multi-channel customer management solutions

Multi-ChannelCustomerManagementSolutions:MakingSenseoftheOperationalIssuesandDeploymentAlternativesKevinJ.KraftSeniorVicePresidentGlobalSolutionsMarketingFebruary2000©2000eLoyaltyCorporation205N.MichiganAvenue,Suite1500,Chicago,Illinois60601TableofContentsIntroduction1TheBusinessChallenges1TheTechnologyChallenges2TheOperationalChallenges4TheFinancialChallenges5TheTimeChallenges7TheSolutionAlternatives7OnPremise8ASPsforCRMProducts8ContactCenterOutsourcing9eCRMSolutionHosting10MakingaChoice13Summary14AbouttheAuthor15Multi-ChannelCustomerManagementSolutions:MakingSenseoftheOperationalIssuesandDeploymentAlternativesIntroductionCustomerLoyaltyisthenumberoneagendatopicforCEOs.*Socreatingaflexible,world-classcustomerloyaltyarchitectureisarguablythemostimportantinformationsystemsinitiative.Thisloyaltyarchitecturemustdelivertheneces-saryfeedbackandreportsforcorporatemanagementtodefineandadaptitsresourcesandcustomerprogramstomaximizerevenueandprofit.Companieslargeandsmallareconfrontedwithanincreasinglysophisticatedcustomeruniversethatexpectsanddemandsahigherlevelofimmediateserviceacrossmultipleaccesschannels.Astheyreacttothisnewbusinessparadigm,companiesmustplan,build,operate,andmeasureinvestmentsinelectronicCustomerRelationshipManagement(eCRM)solutions.ThispaperfocusesonthekeyissuesthatabusinessmustconsiderwhendeployinganeCRMsolution,andexplainsvariousdeploymentalternativesinthemarketthatdealwiththoseissues.Thefourdeploymentalternativesare:•OnPremise•ContactCenterOutsourcing•ApplicationServiceProviders(ASPs)forCRMProducts•eCRMSolutionHostingTheBusinessChallengesServiceisperhapsthelastremainingwayforabusinesstoeffectivelydifferentiateitself.Effectiveserviceinvolvesmanagingeachcustomerinteractiontoensureaconsistentexperienceandanoutcomethatisinlinewitheachindividualcustomer’swants,needs,andexpectations—aswellasbeinginlinewiththeeconomicsthebusinessdesiresfromarelationshipwiththatcustomer.Thecustomerexperienceshouldalsobeconsistentacrossallinteractionchannels(suchastheInternet,email,telephone,web-chat,fax,etc.)andacrossallareasofthecompanyacustomerinteractswith(sales,service,marketing,etc.).Deliveringtheseconsistent,focusedexperiencesovertimebuildscustomersatisfactionandloyaltythatincreasessalesandprofitability.*TheConferenceBoard(Heidrick&Struggles),550CEOsinterviewed.eLoyaltyPage1Businessexecutivesarelookingforcustomermanagementsolutionsthatprovidetheabilityto:•Identifyauniquesituationofacustomer;•Prescriberulesonhowtotreatandinfluencethatsituation;•Executethoserulesconsistentlyacrossallcontactchannels;and•Measuretheeffectivenessoftheprogramonthatuniquesituation.Businessexecutivesaresearchingforsolutionsthatallowthemtoexperimentandexecutefocusedcustomerprograms.Flexibilitytochangethecustomerexperience,howacompany’sresourcesinteractwithitscustomers,andtherapidintegrationofnewtechnologiestosupportnewbusinessobjectivesarenowkeycriteriainworld-classcustomermanagementandloyaltysolutions.Thevastmajorityofbusinessexecutivescannotgetappropriateinformationaboutwhichtypesofcustomersareusingwhichcompanyresources(Internet,InteractiveVoiceResponse,self-service,andpeople)forwhattypesofinter-actions.Thatinformationhelpsabusinessdevelopandmodifycustomerprogramstoinfluencebehaviortothedesiredeconomicobjectives.TheTechnologyChallengesTrulyeffectiveeCRMsolutionsinvolvecomplexarchitectures,time-consumingproductselectionandacquisition,andintegrationchallengestoexistingandfutureinvestments.Forexample,today’smulti-channelsolutioninvolvesemailrouting,web-chat,web-collaboration,webpersonalization,intelligentcallrouting,andcontactmanagement,tonamejustafew.Productsprovidingthesecapabilitiestakesignificantresearchandskilltointegrate,implement,maintain,andcontinuouslyupgradewhenyouconsiderthesoftware,servers,database,hardware,andtelephoneswitchesinvolved.Plus,withnewtech-nologybeingdevelopedeveryday,it’sverydifficulttoremainontheleadingedge,whilecontinuouslyresearchinghownewtechnologieswillcomplementandcoexistwithanexistingarchitecture.eLoyaltyPage2ThekeytothesuccessofaneCRMsolutionisaflexibleloyaltyarchitecture“blueprint,”suchastheoneoutlinedabove.The“blackitems”aretypicalpointsolutionsandvariouscategoriesofinformationsystemsfocusedforcustomermanagement.The“darkgray”itemsrepresentthekeydesigntenetsofaworldclassloyaltyarchitecturethatintegrateandstructurethepointsolutionsin“black”aroundkeycustomermanagementprocesses.The“lightgray”itemsrepresenttheexecutionlayerofaloyaltyarchitecture—thecurrentuniquecustomersituations;therulestoinfluencethosesituations;thetechniquetoinfluencethosesituationsforeachinteractionchannel;andthedataaboutthecustomer’sresponsetohelpabusinessmeasuretheimpactofthoserules.Manybusinessesavoidintegrationchallengesandacquirepointsolutionsinareassuchasfront-endapplications,Computer-TelephonyIntegration(CTI)oremailmanagement.Theresultisasiloeffect,withdifferentaccesschannelsanddifferentpartsofthecompanyacting,ineffect,independently.Addition-ally,abusinessbeginstoplacebusinesslogicandobjectivesredundantlyineachchannel,whichcreates