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Winning & Retaining Clients, Part II Targeting Technologies and Tapping Your Market Dawn Marie Yankeelov President, ASPectx [email_address] www.aspectx.com

The CRM Industry Corporate CRM Spending >$1 Trillion (U.S.) Consumer 100,000 Independent CRM Vendors ($700 Billion) Data Management Fulfillment TV Radio Print Advertising Direct Marketing Call Centers: Inbound Outbound

I. Growth in CRM “Tech” Tying All Avenues Together for Maximum Profitability Tracking All Interactions for Upsell Managing Projects and Personnel Speed to React Reporting Enhanced and Often Real Time Accountability Throughout Organization

What is a CRM tech tool? CRM ties together all of a company’s front office customer touchpoints: sales (contact management, product configuration), marketing (campaign management, telemarketing), and customer service (call center, field service) Via multiple, interconnected delivery channels (telephony, email, Web, and direct interaction) YOU ARE TRYING TO TRACK ENTIRE HISTORY OF RELATIONSHIP WITH YOUR CUSTOMER OR CLIENT

Defining CRM Tech Options “ Small and mid-sized businesses would never have been candidates for enterprise applications in the past. Nobody seems to know what is going on and the customer often has more knowledge than the company. That is the Achilles’ heel of businesses today.”—Steve Papermaster, founder of Agillion.com Trends to Watch: --CRM for All Levels --Small Business Use --Web-based Application Proliferation --ASP Models Appealing from Small Businesses to Personal Sites

Industry Problem Buyer Dilemma Lack of Industry Knowledge 100,000+ Vendors Product Complexity Rapid Change in CRM Technology Limited Project Management Resources Seller Dilemma Lack of Efficient Marketing Channels Large Capital Investment in Technology No Central Marketplace Intense Competition Inefficient Marketplace = High Search and Maintenance Costs

Selecting CRM Tools Identify and set clear business requirements Institute a common planning process Obtain Senior-Management Buy-In and Understanding Pinpoint functional differences in culture and success measures and bridge the gaps CRM is a Business Philosophy

Tribulations: The Barriers Changes in business processes slow IT delivery capability Unwillingness to change sales processes and incentives can stall acceptance of new systems The rate of technology change can be too quick for people to absorb it and adapt

CRM Shifts Cause: Relationship Management Becoming Critical Effect: CRM to satisfy any appetite Cause: No Time to Learn It or Teach It Effect: Simplification in Web-based models Cause: Demand for Analysis & Tracking Continues to Rise Effect: Point ‘n Click Stats on Demand Cause: Spending Getting Scrutiny of CEOs Effect: ASP Models Stand a Chance to Deliver CRM

Eye-Openers Spending on ASP services will grow to $7.7 billion in four years, from $30 million in 2000. However, this is not new monies, just a reallocation of funds. Software vendors are expected to see revenues diminish. --- IDC Corporation Forecast, ASPNews.com, 8/17/2000 CRM, education and training—less than a third now using ASP model --- Zona Enterprise Usage Study, 2000

Metrics for Purchases Should Remain the Same Research Includes: A Look at Problem Found/Solution Provided Depth of Company’s Products—Vaporware vs. Delivered Technology Complexity in Use and Implementation Financial Soundness of Product to Be Purchased—Will it Really Be Around in Two Years? Product Specialization by Industry

Tap the Potential of eCRM—Web-based all the Way Create Interactions—integrate all sales and marketing channels with back office financials Operate at Internet Speed—real time data gathering, analysis and response is approaching as the standard Analyze Data—turn massive amounts of data into insight to retain customers Integrate customer information access across systems --Montgomery Research, Inc. 2000

Total Cost of Ownership Server Hardware & Software Server w/disks, RAID Fault Tolerance, Memory Backup software Basic Server Installation & Integration Configuration of Server in Hours Service Agreement on Hardware Service Agreement on Network System

Total Cost of Ownership Server Installation & Maintenance Upgrades in a three-year period Man hours for upgrades Migration of platform issues Upgrades to Network Operating System Server Troubleshooting Emergency Service—Actual Hours Consultant Assistance (one day every fourth week) Assistance w/ maintenance

Total Cost of Ownership End User Install & Maintenance Upgrading old PCs User Administration Hidden downtime & Support Costs Courses and Internal Training Software Licensing Security & Telecommunications Employee Infrastructure

CRM Mainstream Migration Contact Mgmt. --most offline 80s 90s 2000 2002 Personalization—using web Customer Relationship Mgmt.—expensive, non-integrated software Database Tracking of Entries Call Centers (most not Internet-friendly) Sales Automation Marketing Automation Web-based Conferencing/Telephony Analytics Relationship Mgmt. In ASP format Synchronous Customer Management (multi-channel managed via web or wireless device)

CRM Marketers Break with Tradition Major Players Reinventing Product Line to Serve Lowend Web-based Solutions for all Industries New Technology Platforms Breed New CRM methods—I.e. Release of Windows 2000 platform Free Is the “Winner to Take All” Plays Geography is Meaningful in Seizing Market Share and VC Dollars—Look in Your Backyard for Answers ERPs Migrating to ASPs That Can Go Live Within Days

Integration Outside The Product Class Example: Siebel Mid-Edition (first shipped July 19, 2000) and Great Plains Partner Status Costs: $2500 to $3500/user, Service: Implementation, 3x Features Include: Customer Applications including ecommerce functions, 24/7 self-service, and online marketing info; Employee Applications including features for front-office employees; and Partner Applications for partner organizations (i.e. sales channels) Free Evaluation Guides available on crmguru.com; ismguide.com

Moderate-Cost Entries Example: Worldtrak.com Works with Microsoft Outlook Account Opportunity Mgmt. Enterprise Forecasting Activity Tracking Enterprise Lead Mgmt. Enterprise Data Synchronization & Remote Access Cost: Licensing from $750/seat to $1500/seat (10); Service: Implementation, training 1.5x ASP $500 setup; $50 a month per user

New Low-Cost Web Entries E-business Dashboard—Free personal homepage. Keeps tabs on customers, includes personal organizer and headlines Tasks and Email—Tracks Tasks and Personalized Email Acct. Activities and Notes—Permanent searchability on customer activity Group Calendar—Review and update daily, weekly or monthly on the web schedules Monthly Fee Personal Pages—password-protected websites Shared Contacts—Customer Interaction Database that allows users one secure, central place to store and access customer information and activity Product Offerings Low-cost Web-based CRM with messaging functions. Product The company is aimed at small businesses Product: Agillion.com

The Hotcakes of the Category Salesforce.com More than 1,200 paying companies in its two-year history Users are provided with information on their accounts from Hoover’s, an online business information provider Sales opportunities can be forecast, based on assigned probability of closing and all reports can be exported to Excel Five users free for one year, with each additional user at $50 Upshot.com Free for 1 st three months to companies with fewer than 100 users for companies of 100 to 1,000 users; $7500 implementation fee within 15 days if you provide a dedicated support person to assist for data cleanup Includes unique mapping feature and simple workflow routing Bull’s eye graphics

The CRM Player Bringing Home the Bacon Sales.Oracle.com and its new sister, Support.Oracle.com (call tracking and customer support) Introduced in August 2000—now has more than 20,000 companies signed up Targets companies with 50 to 500 salespeople Oracle supports import and export of information, including comma-separated value files (CSV) Offers opportunity tracking, customer and prospect management, contact management, calendar and activity management and a forecasting module as one of the fee-based upgrades Basic service is free and comes to those purchasing an Oracle Applications license

II. Wireless and working Existing Software to Handheld Devices and Smart Phones Options Abound “ Out of the Box” solutions from Palm and Pocket PC integration Pricepoints now dropping and security issues being resolved Focus on specialized applications for inventory control, fleet management, notifications of top tier customer service issues, real-time public relations, sales force automation

CRM “Hot Spots” Source: The Yankee Group, Wireless CRM, 2000. “ The U.S. mobile and remote-worker population will grow 41% from 39 million in 2000 to 55 million in 2004. Field sales professionals comprise the largest percentage of this remote-worker population.”

CRM Ramping Up Estimate of Corporate Applications Designed for PCs and Internet Devices. Source: Morgan Stanley Dean Witter Equity Research. IDC, and Yankee Group, 2000 studies. “ Fast ramp” window

CRM Plays CRM applications for wireless devices in: Customer service and support Help desk Sales force automation Field services Marketing automation Palm’s initiative in this area pivots on: Anywhere access to customer information Capture customer information and upload to enterprise system Increase the “touch” factor with customers

Palm: Success Stories Source: Palm, December 2000

Palm: Present CRM Partners Source: Palm, December 2000

Palm: CRM Interact Commerce Corporation Saleslogix Wireless access to CRM applications from Siebel, PeopleSoft, and other vendors Front Range Solutions Goldmine Everywhere Real-time, wireless access to calendars and contacts Peregrine Systems Customer ticket system for service and support Peregrine will port its infrastructure management tools to Palm Source: Palm, December 2000

III. Public Relations Tactics Low-Tech Still Works, High Tech Available Principles of Manage Contacts, Send, and Followthrough Tied to Trade Shows, Events, Company Milestones Build “Expert” Status Establish Credibility for New Products and Services Lead in the Industry by Striking First to the Multitudes Target Messaging via Trades

Integrating Your Vision Establish Media Contacts via Third Party, Internal Contact, and/or Senior Mgmt. Availability Capitalize on Speaking Engagements, New Customers, Case Studies, “How-To” Stories, New Hires, Trade Show Presence

Media Relations Targets Websites in Your Trade Business Journals National Business Publications Local Media outlets—including TV, radio news who now have websites Highly targeted Trade publications Product or Service publications

ROI Considerations One article can reach 60,000 depending on circulation of publication or audience of other media Monthly positioning keeps company on the mind of reporters and ultimately customers in coverage Advertising does not buy credibility

Traditional Methods Consultants plus Newswires and Clipping Services Examples: PR Newswire Now offers clickthrough tracking, archiving of logos and articles, multimedia feeds Business Wire

Do It Yourself Tactics Events Marketing Tools Yahoo Cvent.com Acteva: The Marketplace for Activities Search Engines Entry

III. eMarketing Web-based interactions maximizing email, tracking, and followthrough Two-way communication Real-time Knowhow Time to React to Marketplace Decisions Constant Presence to Clientele

Hunt and Kill the Targets Five market identification strategies: Geographic . Physical location of your publics Demographic. Attributes such as age and sex Psychographic . Lifestyle dimensions such as hobbies and interests Usage Rate. A small percentage of the population account for a large percentage of sales Benefits . Certain users want to achieve particular benefits. Ex. Airline tickets Strategic Internet Marketing, Tom Vassos

Marketing in A Box Enterprise Marketing Automation Defined Software that automates marketing campaign tasks, stores the intelligence in a database that can be shared across the enterprise, and follows up with potential customers by marketing only relevant services or products Customers choose how they want to be contacted: direct mail, telephone, fax, email or URL

Marketing in a Box Web Marketing Campaign Path 1. Sends email to potential customers driving them to contest on website 2. Users may answer questions via forms, which generates customer lead

Marketing in a Box Web Marketing Campaign Path 3. Software then evaluates the profile and automatically sends out another email 4. Email contains tailored information about a product or service 5. Each move is then recorded in his or her profile, and no inquiry goes unnoticed

Marketing in a Box Web Marketing Campaign Path 6. A Complete Reporting Tool runs comprehensive analyses that track investments up to the point of customer retention

Companies in Enterprise Marketing Automation MarketFirst Software Product: MarketFirst &Onyx--Solutions Blueprints, preconfigured, marketing modules ExploreCommerce Software Multimedia Emails with customer response tracked ASP format

IV. New Tools and Tactics Building on-the-fly virtual communities—TransDigital Solutions Voting, Discussion Threads, Calendars Voice Portals via Web—Appriss Alerts for Certain Actions Location-based Commerce on Handhelds Vindigo, Informationinplace.com

WrapUp Marketing Mix to Win and Retain Clients Integrate Across Divisions with Technologies—Sales + Marketing + Accounting + Inventory Control + ? Match Low-Tech or High-Tech Choices to Company Efficiencies and Growth Target Market Always; Continually Evaluate Your Niches

Aspectx Competitive Intelligence *Marketing * Public Relations*Business Planning *Event Marketing *Web Consulting For more information contact: Dawn Marie Yankeelov, President Aspectx (w) 502-254-9757 (c) 502-548-1304 (f) 502-254-9793 [email_address] www.aspectx.com

Winning

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