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# 1 C LOUD CRM Add subheading

1. CRM pays back 8.71$ for every 1$ spent p.2

2. Tying CRM to Customer Service p.5

3. CRM revenues (Gartner study) p.8

4. CRM Value Matrix (Nucleus Research study) p.12

5. Bringing the customer into focus p.24

NucleusResearch.com

Phone: +1 617.720.2000

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THE BOTTOM LINE

Companies continue to make new investments in CRM to take advantage of new analytics,

social collaboration, mobile, and other capabilities – and with good reason. In analyzing

Nucleus ROI case studies on CRM, we found the average returns from CRM have increased

since 2011, from $5.60 to $8.71 for every dollar spent.

Companies continue to invest in CRM applications that enable them to drive greater sales

productivity and results, improve the effectiveness and accountability of marketing efforts,

and improve customer service and support. The past three years have been a CRM arms

race, with vendors accelerating the pace of both organic development and acquisitions to

deliver more ROI to customers in areas such as social, mobile, and analytics.

In 2011 Nucleus conducted an analysis of its existing published ROI case studies on CRM

deployments and found that, on average, for every dollar a company spent on CRM it got

back $5.60 (Nucleus Research l120 – CRM pays back $5.6 for every dollar spent, November

2011). Given all the changes that have happened in the market in the past three years, we

looked at case studies published since November 2011 to determine whether all the

vendors’ investments and integration efforts had paid off to deliver more ROI to CRM

customers – and they did. In looking at the case studies published since our last analysis,

Nucleus found that for every dollar a company spends on CRM, they now get back $8.70.

Nucleus found that for every dollar a company spends on CRM, it gets back $8.71 – 1.5

times more than they got just three years ago.

Our analysis included all the case studies Nucleus has published on CRM projects since

November 2011, including deployments of all the major vendors as well as smaller point

solutions. Customers analyzed were from a broad range of industries and included both

small organizations and large enterprises.

RESEARCH NOTE

CRM PAYS BACK $8.71 FOR EVERY DOLLAR SPENT

Document O128

June 2014

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June 2014 Document O128

CRM RETURNS ARE INCREASING

In most cases, as software markets mature, companies making new investments in

software to replace or complement existing solutions get smaller incremental returns,

because they’ve already gotten a big return from their initial investment. However,

Nucleus has found this not to be the case for CRM, for four main reasons.

COMPETITION IS FIERCE

Three of the four largest software companies in the world are continuing to invest in

improving their CRM market position. Startups and upstarts are entering the market every

day with new innovations. Accelerating release cadences are giving customers new

features and capabilities to consider every few months. APIs and integration capabilities

are exploding. On top of all that, particularly in cloud CRM, switching costs are relatively

low (Nucleus Research m107 – CRM: propensity to switch, September 2012), so vendors

have to win the customer not just for the initial deal but for the quarters after the deal is

closed. All of this leads to more competitive pricing (in some cases penetration pricing

strategies) and a larger investment on the part of the vendor to make sure the customer is

successful and referenceable from day one.

In one recent case, Nucleus found a client was able to get the first year of subscription for

free if they were willing to sign on to a 3-year contract, and this was a deal with one of the

top three, not an up-and-coming player. The up-and-comers are relying more on

customer success managers, a lot of handholding, and (often) complimentary services

engagements at the beginning of the contract to keep customers on track to achieving

high ROI and satisfaction.

CLOUD CRM DELIVERS MORE

It is no secret that cloud deployments tend to be faster and have lower upfront costs,

increasing ROI, but in the CRM space, cloud also means access to new features and

capabilities and the ability to expand an application’s use over time with limited cost and

disruption, driving greater benefit over time. As more companies have moved their CRM

to the cloud, they’ve been able to take advantage of the cloud ROI multiplier effect

(Nucleus Research m108 – Cloud delivers 1.7 times more ROI, September 2012) for greater

returns.

BUYERS ARE DIFFERENT

Obviously, buyers are more knowledgeable and vocal about CRM successes and failures,

they’re more likely to be skeptical of vendor claims, they’re making more reference checks,

and they’re more aggressive in their negotiating than they were just a few years ago. But

another significant dynamic is changing the way CRM is bought and implemented – and

how it delivers returns.


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June 2014 Document O128

Before, CRM deployments were largely run by IT. Eighty percent of the work (and related

decision making) was done by IT, with consultants brought in for what IT couldn’t handle.

Business users were introduced into the testing phase when much of the work had been

done. Today the decisions are largely driven by the business, with business taking on 40

to 50 percent of the work, IT taking on very little, and (particularly in the case of cloud

deployments), the rest of the burden is on the vendor. This changes two things: First,

business users are much closer to planning, development, and design throughout the

process to be able to demand what they want. Second, business users can be more

demanding because they’re asking their vendor, not some internal IT team that they can’t

risk upsetting in case they need help with a critical project in the future. So, in the past, if

business users were 80 percent satisfied they let it go because they didn’t want to burn up

political capital with IT. Today they demand, and continue to demand, nearly 100 percent

of what they want.

SOFTWARE IS GETTING SMARTER

We’re not there yet, but vendors are starting to take advantage of embedded analytics,

automation, and instrumentation to bring CRM users closer to the ideal of the Dark

Cockpit (Nucleus Research n167 – Enterprise software must adopt the principles of the dark

cockpit, November 2013). Applications are becoming more simplified and streamlined,

more focused on productivity and results than record keeping and reporting, and more

automated to free up manager and employee time for meaningful coaching and

conversations instead of pipeline and status reports.

CONCLUSION

In a market where most companies with any track record are already on their second or

third generation of CRM investment, conventional logic suggests the rates of return

should be going down, not up. However, CRM bucks this trend because tremendous

investment in the space, changing internal expectations and roles, and, quite simply, better

technology are uncovering new ROI opportunities. Although not every company should

expect $8.71 returned for every new dollar spent on CRM, it’s not unreasonable to set that

as a goal, and to take advantage of the competition in the marketplace to demand

vendors show – and deliver – sustainable return on investment.


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TYING CRM TO CUSTOMER

SERVICE

A N A L Y S T S

Moira Smalley

T H E B O T T O M L I N E

Nucleus estimates that over 70 percent of companies using

customer relationship management (CRM) have not

completely tied their system to customer service. Companies are

missing out on opportunities to sell to customers. Implementing CRM in call

centers would help them realize this opportunity, and potentially increase

revenue.

O V E R V I E W

Nucleus expects that customers interact with service representatives at least five

times more frequently than they interact with salespeople. This positions customer

service to use its high customer touch to increase revenue by using the platform to

make sales. Tying itself to CRM would equip service with the tools it needs to know

more about its customers, and leverage that information to potentially upsell 5

times more frequently than sales.

With this level of customer interaction, it would behoove companies to implement

whatever tools are necessary to develop relationships with customers that lead

them to a sale. Especially since Nucleus found that customers are amenable to it.

Out of the over 35 customers Nucleus analyzed, 80 percent would be willing to make

a purchase through a service agent if the recommendation would help them avoid

more problems in the future, and was not just a standard sales pitch. However,

Nucleus estimates that over 70 percent of companies are still not taking advantage

of this opportunity. Those that are using their customer service channels for sales

deliver canned sales pitches that do not take the customer’s individual needs into

account. As sales becomes increasingly individualized and customers’ begin to

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expect as much, companies must promote products and services based on the

individual needs of the customer, which makes the canned sales pitch obsolete. For

service to get beyond this stale approach, Nucleus recommends integrating CRM.

W H A T T H I S M E A N S F O R S E R V I C E

Tying CRM to customer service would equip agents with the data they need to take

a more individualized approach to sales. The most recent releases in CRM for sales

and CRM for service focus on centralizing data from multiple outlets to provide a full

picture of the customer and their histories. Customer data stored in the cloud

populates dashboards automatically and can be analyzed within the same platform,

allowing agents to make insights that are more likely to uncover real need and lead

to a sale. These functionalities, once applied, could have significant impact on the

sales potential of customer service departments currently failing to use CRM for that

purpose.

KEY CONSIDERATIONS

There are several concerns companies may have when considering implementing

CRM within customer service to leverage the platform for sales, however:

Tone. Customer service is utilized as a platform through which to express and

resolve concerns, which is not accommodating to the sales methodology.

Product. Agents have minimal time to show value in a product and show how it

targets the specific needs of the customer.

Decision maker. Nucleus found it is unlikely to reach a decision maker on the

first call, which means the sales opportunity may be indirect.

Tying CRM to customer service will make it possible for agents to work around these

challenges while still delivering an individualized sales message. Even the most basic

CRM tools will give agents enough information to cater slightly more to the

individual needs of the customer, field calls to agents who are most likely to

communicate effectively, and avoid wasting time pitching to a non-decision maker.

Even if selling through customer service requires longer call times than not selling,

Nucleus predicts the decrease in agent productivity will be offset by the increase in

revenue brought in through increased sales. The volume of calls and customer

interactions for customer service alone connotes a higher success rate than sales. If

sales had a 25 percent success rate, for example, customer service would need only a

5 percent success rate to break even.

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C O N C L U S I O N

With over 70 percent of companies failing to tie CRM to customer service, there is

significant unrealized revenue potential. Tying CRM to service will help businesses

make their investment in customer service worthwhile from a revenue perspective.

For vendors, the decision is a no-brainer; CRM solutions already have the

functionality and the size of the service market leaves lots of room for growth.

Nucleus Research Inc. 100 State Street Boston, MA 02109 NucleusResearch.com Phone: +1 617.720.2000 1

CRM TECHNOLOGY VALUE

MATRIX 2H2016

A N A L Y S T S

Moira Smalley, Rebecca Wettemann

T H E B O T T O M L I N E

The blurring of the lines between service, sales, and marketing

– the three legs of the customer relationship management

stool – represent new challenges and opportunities for

vendors. Salesforce and Oracle continue to battle for leadership on both

usability and functionality, with Microsoft and others staying in close

contention. Those that can’t keep up the pace on both usability and

functionality investments will continue to lose ground.

Competition in the customer relationship management (CRM) market continues to

be stiff across the three pillars of CRM as well as on the edges of the CRM

ecosystem. The six months since the publication of the last edition of the Matrix

included significant releases from most of the leading vendors as well as a number

of new partnerships and acquisitions. We’ve also seen a number of big-name

defectors from one CRM vendor to another, proving that, particularly in the cloud

world, no deal in CRM is ever definitively won.

Although sales, marketing, and service applications are often purchased and

managed by different executives and teams within the same organization, those

lines are blurring, driven by a few key trends:

Demand for micromarketing. “Micro-marketing” recognizes the need for two

sets of marketing tools to serve the tactical and strategic needs of marketing.

Currently, a single marketing solution is meant to serve the needs of marketers

from the most simplistic to the most complex of tasks. There is a need for two

sets of tools – one with high functionality and complexity, the other user-

friendly and task-oriented – to accommodate two types of users, recognizing

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that micromarketing capabilities are needed by both traditional sales and

service users (Nucleus Research q146 – The rise of Micro-marketing, July 2016).

A rethinking of the sales funnel. For both business-to-consumer and business-

to-business sellers, the traditional sales funnel is being replaced with a sales

wave that requires both marketers and sellers to measure and predict the

greatest amplitude – when a buyer is most likely to buy – and wavelength – how

often they can be sold to. This leads to a sharpened focus on sales velocity

(Nucleus Research q176 – The death of the sales funnel, September 2016).

Advances in customer service maturity. As customer service agents become

more effective, advanced companies are seeking to more closely tie those

agents to CRM sales objectives, and give them both the visibility and tools to be

not just service agents but sales generators (Nucleus Research q139 – Tying CRM

to customer service, July 2016).

The blurring of the lines results in new challenges for customers and vendors and

new differentiating factors in the areas of data integration, ecosystems, embedded

intelligence, and usability. At the same time, the need to accelerate deployment and




reduce risk is driving further investments in industry-specific CRM with capabilities

that expand beyond the traditional core. Leaders and Experts in the Matrix have

continued to make investments in vertical functionality to drive faster time to value

for customers – and Leaders have done so while investing in the Dark Cockpit

principles of great software that is both functionally rich and highly usable.

This Matrix includes vendors with functionality across the three core pillars of CRM –

sales, marketing, and service. The Value Matrix is based on functionality and

usability, the two core measures that Nucleus has found indicate an application’s

ability to deliver initial ROI and ultimately win maximum value over time. Commerce

capabilities and non-organic (ecosystem) functionality are not included in the

functionality evaluations of this Matrix.

L E A D E R S

Leaders in the Matrix include Bpm’online, Infor CRM, Microsoft Dynamics CRM,

Oracle CX Cloud, Salesforce, and Veeva Systems.

BPM’ONLINE Bpm’online is a provider of CRM and business process management (BPM)

solutions, whose business process-driven CRM offers sales, service, and marketing

functionality. Since the most recent Value Matrix, Bpm’online has made the

following CRM-related announcements:

Bpm’online Version 7.8 released. This release builds upon improvements in

version 7.7, focusing on the business process designer, the user experience (UX),

UI, mobile and e-mail functionality, and customization tools. The business

process designer has a new UI/UX, simplified process design tools, and a new

“action dashboard” which allows users to perform multiple tasks on one page

and suggests next steps. Bpm’online synchronization with MS Exchange has

been enhanced, and the platform now has its own cloud-based e-mail service

which allows marketers to send mass e-mails more efficiently. The action

dashboard’s step by step recommendations help salespeople and marketers

manage accounts, and improved case resolution time algorithms and phone

integration help service (Nucleus Research q107 – Bpm’online releases version

7.8, June 2016).

Partnered with Critical Software. On March 16, Bpm’online partnered with

Critical Software, an international systems software and data engineering

services provider. The partnership gives Bpm’online the opportunity to expand

further into the European market.




Bpm’online moved to the Leaders Quadrant last year, and as anticipated in the most

recent Value Matrix release, the company’s growth in functionality has improved its

position in this Value Matrix.

Strengths

In terms of functionality, Bpm’online is one of the few vendors in the Value Matrix

that offers a strong business process management (BPM) engine at its core. In terms

of usability, this backbone provides a robust, intuitive set of process design tools. It

is highly configurable, with drag and drop layout design and the ability to edit source

code directly in Visual Studio.

Its focus on usability, with the action dashboard walking marketing and sales

through the process of managing leads and pipelines, contributes to a streamlined

user experience which increases overall productivity. Nucleus estimates version 7.8

will decrease the time marketers spend managing campaigns by 30 percent, and

reduce the time developers spend configuring and customizing by 25 percent

(Nucleus Research Q107 – Bpm’online releases version 7.8, June 2016). Overall,

Bpm’online delivers a high functionality product at a reasonable cost.

Weaknesses

Because of its relatively new presence in North America, Bpm’online is often

perceived as an application better suited to small and midsized businesses and is still

not widely adopted by large enterprises who require deep functionality. Further

promotion of Bpm’online’s capabilities beyond basic CRM and its deep vertical

functionality in key areas – bolstered by greater visibility into the large enterprise

accounts it serves in Europe – would help customers at the high end of the market

take it more seriously as an enterprise competitor.

INFOR CRM Infor CRM has marketing, sales, and service functionality and is part of the Customer

Experience (CX) Suite, along with Infor CPQ (configure price quote), Infor MRM

(marketing resource management), Infor Omni-Channel Marketing, Infor Interaction

Advisor, and Infor CLM (contract lifecycle management). Since the most recent

Value Matrix, Infor has made the following CRM-related announcements:

Industry-specific releases. Infor CRM Implementation Accelerator for Cloudsuite

Industrial, inventory intelligence for healthcare, the next generation of cloud

enable learning management tools.

CloudSuite CX September 2016 release. Major enhancements in this release

include Marketing Resource Management with UX enhancements and a file




upload feature, Rhythm B2B E-commerce, and CRM improvements to social and

collaboration functionality, with the Ming.le integration providing users with

collaborative note, contact, widget and bookmark sharing capabilities. New

integration features allow third party systems to create and edit data within

Infor CRM, and more language packs are now available. Releases will be made

bi-monthly.

Configure Price Quote (CPQ) Enterprise Quoting. On September 12, Infor

released cloud-based CPQ functionality as part of the CX Management suite.

As covered in the last Value Matrix, Infor CRM released version 8.3, which contained

significant enhancements in usability and functionality, including advanced entity

management, calculated fields, broader import capabilities, configurable filters,

integration capabilities including a 2-way ION integrations for ERP business object

documents and configurable 2-way Quotes and Orders, configurable data point

mapping, real-time pricing APU for pulling pricing information from ERP,

automations in quote to order process, and built-in triggers for automations. Infor’s

upcoming release in November will include improvements in task scheduling, e-

commerce, CPQ, CRM, omni-channel campaign management, and sales

intelligence. Infor CRM was a Leader in the last Value Matrix, and maintains its

position.

Strengths

In terms of functionality, Infor CRM has taken an industry-specific approach with its

industry suites, requiring minimal customization for the verticals it services. Infor

CRM also focuses on ease of integration with back office systems with its Intelligent

Open Network middleware, Infor ION, for platforms in the cloud, on premise, and

hybrids. Infor CX Suite delivers robust marketing functionality, with its Omni-

Channel Campaign Management tool enabling marketers to orchestrate customer

journeys across a wide variety of channels, and the Enterprise Marketing Suite

supporting planning and budgeting of campaigns and tactics. In terms of usability,

Infor CRM is synced with Outlook and Gmail so that users can access CRM without

leaving their inboxes. The user interface in 8.3 is clean and intuitive, and can be

customized to meet the needs of the individual user with its open APIs (application

programming interfaces).

Weaknesses

Infor CRM has relatively high functionality, but would benefit from a clearer

roadmap for development and a more cloud-like release cadence for functionality

advancements in its sales and service capabilities. Infor CRM lacks an application

marketplace offered by most of its competitors, such as the Salesforce




AppExchange, Microsoft AppSource, or Zoho Marketplace. Although ecosystem

capabilities are not evaluated as part of functionality for this Matrix, an ecosystem

would benefit Infor’s positioning and perception in the cloud market – while

providing customers with clearer options for functionality the solution currently

lacks.

MICROSOFT DYNAMICS CRM Microsoft Corporation’s Microsoft Dynamics CRM solution is part of the Microsoft

Dynamics 365 product suite, and features marketing, sales, service, field service, and

social functionality (Nucleus Research q127 – Microsoft announces Dynamics 365, July

2016). Since the most recent Value Matrix, Microsoft Dynamics has made the

following CRM-related announcements:

Spring 2016 Wave. In May, Microsoft Dynamics announced Microsoft Dynamics

CRM Online 2016 update 1 and Microsoft Dynamics CRM 2016 Service Pack 1,

with productivity enhancements, updates to service, mobile, and analytics. In

terms of productivity, CRM online announced Learning Path, a guided user

experience that offers role specific assistance. Enhancements to Office 365

Groups with CRM, released in 2015, include usability enhancements such as the

ability to collaborate in an existing group without having to create a new one.

For customers who upgrade to CRM Online 2016 Update 1, project service

automation capabilities are a new add-on. Project service automation

capabilities include project-based contract, project planning, resource

management, time and expenses, and project billing functionality (Nucleus

Research q109 – Microsoft Dynamics CRM Spring 2016 Wave, June 2016).

Also available as an add-on to those who upgrade are field service capabilities –

which include characteristics and proficiency ratings, detached schedule

support, business processes, and mobile enhancements – and self-service

portals. This release introduced the first Microsoft-published version of portal

capabilities for CRM, which improves self-service and community-based

knowledge base options, as well as a partner portal. Also introduced was an

interactive service hub, and mobile enhancements. An enhanced Power BI

integration with a new service content pack, improved sales manager content

pack, and the ability to embed Power BI tiles into the CRM dashboard was also

introduced. This enables users to launch reports from CRM without switching to

the Power BI service.

Acquisition of LinkedIn. On June 13, Microsoft Corporation acquired LinkedIn for

$26.2 billion, becoming the most significant acquisition in a trend of software

vendors integrating data as a service (daas) into their portfolios through




acquisition. LinkedIn’s vast quantity of data gives Microsoft access to bios, e-

mails, social networks, and browsing behaviors that could enhance Dynamics

CRM, as well as feed its machine learning agenda, the Cortana Intelligence suite

(Nucleus Research q114 – Microsoft acquires LinkedIn, June 2016).

Microsoft Dynamics CRM was a leader in the last Value Matrix, and continues to lead

the pack in the CRM space. Its significant updates and the acquisition of LinkedIn,

the largest in Microsoft’s history, furthers its reach into the cloud space and shows a

marked shift away from its on-premise roots, making Dynamics CRM’s upward

trajectory in the Value Matrix highly likely.

Strengths

In terms of functionality, Microsoft Dynamics CRM is one of the highest functioning

CRM platforms for enterprises of any size, catering to medium to large enterprises

but also at a competitive price point for smaller organizations. Microsoft has made

considerable progress in building out its core CRM capabilities while taking

advantage of the broader Microsoft portfolio to make it a head-to-head competitor

against the likes of Oracle and Salesforce. Microsoft’s investments in ancillary

products such as PowerBI and machine learning capabilities through Microsoft

Azure add to its functionality strength.

Weaknesses

With its spring 2016 release – including guided navigation, community portals, and

new social engagement capabilities – Microsoft is taking steps in the right direction.

However, with its competitors investing heavily in usability and broadly reusable

components, the fact that Microsoft is building out a tangent of features and

focusing on project management may be confusing or irrelevant to Microsoft’s core

customer base that relies on it for simplicity, ease of use, and integration with other

Microsoft products (Nucleus Research Q109 – Microsoft Dynamics 2016 Spring Wave,

June 2016).

ORACLE CX CLOUD Oracle’s Oracle Customer Experience (CX) Cloud is a suite of cloud-based customer

experience solutions, with marketing, sales, service, social, and commerce solutions

focusing on data as a service (DaaS) capabilities. Since the most recent Value Matrix,

Oracle has made the following announcements:

Oracle field service cloud offering. On April 28, Oracle announced a new release

of Oracle Field Service Cloud, part of the end-to-end cloud customer service

offering, which offers a completely connected customer service experience with




field service enhancements that increase mobility and improve the connection

between contact center and field service agents.

Acquires Opower. On May 2, Oracle announced its acquisition of Opower,

making it the largest provider of cloud services to the utilities industry.

Acquires Netsuite. On July 28, Oracle announced its acquisition of Netsuite,

supplying it with 30,000 cloud customers to whom it can sell its suite of cloud

products, including Oracle CX Cloud.

Oracle Data Cloud launches business-to-business Audience solution. On August

12, Oracle launched a business-to-business (B2B) audience data marketplace,

improving Oracle’s data driven marketing and account-based marketing

capabilities. The marketplace will provide access to more than 400 million

business profiles across many different segments.

Oracle Service Cloud August 2016 release. On August 31, Oracle introduced a

multi-platform Mobile Accelerator to create tailored mobile applications, and

added new capabilities to the Service Cloud, including enhancements to

Knowledge Advanced, web customer service, policy automation, and field

service.

Discussed in the last Value Matrix, Oracle CX Cloud released a number of

enhancements across its CX Cloud suite, including new industry-specific solutions

for financial services, communications, high tech, manufacturing, and consumer

goods. Oracle also released a new version of Oracle Sales Cloud, with improved

partner relationship management capabilities, extended industry solutions, as well

as improvements to Oracle CPQ Cloud and Oracle Commerce Cloud (Nucleus

Research q14 – Oracle weds Cloud UI with Simple and Flexible, January 2016).

Oracle CX Cloud maintains its position as a leader in the Value Matrix with continued

investments in functionality across the suite, as well as furthering its user interface

strategy for its cloud products that improves usability and productivity for users.

Strengths

Oracle offers one of the most robust platforms in terms of functionality, with the

kinds of resources to devote to innovation that only a few competitors can rival. In

the past, this degree of complexity and functionality have come at the expense of

usability. While still not as user friendly as some of the slimmer solutions – which it is

unlikely ever to be – Oracle has made major improvements to the user interface and

experience of its cloud products, curating the amount of information presented and

guiding users through tasks.




Weaknesses

Historically, Oracle CX Cloud has not been one of the most cost effective solutions.

While it is improving in usability, which makes it better suited for small to medium-

sized businesses (SMB), and has released new SKUs of cross-cloud SMB offerings

designed to be more attractive to smaller businesses, it remains to be seen how

these will be adopted and if Oracle will be able to gain ground in the high end of the

SMB market.

SALESFORCE Salesforce delivers a cloud-based CRM solution consisting of sales, service,

marketing, community, wave analytics, app, and IoT clouds. Since the release of

Lightning last year, Salesforce has leveraged the new platform and user interface

(UI) capabilities across its various clouds (Nucleus Research p152 – Salesforce

announces Lightning, September 2015). Since the most recent Value Matrix,

Salesforce has made the following CRM-related announcements:

SalesforceIQ Inbox for Outlook. On March 10, Salesforce extended SalesforceIQ

Inbox to Microsoft Outlook. Formerly an app only for Gmail, SalesforceIQ Inbox

connects e-mail, Salesforce CRM, and social data so that Sales Cloud users can

access CRM directly within their inboxes.

Salesforce for Messenger platform. On April 12, Salesforce announced its latest

innovation in an ongoing partnership with Facebook, allowing users to leverage

Facebook Messenger as a customer engagement channel from which they can

draw data, capture insights, and create new 1-to-1 customer journies across

platforms that tie into CRM.

Marketing Cloud Lightning. On May 10, Salesforce announced Marketing Cloud

Lightning, a platform which helps marketers track customers across all

touchpoints and create 1-to-1 customer journeys across sales, service and

marketing.

Service cloud Lightning snap-ins. On May 25, Salesforce released snap-ins for

the service cloud allowing users to integrate customer support into apps and

webpages, using contextual customer details to provide individualized support.

Acquisition of Demandware. On June 1, Salesforce announced its acquisition of

Demandware – the largest acquisition in Salesforce history – giving it an e-

commerce platform (Nucleus Research q97 – Salesforce acquires Demandware,

June 2016).




Lightning Customer Community. On June 23, Salesforce announced its

extension of the Customer Success Platform to improve customer engagement.

Salesforce Lightning for Outlook. On June 28, Salesforce released a cloud-native

add-in which integrates the capabilities of Salesforce’s CRM and the Microsoft

Office Suite application, Microsoft Outlook, allowing customers to manage and

communicate with sales opportunities through one platform. Lightning for

Outlook includes Lightning Components in Outlook, Lightning Sync, and the

Lightning Experience for Outlook (Nucleus Research q123 – Salesforce Lightning

for Outlook, July 2016).

Salesforce Inbox Calendar. On August 15, Salesforce announced Salesforce

Inbox Calendar, an intelligent calendar for salespeople, which surfaces relevant

records on every appointment from CRM.

Salesforce Wave Analytics. On September 1, Salesforce announced the

expansion of its Wave Analytics portfolio. Now, in addition to Sales Wave and

Service Wave, the company’s new Wave Apps for B2B Marketing, Financial

Services, and 20 new apps from independent software vendors enable

customers in a variety of roles and industries to leverage Wave Analytics to

improve their business processes with actionable insights.

Salesforce CPQ for Service Cloud Lightning. On September 6, Salesforce

announced its extension of CPQ to Service Cloud Lightning, which extends

quoting capabilities to service teams – improving their cross-sell and upsell

capabilities, edit contracts and send branded quotes, and expanding the number

of team members who are empowered to sell – and simplifies the process of

changing product bundles.

Salesforce maintains its position as a leader in the Value Matrix with more releases

than any of its competitors this Value Matrix, thereby contributing to continued

improvements in the usability and functionality of the product.

Strengths

Salesforce’s release cadence of new features sets a pace that is difficult for other

vendors to match. Its recent investments in Lightning, such as Lightning for

Outlook, continue to expand the usability of Salesforce, as well as positively impact

the productivity of its users in terms of data capture, and active selling time.

Salesforce’s recent acquisition of Demandware expands its offerings to include an e-

commerce platform, which shows improvement in functionality, and makes it more

competitive against Oracle and SAP, who also have commerce offerings. The




integration of the SteelBrick acquisition further advances its functionality in the CPQ

space (Nucleus Research q97 – Salesforce Acquires Demandware, June 2016).

Salesforce continues to deepen its functionality in sales force automation, with

Sales Path for sales coaching, Sales Cloud Einstein features, opportunity splits,

forecasting and integrated CPQ.

Weaknesses

In terms of functionality, Salesforce lacks a companion portfolio (such as ERP and

HCM) that competitors like Oracle, Microsoft, and SAP have, which may make it less

attractive to large companies with many software needs who are looking for a one-

stop-shop vendor. Despite its continued efforts on the functionality front,

Salesforce’s bread and butter is in usability and intuitiveness, so the vendor may be

missing functionality in areas such as territory management.

VEEVA SYSTEMS Veeva Systems delivers cloud-based enterprise software for the life sciences

industry, from pharmaceuticals to biotech, including Veeva CRM, a content

management system called Veeva Vault, a master data management solution

named Veeva Network, and Veeva OpenData. Veeva Systems is a Salesforce

partner, with the Salesforce1 platform serving as the cloud infrastructure for Veeva

CRM. Since the most recent Value Matrix, Veeva Systems has made the following

CRM-related announcements:

Veeva CRM 26 released. In March, Veeva Systems released a new version of its

CRM platform which included an enhanced user experience and maximized

productivity. Core CRM enhancements included account maps which allow reps

to visualize the location of accounts relative to them, functionality which

enables reps to capture receipt signatures and the AOC process to be completed

within Veeva, tightened validation around midlevel sampling, CLM call objective

support, functionality improvements to approved e-mail that allow it to support

countries which require opt-in to verify e-mail identify, the ability to schedule

future-date approved e-mails, the ability to target account interaction by

workplace. The release also improves functionality on Windows devices,

enhances Veeva Medical, released in version 25, and improves key account

management.

Veeva CRM Engage Meeting and Veeva CRM Engage Webinar released. On June

9, Veeva Systems introduced two new cloud applications for life sciences

companies by securely opening up digital channels so company representatives

can connect with healthcare professionals.




Veeva CRM 27 released. In July, Veeva Systems released a new version of its

CRM platform which expanded upon the functionality of version 26. Core CRM

enhancements included the ability to deliver surveys through Approved E-mail,

the ability to use Advanced Coaching through a web browser, GPS check-in for

calls which verifies that calls took place where they were supposed to, enhanced

field reporting capabilities, network integration speed improvements, timeline

improvements, pricing, order and contract management functionality

enhancements, and Multi-channel Cycle Plan (MCCP) improvements which

allow users to view goals across targets. This release also included

improvements to Windows functionality, Veeva Medical, Key Account

Management, and Events Management.

As covered in the last Value Matrix, Veeva Systems launched Veeva CRM Mobile for

iPad and Windows devices, a CRM Suggestions product which aids field users by

predicting next steps to best engage customers. Late last year, Veeva Systems

added Veeva Key Opinion Leader (KOL) Data as a subscription service and Veeva

Medical CRM, which interoperates with KOL Data for medical teams and

organizations. Veeva Systems has made significant improvements to its content

management system and its cloud quality management solution, and has improved

digital asset management capabilities and released a suite of applications offering

cloud-based regulatory information management capabilities.

Due to the security requirements of the industry, many of Veeva Systems’s CRM

releases – which occur every four months – include advancements that increase the

functionality of the product while meeting strict security standards. Since the last

Value Matrix, Veeva Systems has released Version 26 and Version 27, and Version 28

will be released in November. Veeva CRM’s integration with Salesforce means it

benefits from Salesforce updates, as well. The frequency of its releases and its

alignment with Salesforce contributes to Veeva Systems’s positioning as a Leader.

Strengths

Veeva Systems offers a competitive CRM solution for enterprises in the life sciences,

with its cloud-based, multi-channel CRM solution spanning face-to-face, e-mail,

web, events and phone interactions. Veeva CRM is built on the Salesforce1 Platform,

making it easy to configure, and is integrated with Salesforce solutions such as the

Service Cloud, so users have access to Salesforce functionality. Veeva Systems also

offers solutions like Veeva CRM Approved e-mail, which allows users to send

compliant e-mails, and Veeva CRM CoBrowse, which allows users to remotely guide

their customers in real-time. In terms of usability, the solution’s user interface is

intuitive and geared toward non-technical users.

SPONSORED BY: PRESENTED BY:

BRINGINGTHE CUSTOMERINTO FOCUSHow new technology is enabling banks to create a customer-centric experience that transforms customers into advocates for life

RETAIL BANKING: THE NEED TO EMBRACE DISRUPTION

The video store, the music store, the big-box bookstore, and more recently, taxis. The business landscape is filled with remnants of once strong companies upended by a competitor with a disruptive technology that delivered a delightfully convenient customer-centric experience.

In a world where physical and virtual retail settings are rapidly converging, banks are finding that they need to engage with their customer in the right way at the right moment in time. But many struggle to segment and understand critical attributes about the customer they are interacting with. They also struggle to implement a cross-channel experience that delivers targeted, just-in-time offerings in a consistent way.

For banks to thrive in this environment, and drive disruption instead of experiencing it, they need to bring the customer into focus.

It means a shift away from emphasizing products or lines of business approach, to an approach oriented around customers and that of the bank employees who serve them to make their experience, faster, easier, and more efficient.

Each year 12 million bank customers consider switching banks

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Does this situation sound familiar? • Your customers and prospects are having numerous conversations with your bank by phone, social, mobile and at your branches.• You’re capturing a lot of data, but in separate silos. Instead of generating a sharply defined master profile of the customer and what the next best action to take is, the picture remains blurry.• Each line of business is managing its own leads and referrals but remains blind to what the others are doing.• The result is an inconsistent and often counterproductive response to the customer or prospect. Sometimes a potential customer is deluged with contradictory follow-ups from different associates, and sometimes the prospect is ignored.

If this sounds familiar, then this industry statistic won’t come as any surprise: Each year 12 million bank customers consider switching banks1. And here’s a related data point—96 percent of unhappy customers never complain, but 91 percent of them leave and never come back. That’s a dismal thought when you consider that on average a bank spends more than $400 to acquire each new customer2, and a mere 5 percent increase in customer retention can increase a bank’s profit margin by 25-100 percent!3

Instead of generating new business, frequent customer touches across silos generate confused and poorly coordinated responses that are actually moving banks in the opposite direction—they either leave money on the table, or worse, increase the risk of losing their best customers.

THE CHALLENGES AND OPPORTUNITIES FACING BANKSThe sad fact is that 63 percent of all leads fall through the cracks and are never followed up. On average, it takes 46 hours and 53 minutes to pick up the phone and respond to a lead4, even though the odds of qualifying a lead are 21 times greater if the prospect is contacted within 5 minutes (compared with a 30 minute response time)5. Confronted with the above, one regional bank recently concluded that it was losing out on as much as $500 million a year in incremental revenue.6

On the other hand, banks that place a greater emphasis on improving their customers’ experience are 60 percent more profitable than their competitors.7 A bank can triple its share of wallet with each new product its customers buy, and moving a customer from one to four products increases the revenue that customer generates by 730 percent. Even better—for each new product sold the customer lifetime increases by between 12 to 30 months.8

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1 Ernst &Young 2012 Global Consumer Banking Survey2 SFO Consultants 2011 Bank Customer Acquisition Study3 Bain & Company - The Loyalty Effect 4 Forbes 2012 Secret Shopper Study of 10,000 companies 5 The Lead Response Management Study 6 Huntington Bank7 BCG Perspectives, Operational Excellence in Retail Banking, 20148 Bancography Study

A 5% increase in customer retention can increase a bank’s profit margin by 25%-100%

A bank can triple its share of wallet with each new product it gets a customer to buy

http://www.loyaltyrules.com/loyaltyrules/BB_Loyalty_effect_essay_4_Forces_loyalty_chaos.pdf

http://www.leadresponsemanagement.org/lrm_study

All told, increasing the products per customer (or cross-sell ratio) equates to a net new revenue growth opportunity of 300 to 800 percent for the bank. For a large bank, this can amount to as much as $1.5 billion in additional revenue per year.

NEEDED: A COMPREHENSIVE MARKETING, SALES, AND SERVICE SOLUTIONThese are realistic goals, but to achieve them banks must offer a more sophisticated level of marketing, sales, and service that integrates all of their customer touch points into a single customer journey. And operationally, they must do a much better job of managing their leads and referrals across their various lines of business.

This more unified and comprehensive approach can be framed as three over-arching business objectives for any bank seeking to create a more compelling customer experience and consistently engage with customers in exactly the right way at the right moment in time:

1) Data from every customer interaction should be visible and sharable across the bank: Many regional and tier-one banks are amalgamations of different lines of business. Many of them have grown through acquisition, resulting in a hodge-podge of different systems and—even more importantly--different mindsets. As a result, a referral captured by one line of business is often not visible to the other lines of business, leaving money on the table. As one bank executive described it, [manual lead and referral management] is like “picking up sand with a tennis racket.”

2) Barriers that prevent selling across different lines of business should be torn down: Today collaboration across lines of business is very limited. Bank associates are incented to generate leads and referrals, but they aren’t responsible for ensuring that a lead is pursued, business is closed and the customer is satisfied. Often this is left to the professionalism of the banks’ employees.

Eliminating political, organizational and technology silos is critical to making leads visible bank wide. As a practical matter, a lead or referral originating from one line of business should be easily transferable to the appropriate line of business. People are busy and time is limited, so it is also critical that an attribution model credits the originating line of business to ensure there is the proper incentive to take the time to make a “hot hand-off”.

Moving a customer from one product to fourincreases revenue by 730%

Centralized lead and referral management promotes team selling and collaboration

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Centralizing the tracking, follow-up and ultimate disposition of all leads and referrals promotes accountability and team selling, and maximizing sales productivity.

3) Customers should perceive the bank’s service as fast and personal: Most banks today offer a highly fragmented customer experience. Information provided to one sales associate isn’t provided to another; requests made through a website or a call center don’t reach the local branch office. The customer feels undervalued and ignored, diminishing their loyalty.

Building a comprehensive customer profile that draws on data from every touch point allows bank employees to ‘connect the dots’ and respond to inquiries in a timely and appropriate manner.

Industry surveys reveal that 70 percent of buying decisions are based on how customers feel they are being treated, and that 94 percent of customers say they are far more likely to buy a product that takes little or no effort to purchase.9

A NEW APPROACH

To effectively capture, track and respond to leads from multiple distribution channels, banks must centralize and automate the process.

A key component of creating a single 360-degree view of the customer is capturing and managing leads and referrals. What’s needed is a centrally managed system that captures, consolidates and prioritizes sales leads from every customer contact point—including smartphones and social media sites—and then routes them to the appropriate product specialist or bank associate. Once assigned by the system, a lead would be tracked; outcomes recorded and then included in status reports. As the lead is nurtured, the customer profile would be enriched with data gleaned from each new interaction with the bank. Reporting dashboards should allow employees to view their assignments, make referrals and share notes with other colleagues. Managers would be able to generate reports and view statuses and outcomes by customer, associate, branch, line of business or individual lead.

For mid-sized and large banks, the benefits of such a system would be considerable, enabling them to:• Capture more sales leads and improve conversion rates

At many banks, too many leads fall into a black hole never to be seen again. As leads are passed from one line of business to another, there’s no single point of accountability to ensure that the lead is followed up.

This system would work like a lead vacuum cleaner, capturing, tagging and following every lead generated by the bank. More leads would be generated, since they can be captured from any customer contact point, including the bank’s call center, website and branches, customer mobile devices and social media sites.

If a lead is neglected, the system should automatically trigger alerts. Since the disposition of each lead is tracked, no lead escapes notice And since leads and referrals would be captured, scored and routed in real time, response times by sales associates would be sharply reduced, yielding much higher conversion rates.

70% of buying decisions are based onhow customers feel they are being treated

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9 McKinsey Quarterly, the Moment of Truth in Customer Service

• Create a single, 360-degree view of their customersTraditionally, bank leads and referrals have been generated by each line of business independently. A solution that integrates the process would provide an comprehensive view that incorporates all contacts with the customer.

Duplicate leads would be identified and eliminated, such as one captured from a branch conversation and another from the same prospect on a website the day before. Details would then be added by matching the lead against a variety of internal and external data sources, including bank and motor vehicle records and credit agency reports.

In this way a lead record that initially may only have contact information is expanded into a more comprehensive view of the prospective customer. This enhanced profile can be shared by all bank employees, regardless of their function, and across all of the bank’s lines of business. The bank’s sales agents can enrich details about the customer after each touch point.

• Improve lead quality as well as quantityOnce a lead is captured, it would be scored using an algorithm developed in consultation with the bank’s management. The lead would be qualified and ranked based on salient characteristics, such as the prospect’s prior history with the bank, the size of the transactions and his or her propensity to buy.

Sales associates would be fed prioritized leads, allowing them to quickly respond to those leads with the greatest revenue potential and likelihood of closing.

Collaboration features would enable employee notes and communications to be shared, so all relevant information—along with a record of who touched the lead and when—is captured along with the lead. This would ensure that as the lead is passed from one bank specialist to the next, nothing is lost.

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HUNTINGTON BANK: A CASE IN POINT

Huntington Bancshares is a $60 billion regional bank holding company headquartered in Columbus, Ohio. With diverse retail lines of business that include commercial and consumer lending, residential mortgages, insurance brokerage and wealth management services, the bank recognized that a more comprehensive approach to cross-selling could result in substantial new revenue.

At the same time, Huntington saw the importance of improving customer service levels and response times by integrating its network of more than 700 traditional bank branches with its array of telephone, internet and mobile banking services. A unified approach to lead and referral management, the bank reasoned, would result in greater customer satisfaction, higher conversion rates and more referrals.

Huntington now closes 50% of new leadswithin 48 hours

At Huntington, 76% of household customers have purchased 4 or more products

So in 2013, Huntington asked Salesforce to deploy a centralized Lead and Referral Engine across the bank’s retail businesses and far-flung distribution channels. The project, according to one Huntington executive, was an undertaking “in the art of the realistic,” leading to substantial revenue gains. Using the Salesforce Marketing, Sales and Service cloud services, over the past nine months the bank has:

• Received 329,000 new referrals• Converted 160,000 of those referrals into new business• Raised its overall lead conversion rate to 40 percent

Huntington now closes 50 percent of new leads within 48 hours, and 76 percent of its household customers have purchased four or more products. Meanwhile, 60 percent of the sales agents, bank associates and product specialists who make use of the new system are generating an average of more than 8 referrals a week.

“The trick was tearing down the walls within our organization to enable true company-wide collaboration” - Zahid Afzal CIO

“The trick was tearing down the walls within our organization to enable true company-wide collaboration” - Zahid Afzal CIO

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• Personalize the customer experienceA bank should also be able to personalize the way it responds to the customer. For instance, if a prospect indicates that he only speaks Mandarin, the lead is flagged for follow up and then routed to a loan officer who also speaks Mandarin.

Likewise, the bank should be able to capture and react to customer comments made on Twitter and other social media channels. These “social listening” capabilities allow for additional lead capture. If a prospect were to tweet that she’s unhappy with how another bank dealt with her loan application, for example, a bank associate will be alerted to the tweet and can reach out to her with a more competitive offer. Geolocation capabilities could also assign the lead to a nearby associate based on the prospect’s physical location.

• Stop leaving money on the table Dropped leads, a partial view of their customers and an inability to share leads across business lines and sales channels mean most banks fail to maximize their cross-selling opportunities. But correcting this isn’t always a massive undertaking. Ironically, many banks are well positioned to integrate their customer outreach and sales efforts and could quickly increase their product to customer ratios with relatively little effort.

By breaking down silos and personalizing the customer experience, banks can bridge the gap and substantially increase their share of wallet. This not only increases the profitability of the customer relationship, it makes it much more likely that the customer will remain with the bank.

Notes Patrick Fischer, principal sales engineer at Salesforce, “The more you up-sell the customer, the stickier your products become.”

• Turn customers into advocatesBy increasing the number of customer touch points that a bank has at its disposal and injecting intelligence into its customer engagements, banks become better equipped to nurture their clients.

Timely offerings and coordinated outreach turns prospects into customers and secondary accounts into primary accounts. As the number of products purchased by the customer increases, so does the customer’s level of satisfaction. Clients become advocates for the bank, providing it with positive word of mouth and referrals.

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• Increase sales agent productivityEvery employee that touches the customer, from tellers and call center agents to bank associates and product specialists, needs tools to be able to easily share the same 360-degree view of the customer. This allows them to present appropriate products that are in synch with the client’s needs and expectations.

And since some specialists work at several branches, rich mobile platform features are necessary to allow them to capture and respond to leads and referrals while in transit.

“If we can bring back some of that intimacy, then we’ve brought back the very essence of trust and transparency” - Michael Harte, CIO Commonwealth Bank

• Improve forecasts and gain greater visibilityReal-time reporting and dashboard functionality should allow managers to view how the engine is operating in real time. Lead reports can be generated for different groups at regular intervals (for example every 24 hours), which allow managers to drill down to determine the status of any particular lead at that moment in time. Performance can be analyzed by branch, rep or product, and results can be shared selectively with different groups.

Using the results, managers can identify which products are the most profitable and should be promoted, as well as the type of incentive likely to have the greatest appeal. They can also use the results to coach associates, create sales awards, reward collaboration and promote inter-departmental recognition.

Banking and the Customer Experience Digitization has given consumers more choices and higher expectations than ever before, raising the bar for retail banks. Digital touch points and omni-channel marketing can translate into enormous new revenue opportunities, but they also demand that banks rethink their customers’ journey.

Those that succeed will look to model themselves after the top customer-centric companies in the world rather than modeling themselves after other banks.

The Salesforce Lead and Referral Engine offers a rich set of these capabilities, providing banks with a powerful platform for greater collaboration, multi-touch marketing and a dramatically improved customer experience. Click here to learn more.

ABOUT SALESFORCE

Salesforce.com is the world’s largest provider of customer relationship management (CRM) software and has helped define the era of cloud

computing. Today, our leading industry-leading CRM platform has become the world’s leading enterprise cloud system. Industry and companies of

all sizes can connect to their customers in a whole new way using the latest innovations in mobile, social and cloud technology to service, market,

and succeed. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under

the ticker symbol “CRM.” For more information please visit http://salesforce.com, or call 1-800-NO-SOFTWARE.

ABOUT AMERICAN BANKER

American Banker is the leading information resource serving the banking and financial services community. The daily print edition of American

Banker was first published in 1835. Its online counterpart has been live since 1996. Together, these resources set the agenda for a fast-changing

industry, keeping a close eye on large and small institutions, tracking traditional and insurgent forces, parsing the business models of diversified and

specialist players.

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Since each lead would be scored and prioritized, agents could pursue prospects with the greatest revenue potential. Best practices should be collaborative and sharable. Managers should have the ability to create collaboration groups to address teams of associates, allowing members of the group to engage in dialogs to close business.

Most importantly, when a customer conversation takes place, the bank rep is in a much better position to consult and present a product that the client actually needs, as opposed to simply throwing something out there and seeing if it sticks.

http://www.salesforce.com

http://www.salesforce.com/crm

http://www.salesforce.com

http://www.salesforce.com/industries/financial-services/

Automotive

Sales Competition 1st meeting document