IBM Integrated Approach to CRM

The tenure of marketing, sales and customer

service executives is shorter than ever.

• Less than 4 years for marketing executives

• Less than 3 years for Chief Customer Officers

• Less than 2 years for sales managers

SOURCE: From Stretched to Strengthened: Insights from the IBM Global CMO Study . Oct 2011.

THE GROWTH OF ONLINE COMMERCE

By 2013, e-commerce is expected to grow to $963B.

In 2011, 178.5 million people shopped online

By 2015, an estimated 201.1 million people will be shopping online

SOURCE: “A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.

MOBILE TECHNOLOGY USAGE

of consumers like instant access to information and mobile offers.

1 in 4 American households are wireless only

½ of households with 18–34-year-olds are wireless only

of consumers use smartphones while shopping in-store.

SOURCE: The Mobile Movement Study, Google/Ipsos OTX MediaCT, Apr 2011.

“A smarter approach to CRM: an IBM perspective,” IBM in collaboration with Frost & Sullivan. Oct 2011.

SOCIAL MEDIA

Customers got their information from an average of 10.4 resources in 2011.

SOURCE: Google/Shopper Sciences, Zero Moment of Truth Automotive Study, US. Apr 2011.

SOCIAL MEDIA

37 million Americans use social media before buying.


THE CUSTOMER MINDSET

THE DEMAND FOR PERSONALIZATION

88% of business leaders know they need to get closer to the customer.

The perfect solution is to serve each

consumer individually.

The problem? There are

7 billion of them.

– Consumer products CMO, Singapore


THE DATA EXPLOSION

Every 2 days, we create as much information as we did from the dawn of civilization to 2003.

We’re drowning in data.

What we lack are true insights.

– Life sciences CMO, Switzerland


MANAGE THE TRANSACTION, NOT THE RELATIONSHIP

Many companies are gathering only transactional information. Not relationship-building data.


THE BENEFITS OF INVESTING IN THE RELATIONSHIP

Companies that use data to foster relationships outperform those who don’t.


THE RIGHT DATA

23% of organizational data is incomplete, out of date or just wrong.


THE RIGHT DATA

To make the right decisions, companies need data that is both:

Accurate

Actionable

THE RIGHT TOOLS

Over 2/3 know they need to invest in managing big data.

We need to replace our CRM system and are actively looking at

a new system that will address our future plans—including social

media, ROI analytics and the global company strategy.

– Professional services CMO, Germany


THE BOTTOM LINE

Traditional CRM solutions can have an ROI as long as 3–5 years.

The complexity of integrating a new system with

other systems too often destroys the ROI of the

new system.

– Food, beverage and tobacco executive, United Kingdom


THE RIGHT SKILLS MIX

Sales, customer service and marketing leaders are relying on new skills and technology.

Many of them are keeping up. Are you?


The New CRM

INTEGRATED CRM

Step 1: MOBILE, MODULAR, OPEN CRM

Moving CRM to the cloud offers cost savings, scalability and flexibility.

Keep up with customers’ mobile and social behaviors

Access your own CRM capabilities through mobile

Step 2: A SINGLE VIEW OF YOUR DATA

Up to 85% of data is unstructured. A smarter approach to CRM can bring it together.

Get a real-time 360-degree view of your data


CASE STUDY – WESTMONT COLLEGE

The need:

Donations are a big part of every college.

To meet its objectives, Westmont needed to improve productivity and integrate donor campaign information with its CRM solution and Datatel software.



The solution:

After seeing it in action, Westmont adopted the IBM WebSphere® Cast Iron® Cloud Integration portfolio solution because it:

Allows users to be self-sufficient

Has an easy-to-use interface

Utilizes a centralized management console



The results:

The college’s IT team helped support 59 fundraising events over 9 months

They achieved their $70 million objective

Westmont improved the quality and accuracy of its information



The happy customer:

WebSphere Cast Iron Cloud Integration has allowed us to achieve a

lot of ROI.

I’m happy to report that in the 11 months since the campaign began

in April, that we’re almost 50% of our way to our goal in less than

one year.

And I really feel that the tools we’ve chosen, the partners that we’ve

worked with, our commitments to the cloud, have all made a huge

difference in the effectiveness that the team currently enjoys.

– Joel Banez, Director of College Software, Westmont College


Step 3: COLLABORATION TOOLS

Nearly 70% of midsize company executives will have integrated unified communications and collaboration solutions within 12–36 months.


Step 4: ANALYTICS-DRIVEN INSIGHT

Analytics has a 90% adoption rate.

And 50% of those who haven’t adopted plan to do so within the next 24 months.


CASE STUDY – FootSmart

The need:

FootSmart wasn’t getting the conversion and sales impact from their on-site search tool results.



The solution:

An analytics tool developed by IBM helped FootSmart turn actionable insights into tangible results.



The results:

82% improvement in search conversion over 6 months

Over 90% increase in cross-sell item sales

19% increase in average order value when cross-sell items were purchased

65% of sales are now generated online


THE INTEGRATED APPROACH

A Smarter Approach to CRM offers an ROI of nearly 6 to 1 per dollar invested.

SOURCE: Harris, Roy. “A Study in Returns: CRM Software ROI Wins Praise; for Analytics It Wins Raves.” ComputerWorld, 12 Mar, 2011.

http://news.idg.no/cw/art.cfm?id=0F5E0A05-9AB8-E65A-AC811F6BD421C35E

Traditional CRM Smarter Approach to CRM

Partial view of the customer Full view of customer

Reactive Proactive

Disconnected data Integrated data

Multiple vendors Single point of contact

Stand-alone CRM application CRM suite/ecosystem

Pre-social Enabled for social

In-house solutions Flexible solution: available in-house, cloud or hybrid

EXTERNAL PARTNERSHIPS BUILD INTERNAL CAPABILITIES

Turn to outside vendors to improve your capabilities.

The largest growth is already being seen in sales management, customer and data analytics, and relationship marketing.

A SMARTER APPROACH TO CRM CAN BRING IT ALL TOGETHER.

Make sure your business keeps up with the changing customer.Get the full story at ibm.com/midmarket/us/en/crm.htm

IBM Integrated Approach to CRM

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