CRM - February 2008 - (Page 18)

Partners.“I like what I see. For people who been best known for its large-scale are [Microsoft]-centric this is a painless implementations, and made waves with way to deploy CRM. They’ve taken pains its September 2007 announcement of SAP Business ByDesign, a with the look and feel and purely midmarket product the integration.” developed under the codeThe two companies’ newname A1S. Microsoft, by est offerings share certain contrast, has been a darling characteristics, including of smaller businesses due to extensive process and workthe ubiquity of its Office flow automation and seriapplications and Windows ous business-intelligence operating system. While capabilities. Furthermore, these products and certain both have ties to multi- The midmarket is a others from Microsoft have tenant, on-demand deploysquishy middle ground found homes at all levels of ment: Microsoft released CRM 4.0 in two versions, upon which Microsoft’s business, the midmarket was a squishy middle ground one of which is explicitly feet never seemed upon which Microsoft’s feet on-demand, while SAP’s comfortable, and never seemed comfortable. NetWeaver SOA platform Both firms are finding iniincludes support for multi- SAP hasn’t performed tial success and each has a tenant deployment. any better there. good chance to capture marMost notably, however, both offerings are targeting the upper- ket share, at least according to analysts. midmarket, a relatively new playground “Partners—Microsoft’s channel to marfor the two software giants. SAP has ket—are very excited to have something to compete with Salesforce.com,”says Sharon Mertz, research director for research firm Gartner.“Most [Microsoft] partners’ business models are tuned to custom development and services, and aren’t accustomed to running a volume model. Microsoft knows the volume model.” Regarding SAP, Mertz says the new interface and the platform upon which it’s built are both “simple and powerful.” The company is “making some real headway. SAP has brought in new people, who have lots of energy and expertise.” Whether either company succeeds in a more volume-oriented business segment like the midmarket—especially midmarket SaaS—remains to be seen. Mertz notes that SAP has not performed well in that space to date, and Microsoft must be careful as well. “[Microsoft] competitors who had a systems and services model and tried to go to a volume model, such as SAP, Unica, and Sage, have not done well with the volume product,” she says. —Marshall Lager LOYALTY Continued from page 17 early, though, so even the best current ideas might need to give way. According to Kane, six factors predict loyalty: • Competency: Does the company do what I need? • Integrity: Is it fair and honest with me? • Recognition: Does it see an individual or just an account number? • Proactivity: Does it anticipate my needs? • Savvy: Does it understand why I want to be loyal? • Chemistry: Do I enjoy the experience of working with the company? Of these, the first two are simple satisfaction, while the other four relate to the emotional component that creates loyalty. “People seek companies to be loyal to,” Kane says. “It makes life easier when you don’t have to evaluate every option in every purchase decision, and can trust one source.” It’s important to distinguish between loyalty and advocacy, says Paul Green18 berg, chief customer officer with consultancy BPT Partners and author of CRM at the Speed of Light. “Loyal customers can be passive. Advocates, by definition, must be active in promoting you.” Advocacy is more significant than ever now that social media have taken hold. The most important conversations customers have about your brand aren’t with you—they’re with a world full of their peers. (See “Power to the People,” December 2007, page 28.) That’s what makes firms so nervous, and it’s the impetus for them to enter social media themselves. “Brand matters less than it used to. The burden is on the compan[ies] to build a relationship with the buyer,” Kane says. “If they do, then the customer doesn’t care as much about other opinions.” Even with the burden on the company, it seems that the best way to cater to the customer is to step out of the way. “To create advocacy, you must give the cus- “Loyal customers can be passive. Advocates, by definition, must be active in promoting you.” tomer a personal experience,” Greenberg says. “Realistically, companies must provide customers with the tools to craft their own experiences; there’s no way an individual in a company can create the perfect experience for me.” Kane is quick to point out that this is not the same as a loyalty program. “Loyalty programs are hostage-taking, trying to change customer behavior,” he says. “If your goal is to change customer behavior so that they will buy your products and become loyal, you will lose. You must change your own behavior and the customers will follow.” And customers will follow only as long as you please them, despite any affection they have for your brand. “Companies don’t understand loyalty,” Greenberg says. “Loyalty means you get one free mistake—it’s a buffer, a get-out-of-jail-free card, for when you disappoint.” —Marshall Lager CUSTOMER RELATIONSHIP MANAGEMENT | FEBRUARY 2008 www.destinationCRM.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - February 2008

CRM - February 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point The Loyalty Riddle CRM Drives Down-Market Out of the Gate: Marketers Rate ’08 Traits The Pulse Consultants Adapt to CRM’s Changing Landscape Required Reading Cover Story: CRM Gets Serious Contact Center Solutions Always On Rumble in the Office The Smallest Slice Tying Up Cable’s Loose Ends Burning Up the Paper Trail Sunny Skies for Knology No More Bumps for BlueRoads Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - February 2008

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