By David Sims
[email protected]
The news as of the first coffee this morning, and the music
is Frank Sinatra’s breezy 1957 Come Fly
With Me album. His best work is uniformly his 1953 – 1961 recordings for Capitol
Records. Oh he did good work elsewhere, sure – “My Way” came later, as it only could have – but he was
never this consistently good or hit such high peaks before or after.
This morning we have some pearls of wisdom cast by well-known CRM consultant Bob Thompson,
the guiding light of CRMGuru.com, which
is one of the most popular and really- useful- to- real- people- really- doing- real- CRM- work
enterprises on the CRM landscape.
If anybody’s to blame for First CoffeeSM having
any sort of profile in the CRM world, it’s probably Bob, who put up, literally and
figuratively, with articles so far over the edge they surfaced somewhere near Iceland, using Victoria’s Secret, local coffee shops and proctologists as business-case
examples:
Bob, ever since you
and I worked together in the late ‘50s, CRM’s gone through a few changes. What are
the most important developments of the past few years?
The biggest is that most business executives are no longer tech-obsessed
about CRM. Ironically, as the tech hype died down and managers started the real
work of CRM (strategy, people, processes), the market for CRM technology has
started growing again. On the technology front, the growth of on-demand and
analytical tools has been strong.
On-demand is hot now,
kind of like ASPs were a few years ago. Do you see the on-demand model
rendering on-premise CRM installations obsolete?
No. But if it reaches 20 percent penetration in a market
that is $10 billion+ per year, that’s a huge impact. PCs didn’t replace
mainframes, and on-demand won’t replace traditional on-premise applications. Bu on-demand will
grow the fastest the next couple of years.
What’s the best music
to listen to at work?
For me, I listen to an eclectic mix of music on my
iPod, ranging from Metallica to No Doubt to Dave Matthews Band to Coldplay.
Someone running a
100-employee, million-dollar chain of retail outlets meets you at a party and
says he wants to “do CRM” for his company. What are three pieces of advice you
give him before the party’s over?
1. Get in touch with your customers first. Invest in “voice
of customer” programs to help understand why customers think, feel, and behave
the way they do.
2. Use that insight to formulate a strategy that will
deliver value that differentiates the company, and can be delivered at a
profit.
3. Drive the change throughout the organization. Make sure
the organization structure, training, and reward systems support the retailer’s
game plan.
Partner Relationship
Management is a logical outgrowth of CRM. How has the PRM concept matured in
the past couple years?
I think PRM got lost in the downturn and never really came
back. That said, channel-centric companies understand that while they have to “manage”
partner relationships a bit differently, the same principles apply. The main
difference is that business partner’s view of value is generally revenue or
profit.
Everyone talks about
building customer loyalty. Who’s doing it well, and how?
In high-tech, Dell, Cisco and IBM. In travel, JetBlue,
Southwest, and Singapore Air. In financial services, Royal Bank of Canada and
Wells Fargo. These companies have a focused business strategy and stay in
touch with their customers. In general, they all do a good job of “walking
the talk” throughout the organization.
You, I and Dick Lee all know
CRM’s not the equipment, it’s not the technology, you don’t buy CRM out of a
box, it’s the mentality, the mind-set. Why is that so hard for companies to
understand, why are they so eager to rush in and spend money on
technology?
What do you call the longest distance between two points? A “shortcut!”
It’s human nature to look for a quick fix to any problem. But I think the rush
to buy IT is over.
When you hear the term
“customer-centric organization,” what qualities that you’ve seen in real-life
practice from real-life customer-centric firms come to mind?
A culture of genuine caring about customers, coupled with an
almost fanatical focus on repeatable processes. It’s an interesting
mix of “right brain” (feeling) and “left brain” (analysis) that the best
customer-centric companies seem to master.
Can we get a sneak
preview of something on your year-end 2005 Top Ten list?
No, because I have no idea what will be on the list.
Now you’re talking to
someone running a 100-employee, million-dollar chain of retail outlets who
meets you at a party and says he wants to hire a CRM consultant. How do you
advise him to tell the difference between a good one and a waste of time and
money?
Check for relevant industry references, and make sure the
consultant has a balanced view of CRM, from strategy development through
implementation.
…
Equant has signed a five-year, $30 million
contract with the Norwegian Ministry of Foreign Affairs to provide a fully-managed, IP-based communications system to
interconnect 84 Norwegian embassies and consulates across Europe, Americas,
Africa and Asia-Pacific and the Ministry’s headquarters in Oslo.
Satellite services ensure access to the Equant IP network at
13 remote sites in areas where terrestrial links are more difficult and
expensive.
That’s the great thing about small, educated, relatively
wealthy and technologically sophisticated countries like Norway, New Zealand
and Palo Alto, they’re free to do things like this. New Zealand has announced
the national telco will rip out the whole system and replace it with IP, and
here Norway’s putting the whole foreign service communications system on IP.
First CoffeeSM bets it’s no coincidence that
Norway’s not in the European Union. Having massive North Sea oil reserves lets you
thumb your nose at joining the EU for the privilege of enduring blustery French
arrogance, complying with whatever ferret-nosed bureaucrats in Brussels dream up to keep everyone on the same developmental pace as the Least Common Denominator and watching your hard-earned income siphoned off to subsidize inefficient
French, Greek and Portuguese farmers, especially when your standard of living
has been rated #1 in the world by the UN Human Development
Program for four years running – if things like cold wind whipped off the ocean
in January, long, dark winter days and lutefisk
are your idea of Eden.
As one commentator on Norway’s stringent
immigration policy puts it, having built such a nice country indigenously “provides
a distinct incentive for the country to avoid being lumped with greater Europe.”
For the past five years, the Ministry had a frame relay
network from Equant, but decided that Multi-Protocol Label Switching technology
would better meet its global requirements. The ministry was looking for global
delivery and local support – when you’re running a worldwide diplomatic network
things like a strong support organization capable of delivering true end-to-end
management 24/7 at all local sites start to matter.
The Ministry has chosen Equant’s IP VPN Platinum for all sites, which lets them
run voice, data and video over the network as well as allocate bandwidth to the
different applications. The system also provides connections via satellite
integrated with Equant IP VPN, with consistent service levels and local support
by own staff even at all satellite-based sites.
Deputy Director General Ove Mo of the Norwegian Ministry of Foreign Affairs
called installing the Equant system “a necessary step for developing and
rolling out key global projects, such as a new document management system and a
fingerprint authentication system to validate passports.”
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