Avoiding the Pitfalls that can Doom the Best Sales and Marketing Strategies… Beyond the CRM Hype Greg Hatfield Senior Vice President greg.hatfield@bi3solutions.com 510.521.8865

What do we mean “CRM Hype” Don’t get us wrong… the CONCEPT of CRM is critical to all companies Companies must be Customer-Centric and have an effective CRM (Sales, Marketing & Customer Service) strategy The “Hype” has been around the implementation of packaged CRM applications as the end-all solution Didn’t we all see this once before when ERP’s were going to solve all of managements’ needs? Avoiding the pitfalls early on can make a tremendous difference… 4/7/2019 CONFIDENTIAL

Hype Cycle of New Info Technologies Peak of Inflated Expectations Increased Visibility & Expectations Plateau of Productivity Disillusionment Increasing Realism Time Source: The Gartner Group 4/7/2019 CONFIDENTIAL

Hype Cycle of New Info Technologies Peak of Inflated Expectations Increased Visibility & Expectations Packaged CRM Plateau of Productivity Disillusionment Increasing Realism Time 4/7/2019 CONFIDENTIAL

Why the Disillusionment? Failure to deliver as expected Implementation times too long Vendors and packages not living up to their marketing messages Reasons for implementing often flawed – a “Control” approach rather than focusing on improving the customer’s experience Low buy-in and lack of ownership Insufficient quality and integration of information Unexpectedly high Total Cost of Ownership 4/7/2019 CONFIDENTIAL

Setting the stage – From Experience Pitfalls are Equal Opportunity They are seen in every vertical They affect companies of all sizes Rapid growth intensifies the problem Tactical matters always seem to get the attention Band-aid cures usually don’t work & aren’t scalable The recovery process can be slow, painful and very expensive You may not face them immediately, but you will… 4/7/2019 CONFIDENTIAL

Pitfall #1 – Not Doing Your Homework Not Defining your “Customer” Lifecycle (Prospect, Lead, Customer, Repeat Customer…) Forms (Individual, Household, Organization, Group of Organizations…) Attributes (demographics, interactions, scoring, profiles…) Touch Points (Call Centers, ATMs, POS, Kiosks, Web, Email, Direct…) Not Clearly Defining your Objectives And aligning them to your needs Not Making a Business Case for Initiatives Including Impact to Profitability and ROI Not Defining & Aligning to Analytical Needs 4/7/2019 CONFIDENTIAL

Pitfall #2 – “Out of the Box” CRM Believing that implementation of a packaged CRM application is the full solution Creating another data silo Ignoring critical factors such as People and Processes Underestimating the importance of data quality “Implementation” of CRM as an IT goal You don’t “Implement” CRM, you strive to improve it Underestimating the importance of Ownership The “If you build it, they will come” fallacy Not considering integration and addressing the gaps in functionality 4/7/2019 CONFIDENTIAL

Pitfall #3 – Isolating Sales & Marketing Not understanding how information all departments must flow across the enterprise “Siloed” budgeting Leads to “siloed” applications and data Not having an oversight committee that understands the “bigger picture” How can investments in the Sales & Marketing area be leveraged across the company? How do these initiatives tie in with other corporate initiatives? How do they fit into overall corporate objectives? Not having alignment between Business & IT 4/7/2019 CONFIDENTIAL

Avoiding the Pitfalls – Think First Your goal is to provide a superior experience to the customer when dealing with your company How will you achieve this? What returns to you expect? How will you measure the returns? How will you strive to improve? Only when you understand and have consensus on the answers to these questions, are you ready for the next step… Involve all stakeholders early in the process 4/7/2019 CONFIDENTIAL

Avoiding the Pitfalls – Make A Commitment Effective CRM is a business strategy, not a technology There must be alignment between Sales, Marketing, Support & IT Priorities must be set based on business objectives (current and foreseeable future) These business objectives are ongoing Corporate commitment and sponsorship is key to success This commitment must filter down the ranks 4/7/2019 CONFIDENTIAL

Avoiding the Pitfalls – Plan & Prioritize There are constraints and realities that must be addressed: Resource availability – people and funding Ability to deal with change and rapid growth So, think at an enterprise level, then prioritize and plan in phases Focus on a foundation first Be sure to address integration of web, back-office and front-office systems Don’t forget your reporting and analytical needs 4/7/2019 CONFIDENTIAL

Avoiding the Pitfalls – Implementation Scope management is key Stay within your phase Pilot’s/Prototypes to reduce risk Fosters buy-in Validates assumptions and requirements Provide hands’ on experience Help set expectations Time-boxed approach – Deliver in increments Don’t short-cut on user training Business and IT must work together – Don’t “Backroom” the project 4/7/2019 CONFIDENTIAL

Other Points and Considerations Carefully examine your Marketing/Campaign objectives Can you measure the results and lift? What information would you need to really understand the effectiveness of your marketing initiatives? Won’t this information come from various sources? Consider outsourcing while you build internally Make sure you own and can integrate both internal and hosted data Get help. Experience and a bigger picture perspective can make the difference between success and failure 4/7/2019 CONFIDENTIAL

CRM is not a thing you buy and implement Closing Summary CRM is not a thing you buy and implement Packaged software is an important component, but only a component People & processes are critical Buy vs. Build is a misnomer Avoid pitfalls by thinking, planning and getting experienced help Your foundation architecture is critical Business Intelligence and Data Integration must be a part of your CRM strategy 4/7/2019 CONFIDENTIAL

Thank you