Understanding CRM as a Technology and a Process
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1 Understanding CRM as a Technology and a Process Karen Humphries Sallick President, The Priority Group Pamela Kruse Director of Ecommerce, XO Group Bernardine Wu CEO, FitForCommerce
2 CRM What s It All About? CRM is growing exponentially. What are the stats? What should you know? $36.4 bil Gartner anticipates that CRM will be worth 36.4 billion worldwide by 2017 $5.60 CRM offers an average return of $5.60 for every $1 spent 15.1% CRM leads all enterprise software categories in projected growth showing a 15.1% CAGR from 2012 to % Overall CRM usage increased from 56% in 2012 to 74% in 2013 Source: Sales Loft, Nucleus Research, Buyer Zone
3 CRM Are You There? 24% of respondents in a DiscoverOrg survey are not using any CRM system 30% of marketers say having disparate data sources is a main reason why they can t glean useful insights from customer data 43% of CRM customers that realize they use less than half of the features of CRM 35% of CRM users say they enter data into their systems manually when handling CRM integration Source: Gartner, Sales Loft
4 Social CRM Is Your Business Ready? 6% of people integrate their CRM with social data 36% of consumers had interacted with companies via social media in 2012; it was 19% in % of all marketers found a customer through Facebook in 2013; 43% found a customer through LinkedIn 63% of adult cell phone owners use the device to go online Source: SalesLoft, Oracle, MyCustomer, PewReasearch
5 CRM providers to IR Top 1000 TOP CRM PROVIDERS TO NORTH AMERICA'S LARGEST E-RETAILERS Vendor Number of Top 500 Clients Representative Retailers Vendor Number of Second 500 Clients Representative Retailers Oracle Corp. 19 Staples Inc. (No. 3), Bass Pro Shops (No. 98) Salesforce.com Inc. 18 Gemvara.com (No. 503), Simple Truths LLC (No. 669) NetSuite Inc. 14 Groupon Goods (No. 44), Fab.com (No. 183) Netsuite Inc. 17 Envelopes.com (No. 505), Pure Modern LLC (No. 662) ebay Enterprise 12 Dick's Sporting Goods Inc. (No. 72), Radioshack Corp. (No. 317) Magento (ebay Inc.) 4 ShopJimmy.com LLC (No. 509), Golda's Kitchen Inc. (No. 794) Merkle Inc. 6 Urban Outfitters Inc. (No. 48), The Limited (No. 241) SAP AG 4 The Betty Mills Co. (No. 592), BlendTec (No. 819) Microsoft Corp. 6 Wine.com Inc. (No. 242), GiftCard.com (No. 385) Zendesk Inc. 3 BulkReefSupply.com (No. 636), DNA 11 Inc. (No. 827) In-house 331 Amazon.com Inc. (No. 1), Wal-Mart Stores Inc. (No. 4) In-house 161 ApplianceZone (No. 501), Heels.com (No. 512)
6 About XO Group, Inc XO Group, Inc. is a leading media and technology company dedicated to providing information, products and services to couples planning their weddings and future lives together. XO Group, Inc s flagship brand, The Knot serves 8 out of 10 engaged couples each year through our awardwinning website, mobile apps, magazines, books and broadcast platforms.
7 About The Priority Group, Inc. The Priority Group is a customer experience and employee engagement consulting firm founded in 1996 that uses analysis, market research, training and change management to create customer and employee loyalty We specialize in helping our clients find the right technology and the application of customer information to drive marketing, profit and customer engagement objectives Some current clients include the Hudson Bay Companies, Vineyard Vines and Ferragamo
8 Technology Enablement for CRM Success PEOPLE Executive Support Outcome Focused Service Culture Skills Alignment Continuous Training Agile for Change CRM Success TECHNOLOGY PROCESS Sales & Service Experience Enabled Brand Stewardship Enterprise Collaboration Measurement Change Mgmt Unified CRM Platform Operational Integration Social Integration Big Data Enrichment Business Intelligence
9 XO Case Study: Weddings are a big business, all year long $70 billion is spent on weddings annually monthly distribution of weddings $4B attire $6B honeymoons $10B registry and gifts $11B jewelry $35B+ wedding day Oct 9% Sep 10% Nov 7% Aug 10% Dec 7% Jul 10% Jan 6% Feb 6% Jun 10% Mar 7% Apr 7% May 9% Additional categories include, but are not limited to: $0.8B stationery (1%) and $0.3B beauty (1%) Source: The Knot Market Intelligence; NCHS: National Vital Statistics Report, Number of Marriages, 2008
10 XO Case Study: meet our millennial bride She s 29 and he s 31 (average age) Educated: 74% college-grad (4-yr+) Employed full-time: Nearly 3-in-4 (74%) Household Income: Median HHI: $61,733 Average HHI: $84,206 All wedding budget levels Under $10,000 (26%) $10K to $60K (69%) $60,000+ (5%) She s mobile: 85% of our brides own a smartphone Source: The Knot Market Intelligence; 2012 Real Weddings Study
11 XO CRM Strategy: Building & engaging Our brides use The Knot for inspiration, planning/checklist resources, local vendors, free wedding websites, single-list registries and shopping for wedding favors and supplies 60% of our members join immediately upon getting engaged The average length of engagement is 14 months 75% of our traffic is direct, 22% is organic Our #1 form of communication is and we are sending brides an a day beginning 13 months out from their wedding date
12 CRM Strategy: Extending the life of membership CURRENT STATE OF CRM TECHNOLOGY Data warehouse membership data not passed to commerce site Recommendation engine important but not optimized but we required a taxonomy update Paid media partners - re-capture and prospect for new members and shoppers provider manage trigger and promotional s QUESTIONS WE ARE TRYING TO ANSWER 1. How do we use member data to organically personalize her experience? 2. How do we segment our strategy based on the acquisition channel? 3. What is the right way to recommend higher-value areas of the site? 4. How do I migrate my brides to the other areas of my brand after the wedding?
13 Critical Steps in the CRM decision process Clear understanding of people, process and technology relating to CRM Conduct current and future business needs and objectives sessions Conduct in-depth GAP Analysis against your current solution Answer the in-house versus outsourcing question based on key CRM success factors Profile potential vendor or software partners for inclusion based on key gaps, future scope, budget expectations and fit Start change management with the kick-off of the selection process 13
14 Assess Your Organization s Technology Readiness Does your organization have world-class abilities to manage customer data? Hygiene (nationally, globally) House-holding Data enrichment Are you able to move quickly with changing technology that makes sense for your business? Structured data to unstructured data POS to mobile Word of mouth to social media Will your all of technology platforms support each other to allow you to scale? 10 segments per to truly personalized offer and content Data capture and offer delivery on Tuesday at 11 am to Black Friday Is there a strong enterprise data integration solution that unifies all information that impacts the customer experience? Customer service Associate interactions Customer expectations
15 Honestly Assess your Company for CRM Success Is CRM ranked at the top of IT initiatives with committed staff? How is intelligence about your customers shared? Will people change what they do based on that intelligence? What percent of your company s conversations about performance are related to product versus customer? Have people been trained in the right way use customer information to achieve the company s CRM objectives?
16 Understanding Software Providers versus MSPs Software Providers Provides software as primary business Implementation: Assists the MSP with mapping/integrating the database to software. Ongoing: Provides software updates and enhancements. Marketing Tools Marketing and Campaign Management Tools to manage the definition, workflow, and execution of marketing campaigns across multiple channels for the enterprise. Includes audience criteria management, integrated testing, and response management. Analytics and Business Intelligence Tools to create and manage marketing and customer insights, performance measurement, decision support, reporting, and dashboards. 360 o Customer View Database External Data 3 rd party demographic and enrichment data - Social and external digital data - External Big Data overlays Internal Data Customer, transaction, profiling, digital activity, campaign, response and operational data Marketing Services Providers (MSP) Provides Services Implementation: Builds database, integration with sources, and aligns the chosen tools in the solution. Ongoing: Cleans, updates, and maintains the client data in the CRM database. Hosts the database and tools. Can also provide ongoing analytical, campaign, and strategy services. 16
17 In-House vs. Outsourcing Key Decision In-House CRM Management MSP Outsourcing Advantages Disadvantages Advantages Disadvantages Control of staff and resources Accountable for own direction and results Not limited to vendor-specific relationships and biases Business and technical flexibility Brand knowledge and intimacy Risk of IT and business team(s) conflict Talent sourcing challenges Limited domain and technical expertise Low accountability for project and cost overruns Slower time-to-market No R&D to leverage never ahead of the curve Accountable to signed service agreements Speed-to-market Access to specialized talent Demonstrated innovation via new technology and R&D Proven industry solutions Ability to leverage vendor best practices and modernization from other clients Big data capabilities and partnerships Global knowledge and reach Limited ability to control vendor staff and account teams Risk of poor contract obligations Risk of static solution Vendor biases often influence decisions Where do you need to be on the service spectrum? Ad-Hoc Managed Services Full Outsourcing Types of MSP Service Models MSP provides specific services based on either one-time requests or at regularly scheduled intervals The MSP is integrated with the enterprise and performs specific functions of CRM resulting in a hybrid solution The MSP is accountable for the role of CRM marketing including technology, analytics, BI, strategy and execution 17
18 Evaluating Vendors Profile potential vendors for inclusion based on learnings, scope, budget expectations and fit Customize assessment points based on identified gaps Include your own organization Vendor Data Mgmt Advanced Analytics Campaign Mgmt Campaign Self Service Industry Experience Addresses Key Gap 1 Addresses Key Gap 2 Addresses Key Gap 3 Price Large MSP 1 $$$ Large MSP 2 $$$ Mid-Tier MSP 1 $ Mid-Tier MSP 2 $$ Software 1 $ Software 2 $$ Internal $$ 18
19 Technology Enablement for CRM Success PEOPLE Executive Support Outcome Focused Service Culture Skills Alignment Continuous Training Agile for Change CRM Success TECHNOLOGY PROCESS Sales & Service Experience Enabled Brand Stewardship Enterprise Collaboration Measurement Change Mgmt Unified CRM Platform Operational Integration Social Integration Big Data Enrichment Business Intelligence
20 Q&A Pamela Simon Kruse XO Group, Inc Karen Humphries Sallick The Priority Group Inc Bernardine Wu CEO, FitForCommerce
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