February 23, 2015
August 6, 2012
April 2, 2012
—by Laurie McCabe, SMB Group, in partnership with Brent Leary, CRM Essentials
To help companies understand IBM’s Smarter Commerce initiative, the SMB Group and CRM Essentials are working on a series of posts discussing how technology is empowering today’s customer, and why companies have to change their approach in order to build strong relationships with them. This is the final post in the series.
They compare notes and instantly share. And they can champion a brand or sully a reputation with the click of a mouse. In response to these trends, IBM Smarter Commerce helps companies manage and adapt their commerce processes, putting the customer at the center of their operations.
For this post, we had the opportunity to talk to Alisa Maclin, Vice President, IBM Smarter Commerce Marketing. We asked her about IBM’s views on some of the more nascent trends in this area that may not yet be on the radar for most midsize businesses–but have the potential to create significant shifts in how companies conduct commerce.
Q. While it may have been difficult to predict how radically social media or the rise of smartphones and tablets would affect commerce a few years ago, what are some of the technology trends likely to have a dramatic impact on commerce in the next 5 years or so?
A: We believe that the speed of technological innovation and consumer adoption will continue to accelerate for the next five years and beyond. This acceleration is driving entirely new business models that are changing the landscape between buyers and sellers. The traditional models of B2B and B2C will need to leverage technology to continue to improve efficiencies, while adapting to new models such as Social and Facebook Commerce. The empowered and connected consumer is driving the “consumerization” of business and the empowered citizen is increasingly digitally engaged and networked. For small and medium sized businesses, the opportunity to embrace technology and the connected consumer is now.
Q: Is there a difference in what B2B and B2C businesses need to think about and do?
A: Yes and no, the lines separating B2B and B2C models are blurring. The empowered consumer looks for the same benefits of mobile and social technologies whether they are at work or at home or on the go. The result is a connected ‘consumer’ that has access to information looking to engage in new ways and do business both locally and globally to meet their needs.
B2B companies need to optimize their digital operations and transform how products and services are created, marketed, sold, delivered and serviced. For example, the influence of ‘self service’ is universal in both B2C and B2B, with 56% of customers demanding increased self service when they do business with a company, according to Forrester Research in 2011. And, B2C companies need to really look at mobile and social as a ‘must have’ to compete and win their customers and keep them coming back.
Q: In addition to the impact of emerging technology, what other trends–economic, social, regulatory, etc.– do you see happening in the future that will impact how companies buy, market, sell and service?
A: Economic realities affect how companies operate, especially across the value chain. As the number of supply chain partners increases, the need for accurate, time-sensitive information becomes more acute. Many companies will turn to business intelligence and analytics on key control point indicators, such as orders versus forecasts and inventory in transit versus in stock, to move from “sense-and-respond” to “predict-and-act” organizations.
From a regulatory perspective, product lifecycle traceability in consumer products and other industries is a growing requirement. As product lifecycle traceability in many industries is becoming a major concern, the use of smart devices is likely to become more prevalent for tagging products wherever they are, as well as the containers and modes that are transporting them.
Q: How do you envision these changes affecting midsize businesses? What should they do to prepare and take advantage of them?
A: These changes will impact businesses of all sizes. No business is immune, and those that think they are will find themselves at a disadvantage. Midsize businesses can start to put the customer – the empowered customer – at the center of their commerce processes by taking these steps toward Smarter Commerce:
- Listen to their clients to better understand and anticipate customer behavior and turn insight into action.
- Adapt their sourcing of goods and services with a focus on customer demand, and orchestrate seamlessly among their trading partners and suppliers to serve that demand.
- Personalize marketing and selling to your customers as much as possible and keep them coming back for more.
- Evaluate service processes and learn from customers’ behavior to predict and take action.
Q. Do you think Smarter Commerce provides midsize companies a way to level the playing field–by helping them to establish a “virtual presence” in other countries without the physical infrastructure or physical presence?
A: Yes, in a flat world and global access at our fingertips – companies of any size can compete to win. But, just putting a virtual presence out there will not be enough. The key is customer satisfaction, which is tied directly to profitability. Data shows that for every customer who complains of poor service a company loses 10. And, it costs 6 to 7 times more to gain a new customer than to keep an existing one.
The way to stand out will be to incorporate customer-centricity into all your commerce processes. This is not a new concept… but in today’s marketplace it is the difference between thriving and going out of business.
Q: What are some of the things IBM is doing to help midsize companies stay ahead of the curve?
A: You’ll find that much of what we’re doing with our Smarter Commerce initiative is designed to help companies of all sizes to address these market changes. It focuses on three areas organizations need to address – customer insight, strategy and engagement. Companies need deep insight into customer behavior and needs – and the ability to anticipate and predict behavior to take immediate action. This insight, in turn, should drive the development and refinement of their customer value strategy – how to enhance, extend – and redefine value as viewed by the customer – and, the key here, is to do it profitably. And, finally, using that strategy to build customer engagement.
IBM works closely with its Business Partner network to drive this kind of change in the midmarket. For example, working with IBM Business Partner ExactTarget, Skymall was able to deliver more targeted e-mails using analytics-driven behavioral insights. This resulted in recapturing 3-5% of potentially lost revenue from abandoned carts, and helped Skymall to grow email-generated sales by 34%. Another example is RiverPoint, a systems integration consulting firm and IBM Business Partner. They helped The Society of Critical Care run more effective marketing campaigns. Combining IBM’s enterprise marketing management (EMM) software platform with RiverPoint’s best practices EMM consulting has enabled the client to experience a 2.4% positive change in membership attrition in the first year.
This is the final post in a series examining the evolution of the smarter customer and smarter commerce, and IBM’s Smarter Commerce solutions. For more information about how IBM Smarter Commerce is transforming midsize companies’ approach to commerce, visit http://www-01.ibm.com/finder/businesscenter/us/en/its_commerce_topic.wss%5D
March 30, 2011
In our joint SMB Group-CRM Essentials “2011 Small and Medium Business Social Business Study,” we surveyed 750 SMB (small business is 1-99 employees; medium business is 100-999 employees) decision-makers about their use and plans for social media for sales, marketing, customer service and support, product development, HR and other business functions.
Featured Study Highlights
To put social media adoption in context, we asked several questions to better understand how SMBs accomplish their business objectives though different channels and mechanisms, including, “How does your currently track, analyze and measure the success of the company’s social media efforts?”
In the medium business segment, 52% of respondents indicate that they currently use social media. Among these respondents, about 19% say they use it in and “ad hoc, informal” way, while 33% indicate they use it in a “structured, strategic” manner. When we take a deeper look at how medium businesses using social media track, analyze and measure success of social media efforts, we see that companies that take a strategic approach are more likely to incorporate a greater number and more actionable metrics to measure social media effectiveness than their informal, ad hoc counterparts (Figure 1).
For strategic users, actionable, customer-centric metrics such as referrals (14%), click-through rates (12%), and inbound links (11%) top the list. These are followed by social media measurements such as number of followers and friends (9%), and sentiment analysis (9%), along with anecdotal feedback (9%).
Companies that use social media in an ad hoc manner are more likely to rate “softer” measurements, such as anecdotal favorable feedback (6%) and buzz from social media (4%) as top tracking criteria and yardsticks for success.
Not surprisingly, SMBs that take a structured, strategic approach–and use more actionable metrics–are also more satisfied with the results of their social media efforts than those engaging in an ad hoc manner.
For SMBs to truly evolve into “social businesses,” they need to be able to easily track, measure and tweak the results of their social media investments across a wide range of business activities, from marketing through customer service and product development.
Although the social media drumbeat is loud, SMBs’ enthusiasm will be curbed if they can’t figure out what impact their social media initiatives are having. Whether on their own or via partner solutions, vendors will need to give SMBs the tools they need to integrate and evaluate social media efforts into their larger business strategy and framework.
Because social media engagement does not occur in a vacuum, businesses will want to measure social media efforts in context of broader sales, marketing and customer service or other initiatives. Although collaboration, CRM, marketing automation and other vendors are integrating social media into their existing solutions, few provide the analytics required to track and measure the effectiveness of social media and its different channels in an actionable and streamlined manner.
March 22, 2011
Co-authored by: Laurie McCabe and Sanjeev Aggarwal, SMB Group, and Brent Leary, CRM Essentials
Good plans shape good decisions. That’s why good planning helps to make elusive dreams come true.
Lester R. Bittel, The Nine Master Keys of Management
This seems to be especially true when it comes to getting business value out of social media. We recently wrapped up fielding for our joint SMB Group-CRM Essentials “2011 Small and Medium Business Social Business Study,” in which we surveyed 750 SMB (small business is 1-99 employees; medium business is 100-999 employees) decision-makers regarding their use, plans and perceptions about social media.
Although SMB interest and adoption of social media to assist with a variety of business functions—from generating leads to product development—is sky-rocketing, the question remains of how and where SMBs are actually deriving business value remains. Our study took an in-depth look at the specific activities and functions that SMBs are using social media for.
While Sanjeev Aggarwal, partner Brent Leary of CRM Essentials and I are just beginning to immerse ourselves in this very rich gold mine of data, one thing is clear: SMBs that use social media in a “strategic and structured way” to interact with customers and prospects are much more likely to be deriving benefit from their social media investments than those who are using social media in an “ad hoc, informal” way.
Today, SMBs are most likely to be actively using social media to help with marketing and sales functions–including generating more web site traffic, generating more leads, connecting with people who aren’t yet customers, improving market awareness for their brand, reputation enhancement and creating more/better interaction with customers.
As shown on Figure 1, survey results show that those that have a more formal and structured strategy are more likely to be satisfied or very satisfied with the outcomes than those that are using social media in an informal, ad hoc way. For instance, among small businesses:
- 39% of respondents using social media are very satisfied/satisfied with the results of using social media to “create more/better interaction with customers/prospects,” as opposed 24% of those using it an ad hoc manner.
- 37% of structured users are very satisfied/satisfied with using social media to generate more web site traffic, compared to just 14% of ad hoc users.
- 37% of structured users are very satisfied/satisfied with using social media to improve market awareness for the company, in contrast to 16% of ad hoc users.
Figure 1: Comparison of Small Business Satisfaction with Social Media for Business Activities: Structured vs. Ad Hoc Users
While we have about 30 other questions and a seemingly endless array of cross-tabs to mull over in terms of the study, one thing is already crystal clear: To get the most business value from your social media investment, you need to pause and plan—in addition to playing with—social media activities.
For more information about this study, click here.
March 2, 2010
The topic of lead generation and the role of various media solutions in the lead generation process draw significant conversation. From a survey of small businesses done in the summer of 2009 and detailed in my blog, ‘GoToMeeting‘ from CitrixOnline or ‘Intuit Website’ from Intuit. This form of media effectively cultivates and nurtures demand. ‘Small Businesses interest in Social Media Increasing ‘ and with regards to tools used by small businesses to promote their business (not generate sales leads), 77% of small businesses are using or plan to use social media tools. Why has the use of social media seen such a dramatic increase? This is primarily driven by several factors:
- Change in the personal communication environment and habits of consumers and business workers
- Low barriers to entry: the cost of participating in the social media communications are very low and some—tools like Twitter, Facebook, WordPress and LinkedIn—are even free
- Social media solutions are a one-to-many form of real-time communications
- Social media is much more than a digital form of viral marketing – it is an effective and inexpensive way to convert contacts into a referral network
Traditional Media tools. On one end of the spectrum, marketing is responsible for Demand Generation by driving awareness. Traditional media tools such as radio, television, newspapers and business journals (in their print form), provide broadcast opportunities and are good for creating broad awareness to develop interest among consumers and businesses – otherwise known as Outbound Marketing. Successful examples include the TV commercials like ‘GoToMeeting’ from CitrixOnline or ‘Intuit Website’ from Intuit. This form of media effectively cultivates and nurtures demand.
New Media/Digital Media include Social Networking tools (Facebook, Blogs, Twitter, LinkedIn, etc.), Webinars and Podcasts, and Search Engines. Such ‘inbound marketing’ tools enable businesses with product/service increase awareness already developed to a certain level through traditional tools to further draw in consumers and encourage their further investigation of the company’s product or service.
An SMB survey from Citibank found that some small businesses saw little reason to hop onto the social-network bandwagon. The majority of them found sites like Facebook, Twitter, and LinkedIn to be of little help in finding new business leads. While social media can certainly provide channels to network and help a growing business flourish, many SMBs do not have the manpower or the time required to take advantage of them—that is, use them to look for business advice or information. It is up to the business to bring in the relevant social media conversations related to crowd-sourced recommendations for their company and solutions into their company website or other discussion forums. Techniques that do this are illustrated very well in the “Inbound Marketing” book by founders of HubSpot.
Personal-touch Media tools like company website, e-mail marketing, live webinars, and professional advisors provide the information to convert exploring consumers and business buyers into potential leads. The new media-based inbound marketing solutions drive the explorers to the company website and/or additional personal touch based media and channels. However, SMBs must work to channel their company relevant social media discussions into their website. These social media conversations are similar to word-of-mouth and personal communication methods. Ultimately, these personal-touch media solutions are directly involved with actual lead generation, ongoing lead nurturing and finally conversion to customers as well as cross-selling and up-selling to existing customers continually deepening prospect relationships
Some of the new marketing automation and lead nurturing solution companies like Marketo, HubSpot and Demandbase are combining some of the key aspects of New Media/communications and Personal-touch Media/communications solutions that provide great value to the SMB and mid-market companies for both outbound and inbound marketing – and most of these solutions can be implemented for a fraction of the cost of a marketing person.
September 27, 2009
Interest in Social Media among Small Businesses Correlates to Number of Years they have been in Business
Related insight to my recent blog Small Businesses interest in Social Media increasing rapidly , related to the Number of Years a small business has been in existence. See figure below:
Adoption and use of social media is correlated to ‘Number of years in business’ and indirectly to the age of the owners. As the figure above shows, longer the small businesses have been in existence (indirectly correlated to the age of the small business owner), the usage of social media declines. Small businesses that are in existence for 10 years or less, most likely will have Gen X or Gen Y business owners who have grown-up in the internet age and are well tuned to and more likely to use online communication and collaboration – are much more likely to adopt social media. In their personal lives, they have extensive experience in using web-based tools like MySpace, Facebook, YouTube and real-time communications tools like chat and text-messaging – for one-to-many and one-to-one communications. They are more likely to be influenced by online communities and collective ratings of products.
Small businesses that have been in existence for more than 10 years would have Baby Boomers as their owners. Boomers interact with others in their communities around shared interests and common issues, but they prefer to use more traditional communications tools like e-mail and voice communications. Boomers participate heavily in word-of-mouth and value personal recommendations and expert opinions, but they have not embraced social networking in any significant manner. It is difficult for people to change habits quickly. However, if the owners of these long established businesses find that their customers and prospects are increasingly communicating on the social media sites, then it would be prudent to hire a Gen X/Y person who is very familiar with these social media tools to help you develop a social media strategy to cater to your audience based on the social media tools they use.
Even though small business use of social media tools is increasing, not all small businesses need to invest in social media – this needs to be decided based on the nature of your business, your business location and your audience (customers, prospects and partners). Some small businesses that serve local communities in rural areas may continue to do business in the traditional manner, until their audience is ready to communicate with them using these new tools and their revenues and customer satisfaction is impacted by it.
June 3, 2009
The traditional contact centers now support more real-time communications technologies – VoIP, IVR, e-mail, IM. However, the intelligence and information repositories that are leveraged by these contact centers is very much static and internally focused.
With the growing popularity of social networking and community knowledge, where contact center agents can take advantage of consumers/customers helping each other with issues and queries – reducing the number of inquiry interactions the contact center service reps have to make, delivery real cost savings and improving the contact center ROI. The issue is – the lack of a comprehensive easy-to-use solution that integrates blogs, social networking sites (Twitter, Facebook, and LinkedIn, etc.) and search to easily aggregate the desired knowledge and mesh it with the internal knowledge repository, including the customer information stored in the enterprises CRM systems.
I was at the Salesforce.com CloudForce.com seminar some time ago, where they showcased their service cloud strategy. This Service Cloud showed an elegant and easy-to-use dashboard to present and search the popular social networking sites to the contact center agents – this will help them take advantage of all the community knowledge without spending a lot of time and effort following individual solutions like Twitter, Facebook, LinkedIn, WordPress,
Traditional contact center solutions when integrated with an easy-to-use comprehensive community knowledge solution – presents a market disruption elevating this new contact center solution to one that provides significantly higher ROI and customer satisfaction. The Salesforce.com ServiceCloud can be integrated with the traditional contact centers solutions that have primarily relied on static internal information to service the customers, and have been separated from the community knowledge in the cloud from social networking conversations, blogs and Google. The Service Cloud presents an excellent dashboard to bring these two disparate clouds to establish a cloud-based customer service platform and knowledge for contact/call centers – for customer service agents, customer self-service portals and partners. SIP and presence enable this cloud service platform, and it is ready for some very significant communication and collaboration – via VoIP phones (click to call), e-mail, or IM based conversations.
Why is this of value to Customer Contact Center solutions companies? The current leading Contact Center solutions from the leading telecom equipment vendors like Avaya, Cisco, and Nortel are more along the lines of the traditional on-premise solutions and do not present an easy solution to integrate the cloud-based community knowledge, except in some cases they have integrated search solutions by integration with Google. The Salesforce.com Service Cloud platform can be used to provide an integrated internal knowledge base and the community knowledge/social network (enterprises can define the scope, and members of their communities) from Twitter, Facebook, blogs, Google search, etc. In addition, one can include CRM to monitor customer satisfaction, address any questions/concerns, resolve problems quickly, provide product tips and tricks, and send out information in the customers’ preferred way of communication – without long waiting times or endless forwards and escalations. This could present a disruptive service solution which has the capability to significantly improve customer satisfaction and at the same time reduce the cost to provide this service.
This presents a good partnership opportunity for the traditional contact center application vendors to integrate with the social networking/community knowledge cloud-based service platform without the long internal development cycle. Adopting the Salesforce.com Service Cloud platform will provide a 1-2 years time-to-market advantage vs. the vendors that choose to do it themselves.