Cook up a Bright Future in Customer
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”
Digital Diva/ E-business Evangelist, WebPractices.com
Senior Vice President, Commerce /“Commerce Czar”, iVillage.com
As Presented at the eCRM Summit, Carmel, California, May 17, 2000
(c) 2000 Michele Bartram, email@example.com 0
Real Requirements from Real People
Grandma‟s eCRM readiness tests and examples
Grandma‟s Recipes for eCRM success
Final Advice from Grandma
(c) 2000 Michele Bartram, firstname.lastname@example.org 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, email@example.com 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, firstname.lastname@example.org 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, email@example.com 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,
(c) 2000 Michele Bartram, firstname.lastname@example.org 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, www.sybase.com
(c) 2000 Michele Bartram, email@example.com 6
Goals of eCRM
– costs of marketing
– accuracy and relevancy of recommendations
– customer satisfaction
– 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, firstname.lastname@example.org 7
Convenience: One-stop shopping, tools, online services
Relevance: all community, content, products and services around
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, email@example.com 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, firstname.lastname@example.org 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, email@example.com 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
driven success management.
(c) 2000 Michele Bartram, firstname.lastname@example.org 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
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
As nervous as a long-tailed Talkers ain‟t doers.
cat in a roomful of rockin‟
(c) 2000 Michele Bartram, email@example.com 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, firstname.lastname@example.org 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
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, email@example.com 14
CUSTOMER KNOWLEDGE MUST
PRECEDE STRATEGY FORMULATION
Creating a strategy without knowing your customers is
“like the egg teaching the chicken.”
(c) 2000 Michele Bartram, firstname.lastname@example.org 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, email@example.com 16
Customer Segmentation Study
Segmentation Requirements Audit
www.dialogos.com Enterprise Lifecycle Value Behavioral Other
Segmentation Segmentation Segmentation Segmentation Segmentations
Marketing Strategy / Master Planning
Acquisition Retention Growth
Marketing Models Models
Solutions (Customer Prof ile, (Retention, Lif ecycle,
(Cross-sell, Up sell)
focused Response, Conversion) Response)
Business Program Execution
Intelligence Customer Engagement Program Planning
focused Program Opportunity
Measure & Develop
(c) 2000 Michele Bartram, firstname.lastname@example.org 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
“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, email@example.com 18
PROFILING, RECOGNITION & PRIVACY
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, firstname.lastname@example.org 19
HONESTY, LISTENING & CONVERSATION
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. Dell.com )
(c) 2000 Michele Bartram, email@example.com 20
OLD-TIME CUSTOMER REQUIREMENTS:
They Want It All
“If wishes were horses then beggars would ride!”
(c) 2000 Michele Bartram, firstname.lastname@example.org 21
CONVENIENCE & REMINDERS:
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, email@example.com 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, firstname.lastname@example.org 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)
CONTENT + COMMUNITY + COMMERCE
– Display all related Commerce, Content and Community together, in context
with the topic she is researching. (Ex. MSN Carpoint)
(c) 2000 Michele Bartram, email@example.com 24
COMMUNITY AND HUMAN TOUCH
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)
HUMAN-TO-HUMAN CUSTOMER SERVICE: “They made me
as welcome as a roomful of Howdy‟s.”
– SERVICE QUALITY OUTWEIGHS PRODUCT QUALITY! Customers will
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, firstname.lastname@example.org 25
DEALS, TOOLS & ENTERTAINMENT
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. TheKnot.com , iVillage Shopping
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.
– (Ex. US Mint Screensaver & games
(c) 2000 Michele Bartram, email@example.com , 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. Computer.com )
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 www.CreativeGood.com‟s newsletter, and see their
2000 Michele Bartram, „99 Report. Also
(c)superb Holiday firstname.lastname@example.org available to Shop.org 27
“One-size-fits-all don‟t fit nobody good”
CUSTOMERS WANT TO BE RECOGNIZED AS
INDIVIDUALS, NOT PART OF A GROUP
(c) 2000 Michele Bartram, email@example.com 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, firstname.lastname@example.org 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, email@example.com 30
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
Analytics-based: pattern analysis thru segmentation
– Offer salad to customers who are on a diet, not the fries
(c) 2000 Michele Bartram, firstname.lastname@example.org 31
What to Personalize
Search results Personal accounts
Product mix – Banks, clubs, etc.
Recommendations Customer service
Offers – Specialists, type of service (phone,
– Sales, discounts, bundles,
cross and up-selling, pricing Fulfillment options
Web pages – Shipping, billing,
Personal productivity tools
(c) 2000 Michele Bartram, email@example.com 32
Ways to Personalize Content
Surveys and polls
– By Keyword Email & Ad Targeting
– By Attribute (Ex. Gift) Entitlements
– By Event Event-based Matching
– By Category
– 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, firstname.lastname@example.org 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, email@example.com 34
BRAND VS DIRECT RESPONSE:
“Seeing is believing.” vs. “Put your money where your
Measuring Clickthroughs undercounts branding success, yet
overcount direct response. Know your goals.
– Brand builders (Buy later): Buy Branding campaigns and measure
– Direct marketers (Buy now!): use “Click to Buy” and measure
conversion to sales.
– 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, firstname.lastname@example.org 35
THREE PHASES OF CUSTOMER
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, email@example.com 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
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
– 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, firstname.lastname@example.org 37
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
– 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, Amazon.com 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
(c) 2000 Michele Bartram, email@example.com 38
“You better make hay while the sun shines.”
(c) 2000 Michele Bartram, firstname.lastname@example.org 39
STRENGTHS, INFRASTRUCTURE & FOCUS
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, email@example.com 40
9-Step E-Biz Blueprint Methodology
Repeat 3 times to map Current, Best, & then Ideal Practices
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 pref erences f or who need
your organization in products and services? 6 Intelligence
drives What intelligence (research, reports,
inf ormation) 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
dif f erentiating set of activities that your supported by
is comprised of
organization needs to deliver a unique
mix of value to customers? What
customer needs should/ not you meet? What steps of these processes can be
completed f aster, 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 inf ormation is needed to
dictates provide intelligence to make decisions?
4 Organizational Structure 9 Technology
What is the most logical grouping of jobs &
individuals needed to support the business What hardware/ sof tware is needed to
processes ef f ectively? to best capture, store, process, & distri-
bute data & automate the processes?
(c) 2000 Michele Bartram, firstname.lastname@example.org 41 41
(Source: Dialogos, Inc.)
Significant integration will be required to become customer-centric.
However, the resulting institutional base of knowledge will provide
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
Finance Manufacturing Distribution
(c) 2000 Michele Bartram, email@example.com 42
“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 http://www.crmassist.com
(c) 2000 Michele Bartram, firstname.lastname@example.org 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, email@example.com 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, firstname.lastname@example.org 45
(Source: Dialogos, Inc.)
Web E-mail and distribution
Observation Ad Search Fraud E-commerce Content
Server Mgmt Engine Detection Engine Mgmt
Observation Mart Data Business Rules Engine Partners
Order Mart Marts Data and Rules Publication
Intelligence Engine Analysis
Reporting Engine Rule
(c) 2000 Michele Bartram, email@example.com 46
Final eCRM Advice from Grandma
before she‟ll buy from you
(c) 2000 Michele Bartram, firstname.lastname@example.org 47
ACT NOW: “Doin‟ Shouts, Talkin‟ Whispers”
Build a “Unique Boutique”
– Ex. Art.com, AA.com
Provide “intelligent selection”
– Relevancy of offers and content
– Ex. CircuitCity , CyberianOutpost.com (Broadvision)
Give Personal attention
– Automated: Ex. NetPerceptions at SkyMall.com
– Human: Live customer help Ex. WomenOutdoors.com
(c) 2000 Michele Bartram, email@example.com 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. StarMedia.com
– Implicit data- keep private but inform: pages visited, purchases
• Ex. Amazon.com
– Explicit data- collect incrementally and with advance permission
• Ex. Babycenter.com, HomeDepot.com
REMEMBER AND ACKNOWLEDGE ME!
(c) 2000 Michele Bartram, firstname.lastname@example.org 49
“If It Ain‟t Broke, Don‟t Fix It”:
Keep Applying Lessons Learned
Commerce in context drives buying
– Sites using see 39% increase in bottom line
• Ex. Checkout.com, Pets.com (Broadvision),
Rewarding good behavior is effective
– Ex. MyPoints, Ecentives, CyberGold, Iwon.com
– Ex. At Xerox.com (using Broadvision), 120 contributors worldwide
update site daily
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“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
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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 (Individual.com )
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, email@example.com 52
URGENCY WITH EXCELLENCE
URGENCY: “There ain‟t no time like the present.”
FLEXIBILITY & CONSTANT CHANGE:
“There never was a road that didn‟t have a turn in it.”
TURN YOUR COMPANY OVER TO YOUR CUSTOMERS: “He
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, firstname.lastname@example.org 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, email@example.com 54
The Moral of the Story:
Grandmas know that companies who don‟t
“ain‟t got no more chance than a
grasshopper in a chicken house.”
(c) 2000 Michele Bartram, firstname.lastname@example.org 55
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, email@example.com 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, firstname.lastname@example.org 57
RESOURCES: eCRM Software
– NetGenesis: cross-co datamart and intelligence
– NetPerceptions: realtime personalization
• Ex. CDNow.com, Ticketmaster, JCPenney.com
– Magnify - predictive modeling & segmentation clusters
• Ex. CoolSavings.com, Yesmail.com
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RESOURCES: e-Commerce Software
– OpenMarket.com Transact product
– Bea WebLogic Commerce: www.bea.com
– Trilogy Multichannel Commerce www.trilogy.com
(c) 2000 Michele Bartram, firstname.lastname@example.org 59
e-Business / eCRM Consultants
– IBM.com Global Services E-business Consulting
(c) 2000 Michele Bartram, email@example.com 60