IBM Integrated Approach to CRM
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Transcript of IBM Integrated Approach to CRM
The tenure of marketing, sales and customer
service executives is shorter than ever.
• Less than 4 years for marketing executives
• Less than 3 years for Chief Customer Officers
• Less than 2 years for sales managers
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
THE GROWTH OF ONLINE COMMERCE
By 2013, e-commerce is expected to grow to $963B.
In 2011, 178.5 million people shopped online
By 2015, an estimated 201.1 million people will be shopping online
SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
MOBILE TECHNOLOGY USAGE
of consumers like instant access to information and mobile offers.
1 in 4 American households are wireless only
½ of households with 18–34-year-olds are wireless only
of consumers use smartphones while shopping in-store.
SOURCE: The Mobile Movement Study, Google/Ipsos OTX MediaCT, Apr 2011.
“A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
SOCIAL MEDIA
Customers got their information from an average of 10.4 resources in 2011.
SOURCE: Google/Shopper Sciences, Zero Moment of Truth Automotive Study, US. Apr 2011.
SOCIAL MEDIA
37 million Americans use social media before buying.
SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
THE CUSTOMER MINDSET
THE DEMAND FOR PERSONALIZATION
88% of business leaders know they need to get closer to the customer.
The perfect solution is to serve each
consumer individually.
The problem? There are
7 billion of them.
– Consumer products CMO, Singapore
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
THE DATA EXPLOSION
Every 2 days, we create as much information as we did from the dawn of civilization to 2003.
We’re drowning in data.
What we lack are true insights.
– Life sciences CMO, Switzerland
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
MANAGE THE TRANSACTION, NOT THE RELATIONSHIP
Many companies are gathering only transactional information. Not relationship-building data.
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
THE BENEFITS OF INVESTING IN THE RELATIONSHIP
Companies that use data to foster relationships outperform those who don’t.
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
THE RIGHT DATA
23% of organizational data is incomplete, out of date or just wrong.
SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
THE RIGHT DATA
To make the right decisions, companies need data that is both:
Accurate
Actionable
THE RIGHT TOOLS
Over 2/3 know they need to invest in managing big data.
We need to replace our CRM system and are actively looking at
a new system that will address our future plans—including social
media, ROI analytics and the global company strategy.
– Professional services CMO, Germany
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
THE BOTTOM LINE
Traditional CRM solutions can have an ROI as long as 3–5 years.
The complexity of integrating a new system with
other systems too often destroys the ROI of the
new system.
– Food, beverage and tobacco executive, United Kingdom
SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
THE RIGHT SKILLS MIX
Sales, customer service and marketing leaders are relying on new skills and technology.
Many of them are keeping up. Are you?
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
The New CRM
INTEGRATED CRM
Step 1: MOBILE, MODULAR, OPEN CRM
Moving CRM to the cloud offers cost savings, scalability and flexibility.
Keep up with customers’ mobile and social behaviors
Access your own CRM capabilities through mobile
Step 2: A SINGLE VIEW OF YOUR DATA
Up to 85% of data is unstructured. A smarter approach to CRM can bring it together.
Get a real-time 360-degree view of your data
SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
CASE STUDY – WESTMONT COLLEGE
The need:
Donations are a big part of every college.
To meet its objectives, Westmont needed to improve productivity and integrate donor campaign information with its CRM solution and Datatel software.
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
CASE STUDY – WESTMONT COLLEGE
The solution:
After seeing it in action, Westmont adopted the IBM WebSphere® Cast Iron® Cloud Integration portfolio solution because it:
Allows users to be self-sufficient
Has an easy-to-use interface
Utilizes a centralized management console
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
CASE STUDY – WESTMONT COLLEGE
The results:
The college’s IT team helped support 59 fundraising events over 9 months
They achieved their $70 million objective
Westmont improved the quality and accuracy of its information
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
CASE STUDY – WESTMONT COLLEGE
The happy customer:
WebSphere Cast Iron Cloud Integration has allowed us to achieve a
lot of ROI.
I’m happy to report that in the 11 months since the campaign began
in April, that we’re almost 50% of our way to our goal in less than
one year.
And I really feel that the tools we’ve chosen, the partners that we’ve
worked with, our commitments to the cloud, have all made a huge
difference in the effectiveness that the team currently enjoys.
– Joel Banez, Director of College Software, Westmont College
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
Step 3: COLLABORATION TOOLS
Nearly 70% of midsize company executives will have integrated unified communications and collaboration solutions within 12–36 months.
SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.
Step 4: ANALYTICS-DRIVEN INSIGHT
Analytics has a 90% adoption rate.
And 50% of those who haven’t adopted plan to do so within the next 24 months.
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
CASE STUDY – FootSmart
The need:
FootSmart wasn’t getting the conversion and sales impact from their on-site search tool results.
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
CASE STUDY – FootSmart
The solution:
An analytics tool developed by IBM helped FootSmart turn actionable insights into tangible results.
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
CASE STUDY – FootSmart
The results:
82% improvement in search conversion over 6 months
Over 90% increase in cross-sell item sales
19% increase in average order value when cross-sell items were purchased
65% of sales are now generated online
SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.
THE INTEGRATED APPROACH
A Smarter Approach to CRM offers an ROI of nearly 6 to 1 per dollar invested.
SOURCE: Harris, Roy. “A Study in Returns: CRM Software ROI Wins Praise; for Analytics It Wins Raves.” ComputerWorld, 12 Mar, 2011.
http://news.idg.no/cw/art.cfm?id=0F5E0A05-9AB8-E65A-AC811F6BD421C35E
Traditional CRM Smarter Approach to CRM
Partial view of the customer Full view of customer
Reactive Proactive
Disconnected data Integrated data
Multiple vendors Single point of contact
Stand-alone CRM application CRM suite/ecosystem
Pre-social Enabled for social
In-house solutions Flexible solution: available in-house, cloud or hybrid
EXTERNAL PARTNERSHIPS BUILD INTERNAL CAPABILITIES
Turn to outside vendors to improve your capabilities.
The largest growth is already being seen in sales management, customer and data analytics, and relationship marketing.
A SMARTER APPROACH TO CRM CAN BRING IT ALL TOGETHER.
Make sure your business keeps up with the changing customer.Get the full story at ibm.com/midmarket/us/en/crm.htm