800 - Chapter 12. CRM in the Internet Age <blockquote> <p><script> function OpenWin(url, w, h) { if(!w) w = 400; if(!h) h = 300; window. open (url, "_new", "width=" + w + ",height=" + h + ",menubar=no,toobar=no,scrollbars=yes", true); } function Print() { window.focus(); if(window.print) { window.print(); window.setTimeout('window.close();',5000); } } </script><span></span></p> <table width="100%" cellpadding="0" cellspacing="0" border="0"><tr valign="top"></tr></table> <table width="100%" height="20" border="0" cellpadding="0" cellspacing="1"><tr></tr></table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="center"><table width="95%"><tr><td align="left"> <table width="100%" border="0" cellspacing="0" cellpadding="2"> <tr><td valign="top" height="5"><img src="/books/2/551/1/html/2/images/pixel.gif" width="1" height="5" alt="" border="0"></td></tr> <tr> <td><b><font size="1" color ="#0000FF">Team-Fly<img border="0" src="/books/2/551/1/html/2/Fly-Logo.gif" width="81" height="25"></font></b></td> <td valign="top" align="right"> </td> </tr> </table> <hr size="1"> <table width="100%" border="0" cellspacing="0" cellpadding="5"> <tr> <td valign="top" width="76" rowspan="4"><img src="/books/2/551/1/html/2/images/0130409510/0130409510_xs.jpg" width="76" height="95" border="0"></td> <td valign="top">Internet-Enabled Business Intelligence<br>By William A. Giovinazzo<br> </td> </tr> <tr><td>Table of Contents</td></tr> <tr><td></td></tr> <tr><td valign="bottom">Part 4. Building Relationships Over the Internet</td></tr> </table> <hr size ="1"> <br><table width="100%" border="0" cellspacing="0" cellpadding ="0"><tr><td valign="top"> <h2>Chapter 12. CRM in the Internet Age</h2> <blockquote> <p><span>Customer-driven competition is what we call one-to-one marketing, a form of marketing that was prohibitively expensive, and therefore nearly inconceivable, to the traditional marketer just a few years ago. Today, as we enter the Interactive Age and microchip-controlled products, it has become a prerequisite for competitive success.</span></p> <p><span>Don Peppers and Martha Rogers</span><br><span>Enterprise One-to-One</span><sup>[1]</sup></p> <blockquote><p><sup>[1]</sup> Peppers, Don, and Rogers, Martha, <span>Enterprise One-to-One</span>, Random House, 1999. Used by permission.</p></blockquote> </blockquote> <p> Years ago I heard a comic being interviewed about a trip to southern California. He said that he made the trip to see the barnacle migration. The interviewer pressed him further. What did he mean by <span>barnacle migration</span>? The interviewer had never heard of such a thing. "Oh," the comic replied, "most people think it's a whale migration. It's really the barnacles migrating, and whales are going along for the ride." In a way, he had a pretty good point. Who is really doing the migrating: the whales or the barnacles? Just as with many other things in life, it is a matter of perspective. Two people can look at the same thing and draw completely different conclusions.</p> <p>I was in a conversation recently that revealed a similar difference in perspective concerning Business Intelligence (BI). We have described BI as a three step process: acquire, analysis, and action. We collect data, analyze it, and take some action based on that analysis. When I see a process or a system that performs these steps, I see a BI system. Recently, I was discussing Customer Relationship Management (CRM) with a friend. I made the point that CRM is really a vertical of BI, that it is BI applied to a specific area. After his head exploded, I quickly came to realize that we had a huge difference in perspective. Is BI a barnacle or a whale? Is CRM migrating, or is BI?</p> <p>We discuss in this chapter how the strategy of many organizations focuses inward. We will also see that this inward focus ultimately leads to the company's downfall. The chapter also shows that the only successful strategy looks outward. It is driven by customers, by their needs and wants. We have consistently described BI as a strategic system. It provides decision makers with the information necessary to both formulate a strategy and measure the performance of the organization in delivering on it. It is not critical to the BI system itself if that strategy is inward or outward facing.</p> <p><span>There are two aspects to CRM</span>: analytical and operational. The analytical portion collects and aggregates the data. It then provides a means for the decision maker to analyze this data so that he or she can better understand the organization's customers. The operational aspects of CRM are those areas that are customer-facing, such as the electronic storefront and Web-based helpdesk. These operational functions are driven by the analytical aspect of CRM. In the end, we see that CRM does what BI does: collects, analyzes, and acts.</p> <p>Don Peppers and Martha Rogers describe an outward facing strategy as customer-driven, a one-to-one marketing perspective. They also note that in light of recent technological developments, we are able to do today what was inconceivable a few short years ago. So what has changed? Well, the answer to that question was provided in the first section of this book. What has changed is IEBI. We will see in this chapter that the Internet enables us to truly develop a custom, one-to-one approach to each and every customer. We shall see that CRM in the Internet age is IEBI.</p> <img src="/books/2/551/1/html/2/images/pixel.gif" width="1" height="1" border="0"> </td></tr></table> <hr size="1"> <table width="100%" border="0" cellspacing="0" cellpadding="2"> <tr><td valign="top" height="5"><img src="/books/2/551/1/html/2/images/pixel.gif" width="1" height="5" alt="" border="0"></td></tr> <tr> <td><b><font size="1" color="#0000FF">Team-Fly<img border="0" src="/books/2/551/1/html/2/Fly-Logo.gif" width="81" height="25"></font></b></td> <td valign="top" align="right"> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"><tr><td valign="top" align="right">Top</td></tr></table> </td></tr></table></td> <td align="center"> </td> </tr> <tr><td colspan="3" align="center" valign="bottom"> <br><table width="100%"><tr><td height="25" valign="middle" colspan="4" align="center"> </td></tr></table> </td></tr> </table> </blockquote>
