In conjunction with a recent piece of Concursive news, today I wanted to talk about franchise operations to discuss the importance CRM solutions can make in connecting such "extended enterprise." It is no secret that a franchise company's brand and reputation among its customers can often be measured in the sum, strength, and consistency of messaging throughout its stores.
Yet relying on each individual franchise to implement a solution consistently is probably unrealistic.
Without consistent messaging, sales, and data management, a single franchise may can be isolated from other franchise locations as well as its corporate headquarters. But with proper connection to the larger corporate hub, any franchise can be as strong as the company it represents. It is important, by the very nature of a franchise operation, to provide a standard set of tools across the network for customer relationship management, sales, and marketing. So what's the solution? Connecting the extended enterprise and tackling multiple issues in one fell swoop.
Allowing the corporate entity to host an on-demand deployment that provides each franchisee an independent system delivers an effective solution of consistency, and ease of deployment for the franchisees. Creating an easy to use system through the extended enterprise means high adoption which means valuable information gets put into the system resulting in overall benefits for the corporate headquarters. This same adoption of the extended enterprise also benefits the franchisees since it allows each location to benchmark their location against other franchise operators in a standardized way.
As I alluded to earlier, AlphaGraphics, a customer of ours with over 260+ independently owned franchise locations, was looking to solve one main problem of consistency throughout the business.
By implementing our easy to use ConcourseSuite 5.0, AlphaGraphics has guaranteed a high adoption rate amongst franchises. Franchise operations which function independently from each other need to project a consistent brand image to its customers in each market where the company is located. What could be more important to an enterprise than a sales and marketing tool that allows the consistent management of independent franchises and a standardized online presence.
Michael
Friday, February 22, 2008
Friday, February 8, 2008
Introducing a New Blog Contributor
I want to take time today to introduce my colleague, Jeff Hershey, VP of Business Development at Concursive, who will be posting here regularly beginning next week.
Jeff joined us last fall after a successful run as VP of Business Development for a tech company in Pennsylvania. As you will see in our updated “About the Authors” section, Jeff has broad experience with both technical and non-technical companies of all sizes. His background will help expand the topic range on this blog; he will be posting some of his views/opinions on the importance of customer relationships, growing your customer base, and other general thoughts on relationship management.
He has already proven to be a great addition to the Concursive team and I am delighted to have him join forces with me on this blog.
Michael
Jeff joined us last fall after a successful run as VP of Business Development for a tech company in Pennsylvania. As you will see in our updated “About the Authors” section, Jeff has broad experience with both technical and non-technical companies of all sizes. His background will help expand the topic range on this blog; he will be posting some of his views/opinions on the importance of customer relationships, growing your customer base, and other general thoughts on relationship management.
He has already proven to be a great addition to the Concursive team and I am delighted to have him join forces with me on this blog.
Michael
Monday, February 4, 2008
Use CRM to Identify Customers for Better Service, Not Zero Service
David Sims ran an insightful article in TMCnet a few weeks ago, discussing why "Firing customers is a bad idea". Sims cites a study from the Wharton school that disproves the common, and in my opinion incorrect, philosophy of shedding your less valuable customers to increase profitability.
Many of the business-minded CRM professionals will argue that low spending customers take up too much time and effort to make up for the smaller percentage of profit they bring in, in comparison to the high spending customers, which take up the same amount of resources but return much more. The argument is that getting rid of the less profitable customers provides more time and resources for the more profitable ones.
Although I understand the basis for this concept, it has never completely worked in my mind. Instead of changing your customer base, why not change the way you work with your customers? Reallocating resources to more effectively manage all of your relationships will help improve profitability with high value customers, without sacrificing all of the lower value customers.
Sims brings up the point that CRM technology can be utilized to analyze and segment your customer base to determine which type of customers are which. In the old model this function could be used to shed the unwanted customers, but I agree with the Wharton study, that segmenting your customers can have a much more beneficial purpose: targeted and specialized relationship management.
Once you are able to identify the high-end customers from the low-end, you can tailor your sales and support more directly to each, enabling growth of both segments towards greater profitability.
There are two obvious reasons that you may not want to sacrifice your lower value customers: first, ridding yourself of any customers gives your competitors an opportunity to pick them up. If a customer needs your service and you won't provide it for them, they will easily switch to your competitors. Second, any good business relies heavily on word-of-mouth to fuel sales. What are these lower value customers going to be saying about your company if, instead of adjusting your service, you give them the axe?
The way I see it, CRM software should be used to get and grow customers, not classify and shed them.
Many of the business-minded CRM professionals will argue that low spending customers take up too much time and effort to make up for the smaller percentage of profit they bring in, in comparison to the high spending customers, which take up the same amount of resources but return much more. The argument is that getting rid of the less profitable customers provides more time and resources for the more profitable ones.
Although I understand the basis for this concept, it has never completely worked in my mind. Instead of changing your customer base, why not change the way you work with your customers? Reallocating resources to more effectively manage all of your relationships will help improve profitability with high value customers, without sacrificing all of the lower value customers.
Sims brings up the point that CRM technology can be utilized to analyze and segment your customer base to determine which type of customers are which. In the old model this function could be used to shed the unwanted customers, but I agree with the Wharton study, that segmenting your customers can have a much more beneficial purpose: targeted and specialized relationship management.
Once you are able to identify the high-end customers from the low-end, you can tailor your sales and support more directly to each, enabling growth of both segments towards greater profitability.
There are two obvious reasons that you may not want to sacrifice your lower value customers: first, ridding yourself of any customers gives your competitors an opportunity to pick them up. If a customer needs your service and you won't provide it for them, they will easily switch to your competitors. Second, any good business relies heavily on word-of-mouth to fuel sales. What are these lower value customers going to be saying about your company if, instead of adjusting your service, you give them the axe?
The way I see it, CRM software should be used to get and grow customers, not classify and shed them.
Friday, January 25, 2008
Want to grow your business? Think beyond the sale
The other day I was speaking to a small business owner. They told me that using Concourse Suite was helping them manage sales leads, and I was asking them about the steps beyond the sale and how they were using the CRM and other capabilities, and what processes they had introduced.
"Beyond the sale? We're just looking to grow," was the response. I was stunned.
I'm not undermining the importance of the sale. Nothing happens until someone sells something, that's business. But good businesses look beyond the sale and to a longer-term relationship. Relationships should be a top concern for any business that wants to grow. It doesn't matter if you have 10 employees or 10,000.
It's about knowing your customers. After you've sold them something, get working on the relationship. Talk to them, ask them what they like about your product or service, and what brought them to you. Get feedback. Listen.
Here are several great questions for small business owners to ask themselves, courtesy of a great post at Duct Tape Marketing from earlier this week, which is all about making sure you are attracting the right type of customer.
Relationships are key: when a company opens a two-way conversation, they learn a great deal not just about that customer but also about their own company. We call this 'Get and Grow'.
Technology plays its role in this strategy. It ensures that you have the right processes, allowing the consistent tracking of what customers have bought, all contact they have had with the company and any actions required. It's all about knowledge: knowing who your customers are and how/when they want to be reached - but tracking these things on Post-Its, spreadsheets and desktops is not the way to share this vital knowledge.
If you're not thinking beyond the sale, you're not thinking abut long-term business - no matter how much you sell.
"Beyond the sale? We're just looking to grow," was the response. I was stunned.
I'm not undermining the importance of the sale. Nothing happens until someone sells something, that's business. But good businesses look beyond the sale and to a longer-term relationship. Relationships should be a top concern for any business that wants to grow. It doesn't matter if you have 10 employees or 10,000.
It's about knowing your customers. After you've sold them something, get working on the relationship. Talk to them, ask them what they like about your product or service, and what brought them to you. Get feedback. Listen.
Here are several great questions for small business owners to ask themselves, courtesy of a great post at Duct Tape Marketing from earlier this week, which is all about making sure you are attracting the right type of customer.
Relationships are key: when a company opens a two-way conversation, they learn a great deal not just about that customer but also about their own company. We call this 'Get and Grow'.
Technology plays its role in this strategy. It ensures that you have the right processes, allowing the consistent tracking of what customers have bought, all contact they have had with the company and any actions required. It's all about knowledge: knowing who your customers are and how/when they want to be reached - but tracking these things on Post-Its, spreadsheets and desktops is not the way to share this vital knowledge.
If you're not thinking beyond the sale, you're not thinking abut long-term business - no matter how much you sell.
Thursday, January 17, 2008
Sun Shines $1B on Open Source Database MySQL
Huge news in the Open Source world today: Sun Microsystems announced that it will spend $1B to acquire the Open Source database MySQL. MySQL is the back-end of the LAMP stack (Linux OS, Apache server, MySQL database, and PHP programming language), on which many web applications are based, not to mention web giants like Facebook and Google. The press release can be read here, which contains the following paragraph:
There are two big themes that I took away from this quote. First is that Sun will be able to pick up a large, pre-existing customer base through MySQL's broad deployment (which was made even more broad late last week when Virgin Mobile announced its SMS database would be based on MySQL). One of the biggest benefits of Open Source software is that it can spread very quickly to gain a large hold of the market. The second note I see in this article is that Open Source is getting the publicity it deserves for being flexible and easy to use.
To me, this announcement also indicates that open source is going upscale. This deal represents the largest acquisition of an open source company to date and continues a trend that increased in scope throughout 2007 with the Zimbra acquisition by Yahoo!. It seems that big companies are seeing Open Source as a completely viable option and I think that we should anticipate more Open Source applications gaining the interest of a broader marketplace. I'll be intently watching to see how this shapes the open source landscape in 2008.
"This broad penetration coupled with MySQL's strength in Web 2.0, Software as a Service (SaaS), enterprise, telecom and the OEM embedded market make it an important fit for Sun. With MySQL, Sun will have the ability to deepen its existing customer relationships and create new opportunities with companies seeking the flexibility and ease-of-use of open source systems. With MySQL, Sun will have the ability to deepen its existing customer relationships and create new opportunities with companies seeking the flexibility and ease-of-use of open source systems."
There are two big themes that I took away from this quote. First is that Sun will be able to pick up a large, pre-existing customer base through MySQL's broad deployment (which was made even more broad late last week when Virgin Mobile announced its SMS database would be based on MySQL). One of the biggest benefits of Open Source software is that it can spread very quickly to gain a large hold of the market. The second note I see in this article is that Open Source is getting the publicity it deserves for being flexible and easy to use.
To me, this announcement also indicates that open source is going upscale. This deal represents the largest acquisition of an open source company to date and continues a trend that increased in scope throughout 2007 with the Zimbra acquisition by Yahoo!. It seems that big companies are seeing Open Source as a completely viable option and I think that we should anticipate more Open Source applications gaining the interest of a broader marketplace. I'll be intently watching to see how this shapes the open source landscape in 2008.
Tuesday, January 15, 2008
Increased Security through Open Source
On Friday I wrote about the debate going on around Open Source software bugs. Let me restate: bugs in software are not related to the fact that the source code is freely available. In fact, open source software has fewer bugs due to the constant scrutinization and programming skills of its development community.
On the topic of security this article in ZDNet Asia, uses an Open Source adoption study from IDC as its reference point and states that: "Security was the top reason for deploying open source technology". This alternative view just shows how different the press can approach one facet of technology. The article cites an IDC analyst, Prianka Srinivasan, who talks about how Open Source is seen by its advocates as providing more secure software than closed source alternatives.
The article also talks about how companies are taking an interest in open source versions of CRM, and so they should be. The combination of innovation, security and the ability to connect with customers, partners and stakeholders across the extended enterprise is something that any business should at least explore.
On the topic of security this article in ZDNet Asia, uses an Open Source adoption study from IDC as its reference point and states that: "Security was the top reason for deploying open source technology". This alternative view just shows how different the press can approach one facet of technology. The article cites an IDC analyst, Prianka Srinivasan, who talks about how Open Source is seen by its advocates as providing more secure software than closed source alternatives.
The article also talks about how companies are taking an interest in open source versions of CRM, and so they should be. The combination of innovation, security and the ability to connect with customers, partners and stakeholders across the extended enterprise is something that any business should at least explore.
Friday, January 11, 2008
Closed Minds on Open Source
There's a buzz around the internet right now regarding an article recently posted on Information Week titled "Open Source Code Contains Security Holes". If you couldn't tell from the title, this is a piece about the potential bugs in open source applications. If you couldn't guess from the title: I'm not exactly supportive of the author's standpoint.
Software inherently has bugs. It's a fact of life and I am appalled that the article makes no mention of the bug rate found in closed source software for comparison, instead hinting that open source has some fundamental problem. Bugs are found and fixed more quickly in an open source application because of the public scrutiny of the code and the community involvement in the fixing of any potential bugs.
For example: when a bug is found in software from your average Redmond-based software behemoth, nothing really happens until enough users report errors, at which point a "critical update" will be issued. One of the great aspects to open source code is that there is a community of developers keeping an eye out for any potential problems which they are keen to resolve as soon as they are discovered.
To read a recap on this topic, head over to the Enterprise Open Source blog.
I discussed this with our CTO, Tom Manos. Tom brought up the recent, and equally inaccurate, release from McAfee warning investors about the dangers of "ambiguous" open source licenses. Tom pointed out that McAfee is obviously not open source, but has similar functionality to many cheaper, or even free, open source alternatives, making its argument entirely self-serving.
I've said it before and I'll say it again. We're on the brink of a time when the towel will be thrown in for fight over open source ‘versus' closed source. The audience isn't looking for one to win over another, they just want cost-effective, feature rich applications that will help them drive their businesses.
All we need now is an open mind.
Software inherently has bugs. It's a fact of life and I am appalled that the article makes no mention of the bug rate found in closed source software for comparison, instead hinting that open source has some fundamental problem. Bugs are found and fixed more quickly in an open source application because of the public scrutiny of the code and the community involvement in the fixing of any potential bugs.
For example: when a bug is found in software from your average Redmond-based software behemoth, nothing really happens until enough users report errors, at which point a "critical update" will be issued. One of the great aspects to open source code is that there is a community of developers keeping an eye out for any potential problems which they are keen to resolve as soon as they are discovered.
To read a recap on this topic, head over to the Enterprise Open Source blog.
I discussed this with our CTO, Tom Manos. Tom brought up the recent, and equally inaccurate, release from McAfee warning investors about the dangers of "ambiguous" open source licenses. Tom pointed out that McAfee is obviously not open source, but has similar functionality to many cheaper, or even free, open source alternatives, making its argument entirely self-serving.
I've said it before and I'll say it again. We're on the brink of a time when the towel will be thrown in for fight over open source ‘versus' closed source. The audience isn't looking for one to win over another, they just want cost-effective, feature rich applications that will help them drive their businesses.
All we need now is an open mind.
Wednesday, January 9, 2008
Seeing the future clearly - Crystal ball gazing and open source transparency
There's nothing like some good press to start the year off. This week Reuters has highlighted the work of the Open Solutions Alliance in its story "Open-Source Chief Executives Make 2008 Predictions". This article picks up a quote from our CEO, David Richards, about international differences in open source, stating that in 2008 Asia will likely see a rapid open source adoption.
In the article Palamida's Mark Tolliver also echoes one of the concepts behind the OSA, stating, "Watch for consolidation among open source organizations as a way to strengthen their offerings and development efforts as well as acquisitions of open source market leaders by large commercial vendors who have a desire to expand their market reach and revenue stream". You can read the full Reuters article here.
On the topic of the OSA, Enterprise Open Source magazine has featured a Concursive presentation I gave at the SOA World Conference entitled "The Customer is Listening: What are we saying" in which I review what companies are really looking from technology solutions and how some companies can confuse the issues with open source smoke and mirrors. I think that in 2008 open source will continue its rise in popularity to at point where people will stop questioning if something is open source or not, they'll only question if it works.
You can view the video and read the article on the Enterprise OpenSource Magazine site.
In the article Palamida's Mark Tolliver also echoes one of the concepts behind the OSA, stating, "Watch for consolidation among open source organizations as a way to strengthen their offerings and development efforts as well as acquisitions of open source market leaders by large commercial vendors who have a desire to expand their market reach and revenue stream". You can read the full Reuters article here.
On the topic of the OSA, Enterprise Open Source magazine has featured a Concursive presentation I gave at the SOA World Conference entitled "The Customer is Listening: What are we saying" in which I review what companies are really looking from technology solutions and how some companies can confuse the issues with open source smoke and mirrors. I think that in 2008 open source will continue its rise in popularity to at point where people will stop questioning if something is open source or not, they'll only question if it works.
You can view the video and read the article on the Enterprise OpenSource Magazine site.
Friday, January 4, 2008
CRM in 2007 and an Outlook on 2008
Happy New Year!
I returned from the holidays to a number of fun news stories summarizing 2007 IT events (check out #13), the past year in CRM innovations (see #2), and making predictions for 2008. Most notable was the story CIO Insider ran a few days ago: How to Do CRM Online: Three Big Ideas for 2008
I think this article brings up a few key points that align well with a number of our goals at Concursive: know our customers, listen to our customers, and protect our customers. As 2008 develops we will continue to put focus on each.
I returned from the holidays to a number of fun news stories summarizing 2007 IT events (check out #13), the past year in CRM innovations (see #2), and making predictions for 2008. Most notable was the story CIO Insider ran a few days ago: How to Do CRM Online: Three Big Ideas for 2008
I think this article brings up a few key points that align well with a number of our goals at Concursive: know our customers, listen to our customers, and protect our customers. As 2008 develops we will continue to put focus on each.
Friday, December 21, 2007
A Look Back at 2007: Open Source and Social Networking
The end of 2007 is close, an ideal chance to reflect back on the year. It’s been a great year for us, from gaining investment from Intel, launching our new Concourse Suite 5.0, and of course our name change which reflects the growing presence of the company. I’d like to take this opportunity to thank our employees, customers, partners and investors, which have supported us throughout 2007.
I noticed that Mashable, the largest social networking news blog, ran a piece on “Best of 2007: Trends That Shaped the Web”. Three of the trends that Mashable selected: ecommerce, social networking and open source, are all areas that Concursive is directly involved in. In our drive to enable organizations to connect through the simplicity of a single platform solution, we provide the tools that better enable ecommerce, embrace all social networking standards – and all through open source standards.
The momentum of these areas: trading and connecting online, and looking for new and innovative ways to do so, is set to increase throughout 2008. As the lines blur between different communities and how individuals connect, there is a huge opportunity for businesses and media to be more innovative, to embrace new ways of working and to play their role in bringing groups together. 2008 promises to be an interesting year and Concursive is committed to playing its part.
We’ll be off for the next few days- Happy Holidays from all of us at Concursive!
Michael Harvey
I noticed that Mashable, the largest social networking news blog, ran a piece on “Best of 2007: Trends That Shaped the Web”. Three of the trends that Mashable selected: ecommerce, social networking and open source, are all areas that Concursive is directly involved in. In our drive to enable organizations to connect through the simplicity of a single platform solution, we provide the tools that better enable ecommerce, embrace all social networking standards – and all through open source standards.
The momentum of these areas: trading and connecting online, and looking for new and innovative ways to do so, is set to increase throughout 2008. As the lines blur between different communities and how individuals connect, there is a huge opportunity for businesses and media to be more innovative, to embrace new ways of working and to play their role in bringing groups together. 2008 promises to be an interesting year and Concursive is committed to playing its part.
We’ll be off for the next few days- Happy Holidays from all of us at Concursive!
Michael Harvey
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