Mobile CRM: Buyer s Guide
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- Blaise Fox
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1 White Paper Contents Introduction....2 A solutions breakdown....2 The benefits (and burden) of BYOD....3 Crunching CRM data: Analytics....4 Reach for the cloud....5 Ensure integration....5 Keep it friendly....6 Stay social....6 About Ziff Davis B2B Ziff Davis B2B is a leading provider of research to technology buyers and high-quality leads to IT vendors. As part of the Ziff Davis family, Ziff Davis B2B has access to over 50 million in-market technology buyers every month and supports the company s core mission of enabling technology buyers to make more informed business decisions. Copyright 2014 Ziff Davis B2B. All rights reserved. Contact Ziff Davis B2B 625 2nd Street, 4th Floor San Francisco, CA Tel: Fax: marty_fettig@ziffdavis.com
2 Introduction Customer relationship management tools have come a long way from rolodexes and ACT! software. These days, CRM solutions can gather information from multiple data sources and store it in a centralized location. Once these sales leads and consumer data sets are amalgamated, the solution then analyzes this information for tailored marketing campaigns, superior customer service and decision support. In fact, if executed correctly, CRM can deliver phenomenal perks, from boosting customer satisfaction and generating leads to increasing profits and slashing operating costs. For a while, these innovative CRM systems still required sales forces and contact center representatives to manually enter important facts and figures. But all that s changing with the widespread proliferation of mobile CRM tools. According to research firm IDC, 37 percent of the world s labor force, or 1.3 billion workers, will identify as mobile workers by To satisfy this burgeoning demographic of remote workers, an increasing number of vendors, from traditional CRM players to mobile apps developers, are rolling out mobile CRM solutions that allow users to access and log critical data, regardless of where they are. In fact, a 2013 survey from ERP vendor ISF and IDC reveals that 31 percent of respondents identified CRM as the most-wanted mobile app. And for good reason. Imagine, for example, a sales associate in a luxury goods department store who is able to access a customer s entire buying history via a tablet while the customer is wandering the aisles. In an instant, the sales associate can gather vital information about the customer s previous shopping experiences, delivery preferences and loyalty program participation. Based on this information, the associate can then take advantage of real-time cross- and up-sell opportunities, thereby enhancing customer experience while driving greater revenue a win-win situation. On-the-road sales representatives are also major beneficiaries of today s mobile CRM landscape. Consider, for example, a sales representative who is meeting with a client off-site. With the click of a button, he or she can access up-to-the-minute information on new promotions, product pricing updates or cross-selling opportunities. What s more, these in-thefield sales reps can enter information about a client or prospect remotely rather than invest hours on account management tasks upon return. A solutions breakdown No shortage of vendors have stepped up to make their CRM platforms available on mobile devices, including SAP, Salesforce.com, SugarCRM and Sage. To avoid getting lost in today s crowded CRM space, though, it s important that companies carefully weigh three options: whether to go with a mobile version of their existing CRM system, create a custom CRM app or purchase a mobile app that integrates with other CRM systems. ziffdavis.com 2 of 6
3 Here s how these three tools differ: Mobile versions of existing CRM systems tend to be everything-but-the-kitchensink-type tools incredibly robust yet overkill for organizations looking to address a single purpose, such as equipping retail sales associates with tablets Creating a custom mobile app is an excellent way to incorporate an organization s unique business processes into a CRM solution. The downside: these heavily customized tools often require constant modifications as a company grows and changes an expensive and time-consuming proposition for some Purchasing a mobile app that sits atop an existing CRM system is a perfect compromise for companies wishing to leverage their existing technology while still receiving some degree of customization The benefits (and burden) of BYOD Another important factor influencing the mobile CRM selection process is a company s IT infrastructure. Today s bring-your-own-device (BYOD) trend has significantly accelerated mobile CRM deployments. In fact, according to a recent survey, Webroot found that three out of four companies have embraced BYOD on some level. However, BYOD also complicates mobile CRM implementations in a number of ways. For starters, allowing employees to attach their personal devices to the network means that a mobile CRM solution must be able to support multiple device deployments. And once the solution is deployed across these various devices, IT departments must then continue to issue software updates for not just one kind of device but multiple types with varying operating systems and applications a difficult feat, especially for a resource-strapped IT team. All of which leads to the next BYOD-mobile CRM challenge: security. Failure to issue the right software updates for multiple devices can open up a network to security breaches, not to mention frustrate end users and lead to a tarnished brand. In fact, according to a Webroot survey, as much as 36 percent of a help desk technician s time is spent resolving issues for mobile devices, and six out of 10 respondents were forced to hire additional IT resources to manage mobile security. To minimize the security issues plaguing mobile CRM, organizations need to first assess what technical threats or risks can impact their corporate networks via mobile devices. Next, new policies and standards should be established around securing devices and safeguarding networks. Being vigilant can also help. Organizations that take the time to constantly conduct vulnerability testing of mobile applications and ensure visibility into full data flow are more likely to avoid security breaches. ziffdavis.com 3 of 6
4 The good news is there are steps organizations can take to balance the dangers of BYOD with the technicalities of a mobile CRM system. Stringent, BYOD policies can ensure that users take the necessary precautionary steps when logging onto a network or accessing information remotely. And in addition to security features such as Secure Socket Layer and 128-bit encryption, a mobile CRM system should include parameters around what types of mobile data are accessible and to whom. Crunching CRM data: Analytics Remote access to critical information has long been one of the primary drivers behind mobile CRM. But expectations are rising as the big data zeitgeist takes hold of the CRM industry. These days, retail associates, contact center agents and sales representatives aren t just looking to mobile CRM tools for product pricing and customer buying preferences but to help them make more informed business decisions. Enter mobile CRM analytics. Analytics works by identifying everything from the average customer s buying patterns and browsing habits to business clients annual revenues, manufacturing costs and production cycle times. By crunching this data using sophisticated computer algorithms, organizations can develop customized marketing campaigns, optimize its Web site, enhance customer service or tap into new selling opportunities. In fact, research firm Gartner reports that by 2015, 80 percent of businesses will suffer revenue loss by not supporting Web-based customer service on mobile devices. Consider, for example, an on-the-go sales representative who is meeting with a long-time customer. Aware of mounting competition, the customer may request an additional 10 percent discount on goods, as well as an accelerated delivery time. Under normal circumstances, a sales representative would have to return to the office and ask the finance department to generate a detailed report on the customer s value to the company a lengthy process, and most likely, a lost sale. However, using an analytics-powered mobile CRM solution, a salesperson can conduct an on-the-spot profitability analysis to determine whether a customer delivers enough value to warrant a 10-percent discount on goods. But that s not the only application of CRM analytics. The solution can also be used to better understand customers satisfaction levels, the cost to serve each customer, enhance product lifecycle and strengthen supply chain management. Here s another example of how mobile CRM analytics can help organizations: on-the-spot customer segmentation. A retail associate using a mobile CRM system can determine which customers are more likely to make a repeat purchase within the next month, which customers shop infrequently yet produce the most profit over time, and which customers show signs of switching to the competition. All of this data is based on crunching a combination ziffdavis.com 4 of 6
5 of purchasing history, website browsing activity and response to promotions. Armed with this in-depth analysis, a sales associate can better deliver on-the-spot deals, offer coupons or upsell products to specifically those customers that generate the most revenue for the company. But while analytics is increasingly becoming part of a mobile CRM solution, even the most sophisticated algorithms are meaningless if a company doesn t take the time to convert data into business insights. Another potential pitfall of CRM analytics: there is always the risk of overstepping your boundaries. Take, Nordstrom, for example. Last year, the national retailer came under fire for using a service that relies on Wi-Fi signals coming from shoppers mobile devices to track their movement in the store. By doing so, Nordstrom was able to gather data on foot traffic, as well as how many times a shopper had visited previously, to plenty of public outcry. Nordstrom is no longer using the service a warning to retailers to tread lightly when using mobile CRM analytics. Reach for the cloud Organizations familiar with cloud-based ERP, payroll and human resources systems can pretty much expect the same benefits from cloud-based mobile CRM. In fact, more than 50 percent of total CRM software revenue for certain types of applications will be delivered as software as a service (SaaS) during 2016, according to Gartner. Driving this trend is the fact that cloud delivery models tend to be cheaper and easier to deploy than their on-premise counterparts. But there are risks organizations need to consider when selecting a SaaS mobile CRM solution. For starters, cloud-based tools tend to offer less scalability, flexibility and customization than on-premise systems. And there are those who are still concerned with the security of cloud-based tools. It important to note that many cloud players offer systems that are more secure and reliable than any in-house or proprietary systems. In fact, the livelihood of many a cloud provider hinges on its ability to deliver secure CRM tools. Ensure Integration Mobile CRM systems shouldn t exist in a vacuum. Rather, it s critical that organizations make the most of this tool by integrating mobile CRM apps with a central CRM system. In-the-field customer feedback, customer service requests, product orders they re all important pieces of information that can impact marketing campaigns, sales strategies, even HR best practices. For this reason, companies first need to capture the right mobile customer data. Next, this information needs to be fed into a CRM solution, and then integrated across systems in order to prevent the formation of data silos. ziffdavis.com 5 of 6
6 Keep It Friendly Smartphones are to thank for today s mobile CRM explosion. After all, imagine trying to update a customer profile using an age-old flip phone. Rather, today s major devices and mobile operating systems provide remote workers with user-friendly interfaces and powerful dashboards. Better yet, many mobile CRM vendors provide users with the option of either accessing a CRM system from a mobile web browser, or from the mobile edition of a CRM solution. In most cases, the only difference is that mobile web versions require a working internet connection (Wi-Fi or cellular) whereas a mobile edition doesn t require connectivity in order to function. Stay Social With more than one billion active monthly users, Facebook is not just a social networking site it s a treasure trove of customer data and a powerful feedback mechanism for opinionated consumers. That s all the more reason for remote workers to manage their customer relationships via social CRM tools. In fact, research firm Nucleus conducted a survey of CRM decision makers and found that organizations can increase returns on their CRM investments by 11.8 percent by adding social capabilities. Using social CRM, in-the-field salespeople can listen to customer sentiments about products and services, or read reviews and comments posted on social channels, and respond accordingly during face-to-face encounters. Moreover, a social CRM platform can serve as a powerful customer service tool one more way for sales representatives to respond to queries and offer product updates without having to return to the office. ziffdavis.com 6 of 6
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