According to IHL, overstocks and out-of-stocks (aka inventory distortion) cost global retailers $450 billion annually, or $252 billion just in North America. That later amount equates to the annual revenues of Home Depot, Kroger and Target combined.
Retailers rely on supply chain systems to measure what comes in from the truck and POS systems to measure what goes out with consumers. However, as most consumers find out the hard way, what's reported to be in the store and what can actually be found on the shelves are often quite different. IHL research reports that out-of-stock levels are often 3 to 4 times more than reported.
Why the difference? Several factors, such as shrink, ineffective product placement, inaccessible or misplaced merchandise, or goods that simply aren't found at the point of decision.
When consumers cannot find what they came for it exacerbates negative consumer experiences and results in lost retailer revenues. Fortunately, achieving even small reductions in stock-outs can deliver big improvements in customer experience and store revenues.
Simbe Robotics has introduced a service based robotics solution that performs automated shelf auditing for retailers. More Tally the retail robot ...
By Chuck Schaeffer 11/13/2015 Permalink Comments Posted in Retail CRM
How Design Thinking Aids Customer Strategies and Customer-Centric Business Models
Design thinking is nothing new, however, it is relatively new to enterprise applications. The cognitive design practice driven by organizations such as IDEO has heralded design innovations such as the computer mouse, ergonomic keyboards and a plethora of innovative objects. Organizations such as the Stanford d school and IBM have since built upon design thinking principals to create frameworks for highly complex projects and enterprise applications.
Design thinking is an evolutionary, human-centered design and problem solving method that applies deep empathy for users and collaboration among a broad team. Instead of designers working alone, they team with other stakeholders which makes the process symbiotic with agile methods.
But how's this really different from what we've been doing?
More design thinking for CRM ...
By Chuck Schaeffer 11/2/2015 Permalink Comments Posted in CRM strategy
CRM Market Share Report 2015
CRM market share is used by vendors to demonstrate leadership, viability and the release of innovation that matters to customers. CRM buyers often consider this positioning as an early stage indicator of which vendors to short list. However, more telling than market share position at a point in time is trajectory. CRM buyers often remain cuatious of vendors in decline.
Each year Gartner releases CRM market revenues and market share among top vendors. In this CRM market share analysis I've consolidated the annual data to show trending and filtered among the big 4 vendors in order to demonstrate some data driven findings, display some inherent challenges with the data and compare the results to another source. More CRM market share reporting ...
By Chuck Schaeffer 10/17/2015 Permalink Comments Posted in CRM software
The Benefits of Extending IT Governance to CRM Implementations
More often than not, IT governance operates in a model whereby boards and senior business executives defer IT strategy and decisions to the IT leaders but create oversight and controls so that the IT delivery aligns with the interests of the business stakeholders – and ensures that the IT and business strategies and objectives remain complimentary and synergistic where possible, and not separate or possibly in conflict. It's not easy, but when done correctly, IT delivers the maximum value throughout the business and empowers the business to achieve objectives that would otherwise not be possible.
Drilling down a level, the governance model and its benefits are directly transferable to CRM adoption projects, if you do three things. More CRM governance ...
By Chuck Schaeffer 9/25/2015 Permalink Comments Posted in CRM Implementation
How to Design CRM for the User Experience
How long did it take you to learn eBay or Amazon.com? How many manuals did you read? How did that experience compare with learning your CRM application?
Consumer technologies have set the standards users expect in their personal and professional application usage. However, when trying to leverage these technologies with business applications most organizations get it wrong because they fail to understand the difference between the user interface (UI) and the user experience (UX).
The UI is focused on the visual presentation, but the User Experience is much more than that, as it contributes to an emotion that either enhances or degrades the continued use of the application. To achieve a positive emotional connection, the UX should precede the UI so that form follows function and utility is aligned with user-centered design. What that means is that the UX begins by engaging users to understand what they want to achieve and how they want to achieve it. Any attempt to achieve a UX objective by hiring designers, creating wire frames or dressing up existing applications with UI facelifts – without first understanding user behaviors, expectations and prioritized use cases – will not achieve a successful user experience. More CRM user experience ...
By Chuck Schaeffer 7/31/2015 Permalink Comments Posted in CRM Implementation
Best Practices to Rally CRM User Adoption
User adoption is a perennial challenge with CRM software deployments. Slow or low user adoption is a top cited contributing factor to CRM engagements that fail to achieve their objectives, or just fail outright.
In my experience, too many executives see the signs of slow adoption, but naively believe that the users will ultimately come around. In fact, the opposite is more likely. The longer it takes to achieve acceptance, the more probable the CRM software will fail to become sustainable.
I'd like to say that there are 2 or 3 things to do in order to achieve CRM adoption. But it's just not that simple.
Here are 12 CRM best practices designed to mitigate CRM user adoption challenges. More CRM user adoption ...
By Chuck Schaeffer 5/14/2015 Permalink Comments Posted in CRM Implementation