BuildCollaborativeRelationshipsthatDeliverValueFebruary13,2003Atlanta,Georgia,USABobThompsonCEO,CustomerThinkCorporationFounder,CRMGBuildCollaborativeRelationsh1CompetingforScarceCustomersSupplyDemandTimeScarce

ProductsScarce

CustomersCompetingforScarceCustomers2“Bedistinctorbeextinct”TomPeters“Bedistinctorbeextinct”3“It’sincrediblyarrogantforacompanytobelieveitcandeliverthesamesortofproductthatitsrivalsdoandactuallydobetterforverylong.That’sespeciallytruetoday,whentheflowofinformationandcapitalisincrediblyfast.”

MichaelPorter

FastCompanyProduct

LeadershipOperational

ExcellenceCustomer

IntimacyCRMGreatRelationships=Differentiation“It’sincrediblyarrogantfor4LoyaltyLeadersGrowFaster,SpendLessCostsGrowthSource:ReichheldLoyaltyLeadersGrowFaster,S5CRMisNotNew…OrisIt?"Thetruebusinessofeverycompanyistomakeandkeepcustomers.”--PeterDrucker“CRM=beingsoobsessedwithyourcustomer’ssatisfactionthatyouchangethewayyoudobusiness.”--Dr.JonAntonCRMConfusion!360-degreeviewofthecustomerImprovingqualityofcustomerinteractionNewsoftwaretoolsandtechnologiesGettingrightdatatorightemployeeShiftfromproducttocustomerorientationBuzzwordandmanagementfad!

Source:METAGroup/IMTStrategies“CRMmeanscreatingmutualwinswithcustomersandallcompanystakeholders.”--BobThompsonCRMisNotNew…OrisIt?"Thet6“CRMis90%halfmental”YogiBerra,CRMConsultant“CRMis90%halfmental”YogiB7CustomersDefineaGreatRelationship“Serviceandvaluejustforme”“Personal”“Responsiveandproactive”“Win/Win”“Asksquestions”“Agooddealforthemoney”“Quality,consistentperformanceovertime”“Expertise”“Ahistoryofworkingtogether”“Easytodobusinesswith”Source:CRMGCustomersDefineaGreatRelat8TheNew4PsRelationshipDriversPassionPeopleProcessPerformance“MarketingMix”ProductPlacePromotionPriceTheNew4PsRelationshipDrive9CRMGuruStudy:CRMWorks!PaybackPeriodBenefits(PercentofProjects)Increasecustomersatisfaction(51%)Increasecustomeracquisitionrate(50%)Increaseshare-of-customer(48%)Decreasecustomerdefectionrate(37%)Decreasefrontofficestaffingcosts(33%)Investment

33%--lessthan$50,00024%--$50,000to$250,00028%--$250,000to$2.5Million15%--over$2.5MillionSource:CRMGCRMGuruStudy:CRMWorks!Payba10KeyDriversofSuccessCustomer-centricstrategy:usingcustomersatisfactionandattritiondata,gettingcustomersinvolvedinplanningFrontlinetrainingandsupport:explainingvalueofCRM,providingtrainingfornewskillsrequiredOrganizationalchange:workflowdesign,changingrolesandresponsibilitiesMetrics:goalsmeasuredstatistically(80%don’t)Source:CRMGstudy“TheBlueprintforCRMSuccess”KeyDriversofSuccessCustomer11Three-Year“Overnight”SuccessObjectives:Servechannelpartnersbetter,sellmore,spendlessSolution:AllegiseBusiness(PRM)Saved$375,000incommunicationcostsIncreasedrevenue$1millionwithbetterleadmanagementImprovedpartnerandemployeesatisfactionLessonsLearned:Understandyourusers,deliverclearvaluetothemPlancarefully,buildateam,phasetheimplementationEstablishbaselinemetricsandmeasurementprocessCommunicate,communicate,communicate!Source:LexmarkThree-Year“Overnight”Success12AreYouListening?“Ifyou’reconstantlygettingfeedbackfromyourcustomers…andyou’rewillingtolisten,youcanmakethemostoftheopportunitiesimplicitinthoseneeds.”

MichaelDell,inDirectFromDell“Businessessurviveordeclinebasedontheiremployees’abilitytolisten.Hirethesmartest,bestpeopleyoucanget,orientthemtocustomersatisfactionattheexpenseofallelse,thengetoutoftheirwayandletthemwork.”

DougAllred,SVPCustomerAdvocacyforCiscoSystemsAreYouListening?“Ifyou’rec13SellingThroughComplexChannelsCustomersSellingChannelsDealersMarketplacesOEMsRetailersEtailersResellerEnterpriseEnableCommerceWithselling

partnersVisibilityofcustomer

activityInfluence

overcustomer

experienceCollaborationwithpartner

businessprocessesSellingThroughComplexChanne14CRMTechnologyEvolutionCRMMaturityPotentialCompetitiveAdvantageLowHighAutomateStreamlineinternalsalesandserviceprocesses.Moreofthesame,donefasterandcheaper.SFA,CallCenterSingle

ChannelCollaborateEngagecustomersandpartnersforwin/win/winEnablemany-to-manyrelationshipnetworksC-BizSolutionsCollaborative

NetworkInnovateDesigndifferent,moreeffectiveprocessesUsenewchannelsandcustomertouchpointseCRM,PRMMulti-

ChannelHighCRMTechnologyEvolutionCRMMa15“TheInternetasasaleschannelrepresentsonlyafractionofitspotentialtobusiness.Therealpotentialliesinitsabilitytotransformrelationshipswiththetraditionalsupplier-vendor-customerchain.”

MichaelDell“TheInternetasasaleschann16SellerBuyerCRMSCMCollaborative

BusinessWin/Win

PhilosophyEnabling

Systems=+CollaborationCollaborativeBusiness:MutualBenefitsSellerBuyerCRMSCMCollaborative17Now:Point-To-PointRelationshipsSupplierPartnerCustomerManufacturerCRMPRMCRMRelationshipManagement:“Sell-Side”FocusonLifetimeValue,CustomerExperience,Revenue/ProfitGrowthSCMSCMSCMSupplierManagement:“Buy-Side”FocusonCost,CycleTime,ResponsivenessNow:Point-To-PointRelationsh18WebServices:EnablingxRMSystemsANewBreedofWebApplicationSelf-contained,self-describing,modularapplicationsCanbepublished,located,andinvokedacrosstheWebPerformsfunctions--simpletocomplicatedprocessesOtherapplicationscandiscoverandinvokeWebServices:EnablingxRMSys19WebServices:EnablingxRMSystemsThePotentialLow-costintegrationwithin,andbetween,enterprisesEnablingprocessintegrationbetweentradingpartnersImprovingperformanceofcollaborativenetworksWebServices:EnablingxRMSys20Future:OptimizedValueNetworkSuppliersCustomerManufacturerPartnersCollaborativeRelationships:FocusonMutualValue,Profit,Efficiency,IntegratedProcessesGlobalCompetitionPowerShiftto

CustomersInternetAdoptionInternetStandardsWebServicesFuture:OptimizedValueNetwor21TypesofCollaborativeSystemsPeopletoSystems–CRM/PRMPortalsPeopletoPeople–GroupwareSystemtoSystem–E2ECRMTypesofCollaborativeSystems22EvolutiontoCollaborativeNetworksAutomation

FocusMulti-System

CRMCollaborative

CommerceN-TierChannel

ManagementWorkTeam

CollaborationIntegrated

PortalseCRMCustomer

Relationship

ManagementSell-SideeBusinessPRMEnterpriseChannelsSell-SideCollaborativeeBusinessRelationshipNetworks

EvolutiontoCollaborativeNet23ComplexSupportProcessComplexSupportProcess24CollaborationatYourServiceWorld’slargestproviderofmobileInternetsoftware;OpenwavecustomersservemorethanhalfofallmobilesubscribersworldwideChallenge:Developerbasegrowingrapidly(100,000+)andsupportvolumesincreasing50%permonthSolution:ePeopleTeamwork70%reductioninaveragetimetoresolutionMultiplesupportproviderscanworktogetherHandledevelopergrowthwithoutincreaseinstaffCollaborationatYourServiceW25BusinessProcessesIntegrationVendorPartnerProcess

ConnectorStatusLeadsVendorPartnerProcess

ConnectorStatusOpportunitiesBusinessProcessesIntegration26CollaborativeCommerceWorkflowVendorPartner4.Status2.OrderCustomer1.Research3.ConfirmCollaborativeCommerceWorkflo27CollaborativeCommerceTheChallenge

CreateThreeWinnersCustomers:abilitytobuyproductson-linePartners:LeverageexistingrelationshipsEnterprise:EnhancetheMaytagbrandSource:ComergentConsumersRetailersMaytagCommerce

SystemCollaborativeCommerceTheChal28GroupCollaborationNearly80%ofcorporateknowledgeisunstructuredInformation.GartnerGroupSharedWorkspaceCustomersPartnersEmployeesSuppliersGroupCollaborationNearly80%29“Thereisonlyoneboss:thecustomer.Andhecanfireeverybodyinthecompany,fromthechairmanondown,bysimplyspendinghismoneysomewhereelse.”SamWalton

Wal-MartFounderBasicBeliefsRespectfortheIndividualServicetoOurCustomersStriveforExcellence“Thereisonlyoneboss:thec30BuildCollaborativeRelationshipsthatDeliverValueFebruary13,2003Atlanta,Georgia,USABobThompsonCEO,CustomerThinkCorporationFounder,CRMGBuildCollaborativeRelationsh31CompetingforScarceCustomersSupplyDemandTimeScarce

ProductsScarce

CustomersCompetingforScarceCustomers32“Bedistinctorbeextinct”TomPeters“Bedistinctorbeextinct”33“It’sincrediblyarrogantforacompanytobelieveitcandeliverthesamesortofproductthatitsrivalsdoandactuallydobetterforverylong.That’sespeciallytruetoday,whentheflowofinformationandcapitalisincrediblyfast.”

MichaelPorter

FastCompanyProduct

LeadershipOperational

ExcellenceCustomer

IntimacyCRMGreatRelationships=Differentiation“It’sincrediblyarrogantfor34LoyaltyLeadersGrowFaster,SpendLessCostsGrowthSource:ReichheldLoyaltyLeadersGrowFaster,S35CRMisNotNew…OrisIt?"Thetruebusinessofeverycompanyistomakeandkeepcustomers.”--PeterDrucker“CRM=beingsoobsessedwithyourcustomer’ssatisfactionthatyouchangethewayyoudobusiness.”--Dr.JonAntonCRMConfusion!360-degreeviewofthecustomerImprovingqualityofcustomerinteractionNewsoftwaretoolsandtechnologiesGettingrightdatatorightemployeeShiftfromproducttocustomerorientationBuzzwordandmanagementfad!

Source:METAGroup/IMTStrategies“CRMmeanscreatingmutualwinswithcustomersandallcompanystakeholders.”--BobThompsonCRMisNotNew…OrisIt?"Thet36“CRMis90%halfmental”YogiBerra,CRMConsultant“CRMis90%halfmental”YogiB37CustomersDefineaGreatRelationship“Serviceandvaluejustforme”“Personal”“Responsiveandproactive”“Win/Win”“Asksquestions”“Agooddealforthemoney”“Quality,consistentperformanceovertime”“Expertise”“Ahistoryofworkingtogether”“Easytodobusinesswith”Source:CRMGCustomersDefineaGreatRelat38TheNew4PsRelationshipDriversPassionPeopleProcessPerformance“MarketingMix”ProductPlacePromotionPriceTheNew4PsRelationshipDrive39CRMGuruStudy:CRMWorks!PaybackPeriodBenefits(PercentofProjects)Increasecustomersatisfaction(51%)Increasecustomeracquisitionrate(50%)Increaseshare-of-customer(48%)Decreasecustomerdefectionrate(37%)Decreasefrontofficestaffingcosts(33%)Investment

33%--lessthan$50,00024%--$50,000to$250,00028%--$250,000to$2.5Million15%--over$2.5MillionSource:CRMGCRMGuruStudy:CRMWorks!Payba40KeyDriversofSuccessCustomer-centricstrategy:usingcustomersatisfactionandattritiondata,gettingcustomersinvolvedinplanningFrontlinetrainingandsupport:explainingvalueofCRM,providingtrainingfornewskillsrequiredOrganizationalchange:workflowdesign,changingrolesandresponsibilitiesMetrics:goalsmeasuredstatistically(80%don’t)Source:CRMGstudy“TheBlueprintforCRMSuccess”KeyDriversofSuccessCustomer41Three-Year“Overnight”SuccessObjectives:Servechannelpartnersbetter,sellmore,spendlessSolution:AllegiseBusiness(PRM)Saved$375,000incommunicationcostsIncreasedrevenue$1millionwithbetterleadmanagementImprovedpartnerandemployeesatisfactionLessonsLearned:Understandyourusers,deliverclearvaluetothemPlancarefully,buildateam,phasetheimplementationEstablishbaselinemetricsandmeasurementprocessCommunicate,communicate,communicate!Source:LexmarkThree-Year“Overnight”Success42AreYouListening?“Ifyou’reconstantlygettingfeedbackfromyourcustomers…andyou’rewillingtolisten,youcanmakethemostoftheopportunitiesimplicitinthoseneeds.”

MichaelDell,inDirectFromDell“Businessessurviveordeclinebasedontheiremployees’abilitytolisten.Hirethesmartest,bestpeopleyoucanget,orientthemtocustomersatisfactionattheexpenseofallelse,thengetoutoftheirwayandletthemwork.”

DougAllred,SVPCustomerAdvocacyforCiscoSystemsAreYouListening?“Ifyou’rec43SellingThroughComplexChannelsCustomersSellingChannelsDealersMarketplacesOEMsRetailersEtailersResellerEnterpriseEnableCommerceWithselling

partnersVisibilityofcustomer

activityInfluence

overcustomer

experienceCollaborationwithpartner

businessprocessesSellingThroughComplexChanne44CRMTechnologyEvolutionCRMMaturityPotentialCompetitiveAdvantageLowHighAutomateStreamlineinternalsalesandserviceprocesses.Moreofthesame,donefasterandcheaper.SFA,CallCenterSingle

ChannelCollaborateEngagecustomersandpartnersforwin/win/winEnablemany-to-manyrelationshipnetworksC-BizSolutionsCollaborative

NetworkInnovateDesigndifferent,moreeffectiveprocessesUsenewchannelsandcustomertouchpointseCRM,PRMMulti-

ChannelHighCRMTechnologyEvolutionCRMMa45“TheInternetasasaleschannelrepresentsonlyafractionofitspotentialtobusiness.Therealpotentialliesinitsabilitytotransformrelationshipswiththetraditionalsupplier-vendor-customerchain.”

MichaelDell“TheInternetasasaleschann46SellerBuyerCRMSCMCollaborative

BusinessWin/Win

PhilosophyEnabling

Systems=+CollaborationCollaborativeBusiness:MutualBenefitsSellerBuyerCRMSCMCollaborative47Now:Point-To-PointRelationshipsSupplierPartnerCustomerManufacturerCRMPRMCRMRelationshipManagement:“Sell-Side”FocusonLifetimeValue,CustomerExperience,Revenue/ProfitGrowthSCMSCMSCMSupplierManagement:“Buy-Side”FocusonCost,CycleTime,ResponsivenessNow:Point-To-PointRelationsh48WebServices:EnablingxRMSystemsANewBreedofWebApplicationSelf-contained,self-describing,modularapplicationsCanbepublished,located,andinvokedacrosstheWebPerformsfunctions--simpletocomplicatedprocessesOtherapplicationscandiscoverandinvokeWebServices:EnablingxRMSys49WebServices:EnablingxRMSystemsThePotentialLow-costintegrationwithin,andbetween,enterprisesEnablingprocessintegrationbetweentradingpartnersImprovingperformanceofcollaborativenetworksWebServices:EnablingxRMSys50Future:OptimizedValueNetworkSuppliersCustomerManufacturerPartnersCollaborativeRelationships:FocusonMutualValue,Profit,Efficiency,IntegratedProcessesGlobalCompetitionPowerShiftto

CustomersInternetAdoptionInternetStandardsWebServicesFuture:OptimizedValueNetwor51TypesofCollaborativeSystemsPeopletoSystems–CRM/PRMPortalsPeopletoPeople–GroupwareSystemtoSystem–E2ECRMTypesofCollaborativeSystems52EvolutiontoCollaborativeNetworksAutomation

FocusMulti-System

CRMCollaborative

CommerceN-TierChannel

ManagementWorkTeam

CollaborationIntegrated

PortalseCRMCustomer

Relationship

ManagementSell-SideeB