The Future of eCRM Grandma Test

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					 Cook up a Bright Future in Customer
 Relationship Management…
 by passing the Grandma Test!

“Follow Grandma Sally‟s Traditional Recipes
    to bring in Real Customers and keep „em
              comin‟ back in a Virtual World”

                             Michele Bartram
     Digital Diva/ E-business Evangelist,
Senior Vice President, Commerce /“Commerce Czar”,

  As Presented at the eCRM Summit, Carmel, California, May 17, 2000
(c) 2000 Michele Bartram,                        0
 Background
 Real Requirements from Real People
 Grandma‟s eCRM readiness tests and examples
 Grandma‟s Recipes for eCRM success
 Final Advice from Grandma
 Resources

(c) 2000 Michele Bartram,   1
   How to create E-commerce for real people?
 Q: How can you add online commerce that
  supports your user community and business
  partners yet helps real people solve real
  problems in their lives?
 A: See where the bar has been raised in
  customer experience by:
   – analyzing the current Best Practices in eCRM
   – adding your own new customer relationship
     functions to differentiate you from the rest.
 (c) 2000 Michele Bartram,      2
      Fond Remembrances Back to the Future

 In this age of impersonal technology, do you yearn for your Grandma’s time
   before "cookie cutter" malls when… :
 the store owner on the corner knew you, your family, and your tastes and
   set aside for you that special something “he just knew you’d like”,
 you could find merchandise that reflected your own individual needs and
   tastes quickly and easily (or the merchant did for you!),
 you could get friendly, useful advice when and where you needed it, from
   the store clerk, other shoppers, family or friends,
 the shopping experience was personal and friendly, and
 you got “service with a smile” before and after the sale?
 Do you... want all that, plus modern speed, access, selection, convenience
   and one-stop shopping?

(c) 2000 Michele Bartram,                                 3
     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 C‟s”
   – You must Combine relevant Customized Content, Community and
     Commerce to provide Control and Convenience.
   – With commerce based on her own stated preferences, she won‟t
     want or need to shop anywhere else!

 (c) 2000 Michele Bartram,                     4
                                What is CRM?
                                                  TO YOU: Talking with not at
                                                   customers and responding to
                                                   their needs throughout your
                                                   organization‟s lifecycle with
                                                    –   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,                                       5
      Why bother with CRM? It‟s the numbers*!
 It costs six times more to acquire a new customer than keep an old one.
 The odds of selling a product to a new customer are 15%, while the
     odds of selling it to an existing customer are 50%.
    One dissatisfied customer typically tells eight to ten people about his
     or her experience.
    70% of complaining customers will do business with the company
     again if it quickly takes care of a service snafu.
    More than 90% of existing companies do not have the necessary
     integration of sales and service processes and systems to support e-
    A company can boost its profits 85% by increasing its annual
     customer retention by only 5%!

    * Source: Sybase Customer Asset Management,

(c) 2000 Michele Bartram,                                 6
                               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

(c) 2000 Michele Bartram,          7
                            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,                    8
  Customers‟ Pet Peeves against online commerce
 Opt-outs vs. opt-ins
 Unsubscribes that don‟t work or are hard to find or use
 Incomprehensible web design and check-out processes
 Repeating themselves (e.g., retyping account numbers)
 Not asking permission
   – Amazon‟s dynamic recommendations
   – Spam and junk mail
 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

 (c) 2000 Michele Bartram,             9
     Where to find a solution that all customers
               will find compelling?
 Question: Who buys your products or services?
 Answer: Real people, not manufacturers or marketers.
   – So, ask REAL PEOPLE what they really want.

 I asked the wisest “real person” I know, my Grandma Sally
     from Kentucky, who‟s 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

 All companies could learn from her 82 years of experience .

(c) 2000 Michele Bartram,                      10
                 Passing “The Grandma Test”
To succeed in a future with eCRM, companies must
  pass “the Grandma test” and provide ease of use,
   safety, convenience, simplicity, and good value

          Follow along                           and test your
               with my                           company‟s
              Grandma                            ability and
                 Sally‟s                         readiness to
          conventional                           walk the path
              Kentucky                           of total
            wisdom for                           customer
             customer-                           relationship
         driven success                          management.

(c) 2000 Michele Bartram,                   11
              Grandma Sally‟s eCRM Wisdom
                                              They give advice by the bucket but
 Like the egg teachin‟ the
                                                  take it by the grain.
                                                 Empty cans make a lot of noise.
   Squeaky wheels get the
    grease.                                      If wishes were horses then beggars
                                                  would ride.
   Know what side of the bread
    is buttered on.                              I‟m busier than a one-armed paper
   Get it straight from the
    horse‟s mouth.                               My mind is like a sieve!
   Run it up the flagpole and see               Don‟t buy a pig in a poke.
    who salutes it.                              Grandma knows best.
   We‟ve howdied, but we ain‟t                  One man‟s junk is another man‟s
    shook.                                        jewel.
   As nervous as a long-tailed                  Talkers ain‟t doers.
    cat in a roomful of rockin‟
 (c) 2000 Michele Bartram,                                   12
        More of Grandma Sally‟s eCRM Wisdom

 They made me as welcome as a                   To hear a secret is human, to “air”
     roomful of “Howdy‟s”.                           it is divine!
    Save a penny, earn a pound.                    One-size-fits-all don‟t fit nobody
    You like the apples more if you                 good.
     have to shake the tree.                        Don‟t start choppin‟ „til you‟ve
    It‟s as about as fun as watchin‟                treed the bear.
     grass grow.                                    You don‟t know the worth of
    I feel like I‟m caught between a                water until the well runs dry.
     rock and a hard place.                         Don‟t muddy up the well that you
    It‟s as useless as two buggies in               get your water from.
     a one-horse town.                              I‟m so durned glad to be home,
    Beauty is only skin deep, but                   I‟m glad I went.
     ugly is pure to the bone.

    (c) 2000 Michele Bartram,                                    13
Final List of Grandma Sally‟s eCRM Wisdom

 You catch more flies with                   There never was a road that didn‟t
    honey than with vinegar.                     have a turn in it.
   Make hay while the sun
    shines.                                   He who pays the fiddler calls the

   Call a shovel a shovel and                   tune.
    start diggin‟.                            The post always wears out before a
   He doesn‟t have enough studs                 hole.
    for his dry wall.
                                              You can‟t put scrambled eggs back
   Like a hog on ice.
                                                 in the shell.
 You can‟t put one foot in two
                                              Stoppin‟ at third base don‟t add no
    shoes at the same time.
                                                 more to the score than strikin‟ out.
 There ain‟t no time like the
                                              No more chance than a
                                                 grasshopper in a chicken coop.
(c) 2000 Michele Bartram,                                     14

       Creating a strategy without knowing your customers is
                “like the egg teaching the chicken.”

(c) 2000 Michele Bartram,                 15

 “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. Don‟t spend $ on poor customers, but on great customers
     and on developing your potential greats. Unless you measure this,
     you won‟t know.
 “Know what side of the bread is buttered on.”
   – To find out who are your most profitable customers, what made them
     great and attract new ones like them, you must perform a customer
     segmentation study to assess their value to you and their preferences
     in products, services, advertising/ communications, etc. (Ex. US
     Mint, Unilever, credit card companies like American Express)
   – Allow customers to self-segment but verify.

  (c) 2000 Michele Bartram,                       16
                    Customer Segmentation Study
                                                 Business Objectives

                                          Segmentation Requirements Audit
Dialogos, Inc.      Enterprise         Lifecycle         Value                            Behavioral     Other
                     Segmentation      Segmentation     Segmentation                       Segmentation Segmentations

                                         Marketing Strategy / Master Planning

                         Acquisition                          Retention                                 Growth
     Marketing             Models                              Models
     Solutions           (Customer Profile,           (Retention, Lifecycle,
                                                                                                    (Cross-sell, Up sell)
     focused           Response, Conversion)               Response)

     Business                                    Program Execution
     Intelligence                                 Customer Engagement   Program Planning
                                                           Implement      Identify
     focused                                                Program     Opportunity

                                                  Measure &                       Develop
                                                   Analyze                        Program

                                                              Wrap-Up   Program

(c) 2000 Michele Bartram,                                                                              17
                    RESEARCH & TESTING
 “Get it straight from the horse‟s mouth.”
   – You can‟t assume you know more than your customers.
   – Use focus groups for ALL web usability and new products and
     surveys for customer satisfaction and new strategies (current AND
     future customers).
 “Run it up the flagpole, and see who salutes it!”
   – TEST, TEST, TEST constantly and consistently!
   – Use REAL users, not your own people, before, during AND after
     launching a new strategy.
   – Web-based research is fast and free and builds loyalty, so use it
     constantly as an integral strategy.
   – (Ex. iVillage Surveys and polls, Candies‟ Trend Spotters )

(c) 2000 Michele Bartram,                       18
 INCREMENTAL PROFILING: “We‟ve howdied, but we ain‟t
   – To overcome natural reluctance to give info to strangers, treat data gathering
     like a dating process, collecting data from and repeating learnings about the
     other person incrementally as you get to know her.
   – Allow self-profiling and personalization. (Ex. Travelocity )
 RECOGNITION: “Don‟t make me repeat myself!”
   – Extend this relationship by repeating data back to the customer in useful and
     meaningful ways. Don‟t make her repeat data entry.
   – Consolidate data across all touch points (Ex.Not AAA application.)
 PRIVACY: Giving out my information “makes me as nervous as a
  long-tailed cat in a roomful of rockin‟ chairs.”
   – Don‟t 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 )
 (c) 2000 Michele Bartram,                                 19
 HONESTY: “Honesty is the best policy.”
    – Only make promises that you can keep. “‟Fess up” when something goes
      awry. (Ex. IBM launched a splash page and coupon during site outage.)
 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.)
 VALUABLE CONVERSATION: “Empty cans make a lot of
    – Abandon old-style “advertising speak” in your copy. Customers see
      through it and don‟t believe it. Participate in real multi-way conversations
      and use a natural speaking style in your editorial.
    – Have something valuable to say when you speak. Encourage your best
      employees to chat with customers regularly. (Ex. )

(c) 2000 Michele Bartram,                                  20
          They Want It All

   “If wishes were horses then beggars would ride!”

(c) 2000 Michele Bartram,        21

 CONVENIENCE: “I‟m busier than a one-armed paper hanger!”
   – Customers, particularly women, are busy! They prize convenience and
     short-cuts above all, even deals.
   – Combine all useful, “essential” functions, even from competitors.
     Create shortcuts. Provide data in all formats (Ex. My iVillage    ,
     My Yahoo!, My ZDNet , Switchboard , Amazon‟s One-click.)
 REMINDERS: “My mind is like a sieve!”
   – Customers have a lot to do, and remembering to use your site may not
     be “top of mind.”
   – Use email, pop-up boxes, link to calendars/ reminders, calculators
     and other event and time-based triggers that the customer can set
     herself. Link to relevant commerce.
   – (Ex. Lifeminders, iVillage Reminders and newsletters. )
  (c) 2000 Michele Bartram,                      22
               DEEP PRODUCT RESEARCH &
 DEEP PRODUCT INFO: “Don‟t buy a pig in a poke.”
   – The higher the price, anxiety or confusion produced by a product or service the
     more research the customer requires.
   – Particularly true for women, and health, family and relationship matters, high-
     ticket items like cars, houses. Also for clothing care.
   – Make your customer know she‟s made the right choice by providing detail.
     “Smart buys for smart women” at iVillage Shopping Central.
   – (Ex. iBaby detail , ConsumerNet & ConsumerWorld)
 RECOMMENDATIONS: “Grandma knows best.”
   – Highest rated requirement from women along with convenience is
     recommendations. Need help to sort thru choices, but not only from you!
   – Provide extensive ratings, reviews, recommendations and collaborative
     filtering to link customers with external experts and others “like them” to help
     them choose. (Ex. Amazon, CNET)

   (c) 2000 Michele Bartram,                                23
               CONTENT, COMMUNITY &
               COMMERCE IN CONTEXT
 COMMERCE IN CONTEXT: “One man‟s junk is another man‟s
    – Ads or communications for products they don‟t want or need are considered
      “junk mail” or “spam”.
    – Let use determine what ads she sees when through context and explicit
      requests. (Ex. Tire ads in the Sunday paper: you toss them when you don‟t
      need tires, and are mad when you can‟t find them if you do need new tires.)
    – Non-targeted ads can cause severe negative reaction if randomly served to
      sensitive community or content areas. (Ex. Displaying random Baby ads
      near Infertility boards or junk food ads near diet area.)
    – Only display relevant ads or communications based on context (area of
      site) and customer permission (from her profile).
    – (Ex. Epicurious recipes with Williams-Sonoma ads)
    – Display all related Commerce, Content and Community together, in context
      with the topic she is researching. (Ex. MSN Carpoint)
(c) 2000 Michele Bartram,                               24
 COMMUNITY PARTICIPATION: “Talkers ain‟t doers“
   – Customers want to talk with people who‟ve actually used the product or service in
     real life. They may need additional support and learning to use your product or
     service, or knowledge on which to choose. Create support opportunities like chat,
     clubs, posts and discussion groups to aid utility. (Ex. iVillage Web Store Reviews,
     Fit by Friday discussion groups, CNET user posts)
  as welcome as a roomful of Howdy‟s.”
     return to businesses with average but CONSISTENT quality if the service is
     outstanding. EX. Have you ever returned to a restaurant with great food and
     lousy service? No, but you keep going to one with okay food that treats you great.
   – Consumers want GREAT RETURN and GUARANTEE policies. They‟re more
     likely to take a chance on your unknown products or services if you do.
   – They also want to speak with a human being, not a machine, when they need
     help. Limit auto-replies to confirmations, not for involved service questions.
   – Include live customer service in all your plans, via live chat with a representative
     or phone service to differentiate and create absolute loyalty. (Ex. iVillage Personal
     Shoppers, WomenOutdoors live service)
 (c) 2000 Michele Bartram,                                       25
 RELEVANT DEALS: “Save a penny, earn a pound.”
   – Women see (some) shopping as fun, with “getting a great deal” top in
   – Present offers that are in context and relevant to her needs (wants $ off vs.
     free trial, etc.) (Ex. E-centives customized, event-driven newsletters)
 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. , iVillage Shopping
     Lists )
 ENTERTAINMENT: “It‟s about as much fun as watching grass
   – While men seek out games as a primary activity online, women tend to want
     their fun and relaxation, “their wanna do‟s”, once they‟ve completed their
     “gotta do‟s” or errands. Content about their interests is counted as fun.
   – Solution: Include entertainment in your site, such as quizzes, polls, games,
     screensavers, etc. that complement your brand.
 (c) – (Ex. US Bartram,
     2000 Michele Mint Screensaver & games     , iVillage Music Network)             26
                   USABILITY & DESIGN
 SIMPLICITY: “I feel like I‟m caught between a rock and a hard
    – Keep the experience easy to use and adjusted to the user‟s level of
      experience, such as a Grandma. (Ex.           )
 USABILITY: A poorly designed web site is “as useless as two
  buggies in a one-horse town.”
    – In testing, some users couldn‟t 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.”
    – Don‟t 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‟s newsletter, and see their
    2000 Michele Bartram, „99 Report. Also
 (c)superb Holiday      available to             27

        “One-size-fits-all don‟t fit nobody good”


(c) 2000 Michele Bartram,      28
                   Evolution of Personalization

 Identify customers individually and addressably.
 Differentiate customers by value and needs.
   – Great ones, Potential great ones, Eternally unprofitable ones,
   – Personal Profile
   – User‟s Shopping Mode
 Interact with customers (at reduced cost and increased
 Customize some aspect of your enterprise‟s behavior on a general
 Personalize response for each individual customer.

 (c) 2000 Michele Bartram,                       29
             Michele‟s User Shopping Modes
 The Speedy Hunter: “I‟m looking for a specific product or service and I want it
    fast! Offer express “Buy Now” one-click buttons and full product search
   The Category Killer: “I know I need something for myself in a category, like a
    white blouse or car tires. Help me find the best one”. She needs categories and sub-
    categories and information about the options.
   The Gift Giver: “I need to buy a gift for my sister-in-law who wears size 8, likes
    powder blue and sunflowers, is a mother of a toddler, and I don't want to spend
    more than $50. Give me personalized recommendations based on these criteria.”
   The Impulse Buyer: “I just have some money burning a hole in my pocket and
    want to spend it... let me "flip thru the catalog" or "browse the aisle" to see what I
    want.” This person needs a fun online tour to simulate the browsing the aisle feel of
    a shopping trip or flipping through a physical catalog.
   The Problem Solver: "I have a problem or issue and don't know how to solve it.
    Show me information and research about how others like me have solved it, and
    then give me product and service recommendations that match the solution I
    determine is the right one for me." This buyer needs detailed content, research,
    expert recommendations and products.
   The All-in-One Buyer: Any one buyer may fall into one or all of these profiles in
    one user session.

(c) 2000 Michele Bartram,                                         30
                      Types of Personalization
 Environmental: demographic, geographic, psychographic
   – (Ex. 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
 Analytics-based: pattern analysis thru segmentation
   – Offer salad to customers who are on a diet, not the fries

(c) 2000 Michele Bartram,                   31
                           What to Personalize
 Search results                             Personal accounts
 Product mix                                  – Banks, clubs, etc.
 Recommendations                            Customer service
                                               – Specialists, type of service (phone,
 Offers
                                                 chat, email)
   – Sales, discounts, bundles,
      cross and up-selling, pricing  Fulfillment options
                                       – Shipping, billing,
 Web pages
                                     Personal productivity tools
 Email
                                       – calendars
 Ads
                                       – email
 Editorial voice
                                       – reminders

(c) 2000 Michele Bartram,                                     32
                 Ways to Personalize Content
                                            Surveys and polls
 Search
   – By Keyword                             Email & Ad Targeting
   – By Attribute (Ex. Gift)                Entitlements
   – By Event                               Event-based Matching
   – By Category
                                            Alerts
   – Full Text
   – By Preference                          Matching agents
 Collaborative filtering                   Observation
 Mass customization                        Rule-based Matching
 Personalized tools- wish                  Personal web pages
  lists, reminders, calendars,  User Profile
                                  – User-defined and controlled
 Ratings: Community, Editors
                                                 – Localization- language and

(c) 2000 Michele Bartram,                                  33

 MARKET ANALYSIS: “Don‟t take your ducks to a poor market.”
   – Assess value of market you‟re attempting to win in and determine cost of
     entry and domination. Find a niche.
 COMPETITION: “If you can‟t 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
 ALLIANCES: “Feudin‟ only benefits the undertaker.”
   – If you can‟t beat „em, join „em. Create marketplaces of convenient, essential
     services from all over the web. (Ex. VirtualRelocation )

  (c) 2000 Michele Bartram,                                34
  “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,                         35
 Acquisition: Attract new, profitable customers.
   – Differentiation, innovation and convenience
 Enhancement: Make current customers more profitable.
   – Increased bundling, reduction of costs, improved customer service
 Retention: Keep your profitable customers for life.
   – Delivering not what the market demands but what your customers
     want and more.
   – Enabling total listening and multi-way conversations between
     companies (including formerly “isolated” internal employee
     experts), customers, and trading partners.

(c) 2000 Michele Bartram,                       36
   Customer Acquisition and Viral Marketing
 CUSTOMER ACQUISITION: “Don‟t start choppin‟ „til you‟ve
   treed the bear.”
    – Create differentiated offerings, particularly in convenience, to
      attract new profitable customers that are similar to your current
      best customers.
 VIRAL MARKETING: “To hear a secret is human, to air it is
    – Use the natural tendency to spread the word (gossip) to your
      advantage. Incent customers to bring in others through recognition
      and rewards.
    – Ex. iVillage “Send a Friend”, Kira Points upon registration, user is
      told to get friends to sign up in exchange for “Kira Points”.

(c) 2000 Michele Bartram,                            37
                  CUSTOMER RETENTION
 RETENTION: “You don‟t know the worth of water until the
   well runs dry.” and “Don‟t muddy up the well that you get your
   water from.”
    – Spend generously to keep your best customers with superior service,
      rewards, and recognition. You can‟t afford to lose your “great ones”.
 RECOGNITION:”I‟m so durned glad to be home, I‟m glad I
    – Use integrated systems to remember your customer from all touchpoints.
      (Not done at AAA)
    – Make them feel “at home” with your business. (Ex. Hotel profiles, Hertz
      Gold Clubs, personalized home page )
 REWARDS: “You catch more flies with honey than with
    – 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,                                38

        “You better make hay while the sun shines.”

(c) 2000 Michele Bartram,        39
 BUILD OFF YOUR STRENGTHS: “Call a spade a spade and start
   – Perform an e-CRM SWOT Analysis to assess Strengths, Weaknesses,
     Opportunities and Threats across all core areas of your business. Know your
     core competencies and build off them. Eliminate or downplay weaknesses
     that leave you open to the competition.
   – Blueprint your e-CRM project. Follow 9-step methodology once to map
     current business, then review what other best practices companies are doing
     at each step, then repeat 9-step to map your ideal e-business.
 INFRASTRUCTURE: “He doesn‟t have enough studs for his dry
   – It takes time, money, people and integrated systems and processes to
     implement eCRM across the organization to create a Customer-Driven
     Enterprise (See chart). You can‟t afford NOT to do it, but do budget for it.
 PRIORITIZATION: Companies who lack focus are “like a hog on
     – Most companies fail at eCRM by doing it all at once. Use a phased approach
        (see chart) and set the dominos up in order, knocking them down one at a
 (c) 2000 Michele Bartram,                                  40
                         9-Step E-Biz Blueprint Methodology
                           Repeat 3 times to map Current, Best, & then Ideal Practices

                                                                           5                 People
                                                                                 What skills,training, roles, authority,
                                                                               & incentives are needed to do these jobs?
      1                Customer                                                Include in-house and outsource jobs, with
          Who are/should be your customers & what                              e-biz/ marketing, content/ design & tech.
          are their requirements and preferences for                                                         who need
          your organization in products and services?                      6               Intelligence
                                      drives                                     What intelligence (research, reports,
                                                                                 information) is needed to allow people
                        Strategy                                                 to analyze the results, predict the out-
                                                                                 come or decide a course of action?
           What are the e-business policies and
           differentiating set of activities that your                                                    supported by

                                                         is comprised of
           organization needs to deliver a unique                          7
           mix of value to customers? What
           customer needs should/ not you meet?                                  What steps of these processes can be
                                                                                 completed faster, better, or cheaper
                                                                                 by using computers or equipment?
      3                  Process                                                                          supported by
          What is the series of action steps, tasks &                      8
          business rules that is required to complete
          the desired e-biz strategies and polices?                              What numbers, characters, images or
                                                                                 other recorded information is needed to
                                      dictates                                   provide intelligence to make decisions?
                                                                                                         supported by
      4   Organizational Structure                                         9             Technology
          What is the most logical grouping of jobs &
          individuals needed to support the business                           What hardware/ software is needed to
          processes effectively?                                               to best capture, store, process, & distri-
                                                                               bute data & automate the processes?

(c) 2000 Michele Bartram,                                                                              41 41
                              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.


                                                 Channel Management
                          Direct Channels                                        Indirect Channels
           Internet    Service       Retail      Mail       Sales      Distributors     Intermediaries

                                     Customer Relationship Management
                               Product             Channel                MarCom
                             Management           Management             Management

             Strategic Development                                           Market Intelligence
                   & Planning                 Information Management            & Research

                                                 Customer dBase

                                                 Operations dBase

                                       Finance           Manufacturing         Distribution

         (c) 2000 Michele Bartram,                                                  42
                      PHASED APPROACH:
 “You can‟t put one foot in two shoes at the same time.”

      5 Core Areas of Business Transformation

 by Melinda Nykamp as seen on ITtoolbox Portal for CRM at

(c) 2000 Michele Bartram,                                       43
          eCRM Questions You Must Answer
 Be a Customer advocate or unbiased infomediary?
 Marketplace or monopoly?
 Be a partner with your customers not an adversary?
 Talk with your customers or talk at them?
 Allow employees and business partners to talk to customers or “control”
  flow and content of info?
 Multi-channel or mono-channel?
 Mass customization (Levi‟s) or one size fits all?
 Personalization vs. collaborative filtering?
     – Personalization = customer told you explicitly what she wants (e.g.,
     – Collaborative filtering = recommendations based on others‟ likes and dislikes

(c) 2000 Michele Bartram,                                44
      Big Decisions: Technology Architecture
 Build, buy or borrow?
 Create an enterprise-wide customer-centric architecture.
 Choose technology based on strategy needs:
     – Attract new customers, e.g.,
           • Ad serving: Doubleclick, 24X7, Engage, AdForce, AdSense
           • Incentives: Coolsavings, Ecentives
     – Convert visitors to customers
           • Angara, Engage
     – Develop and retain customers
           • Personalization: Broadvision, NetPerceptions, Personify, Epiphany, Siebel
     – Customer Service
           • E-gain, Kana
     – Content-serving & customer interaction
           • Vignette StoryServer; Chat tools like iChat

(c) 2000 Michele Bartram,                                           45
                        eBusiness Architecture
                                 (Source: Dialogos, Inc.)
                                                                                Order Entry
                                         Web           E-mail                  and distribution


                                                                              Financial Systems
  Web Server
             Observation Ad   Search  Fraud            E-commerce   Content
    Mgmt &
               Server    Mgmt Engine Detection           Engine      Mgmt

    Observation Mart      Data        Business Rules Engine                       Partners
     Order Mart          Marts       Data and Rules Publication
       Cross-sell Mart
         Segmentation Mart
                                          Business Rules

                             Intelligence Engine                                 Analysis
                              Reporting Engine                                   Rule
(c) 2000 Michele Bartram,                                           46
         Final eCRM Advice from Grandma

                  before she‟ll buy from you

(c) 2000 Michele Bartram,   47
  ACT NOW: “Doin‟ Shouts, Talkin‟ Whispers”

 Build a “Unique Boutique”
   – Ex.,
 Provide “intelligent selection”
   – Relevancy of offers and content
   – Ex. CircuitCity , (Broadvision)
 Give Personal attention
   – Automated: Ex. NetPerceptions at
   – Human: Live customer help Ex.

(c) 2000 Michele Bartram,             48
                          “Ask but Don‟t Tell”
 Accumulate Detailed Data from all Media with Permission &
 Require only progressive profiling = Gather data gently
    – Environmental data- geography, browser, operating system
          • Ex.
    – Implicit data- keep private but inform: pages visited, purchases
          • Ex.
    – Explicit data- collect incrementally and with advance permission
          • Ex.,

(c) 2000 Michele Bartram,                           49
                 “If It Ain‟t Broke, Don‟t Fix It”:
                 Keep Applying Lessons Learned
 Commerce in context drives buying
 Personalization works
   – Sites using see 39% increase in bottom line
         • Ex., (Broadvision),
 Rewarding good behavior is effective
   – Ex. MyPoints, Ecentives, CyberGold,
 Freshness Matters
   – Ex. At (using Broadvision), 120 contributors worldwide
     update site daily

  (c) 2000 Michele Bartram,                        50
                           “Learn your ABC‟s”

 5 C‟s for Companies to attract Customers:
      • Combine Customized Content, Community and

 4 R‟s for Providing Helpful Advice:
      • Relevant ratings, reviews and recommendations

 3 P‟s of Choice for Consumers:
      • They will select your product/ service for its
        Personality, Profile, and Performance
 (c) 2000 Michele Bartram,          51
       Remember the person in personalization

 Ask permission… and forgiveness if necessary
 Explain why you‟ve recommended something
    – “You see this because you asked for this. Click here to change.”
 Give ownership and responsibility
    – Allow them to access and update their own data ( )
 People are not profiles
    – Combine what they‟ve done (implicit) with who they are (explicit)
    – Generate relevant offers that relate to her specific needs. (Ex. Amazon)
 Nothing substitutes for a real human interaction
    – Use live, human service whenever possible
    – Connect customers with others with whom they want to link, such as affinity
      groups like clubs or families. (Ex. iVillage FamilyPoint clubs, Support

 (c) 2000 Michele Bartram,                                  52

 URGENCY: “There ain‟t no time like the present.”
   “There never was a road that didn‟t have a turn in it.”
   who pays the fiddler calls the tune.”
 FOLLOW THROUGH TO THE END: “The post always wears out
   before a hole.”
 RIGHT MOVER VS. 1ST MOVER: “You can‟t put scrambled eggs
   back in the shell” so get it right from the get-go.
 GO FOR WOW: “Stoppin‟ at third base don‟t add no more to the score
   than strikin‟ out.”
 (c) 2000 Michele Bartram,                    53
        Grandma‟s eCRM Recipe For Success
                                       Start with recreating the personal
                                          “service with a smile” and
                                          convenience of the past
                                         Mix in futuristic speed and
                                         Shake (your organization) well
                                         Season to taste (of your customers
                                          through personalization and
                                         Bake up an online experience that
                                          Grandma will say is better than
                                            – Serves 1 : 1

(c) 2000 Michele Bartram,                                 54
                 The Moral of the Story:

   Grandmas know that companies who don‟t
               implement eCRM
       “ain‟t got no more chance than a
       grasshopper in a chicken house.”

(c) 2000 Michele Bartram,   55
 Email:
 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

(c) 2000 Michele Bartram,    56

           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.

(c) 2000 Michele Bartram,                   57
              RESOURCES: eCRM Software
 eCRM Software:
   – E.Piphany
   – Broadvision
   – NetGenesis: cross-co datamart and intelligence
   – NetPerceptions: realtime personalization
          • Ex., Ticketmaster,
    – Magnify - predictive modeling & segmentation clusters
          • Ex.,

(c) 2000 Michele Bartram,                58
        RESOURCES: e-Commerce Software
 E-Commerce Software:
   – Transact product
   – Bea WebLogic Commerce:
   – Trilogy Multichannel Commerce

 Customer Interaction:

(c) 2000 Michele Bartram,       59
               e-Business / eCRM Consultants
 E-Business Blueprinting
   – Global Services E-business Consulting

(c) 2000 Michele Bartram,       60

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