CRM - February 2009 - (Page 38)

Strategy Ko adds that keeping up with the Salesforce.com releases is a challenge unto itself—something that the company’s sole CRM administrator could not do on his own. DriveCam is an innovative business, using video technology to relay and change driving behavior. That being so, staying in line with technology is an essential business strategy for the company—one that Ko refused to let fall by the wayside, even in a recession. He acknowledges that enlisting a professional services organization is costly, but, even in times like these, vital. The hope, he says, is that continually improving upon DriveCam’s CRM systems will help the company weather the rough patch. “We’re pushing sales and marketing as an entire company. We are trying to regroup and work as one to move more effectively.” DriveCam’s strategy, he points out, is more than piecemeal initiatives thrown together to drive sales. “It’s about building a culture to survive the storm.” “Smart companies will make capital investments in a downturn—and then, when the economy is coming back up, they’ll be ready.” sidering the fact that many analysts predicted consulting would be an early victim of budget cuts. In fact, Chris Andrews, a Forrester Research analyst and author of a report about selling technology services during an economic downturn, continues to believe that professional services could see some major cutbacks in a recession. Along those lines, Umberto Milletti, chief executive officer and founder of social sales application provider InsideView, seems to agree. “These days anything that requires professional services, companies are very hesitant to do it,” he says, advocating the SaaS model for that reason. But are organizations cutting back when they might need consultants the most? When the road gets rocky, organizations need hand-holding more than ever. However, this means they might be looking to a vendor for more than the product sold. “Customers right now are looking for guidance and a way to go through the recession,” Andrews says. Despite the expense, cutting services might be riskier than keeping them around, Andrews affirms. “There is a positive ROI associated with outsourcing,” he adds. Pricing becomes increasingly important as companies re-evaluate spending and project expenditures. With the future uncertain, companies are hesitant to commit to licensed, long-term contracts. The risk of a new project is enough on its own—throw a three-year lease on there, and you can wave goodbye to the penny-pinching customer. “Companies in a recession are focused on price and flexibility,” Andrews says. “They don’t want to be locked in. They are concerned with low or up-front cost. They don’t want to be locked into a long-term agreement that might be significantly impacted or affected as business conditions determine.” If this is true, you’d think organizations would be running into the arms of low-cost, subscription-based service providers. Well, not yet, but it’s becoming truer: Gartner survey results indicate that 90 percent of organizations plan to expand upon SaaS projects in the next year. But just because software is cheap, doesn’t mean customers are signing on in droves. Even free offerings come with a price tag. Often it’s a free trial or it’s a solution that’s too lightweight—or it’s a company that’s still a bit wet behind the ears. And with the economy shaky at THEY WON’T COMMIT DriveCam’s continued investment in Bluewolf is a tad counterintuitive con- TOP 5 TECH TIPS The right approach to technology remains the same, regardless of the economic circumstances: Take the time to know what you need before you waste precious resources. Here’s how. 1. Generate disruptive business models: Stay relevant not just through innovation, but with organizational structures, competencies, processes, and partnerships. 2. Harness the creativity of all employees: Look internally to drive grassroots innovation. Creatively address leadership frameworks and employ social computing tools. 3. Reorient the entire organization around customers: Let your customers dictate research-and-development priorities. 4. Nurture regional ecosystems to best serve emerging markets: Evoke entire communities, not just individuals. 5. Sustain competitiveness with innovation management tools: View innovation as a continual process—not just a problem needing to be solved. —Forrester analyst Navi Radjou, “The Tech CEO’s 2009 Innovation Agenda,” December 2008 38 CUSTOMER RELATIONSHIP MANAGEMENT | FEBRUARY 2009 www.destinationCRM.com http://www.salesforce.com http://www.salesforce.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - February 2009

CRM - February 2009 Contents Front Office Reality Check Customer Centricity The Tipping Point Express Service CRM on Twitter Breaking Customer Service Tradition Outsprinted That’s (Not) Entertainment Running on Empty Required Reading Up Against the Downturn The Numbers Tell the Tale Make Marketing Your Megaphone! Hold Onto Your Customers! Spend Your Way Out! Constructing a Virtual Customer Experience Next Customer, Please! It’s Showtime! From A(erospace) to Z(oology) Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - February 2009

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