CEM &

CRM Industry Landscape

June 2007 Sprint fired about 1,000 of its 53 million wireless customers for excessive calls
to the contact center, mostly for billing and general account issues.
 What is customer experience?
Is the cognitive and affective outcome of the
customers exposure to or interaction with
companys people,processes,technologies,services
and other outputs.

High quality end to end, order to delivery CE

.Amazon
CEM
Before you think Im coining a new term here - Gartner defines
customer experience management as "the practice of designing and
reacting to customer interactions to meet or exceed customer
expectations and, thus, increase customer satisfaction, loyalty, and
advocacy. It is a strategy that requires process change and many
technologies to accomplish."
 CX
CX is the delivery of brand promise. It happens in
touch points. Intersection of customer and
enterprise.
Salespeople
Call centre
Advertising event
Debt collectors
Reception
Websites
 Key issues

Should CX be left to the matter of chance or

managed?

Experience may/not tie with products.

Branded experiences
Some concepts

Touchpoint

MOT

Engagement
How to measure

Mystery shopping

Experience mapping
 Macro view
Software market$23.2 billion in 2014, up 13.3 percent from 20.4 billion in
2013, according to Gartner, Inc.

Software as a service (SaaS) accounting for almost 47 percent of total CRM

software revenue in 2014.

Emerging Asia/Pacific grew the fastest, with growth of 18.7 percent in

2014

More than 23 percent of 2014 CRM spending were enterprise

investments in digital marketing and customer experience initiatives.
Communications, media and IT Services industries

High-tech, banking, insurance, securities, telecommunications,

pharmaceutical, consumer goods, IT manufacturing and IT services vertical
industries will continue to be the largest spenders on CRM2014
CRM software revenues forecast worldwide, 2009-2016 ($ in
millions)

44% of that figure to Sales, 21% to marketing automation and 35% to customer
service and support
Social CRM

2010 - 4% of the total CRM technology spend.

Rose to 8% in 2012, and

Gartner projects it will reach 10% by the end of

this year.
 Strategic Planning Assumptions

Through 2019, the total market for consulting

and implementation
.
services for CRM and
customer experience (CX) will be 1.4 times the
market for CRM software, with the ratio of
service to software growing over that time.
By 2018, more than half of organizations will
implement significant business model changes
in their efforts to improve CX

Gartner.com
 Key differences between CRM and CX

The permanence of CX operational capability

differs from the transience of a CRM project.
More time is needed to demonstrate the benefits
of a superior CX.
The association with technology is greater in
CRM.
The focus for CRM is on actions taken; in CX, it is
the customer's perception of the actions.
A rational approach is more important in CRM; in
CX, the customer emotions matter more.
Top Vendors

Salesforce.com, Worldwide Leader for CRM Revenue, Moves Up to No. 2 in Customer

Support

SAP Recovers Its Momentum With 12.7% Growth, Fueled by Its Cloud Offering and
Refocus on E-Commerce With Hybris Acquisition

Oracle's Growth Slows, But Continues With Increased Boost From Cloud Acquisitions

Microsoft Continues Its Push Into the Cloud With Two Years in a Row of More Than
20% Growth

IBM Continues Revenue Growth to Almost $800 Million in CRM

Adobe Continues Its Lead in Marketing Automation

by Patrick J. Sullivan and Ed Thompson. 12/01/2016.
 Leaders in this Magic Quadrant bring a wide range of
business and technical capabilities that include CX
strategy
business transformation consulting
customer analytics
CRM technology expertise
business change management.

They demonstrate strong comparative revenue growth

and ability to scale across multiple geographic regions.
They are delivering with high client satisfaction
 Evolution and Growth of CRM
1st generation 2nd generation 3rd generation
>1990 >1996 >2002

Call Center Management

Customer Service Support
Integrated customer facing Strategic CRM
Front-end ( marketing, sales, service)
Sales force Automation

ERP Integration
Campaign Management Customer analytics
Complete Web integration
Scope:
Marketing function Entire organization
Service function Service function
Sales function Sales function

Goals:
Reduce cost of interaction
Improve service operations Improve customer experience Cost reduction & Revenue growth
Increase sales efficiency Increase customer retention Competitive Advantage
 https://www.youtube.com/watch?v=hwKFv9X
1yhU CSS(SF)

https://www.youtube.com/watch?v=dtJ3fH1k
hLQ SFA(MSD)
 Time-line of CRM Evolution

1st Generation (functional CRM approach)

Sales force Automation (SFA)

Pre-sales functions, prospect management, telemarketing, lead

generation, sales quotation, placing sales order.

Customer Service and Support (CSS)

Help desks, contact and call centres, field service support combined
SFA/CSS market niche small

Market for ERP growing

 CRM Evolution (contd.)
2nd Generation (customer facing front-end approach)
CRM technology filled the gaps left in ERP
Goal was single view of customer irrespective of purpose of
contact/mode of contact.

3rd Generation ( Strategic CRM) End 2002

Integration of customer-facing front-end with back-end systems as well
as partners and suppliers.

Web integration.
 4th Gen:Social CRM

BUSINESS APPLICATIONS: Social networks are

opening a new page on the CRM agenda.
Facebook, Twitter, LinkedIn, Second life and other
engaging social media networks, enable a more
precise segmentation, affinity grouping and their
impact on formulating corporate strategies.

Social networks in CRM ecosystems enable a

more precise segmentation and customer
involvement.
 What Drives CRM Industry Forward?

Shift from transactional to relationshipbased markets

Developments in Customer Value measurement

Improved effectiveness of marketing communication tools

IT vendors and associated change management consultancies

Reducing costs of data storage and capture

 CRM based on 4 principles
1. Customers to be managed as assets.
2. Not all customers are equally desirable.
3. Customers vary in needs, preferences,
buying behavior and price sensitivities.
4. Understanding No. 2&3 company can tailor
their offerings to maximize value.
 CRM Failure and the Seven Deadly Sins

Focusing solely on technology.

Losing sight of customers.
Ignoring customer lifetime value.
Lack of management support.
Undervaluing data analysis.
Underestimating change management.
Inflexible business processes.