Customer Relationship cycle is a term used to describe the progression of steps a customer goes through when considering, purchasing, using, and maintaining loyalty to a product or service. There are five distinct steps: acquisition, maintain, maximize, loyalty and retain. This means getting a potential customer's attention, teaching them what you have to offer, turning them into a paying customer, and then keeping them as a loyal customer whose satisfaction with the product or service urges other customers to join the cycle.
This term is often confused with the Relationship cycle, Customer Life Cycle is the natural life cycle of a person that based on the life’s experiences and major events. This person will purchase products and services from your company based on likes and needs for your products and services.
In the late 1990s, the Meta Group, now part of Gartner, came up with the definition of the CRM Ecosystem. This is our take based on the latest CRM 2.0 developments.
Operational CRM is the combination of applications & processes that manage customer transactions such as campaigns, sales, order entry, customer service, warranties, collections & post-sales, among many others. Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary.
The contact history provides staff members with immediate access to important information on the customer (products owned, prior support calls etc.), eliminating the need to individually obtain this information directly from the customer. Consequently, many call centers use some form of CRM software.
Analytical CRM is the combination of applications & processes that help understand customer trends, metrics and behavior using data modeling, data mining, data quality, and marketing automation techniques. Analytical CRM analyzes customer data for a variety of purposes:
Interactive CRM is the combination of applications & processes that manage customer interactions via the website, call center, email, offices, events, direct mail, SMS & account statements, among others. Interactive CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members within the departments can share information collected when interacting with customers.
Collaborative CRM is the combination of applications & processes that help collaborate and promote a dialogue between the brand and the customer to help with product innovation, viral marketing & word-of-mount using blogs, microblogging, social networks (public & private), social bookmarketing, among other social media toolsets (user generated content, RSS, comments, ideas, videos, photos, tagging, etc.
Aplicor, Inc., a global software provider of on-demand CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) software as a service (SaaS) business solutions, was presented the Product of the Year Award from Technology Marketing Corporation's Customer Interaction Solutions magazine, the leading publication covering CRM since 1982.
Congratulations to our friends at Aplicor!
We recommend that during the 2009 you follow these 20 blogs selected by InsideCRM - The Best CRM Blogs of 2008 - Inside CRM.
There are 4 in particular that we follow here at Solvis:
And for the latest about CRM in Latin America read Jesus Hoyos' blog - CRM en Latinoamerica.
You can also get the latest CRM's RSS feeds in both Spanish and English - CRM Universe.
The other day I was cleaning up my emails in Outlook and moving some newsletters subscriptions to my Gmail account. During this process I was very surprise that many companies (some of them CRM vendors) do not have the basic functionality to change my email or profile in their email or CRM systems. I had to unsubscribe my old email and then subscribe my new email, and in a few occasions I had to delete my customer profile completely and then create a new one. In both scenarios these companies are loosing important data that the customer can update and they lost the opportunity to know more about me.
I wish they had some sort of OpenID standard or were using Facebook Connect to update my basic information. In my CRM blog about Latin America I wrote a few times --- Spanish content: Mi visita a Salesforce.com en México & CRM en el 2008 y el 2009... Mis Observaciones --- about the use of Salesforce.com and Facebook apps to do just this... where the user can use his or hers Internet identity to manage interactions and transactions with companies. Take for example the application from Startbucks Idea in Facebook and how users can share ideas using the "share this" option within Facebook.
Now, let's assume you are a financial institution --- you write a simple Facebook app in Salesforce.com to calculate different financial options and capture important data to pre-qualify the customer. All of these can be done within Facebook. Helping you collect the proper data and even measure word-of-mouth metrics based on the number of friends and referrals. And now you can extend this with the Facebook Connect functionality... Get the idea? This is true Social CRM ... this is a new B2C model... via social networking we should be able to better interact with customers in a collaborative way. I think this is the future of CRM... all in the cloud. Of course, there will be data portability issues and data privacy hurdles to overcome... but the consumers will decide where are we going with all of this SOCIAL CRM trend.
After my frustration changing my profile and emails, and reading more about Salesforce.com Sites for Facebook and the release of Facebook Connect, I see this trend becoming a reality. Tim O'Reilly mentions this trend on his recent interview with Robert Scobleizer. Tim mentions the fusion of social networking and CRM apps - where the user should manage his or her data... and many CRM systems depend on others users to manage the data. Let the consumer manage his or her data. See the interview below. Tim's comments about CRM are at the very end of the interview.
I see a race in 2009 for all CRM apps to get into the social networking bandwagon. Most of the major vendors already started the race. I see CRM vendors integrating Facebook Connect, Twitter, Comments from blogs and many other 2.0 technologies into their apps. Multi-Channel interactions and transactions will need to include 2.0 technolgies... it is no longer chat, email, phone and mail....
By Jesus Hoyos
Naples, FL (PRWEB) November XX, 2008 – Neighborhood America, a 2008 CODiE Award winner for “Best Social Networking Solution” for enterprises, announces a new strategic partnership with Solvis Consulting, a Customer Relationship Management (CRM) consulting company with significant experience working in the Latin American region as well as the U.S., Mexico, Canada and Puerto Rico.
In today’s global market, knowing your
customers is the key to keeping your customers. Neighborhood America’s ELAvate
solution allows companies to optimize their existing relationships with
customers, employees, and partners – those who hold the power to help the
company succeed – by creating online networks for the purpose of driving
business value. The partnership with Solvis Consulting will provide those
companies with the right CRM strategy to retain and continually grow these
Solvis Consulting conducts an in-depth analysis of the company’s structure and then recommends methodologies to transform business processes. Among those approaches is establishing a social media presence, to benefit from consumer feedback or collaborate with partners, employees, or stakeholders. As a partner, Solvis Consulting will offer its customers Neighborhood America’s enterprise social network solution.
“More often than not, CRM fails without a strategy in place,” says Jesus Hoyos, Managing Partner of Solvis Consulting. “We now have an ally in Neighborhood America, a company who can share their expertise with our customers and improve their chances of success.”
“The need for companies to connect people to solve problems and create business value is a global challenge,” said Dan Miller, Executive Vice President of Neighborhood America. “Our partnership with Solvis Consulting expands our reach into Latin America and aligns us with this exceptional team at the forefront of integrating CRM and social media strategies.”
With the Solvis Consulting partnership, Neighborhood America continues its momentum of building strategic partnerships that deliver the services that enterprise customers are asking for, intended to optimize results. To learn more about Neighborhood America's partner program, visit http://www.neighborhoodamerica.com/partners or contact Judy Mod, Director of Business Development, at (678) 366-4696.
About Neighborhood America
Neighborhood America's ELAvate solution was named the
software industry's 'Best Social Networking Solution' for enterprises, honored
with the 2008 Codie Award. ELAvate enables companies to build online and mobile
communities to engage consumers, facilitate ongoing dialogue around their
brand, and gain continued business intelligence. Brands such as Scripps
Networks, FOX News, and Adidas rely on Neighborhood America for its
award-winning technology and commitment to guide them through the entire
community-building process - from strategy, through implementation, to ultimate
success. Learn how your company can gain a competitive advantage by visiting: www.neighborhoodamerica.com.
Without a concrete definition of what a customer is, your CRM strategy (processes, people, culture, technology), will always have the deal with the "definition of the day". Every employee will have different perceptions of what customer is, affecting the overall customer experience.
Our definition of a customer is:
A customer is a person that has many roles, that can influence (or not) a buying decision, as a consumer or a contact in an organization (i.e. a business partner, a company, government, etc).
The characteristics of this person are based on contact relationships, accounts, transactions, and organization the person belongs to. These characteristics are then classified by data attributes in the database and/or different systems and most be part of all business rules regarding people, processes and technology. These attributes are divided in 5 major sections:
This definition needs to be implemented in all your processes and CRM technologies, and most be part of your CRM change management.
By Jesus Hoyos
Jesus Hoyos had the opportunity to be a participant of the Return2Customer Conference in Atlanta. He had the opportunity to listen to the lecture of Bill Price, Martha Rogers & Paul Greenberg, among others. The conference had 3 different tracks, all with excellent speakers and case studies. Congratulations to Art Hall and his team for an excellent conference.
Notes from some of the tracks/lectures Jesus attended:
Social Media - Panel
Some of the common topics during the conference were:
Some of the vendors that participate: Market2Lead, Vtrendz, Marketo, SugarCRM, Oracle, myCRMCareer, Infor, OpenSpan & Neighborhood America.