Paul GreenbergPaul GreenbergAuthor:Author:CRM at the Speed of LightCRM at the Speed of Light

Caveat #1: I’m not an economistCaveat #1: I’m not an economist

Caveat #2: CRM is not a panaceaCaveat #2: CRM is not a panacea

Why a Problem?Why a Problem?Poor economic conditions Poor economic conditions do changedo change customer customer behaviors (transactions)behaviors (transactions)

Customers desire to spend greatly diminishedCustomers desire to spend greatly diminishedMakes it easier to do nothing – or boltMakes it easier to do nothing – or boltYour ability to spend on customers reducedYour ability to spend on customers reduced

It It can affect can affect customer attitude but not always customer attitude but not always (interactions)(interactions)

Your business has some control over thisYour business has some control over this

Why Develop Strategy?Why Develop Strategy?Acquisition costs much higherAcquisition costs much higher

Traditionally, 6 to 13X the cost of retentionTraditionally, 6 to 13X the cost of retentionDavid’s Bridal – shift in view of customerDavid’s Bridal – shift in view of customer

Loyal customers will continue to spend with you Loyal customers will continue to spend with you because they trust you and are comfortable with because they trust you and are comfortable with youyou

Advocates are the paradigm – even in a downturnAdvocates are the paradigm – even in a downturnCommitted customers will help you acquire new Committed customers will help you acquire new customerscustomersBecause they will market and sell for youBecause they will market and sell for you

Community retailing – Karmaloop, ThreadlessCommunity retailing – Karmaloop, Threadless

Community Retailing – KarmaloopCommunity Retailing – KarmaloopCombination of name brand & independently designed Combination of name brand & independently designed clothesclothesCommunity building (nearly million) key focus via UGC, indie Community building (nearly million) key focus via UGC, indie design exposure, and street teams who are incented to sell – design exposure, and street teams who are incented to sell – and to be involved in community buildingand to be involved in community building

20% discount20% discountOne percent of that community drives 15% of their total One percent of that community drives 15% of their total revenue through buying and WOMrevenue through buying and WOM

2006 - $4 million2006 - $4 million2008 - $40 million (with 30% reduction in original forecast 2008 - $40 million (with 30% reduction in original forecast due to recession)due to recession)

Investigating your situationInvestigating your situationFind out what customers want – and needFind out what customers want – and need

What have they been buying is important here tooWhat have they been buying is important here tooHow? Call them up; email them; tweet them if you’re so How? Call them up; email them; tweet them if you’re so inclinedinclined

Determine what you have to give them – and what Determine what you have to give them – and what you need to doyou need to do

Obviously price/cost is a considerationObviously price/cost is a considerationClean out ineffective processes – those with no value to Clean out ineffective processes – those with no value to you or your customeryou or your customerUsing Web 2.0 tools to provide customers with what they Using Web 2.0 tools to provide customers with what they want. want.

Developing your strategyDeveloping your strategyDecide whether acquisition or retention is at the Decide whether acquisition or retention is at the core? Or a mix ….core? Or a mix ….Recognize that your customer moves from being a Recognize that your customer moves from being a “client” to a “partner” – or needs to be“client” to a “partner” – or needs to beUnderstand that there are three things that you Understand that there are three things that you have to do for the customerhave to do for the customer

CommunicationsCommunicationsValueValueServiceService

Adjusting approachAdjusting approachWhat can you do to keep engaging customer?What can you do to keep engaging customer?What can you do to intensify loyalty w/customer as What can you do to intensify loyalty w/customer as a partner?a partner?What kind of value can you provide customer when What kind of value can you provide customer when price takes center stage?price takes center stage?Think in terms of operating as a business leader not Think in terms of operating as a business leader not just a sales organization just a sales organization

EconomicEconomicCommunicationsCommunicationsEngagement (Loyalty)Engagement (Loyalty)Engagement (Value)Engagement (Value)TechnologyTechnologyDoing it WrongDoing it WrongDoing it RightDoing it Right

Price moves to front of the line as part of Price moves to front of the line as part of overall experienceoverall experience

Provide discounts where possible to:Provide discounts where possible to:Customers directlyCustomers directlyPartners in your business ecosystem if large enoughPartners in your business ecosystem if large enough

Financing optionsFinancing optionsGive customer payment options based on what you can Give customer payment options based on what you can dodo

Large company – multiple financing optionsLarge company – multiple financing optionsSmall company – informal options to avoid difficultySmall company – informal options to avoid difficultySometimes, you have to compromiseSometimes, you have to compromise

Communications PlanCommunications PlanFind out how customers want to control their Find out how customers want to control their engagement - frequency, channel etc.engagement - frequency, channel etc.

Opt-in, not opt-outOpt-in, not opt-out

Find out where they congregate (e.g. Facebook, Find out where they congregate (e.g. Facebook, local bar)local bar)

Stay in touch - outreachStay in touch - outreach

Communications PlanCommunications PlanFind out what they want from you during downturnFind out what they want from you during downturn

Their interests will matterTheir interests will matter

Make clear what your own situation is Make clear what your own situation is (transparency)(transparency)But don’t forget your own business plan – But don’t forget your own business plan – customer needs to be partner – and understand customer needs to be partner – and understand you too (authenticity)you too (authenticity)

If you have loyalty program:If you have loyalty program:Adjust loyalty program to fit need but Adjust loyalty program to fit need but Be sure you fulfill obligations you already madeBe sure you fulfill obligations you already made

If you don’t:If you don’t:Provide best customers with some unsolicited Provide best customers with some unsolicited awards – small tokens of appreciation are fineawards – small tokens of appreciation are fine

““Thanks for sticking with us during these difficult times” Thanks for sticking with us during these difficult times”

Operate as business leader, not sales personOperate as business leader, not sales personTreat customer as human partner, not object of Treat customer as human partner, not object of sale subject to your desperationsale subject to your desperationProvide information on how to cope with bad Provide information on how to cope with bad economy – both as business, and personaleconomy – both as business, and personal

Large company – do webinars; provide ebooks; send out Large company – do webinars; provide ebooks; send out targeted emails to customers on how to handle specific targeted emails to customers on how to handle specific issues; corporate blogs, podcasts; create communitiesissues; corporate blogs, podcasts; create communitiesSmall company – send links to articles of interest; blogs Small company – send links to articles of interest; blogs and podcasts; phone calls to key customersand podcasts; phone calls to key customers

Use of CRM toolsUse of CRM toolsOn demand v. on premiseOn demand v. on premiseGood financing termsGood financing termsCustomer serviceCustomer service

Social media toolsSocial media toolsBlogging tools either server-based or SaaSBlogging tools either server-based or SaaSPodcasting toolsPodcasting toolsCommunity creation for larger companiesCommunity creation for larger companies

High End Cruise LineHigh End Cruise LineSent out letter to prospects that began with scare Sent out letter to prospects that began with scare tactics about economytactics about economy

Stressed stress and said solution to the stress was to Stressed stress and said solution to the stress was to effectively engage nature – by traveling with themeffectively engage nature – by traveling with themLetter was signed “personally” by the owner of the Letter was signed “personally” by the owner of the company and addressed to “Dear Traveler” company and addressed to “Dear Traveler”

Car dealers in MidwestCar dealers in MidwestProviding multiple financing options outside Providing multiple financing options outside standard “vehicles”standard “vehicles”

Working with local & smaller regional banks to get Working with local & smaller regional banks to get financingfinancing

Preparing leaseholders in advance on their options Preparing leaseholders in advance on their options so that they aren’t surprisedso that they aren’t surprised

Sports teamsSports teamsNets free tickets to unemployed fans Nets free tickets to unemployed fans

Resumes posted to Nets websiteResumes posted to Nets websiteResumes go to team sponsorsResumes go to team sponsors

Caretaker of the Islands of the Great Barrier Caretaker of the Islands of the Great Barrier Reef – Tourism Queensland Reef – Tourism Queensland

Dissecting the elementsDissecting the elementsWatched a podcast on the job availability which is Watched a podcast on the job availability which is primarily to blog for 6 months.primarily to blog for 6 months.Marketing Manager talks about “word of mouth being Marketing Manager talks about “word of mouth being important now.”important now.”Your relevant experience is to be highlighted in 60 Your relevant experience is to be highlighted in 60 second uploaded video (UGC)second uploaded video (UGC)The video is voted on and commented on by visitors to The video is voted on and commented on by visitors to site (UGC)site (UGC)10 finalists chosen by committee; one “wildcard” by 10 finalists chosen by committee; one “wildcard” by visitorsvisitors

Most important to remember, these tips/tactics Most important to remember, these tips/tactics aren’t only for a downturnaren’t only for a downturn

Downturn simply helps filter the selection due to Downturn simply helps filter the selection due to the emotional/mental state of the customerthe emotional/mental state of the customerThe type of likely customer experience is what The type of likely customer experience is what determines which approaches, tactics, etc. you usedetermines which approaches, tactics, etc. you useAND, remember, I’m NOT an economistAND, remember, I’m NOT an economistBUT I do know something about customers & CRMBUT I do know something about customers & CRM

Author: CRM at the Speed of Light (4th Edition, February 2009)Author: CRM at the Speed of Light (4th Edition, February 2009)President: The 56 Group, LLCPresident: The 56 Group, LLCManaging Partner/CCO: BPT Partners,Managing Partner/CCO: BPT Partners,EVP: National CRM Assn.EVP: National CRM Assn.Co-Chair: Rutgers CRM Research CenterCo-Chair: Rutgers CRM Research CenterNamed #1 CRM Influencer (Non Vendor) by InsideCRM 2007Named #1 CRM Influencer (Non Vendor) by InsideCRM 2007Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008CRM Magazine 2008 Top InfluencerCRM Magazine 2008 Top InfluencerPGreenblog: PGreenblog: http://the56group.typepad.comZDNET Blog: ZDNET Blog: http://blogs.zdnet.com/crmEmail: Email: paul-greenberg3@comcast.netTwitter: Twitter: http://www.twitter.com/pgreenbeCell phone: 703-551-2337Cell phone: 703-551-2337

THANK YOUTHANK YOU