approach is Doomed</p><p> 1/5</p><p>Volker Hi ldebrand an d Vinay Iyer, SAP</p><p>Feature Story | Strategic CRM</p><p>Subscribe today. Visit sapinsider.wispubs.com.</p><p>Why a Traditional Siloed CRM Approach Is Doomed6 New Core Competencies for Delivering the Total Customer Experience</p><p>Volker Hildebrand (volker.</p><p>hildebrand@sap.com) is Vice</p><p>President of CRM Solution</p><p>Management at SAP. He has been</p><p>with SAP for over 10 years, building</p><p>momentum in CRM and e-commerce.</p><p>Prior to joining SAP, he was an</p><p>assistant professor of marketing</p><p>and helped companies drive</p><p>CRM initiatives as a business</p><p>consultant. A thought leader in</p><p>CRM for 15 years, he has written</p><p>several books and 100+ articles.</p><p>Volker holds degrees in businessand technology and earned his</p><p>Ph.D. in business economics.</p><p>In a 2009 Strativity Group study o 869 executives,</p><p>80% o those surveyed declared that customer-</p><p>acing strategies are high on their corporate agendas</p><p> and are even more important than they were three</p><p>years ago. Strativitys research also shows that com-</p><p>panies that invest 0% or more o their revenues inthe customer experience realize a ar greater num-</p><p>ber o customer-driven reerrals.</p><p>In short, organizations that embrace the concept</p><p>o customer experience management are more suc-</p><p>cessul than those that do not.</p><p>So how can you manage the customer experience</p><p>successully? And what are the key success actors?</p><p>The Cstomer Empowerment PhenomenonFor starters, companies must recognize that custom-</p><p>ers today are very dierent rom customers in thepast. They are more empowered than ever beore,</p><p>due largely to three important actors:</p><p>The dramatic growth and increased availability o</p><p>communications technology, which connects an</p><p>ever-growing number o people worldwide</p><p>The rapid and pervasive adoption o the Internet</p><p>as the medium or inormation consumption and</p><p>interaction</p><p>The recent explosive growth o online social media</p><p>and other Web 2.0 technologies, which enablepeer-to-peer interactions on a global scale</p><p>Since todays customers can so easily connect with</p><p>one another, with companies, and with inuencers,</p><p>nothing can be a secret or long. Product peror-</p><p>mance, pricing, and customer experiences are no</p><p>longer under the direct control o companies. Rather,</p><p>the power has shited dramatically to consumers, who</p><p>TheCustomerCentricEnterprise:PartNewCustomerStrategiesfor</p><p>CompetitiveAdvantageintheMillennium,StrativityGroup(2009).</p><p>now collectively determine how brands and customer</p><p>experiences are identifed, defned, and expressed.</p><p>The Resltn New CstomerEnaement Model</p><p>Given this dramatic shit in customer power and theree movement o inormation, companies have to</p><p>adopt a undamentally new approach to engaging</p><p>with their customers. They can no longer simply</p><p>manuacture products, advertise them, market and</p><p>sell them, provide ater-sales service, and repeat the</p><p>process all over again. Todays world requires a very</p><p>dierent customer-acing approach, which weve bro-</p><p>ken down into six core competencies (see Figure 1).</p><p>Sense customer and market sentiment. Custom-</p><p>ers are already engaged in several online and</p><p>oine communities, expressing their opinions,</p><p>preerences, needs, and trends. It is imperative</p><p>that companies listen to and engage in these con-</p><p>versations arguably even beore they design a</p><p>new product or service.</p><p>Develop comprehensive customer insight. By</p><p>actively listening to customer conversations and</p><p>sentiments, and by leveraging historic customer</p><p>interaction inormation, companies can derive</p><p>comprehensive customer insight.</p><p>Create optimal oers. Companies can then lever-age this comprehensive insight to create the right</p><p>products, packages, and oers to cater to cus-</p><p>tomer expectations.</p><p>Market and sell consistently across multiple</p><p>channels. Next comes marketing and selling to the</p><p>customer, leveraging traditional channels like</p><p>direct or email marketing, as well as new social</p><p>media channels like Facebook and Twitter. Ensure</p><p>that youre delivering a consistent customer expe-</p><p>rience across all channels.</p><p>1.</p><p>2.</p><p>3.</p><p>4.</p><p>Vinay Iyer (vinay.iyer@sap.com) is</p><p>Vice President of SAP CRM Global</p><p>Marketing, responsible for go-to-</p><p>market and thought leadership. He</p><p>has championed the use of social</p><p>media and Web 2.0 channels in SAP</p><p>CRMs marketing efforts, and</p><p>aspires to keep SAP CRM in the</p><p>forefront of new media marketing.</p><p>Prior to joining SAP, Vinay held</p><p>product marketing and business</p><p>development roles at Siebel</p><p>Systems in the US and EMEA. Vinay</p><p>has a masters degree in electrical</p><p>engineering and an MBA from the</p><p>Wharton School at the University</p><p>of Pennsylvania.</p><p>This article appeared in the Jan n Feb n Mar 200 issue o SAPinsider (http://sapinsider.wispubs.com)</p><p>and appears here with permission rom the publisher, Wellesley Inormation Services (WIS).</p>http://sapinsider.wispubs.com/mailto:volker.hildebrand@sap.commailto:volker.hildebrand@sap.commailto:volker.hildebrand@sap.commailto:vinay.iyer@sap.comhttp://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/mailto:vinay.iyer@sap.commailto:volker.hildebrand@sap.comhttp://sapinsider.wispubs.com/http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/</li><li><p>8/6/2019 Why a Traditional Siloed CRM Approach is Doomed</p><p> 2/5</p><p>Subscribe today. Visit sapinsider.wispubs.com.</p><p>Deliver superior customer service. This consis-</p><p>tency o experience has to be carried beyond the</p><p>sale to whenever the customer requires service</p><p>and care through whatever channel the cus-</p><p>tomer chooses, including new channels like Twit-</p><p>ter. Whether the customer needs repairs or the</p><p>product they purchased or has questions related</p><p>to billing and payment, service agents at every</p><p>touch point must have adequate knowledge o the</p><p>customers previous interactions. This is critical;</p><p>customers must receive a consistent experience</p><p>in order to ormulate a steady and positive </p><p>opinion about your company and your brand.</p><p>Seek and infuence ongoing customer engage-</p><p>ment. Finally, it is no longer enough to provide cus-</p><p>tomer service only when the customer requests it.</p><p>Companies should also constantly engage custom-</p><p>ers in ongoing conversations in whatever orums</p><p>the customers are participating in as a continuing</p><p>eort to build mindshare and brand perception.</p><p>How Does SAP CRM Spport Ths NewCstomer Enaement Model?To re-architect your customer-centricity strategy</p><p>in line with these six new core competencies, we</p><p>have identifed three key pillars o customer experi-</p><p>ence management that every organization should</p><p>consider: operational excellence, interaction excel-lence, and decision excellence (see sidebar on the</p><p>next page).</p><p>Lets take a closer look at how SAP is driving</p><p>innovation in each o these areas (see Figure 2 on</p><p>the next page).</p><p>Enabling Operational Excellence:</p><p>SAP Business Suite</p><p>SAP has always been committed to helping organiza-</p><p>tions achieve operational excellence. We do this</p><p>simply and efciently by providing industry-specifc</p><p>solutions or end-to-end sales, marketing, and ser-</p><p>vice business processes out o the box. These pro-</p><p>cesses ensure that organizations have a 360-degree</p><p>view o customer interactions and operational con-</p><p>straints. And they enable managers to ocus on</p><p>process efciencies, thereby optimizing every oppor-</p><p>tunity to increase revenue or cut costs.</p><p>At SAP, we will continue to ocus on entire business</p><p>processes, not only across sales, marketing, and service</p><p>(and across customer touch points), but across the</p><p>5.</p><p>6.</p><p>enterprise and beyond. Customer relationship manage-</p><p>ment (CRM) and customer experience managementin particular is not limited to the ront ofce: Orders</p><p>need to be shipped as promised, feld service techni-</p><p>cians need spare parts in time, sales reps need inor-</p><p>mation about unpaid bills or back orders, and retailer</p><p>shelves need to be stocked when a promotion hits</p><p>the street. And i you want to know who your most</p><p>proftable customers are, you will need inormation</p><p>rom your fnancial system. SAP Business Suite is</p><p>unique in its ability to seamlessly connect one end o</p><p>your customer-acing processes to the other.</p><p>Making Every Interaction Count: Exciting New</p><p>Developments in SAP CRM</p><p>As we noted earlier, the explosive growth o wireless</p><p>communications and the rapid adoption o the Inter-</p><p>net globally are enabling people to be connected and</p><p>inormed like never beore. Realizing this opportu-</p><p>nity to expand the reach o enterprise inormation</p><p>and processes to every participant in the business</p><p>conversation, SAP Customer Relationship Manage-</p><p>ment (SAP CRM) is pioneering several major capabili-</p><p>ties. Here are a ew exciting developments that either</p><p>are available today or will be available soon.</p><p>SAP Business Communications Management</p><p>SAP Business Communications Management is an all-</p><p>IP (Internet) communication sotware solution that</p><p>empowers organizations to integrate multichannel</p><p>communications (such as telephone, email, ax, voice-</p><p>mail, text message, or online requests) with customer</p><p>business processes across sales, marketing, and</p><p>service. SAP Business Communications Management,</p><p>ognizins ms</p><p>dp nw ppch</p><p> CrM n h</p><p>fcss n nl n</p><p>fficinc gins, b</p><p>ls n h l</p><p>csm xpinc.</p><p>Business Context</p><p>Customerexperience</p><p>Sense customerand marketsentiment</p><p>Market and sellconsistently acrossmultiple channels</p><p>Developcomprehensive</p><p>customer insight</p><p>Seek and influenceongoing customer</p><p>engagement</p><p>Deliver superiorcustomer service</p><p>Createoptimal offers</p><p>FiguRE 1pth six c</p><p>cmpncis f cm-pnis nw csm-</p><p>fcing li</p>http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/</li><li><p>8/6/2019 Why a Traditional Siloed CRM Approach is Doomed</p><p> 3/5</p><p>Subscribe today. Visit sapinsider.wispubs.com.</p><p>in conjunction with SAP CRM, replaces traditional</p><p>telephony hardware-based solutions with sotware.</p><p>Intelligent routing ensures that your customers and</p><p>ront-line employees can reach the people with the</p><p>right skills to best address their questions no mat-</p><p>ter where in the world those experts might be.</p><p>Mobile CRM</p><p>In collaboration with partners like Sybase and Syclo,</p><p>SAP is co-innovating exciting new smartphone-based</p><p>solutions to deliver SAP CRM on mobile devices.</p><p>Sybase is developing SAP CRM applications on its</p><p>Sybase Unwired Platorm (SUP); these applications</p><p>are designed to run on the iPhone and Windows</p><p>Mobile smartphones. SUP provides a single platorm</p><p>or delivering applications and data to multiple</p><p>mobile devices and mobile operating systems,</p><p>thereby simpliying the challenges o deliveringmobile applications to global users.</p><p>And through our partnership with Syclo, we are</p><p>launching a mobile CRM application specialized or</p><p>traveling feld service personnel. Syclo oers deep</p><p>domain expertise in feld service mobile solutions,</p><p>along with a best-in-class mobile feld service solu-</p><p>tion that complements SAP CRM.</p><p>Web Channel</p><p>The Internet is a low-cost, high-impact channel through</p><p>which you can market, sell, and provide services tocustomers (who expect to interact with vendors online</p><p>24/7) so its an increasingly important channel in</p><p>tough economic times. Today, many companies have</p><p>homegrown Web presences that are either custom-</p><p>built with high TCO or based on outdated technology.</p><p>SAPs next-generation Web Channel platorm, with</p><p>its state-o-the-art visual and interaction design, will</p><p>set a new standard. The platorm, which will be made</p><p>available in the latter hal o 200, will enable organi-</p><p>zations to create an exceptional online customer</p><p>experience by leveraging existing back-end processes</p><p>and creating content-rich customer interactions.</p><p>Exciting innovations including a revolutionary</p><p>interactive catalog, a sensational product gallery,</p><p>embedded product ratings and reviews, user-ocused</p><p>online sel-services, and integrated, real-time oer</p><p>management will allow organizations to turn the</p><p>Internet into an appealing and powerul B2B or B2C</p><p>sales channel, unleash the power o Web 2.0 tech-</p><p>nologies and media, and provide their customers</p><p>with convenient, intuitive online sel-services.</p><p>The 3 Pillars of Customer Experience Management</p><p>Pillar #1: Operational Excellence</p><p>Operational excellence is a prerequisite or delivering a positive customer</p><p>experience. It is all about efciency, eectiveness, and your ability to deliver</p><p>on your promises to customers at the lowest possible costs. This requires a</p><p>business process design across and beyond the entire organization, eec-</p><p>tively synchronizing ront and back ofces and efciently mapping supply to</p><p>demand. In todays environment, companies must not compromise on</p><p>operational excellence or they will ail.</p><p>But business strategies also need to adapt urther, as interaction excellence</p><p>and customer insight are becoming key sources o competitive dierentiation.</p><p>Pillar #2: Interaction Excellence</p><p>Customer experience is to a large extent based on the interaction experi-</p><p>ence; that is why companies should make every interaction count. As chan-</p><p>nels prolierate, organizations must seek new ways to interact with custom-</p><p>ers and provide a consistent experience across all touch points. This includestechnology to support mobile workers and bridge the gap between multi-</p><p>channel communications and customer-acing business processes.</p><p>Organizations should also consider leveraging contextual social media</p><p>and collaboration by enriching structured data with unstructured data rom</p><p>outside o the enterprise. For example, companies should be harnessing</p><p>the collective intelligence o online communities to get a sense o customer</p><p>and market sentiments rom orums, product reviews, and blogs.</p><p>Pillar #3: Decision Excellence</p><p>To regain power (as the balance has clearly shited toward the customer),</p><p>organizations need to gain and develop proprietary insight into their cus-tomers beyond industry wisdom, disseminate this inormation across the</p><p>organization, and turn this insight into action by making excellent decisions.</p><p>In</p><p>teract</p><p>i</p><p>on</p><p>Excelle</p><p>nce</p><p>DecisionEx</p><p>celle</p><p>nce</p><p>Operational Exce</p><p>llen</p><p>ce</p><p>Busines</p><p>s Context</p><p>Customerexperience</p><p>Capitalize oncustomerinsight</p><p>Drive efficiencyand effectivenessto deliver onpromises at thelowest possible costs</p><p>Make everyinteraction</p><p>count</p><p>FiguRE 2p SaPs nw CrM fmwk f xcllnc</p>http://sapinsider.wispubs.com/http://sapinsider.wispubs.com/</li><li><p>8/6/2019 Why a Traditional Siloed CRM Approach is Doomed</p><p> 4/5</p><p>Subscribe today. Visit sapinsider.wispubs.com.</p><p>Social Media Channels</p><p>Realizing the emerging need to embrace social mediachannels as avenues o customer engagement and</p><p>intelligence gathering, SAP CRM has pioneered busi-</p><p>ness process integrations with Twitter and Facebook.</p><p>Twitter is a rapid-fre communications channel or</p><p>broadcasting short messages (tweets) to ollow-</p><p>ers. And it is very easy or ollowers to respond to</p><p>your messages. Consequently, in a very short time, a</p><p>message can reach very large audiences. Companies</p><p>are interested in tracking these conversations to</p><p>evaluate sentiment and determine what response</p><p>may be required. SAP CRM has developed integrationwith Twitter to read tweets, analyze t...</p></li></ul>