CRM breaks out

The days of the monolithic, high-risk CRM implementation seem long gone, but in fact such projects were the rage until just a few years ago. You still see them from time to time, as in Telecom's Siebel project that aims to transform the business by linking all manner of legacy systems and databases to provide the elusive "single customer view".

However, most local organizations do not have to deal with that level of CRM complexity. For them, a range of low-risk, quick implementation options are now available. Yet even better, new CRM functionality is promising a different kind of transformation.

CRM is branching out to use new channels for customer interaction. Text messages, instant messaging, chat and Skype-like voice services are coming into play, along with social networking and real-time data analysis and alerts.

There is also a revolution under way in how organizations acquire CRM systems, with many now opting for pay-for-use systems delivered online as software-as-a-service (SaaS). Companies such as Salesforce.com, NetSuite and RightNow are all actively delivering such SaaS CRM systems to local users.

Steve Roughan, Datamail's New Zealand manager for RightNow, says its approach is quite different from many other CRM vendors, as the company came out of a customer service background rather than from sales. He says organizations are looking for systems that can help them look after customers and keep them coming back for more.

"Service is the new sales," he says. "It's about improving customer service and reducing the operating costs of the business."

Key to this is managing multiple contact channels and ensuring service consistency, he says, delivering what customers want when they want it.

RightNow has many users in this country including telcos, universities such as Auckland, AUT and Victoria and its software is also utilized in the energy sector and by Sky TV and Air New Zealand among others.

Roughan says a cornerstone of service is a knowledge base, accessible to all those providing service across any channel and even directly by the customer online. Online customer self service is one big area of activity, he says, while chat is growing, with several local users now using the channel or trialing it, he says.

A chat session may cost more than a single e-mail used in service, but it can eliminate multiple e-mails and therefore prove less expensive in the long run. He says live chat online allows users to cut abandonment rates. Another emerging use is "co-browsing", where customers allow an agent to take control of their PC to help work their way through online forms and similar complex areas of service.

TelstraClear recently implemented RightNow's live chat service to assist with its online sales process, with positive results in additional sales.

In contrast with chat, social CRM is taking longer to gain traction locally, he says. There is a lot of interest, but not a lot of activity at present. One area where this can be effective, he says, is the combination of forums with the knowledge base.

The IDG News Service is a Network World affiliate.