CRM is the driving force behind relationships and whilst one of the most influential voices in marketing, Philip Kotler stated that CRM is perhaps irrelevant in some industries when he provided the example of Coca-Cola which sells a single product at a low price, other industries are significantly different and based on the Pareto principle of 80/20: It asserts that 80% of a companies revenue is derived from 20% of it’s customers. In the latter case, customer relationship management is a critical element aimed at nurturing the relationship so as to maximize the lifetime value of the customer. Variances of CRM includes “eCRM” and “Social CRM” which refers to online relationship management which consolidates various channels of communication through an integrated solution.
All businesses owners will agree in principle that any eCRM system has to be paid for by the additional profits derived from it’s direct benefits, however most will also argue that eCRM is now a MUST HAVE.
Microsoft Dynamics exploited the opportunity of providing a solution for the latest trends in business: by combining the individual solutions of both Forrester listening tools for social media monitoring and Salesforce solutions for CRM: Indeed, the latest version of Microsoft Dynamics introduces a cloud based solution to manage relationships and provide social monitoring. In it’s latest product release, Microsoft outlined the following steps as an approach to social CRM:
LISTEN. Identify the influencers and hear what they are saying,
ENGAGE. Participate in conversations by being interactive,
COLLABORATE. Real time collaboration to defend and improve brands,
AMPLIFY. Boost broader awareness of the marketing message,
SOLVE. Grow and harvest community knowledge, and connect customers to solve problems,
INNOVATE. Take action on ideas and opportunities gleaned from the crowd – a partnership approach,
ANALYSE. Obtain real-time feedback, monitor buzz, detect sentiment, and measure impact.
Below is an example of how Tourism Ireland embraced Microsoft Dynamics to transform relationship management:
The choice between providers includes several consideration. Microsoft proceeded to create a domain based campaign named “Whymicrosoft.com” where it compares itself to Salesforce.com. The key claims that it makes over the market leader, Salesforce are as follows:
1. Almost a 50% saving with no hidden charges – it claims that Salesforce uses the tactic of hidden extras in it’s pricing strategy, the annual saving can be significant.
2. An actual SLA (service level agreement) with 99.9% uptime VS no SLA from Salesforce.com,
3. Easy integration through sharepoint with 5GB of free storage,
Whether Larry Ellison from Oracle, who also backs Salesforce, will rise to the challenge remains to be seen, however Microsoft is making a strong case for businesses to switch to it’s platform.
The industries which use Salesforce and Microsoft Dynamics are vast: Medical centers, global tourism offices, universities, service companies, financial institutions and more. This is because both platforms agile, flexible and can be scaled according to the needs and size of each organization.
The evolution of applications is something that businesses ought to consider carefully before switching. It is easier for a business with no eCRM strategy to make a selection, however the migration process between platforms can be avoided if it is clear that within a short time frame, both platforms will have evolved to offer the same benefits. The one critical thing that Salesforce lack is variety of applications. Microsoft is in the business of office automation and by virtue of it’s large arsenal of office tools, it places Salesforce at a considerable disadvantage. A one day training course in CRM / eCRM strategy may be a good starting point for business owners and managers who would like to make the right decision about the future relationship management strategy and which technology may be the best for creating superior customer value.
Adriaan Brits is a London based business consultant specializing in digital marketing and eCRM.