The Importance of Focus for Generating Customer Value
Abstract
It is essential to carefully choose your Customer Value Proposition. Both value creation from the customer as well as the corporate viewpoint gain from consistent and deliberate focus on key market segments and core competences. This results in a mutual exchange of value, which will stabilize and strengthen your competitive position.
Introduction
The term customer value is typically used in one of two ways. Either customer value is used to describe the benefit a customer gets from using a product, or, customer value is the profit a customer generates for the company. In this paper we embrace both the “soft” (satisfaction) and “hard” (profitability) approach to value creation.
It is somewhat of a paradox to consider the value for the customer as if this were in some way opposed to the value for the company. There really should not appear to be a conflict of interest between value for versus from the customer, since this is not a zero sum game. For example, a customer that is getting excellent service is therefore less likely to shop around, compare prices, and maybe churn. Great service and satisfied customers are necessary to avoid your product being perceived as “merely” a commodity. How else can you command a premium price?
There is no reason to suggest that value created for the customer is in any way antipodal to value generated from the customer. The trick lies in matching the offer to the customer needs, or, finding the “right” customer given a company’s offering[1]. To achieve this goal, it is essential that a purposely chosen Customer Value Proposition (CVP) be pursued.
Measuring Customer Value
There are many possible criteria to measure corporate performance like market share, turnover, profit, number of products sold, etcetera. Aggregate turnover, sales volume or market share do not necessarily provide a reliable picture of the (financial) performance of a company. For example, a large market share could have been acquired at too high cost, and as a result the profit per customer may be dangerously low.
Rather than only rely on aggregate performance figures, it is better to also capture characteristics at the individual customer level. The question then is: what are the most useful performance criteria to determine how a company is doing? Such performance criteria should ideally also provide guidance on how to change course “in mid-air”, to offer help with tactical decision making. In general, aggregate numbers are not very useful to help everyday decision making at the operational level.
Not all customers are created equal, some are more profitable than others. For this reason, you want some kind of measure for profitability. Often, the hardest part in determining individual customer profitability is dealing with the fixed costs. You need to set up an allocation scheme that takes into account how fixed costs should be allocated across customers. This is not easy, but necessary to establish an individual profitability calculation. As an example, suppose hardware is needed to host a new VR system. If only 10% of customers have started using this system in the first year, it seems hardly reasonable to “charge” these customers with the full hardware costs. Then users of essentially a more efficient system would all “become” terribly unprofitable!
Measuring customer profitability is vitally important to target the right prospects. Companies want to spend their marketing resources where this will generate the highest payoff. This requires insight in cross- and up-sell potential. It is not just current profitability, but also the development of customer profitability over time that is important. Insight in both is necessary to evaluate the ROI of marketing spend.
A New Paradigm: From Aggregate to Individual Customer Data
Businesses are increasingly run “by the numbers”. CRM, the new marketing paradigm, has helped to shift the focus from aggregate company sales to the individual customer. It is not enough anymore to know that your market share went up. The underlying “quality of growth” needs to be monitored as well. Numbers like the percentage of new customers and attrition of the existing base can have a huge impact on bottom line figures, and further potential for growth[2],[3]. According to many[4],[5], CRM has failed in many respects. Even if this were true, it has nonetheless brought about a lasting change in focus on the kinds of numbers that are used to steer businesses.
In this new marketing paradigm, the focus is now on customer lifecycle management, on developing and maintaining customer relations. Marketing spend is seen, not just as an expense, but rather as an investment in the relation with the customer.
Value From or For the Customer?
Sometimes the debate on value creation is treated as a zero sum game: by doing more for the customer the company is earning less. This is only an apparent paradox[6]. Sustainable value can only be created if the supplier can afford to offer the current service level and still maintain profitability.
From the customer perspective, they consistently need to get a better overall deal than they could get from the competition[7]. If dealing with the current supplier does not generate excess value, customers will leave. Value for the customer means more than just offering a better price. As an example: the Ritz-Carlton hotel chain is not cheap. But the service is excellent. As long as the “total experience” is better, the Ritz-Carlton still provides more value to those who can appreciate this superior service.
For the corporation, value creation comes in the form of a steady cash flow, which can be counted on to extend into the future as well. Value is created in marketplaces where both suppliers and customers are in a win-win relation. Only then will the supplier be able to sustain its market position, and only then will it be in the customer’s best interest to maintain the relationship with this supplier.
Loyalty is not something that can be bought, at least not profitably for prolonged periods of time. In fact customers cannot even be owned. Customers can be rented from the marketplace. But this comes at a price, namely acquisition and retention costs. Loyalty is a privilege one can earn by consistently delivering superior value to the customer.
Dynamics of growth
Providing value to the customer leads to growth in the market. This in turn leads to a better understanding of the reasons behind success (customer feedback and research), which then shows the way to providing even more value. This cycle can continue growing. It is a self-reinforcing cycle.
Focus on the right kinds of customers is a leverage point in that it can make or break success. A loss of focus will cause this same cycle to gradually break down over time.
The risk of success is that it can blind you. Success in the marketplace should come from a match between your CVP and meeting needs of customers. What is it about the service that customers value the most? Dell is an example that might apply here, They had years of stellar growth, and pioneered innovative distribution and supply chain management methods. Currently they are wandering, their service and quality are dropping because they appear to be too many things to too many customers. By putting effort where this is most appreciated by your customers, you stay “lean and mean”.
It is crucial to determine your core competencies. You need to define exactly what the benefits are for the customers. Then you need to specify the needed processes, systems and communication that are required to deliver these unique benefits. Why is it that (high value) customers like you? Then, focus all energy towards meeting those goals.
Given an organization’s infrastructure and value proposition, certain customers can be profitably targeted, others maybe not. The constellation of organization structure, systems in place, and the value proposition a business is working with (its “capabilities”), together comprise the most important elements that will influence the costs of an organization. Moving outside of these core competences entails a risk of inefficiencies.
Risks of an undifferentiated approach
What are the risks of an undifferentiated growth strategy? This will result in a loss of value in four places:
1 – There is less of a match between the value proposition and your new customers. As a result, you become increasingly dependent on customers choosing you, instead of the other way around. This risks devaluation of your brand for two reasons. Firstly, for many customers you cannot deliver what they expect. And secondly, you loose your differentiated position. Your brand becomes an “average”, there is no longer a way to differentiate yourself from the competition[8].
2 – You loose focus on your core competencies, given the CVP-segment match. Because of heterogeneity in new customers, a pressure arises to diverge activities, to fulfil more different kinds of needs (similar to the problems Dell is currently facing). For example, there will be more processes to manage, more different kinds of questions and requests from customers, and you risk running into service and communication problems. It is inevitable that lack of a clear priority of service and value will lead to higher operating costs. As a result, you can expect more errors in fulfilment because you are being been forced to offer more diverse services.
3 – Once “the wrong” customers have entered the base, it becomes much harder to cross- and deep sell. Also, developing new products becomes much harder: whom to develop them for? This will then further amplify the difficulties in cross-selling.
4 – The leverage on the market goes down, costs go up, and therefore there is even less competitive power. You don’t “know” your customers, simply because there is no “typical” customer (anymore). And the customers don’t know you, due to lower average tenure. Your service costs are likely to go up when your customers are less familiar with your services[9].
Because of these four reasons higher costs will be inevitable, thereby making it even harder to compete. Margins have eroded and more cumbersome operations negatively affect your nimbleness to move into new market segments. Heterogeneity in customer needs will lead to a mismatch with the CVP. Therefore, it will become harder to satisfy existing customers. In particular, loyalty and referral rates will go down, leading to a downward spiral.
How to measure progress
How do you establish the match between CVP and customer needs? This will require tracking some key metrics. To monitor developments over time, you compare successive cohorts in terms of cross-sell, profitability, and tenure. This means comparing groups of customers that entered in successive years, and “normalizing” their profile. By “normalizing” we mean comparing all groups at their start, after being a customer for 1 year, 2 year, etcetera.
When analysed in this way, a new perspective on the portfolio of customers arises. Over time, growth in the total number of customers may lead to slightly lower cross-sell and tenure figures. It is important to strike a balance here, and any steep drop in cross-sell, tenure or profitability should be cause for concern.
Another important source of input is customer feedback. Ask customers how and when they find value, in particular your most profitable customers. Of course, you should focus effort where the cost/value payback is highest. Customers’ needs are a moving target, and aligning with customer desires requires continuous innovating and adapting[10].
Which customers to target
In the remainder of this paper we will demonstrate why value for the customer is in large part the result of quality and appropriateness of customer acquisition. Although the misfit between CVP and customer cohort only shows after a while, it originates at the moment when customers enter into a relationship. The “right” new customers to try and acquire, are those that have the potential to buy your extended offer. That means not just taking the basic core product, but also the extended products and services. This is essential because it is well established that only customers that you can cross sell to successfully, are the ones who are likely to become profitable[11].
How do you determine which customers should be targeted? There are two essential ingredients needed here. The first is an Activity Based Costing (ABC) scheme. It is important to break down customer profit into the constituent components. This allows an analysis of relative contribution of profit per product category. The second ingredient is a longitudinal breakdown of cross-sell. What this implies is that customer data need to be represented relative to their origination date. This way, you can display profiles of customers after 1, 2, 3 years of tenure, etcetera, but also make comparisons relative to when the relation began (start year 2005, 2004, etcetera). Customers you can cross-sell to effectively are the ones to target for.
There is one minor complication. The way customers “look” after successful cross- and up-sell might be quite different form the way they looked when they first became customers. Yet their initial appearance is what the targeting should be aimed at. You search for look-alikes of prospering customers, the way they looked when they first became customers. The fact that these customers prospered under the current value proposition is living proof that these are the kinds of customers for which the offering has the most appeal. There is a good match between the CVP and inherent needs.
What to do when there is a mismatch between customers and CVP?
Suppose you conclude there is a mismatch between the CVP and new customer acquisition. This becomes clear when too many new customers are not developing well. What can you do to get back on track?
There are basically three approaches you can take now:
1 – Install barriers; prevent certain (low value) customers from entering. For example, one could establish a business rule that Private Banking customers can only enter into a relation with the bank with a minimum starting deposit of at least 2 Million Euro. This effectively prevents the “wrong” kind of new customers from entering.
2 – Demarketing; employ a cost control strategy. Freeze all marketing investments and simply stop making offers. You can cut down on customer service, for instance by giving these customers a lower service priority at the call center. This part of the tactics is meant to prevent more waste on customers where the investment will bring insufficient returns.
3 – Differentiate on price; when some customers only use part of the proposition (buy only few product categories) then you can adjust the price/service strategy. One way to do this is by offering bundled service packages at a discounted price. What this effectively does is make the overall CVP more interesting for the customers you are seeking (with a large share of wallet), and make the offering more expensive for customers who are only “cherry picking”. Such a strategy kills two birds with one stone because it mitigates the costs low value (low wallet share) customers are creating, and it communicates the appeal of a “full deal” to customers you aim to attract.
Conclusion
In this paper some arguments have been put forward to demonstrate why focus on a purposely chosen CVP, and targeted acquisition of new customers are key to sustainable success in the market. Purposely choosing and shaping your CVP is an ongoing strategic process. The choice for a given CVP should come from an assessment of core competencies[12], in combination with existing market needs and financial potential.
Constantly reshaping your CVP should be the result of evaluating customer feedback. Make the best possible use of what customers say they particularly like about your service, implicit or explicit. Implicit feedback is displayed, for instance, in higher response rates. A high response rate implies relevance of your marketing offer. Explicit feedback can be gathered either in dedicated research, or at moments of customer interaction (for instance in the call center).
Another important point we made is the central importance of the customer acquisition process. Customer acquisition is not something to undergo, it is an activity every company engages in. We asserted how important it is to target for customers who have high potential for future growth. New customers are rarely very profitable at the outset. What’s important is that their customer value be managed throughout the lifecycle.
The risks of an undifferentiated growth strategy, of not selectively acquiring new customers are pernicious. This is mainly because the consequences are usually only felt much later. Due to the time lag between cause and effect, the relation with inappropriate acquisition may not become evident. Also, the diagnostic measures (cohort analysis) needed to improve profitability may not be obvious and easy to obtain.
The good news is that a consistent focus on customer value, whether seen from the customer or the company, will drive towards a mutually beneficial optimum. By acquiring the right customers in light of the chosen CVP, cross-sell will go better, and therefore market leverage is greater, service will be better, and less costly. Create value for the customer, make sure your CVP and “chosen” segments match well, and keep a sharp eye out for future profitability of your customers. This is exactly why it is so important to deliberately choose and shape a CVP in such a way that customers will engage in a full-blown relation, and can therefore become highly profitable to the company.
References
[1] Michael Porter (2001) Now is the Time to Rediscover Strategy, European Business Forum, Vol. 8
[2] Patricia Seybold (2001) The Customer Revolution, Crown Business,
[3] Frederick Reichheld (2001) The Loyalty Effect, Harvard Business School Press, Boston, MA
[4] Jennifer Rigley (2003) Overcoming CRM Failure in Financial Services: What’s (Not) Working, Fair Isaac
[5] Richard Boardman (2004) Doomed from the Start? Why 90% of CRM Implementations Fail to Achieve Their Potential, http://www.mareeba.co.uk
[6] Robert Wayland & Paul Cole (1997) Customer Connections. Harvard Business School Press, Boston, MA
[7] Michael Lanning (1998) Delivering Profitable Value, Capstone, Oxford, UK
[8] David Aaker (1995) Building Strong Brands, Free Press, New York, NY
[9] Martha Rogers & Don Peppers (1997) Enterprise One to One: Tools for Competing in the Interactive Age
[10] Peter Drucker (1985) Innovation and Entrepreneurship, Harper & Row, New York, NY
[11] Frederick Newell (2000) Loyalty.com. McGraw Hill, New York, NY
[12] Michael Porter (1998) Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, New York, NY
How to Setup Teleconferencing Calls?
It hasn’t been long since conference calls have virtually evolved as the first choice mode for business communication for corporates. But the savings it brings to each company’s balance sheet every year is substantial, which is mostly in the form of saved expenses that otherwise would have spend on frequent business travels and expensive hotel accommodations for its executives. Well, these are the advantages of teleconferencing calls. But how to setup teleconferencing calls? Keep in mind; this is something as important as teleconferencing calls itself and not at all an easy task to perform. In the following paragraphs, we’ll see how to setup teleconferencing calls and how the entire thing works.
First thing, a business conference calling only makes sense if the number of participants is three or more. Usually teleconferencing calls are facilitated by dedicated service providers, who offer the service for a fee on a per hour basis. Once the user agrees with their terms and conditions, he/she will be given a toll-free number and a PIN, which is to be distributed among all the participants who are supposed to be a part of the conference call. Also, it is required for the person reserving the service to mention the exact date and timings of setting up the teleconference call or meeting. This time slot booking is usually done in order to avoid a clash of dates, as it is a possibility that more than one customer may demand the same time slots on a particular date.
At the preset date and time, each of the participants can join the online conference call by dialing the toll-free number and authenticating oneself with the given PIN. Once in the conference, each party can talk as much or as long as he/she wants. The entire session of the call will be controlled by the host, and he/she can decide who all should be online and who all must not at a given point of time. In the usual settings, if the host hangs up, the entire teleconference will be terminated. But, alternate options are available so as to continue the call even if the host leaves, but it is optional and that right entirely rests with the person who setup the teleconferencing calls.
From a customer point of view, always setup teleconferencing calls with the service providers who offer the best of conferencing solutions and technical support. But take care to follow carefully the instructions given by the service providers. Once done that, it won’t be such a difficult task to setup teleconferencing calls. Good Luck!
How the Ontario HST Will Impact You in 2010
The Ontario Government recently enacted legislation which will implement the much-dreaded HST Tax. This new tax will take effect on July 1, 2010.
The HST tax will effectively combine the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new “harmonized” total tax of 13% percent. This new tax will be applicable to many real estate services which hitherto only had one or the other tax applied.
The HST will result in a 13% tax on new home construction, but my post today will concern those ancillary costs pertaining to the buying and selling of resale residential real estate properties in Ontario…
First, the good news….there is no HST tax payable on the sale of a resale home (residential). So the single largest dollar amount exchanged is not taxable under HST.
However, under the harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.
In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay – currently there is only the 5% percent GST payable on this fee. Your lawyer’s fee will also be subject to the 13% percent HST. One bit of good news – the cost of a Condominium Status Certificate will remain the same; while there will be HST at 13% instead of GST at 5%, there cannot be an increase in the legislated maximum total amount of $100.
If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC premium for “high-ratio” mortgages has traditionally been taxable for PST – this amount will now be taxable for the full 13% percent HST.
So one can see that, with the introduction of the HST, whether you are buying or selling a Resale Home in Ontario, costs will be going up.
A press release from the Ontario Real Estate Association earlier this year summarized some of these changes which will take place – the example that they used was for a resale house priced at $360,000, and it was determined that the HST would add over two thousand dollars in new taxes to closing costs. Please note, these taxes are in addition to the Land Transfer Taxes which exist for both the Province and the City of Toronto. OREA calculated that, in total, the HST would add $313 million annually in new taxes to resale home transactions.
CURRENT TAXES PAID, VERSUS THE NEW COMBINED HST TAX PAYABLE, ON A HYPOTHETICAL $360,000 REAL ESTATE TRANSACTION:
Current Tax | New Tax | Total HST Payable
Mortgage Insurance Premiums(1) $752.40 | $470.25(2) | $1222.65
Legal Costs $50.00 | $80.00 | $130.00
Real Estate Commission(3) $900.00 | $1,440.00 | $2,340.00
Home Inpection $20.00 | $32.00 | $52.00
Title Insurance $24.00 | $15.00 | $39.00
Total New Tax: $2,037.25
(1) CMHC premium of 2.75% for mortgage with a 5% down payment on a $300,000+ home.
(2) Consumers currently pay the 8% PST on mortgage insurance premiums.
(3) Real estate commissions are negotiable – 5% used in this example.
(4) Ministry of Finance, Public Accounts, 2007/2008.
(5) Altus Group, “Economic Impact of MLS(R) Home Sales,” June 12, 2007.
The HST Ontario Tax will add to the cost of buying and selling a resale home. Many market watchers are predicting a flurry of activity leading up to the July 1, 2010 implementation date, as buyers and sellers both try to avoid paying the tax.
How to Hook Up With a Hot Cougar Mom
So you want to know how to hook up with a hot cougar mom? Sure it can be confusing at first when you think to yourself, where am I meant to find these cougars to date and how do I go about hooking up with them?
Don’t fret guys it is easier than you think, all you need is a little help. The first thing you should know is that you don’t have to be a social butterfly to go out and find a hot cougar mom to hook up with, you can do it from the comfort of your own home. Ever heard of a little thing called online dating? Well, there are special online dating sites dedicated to bringing together young guys with older women and mostly they are free to join (sure you may want to upgrade later if you really get into it).
If you want to you can sign up to a cougar dating site for free, check it out, see if it is for you and create your profile, so that hot cougar moms can actually track you down.
If you are more of a confident and outgoing person you may wish to check out some exclusive bars, or club. Cougar moms tend to be very outgoing when it comes to flirting and tracking down their prey, so they will often frequent pubs and clubs that are favourites of football and rugby clubs. They know they can find hot young guys there. So why shouldn’t you be one of them?
Make an effort before you go out. Wear smart clothes,either a suit or something more casual depending on where you are going for the night. Dab on an expensive cologne and let your confidence exude. If you hang around in the right places it won’t be long before a hot cougar mom approaches you.
Thank You Messages To Write In Cards – Finding The Perfect Words
There are times when you need to say thanks and sometimes it can be frustrating trying to think of the right thank you messages to write in cards.
There are many websites offering standard verses and thank you messages but to save you some time I have searched around and found some of my favourite thank you messages to write in cards.
o Thank you just isn’t enough! You’re the best!
o Thank you for all you do – you are a true friend.
o Thank you much more
Than a greeting can say,
Because you were thoughtful
In such a nice way!
o This brings sincere thanks
for the lovely gift you sent.
We hope it helps to tell you
just how much it meant.
o Heartfelt Thanks…for all that you have done.
o The world’s a better place
Because of folk like you
Who take the time to do nice things
The way you always do.
o Even if every flower in the world had a voice I couldn’t send as many as it would take to say thanks enough!
If you are a keen crafter and make handmade cards it is a good idea to make up a selection of thank you cards. Once you have found a few different thank you messages to write in cards you can then add them to your handmade cards so that you have them ready in your supplies for when you need to send one.
Thank you messages to write in cards do not have to be overly sentimental and sometimes a few lines with a more humorous feel may suit the occasion better.
It important to think about what you are thanking the person for so that you can find suitable thank you messages to write. If you are sending the card to a loved one or relative something more heartfelt may be more appreciated. If it is for a colleague or a company expressing gratitude for a service they have provided then consider something more factual and detail why you are happy with the service they have provided.
Trying to come up with your own thank you messages to write in cards may be a hard task, especially if you want a verse that rhymes or are pushed for time. It is possible to have poems written for you however this can prove costly. If you really are stuck for ideas or need some inspiration then the best solution is to visit online sites that provide free thank you messages to write in cards. Finding the right words when sending a card can make all the difference. If the words fit the occasion then it really shows you have put time and effort into finding the right message.
The Truth About Stage 4 Cancer Life Expectancy
There’s no doubt that stage 4 cancer is one of the most horrible things that can happen to anyone, however, there have been contradictory articles regarding the life expectancy of a cancer at such an advanced stage. As a result, this article has been written to spell out, for once and for all, the facts about this issue.
Before I begin, let’s get one thing straight. People who are suffering from any type of stage 4 cancer have very low 5-year survival rates. This is unfortunately a fact of life as the human race has still not come up with a cure for cancer. Despite this, you should never lose hope as there have been people who survived a stage 4 cancer and lived to tell the tale. It is highly recommended that you read their tales and draw strength and inspiration from them.
I will now go through a concise analysis of the life expectancy of 3 types of cancer.
Lung Cancer
Statistics show that people with stage 4 lung cancer have a 32% chance of living for one year while only 2% live longer than 5 years. This shouldn’t be a cause for concern as that 2% means that there is still hope that you can enjoy many more years with your loved ones.
Colon Cancer
Unfortunately, there have been very few cases of people who have lived more than 5 years with stage 4 of this disease. However, with improvements in chemotherapy you can control the symptoms and prolong the life of a sufferer which could mean so much for them and their loved ones.
Bone Cancer
The good news about stage 4 bone cancer is that the 5-year survival rate is between 19 and 49 percent. That may seem encouraging but keep in mind that it depends on whether the cancer is benign or malignant.
Don’t ever forget that your chances of beating cancer or increasing stage 4 cancer life expectancy is strongly dependent on your determination and attitude throughout.
Phone, Internet, TV, Wireless…Comparing Bundled Services
This article will allow consumers to educate themselves on the best deals possible for bundled services. In the ever changing and ultra competitive world of telecom many consumers can be confused with the many different bundled plans and services most phone companies now offer. With the implementation of bundled services consumers can now have most all telecom products (phone, tv, internet, wireless) and services provided by the same company at a lower rate than having multiple service providers. This article will categorically break down plans provided by most major telecom service providers available in th US. Each provider will be rated based on blanket availability, services offered, and cost effectiveness. These are comprehensive reviews based on research and not personal experience. Phone Companies Beware this article is designed to educate consumers and provide the best possible options for telecom services.
First up AT&T The monopolizing entity of the Big 3 phone companies few can compete with the blanket availability of AT&T’s products and services worldwide. Being one of only three telecom companies that also offer wireless phone service as a part of its residential bundle which also includes its unlimited calling plan phone service, satellite TV Through Dish Network and of course the world famous ATT Yahoo DSL. Few companies can compete, but there are cheaper bundled service plans out there especially for the consumer that is not interested in cellular phone service. Here is an example of the services offered and billing for the AT&T Residential bundled services plan.
Phone Service- Order AT&T All Distance Online Select(SM) online and get unlimited local and domestic direct-dialed long distance plus great calling features.
TV Service- AT&T | DISH Network entertainment package with over 60 of America’s favorite channels. Includes local channels Plus Free DVR.
High Speed Internet- Yahoo DSL ATT,Plus, order Express online and receive 1 month FREE! (New residential DSL customers only. Bill credit applied after three months paid service. See offer details.)
Wireless Cell Phone- Cingular Nation 450 anytime minutes Cingular Wireless® plan with Rollover® Minutes, unlimited Mobile to Mobile minutes, and more. Plus get a $5/mo. discount
with qualifying AT&T services.
Bundled Plan Total Cost $130.94/mo or less!
Well Old Ma Bell Does Have A Cost Effective Money Saving Bundle With The Most Availability!
4.5/5 Stars
Next we have Qwest Communications One of the Big 3 Telecom service providers its coverage area is limited to the Western half of the states mainly the Pacific Northwest but as far as price and overall services this company by far has the best bundled package including wireless cell phone service on the market. One Negative though No free DVR here but more channels with Direct TV as opposed to ATT Dish Network, Here are the details.
Phone Service- Digital Voice: Unlimited local and long-distance calls from your home phone to anywhere in the U.S. and now Canada, anytime. PLUS, choose up to three of your favorite calling features.
TV Service- The DIRECTV® package offers 185+ channels in 100% digital quality.
High Speed Internet- Qwest Choice DSL Deluxe with MSN. Unlimited Internet access that’s up to 25 times faster than 56Kbps dial-up.
Wireless Cell Phone- 500-minute plan, free UT Starcom 7025 phone (after $10 credit on 2nd or 3rd bill, with a two-year agreement), free headset and charger, free shipping, free activation and free Unlimited Nights and Weekends Starting at 9 p.m. WHOO HOOO a FREE PHONE!
Bundled Plan Total Cost 125.96/mo
Unbeatable 5/5 stars if its available in your are choose Qwest!
Well here it is last of the Big 3 Phone companies Verizon. I’m wondering which of these companies will be around for the next 20 years with AT&T having a strangle hold on our national market. Verizon Phone company does provide some pretty stiff competition for Old Ma Bell though, Here are the details.
Phone- Verizon’s Freedom Essentials provides unlimited calls to the US and Canada as well as the main basic calling features with voicemail being FREE 1 up on AT&T.
TV Service- Same Plan as Qwest with Direct TV more channels for the money as opposed to AT&T.
High Speed Internet- DSL the cable companies sure have 1 up on DSL consumers with faster speed available but in a bundle Verizon has a pretty good plan, Connection speeds up to 3.0 Mbps, More than 80 times faster than dial-up, Three installation steps
here is the one negative with their DSL service in the bundle One-year commitment required.
Wireless- Well We’ve all heard of the network on TV and the such and Verizon Phone Company does offer wireless services as part of its bundle with 450 anytime minutes and a standard wireless plan.
Bundled Plan Total Cost 134.99-144.99/mo depending on your area.
I would have to rate them #2 amongst the Big 3 as far as services and pricing but they do have the edge on Qwest based up blanket availability.
4.5/5.0 stars
Now we go on to the cable companies that have also submitted their bids for your telephone service as well first up we have Comcast Cable Company. Well if you are truly dedicated to cable TV and internet if available in your area Comcast Cable Company is the way to go all necessary equipment is Free after mail in rebates and services are exceptional based on consumer reviews online. Here are the details.
Phone- Unlimited local and long distance in the US (excluding Alaska and Hawaii) and Canada from one provider. One bill for local and long distance. Keep your current phone number (subject to some restrictions).
TV Service- Over a hundred channels, plus local channels. Digital quality picture and sound. Parental Controls and an Interactive Program Guide Movies and shows you can start on your schedule with Comcast OnDemand – many included at no cost.
High Speed Internet- Comcast Highspeed Cable Internet, Speeds up to 3Mbps and a reliable connection. Anti-virus and firewall software, spam filtering and parental controls included. Always connected, no dial-up required. Up to 10 email boxes and extra storage FREE MODEM NO LEASING FEE AFTER REBATE!
With no wireless service available as part of the bundle I still have to give the Cable edge to Comcast with So many cash back offers on signup!
Bundled Plan Total Cost 99.00/mo
Next Up Charter Communications, the reviews are in some good some bad and well some just plain indifferent. Charter Communication Cable…Cable TV’s answer to the Big 3 phone companies (AT&T, Qwest, Verizon) and satellite tv’s quest to crush cable have assembled their own bundled telecom services package as well. Though wireless cell phone services are not offered as part of the Charter Bundle. Charter does have a few advantages that may just sway a chunk of loyal wireless consumers back to the wired world. Here are the details.
Phone- Unlimited local and long distance in the US (excluding Alaska and Hawaii) and Canada from one provider. One bill for local and long distance. Keep your current phone number (subject to some restrictions).
TV Service- Over a hundred channels, plus local channels. Digital quality picture and sound. Parental Controls and an Interactive Program Guide Movies and shows you can start on your schedule with Charter OnDemand – many included at no cost.
High Speed Internet- Charter Highspeed Cable Internet, Speeds up to 3Mbps and a reliable connection. Anti-virus and firewall software, spam filtering and parental controls included. Always connected, no dial-up required. Up to 10 email boxes and extra storage
Wireless Cell Phone- NA
Bundled Plan Total Cost 99.97/mo
On Demand is Pretty Nice and no matter what DSL users say cable is faster than DSL but with no wireless service it means I still have to look at another bill month to month. Limited availability Though. 4.0/5 stars
Last but not least Time Warner Cable Company Well While Competing in huge markets such as New York, Houston, Dallas, and San Antonio Time Warner has a bundled services package that seems to be the best for the loyal cable consumer. Still no wireless phone service but with high speed cable internet service through Road Runner and On Demand programming as well as a free DVR included in its digital Cable package it seems to be the service to outlast Charter and Comcast in the Cable Providers rank and file in our new telecom bundled services world.
Phone- It’s time for a better residential telephone service. It’s time for unlimited calling to anywhere in the US, Canada and Puerto Rico, plus popular calling features for one low “monthly” price.
TV Service- Time Warner Cable Over 250 Channels
With features like Digital Video Recorder (DVR), you can now record anything you like and watch it later, with all the control of a VCR or a DVD. You can even pause live TV. Plus On Demand
High Speed Internet- high speed cable via Road Runner. Hey Its Cable internet always on and faster than DSL.
Wireless Cell Phone- NA
Bundled Plan Total Cost 99.97/mo
Hey I had AT&T but DSL was too unreliable I now have Charter but wish I could have Time Warner
4.0/5 stars
In closing with the market as competitive as it has become for your telecom dollars finding the best bundled services package for your home or business is just a matter of educating yourself.
The History of CRM — Moving Beyond the Customer Database
Customer Relationship Management (CRM) is one of those magnificent concepts
that swept the business world in the 1990′s with the promise of forever changing
the way businesses small and large interacted with their customer bases. In the
short term, however, it proved to be an unwieldy process that was better in
theory than in practice for a variety of reasons. First among these was that it
was simply so difficult and expensive to track and keep the high volume of
records needed accurately and constantly update them.
In the last several years, however, newer software systems and advanced
tracking features have vastly improved CRM capabilities and the real promise of
CRM is becoming a reality. As the price of newer, more customizable Internet
solutions have hit the marketplace; competition has driven the prices down so
that even relatively small businesses are reaping the benefits of some custom
CRM programs.
In the beginning…
The 1980′s saw the emergence of database marketing, which was simply a catch
phrase to define the practice of setting up customer service groups to speak
individually to all of a company’s customers.
In the case of larger, key clients it was a valuable tool for keeping the
lines of communication open and tailoring service to the clients needs. In the
case of smaller clients, however, it tended to provide repetitive, survey-like
information that cluttered databases and didn’t provide much insight. As
companies began tracking database information, they realized that the bare bones
were all that was needed in most cases: what they buy regularly, what they
spend, what they do.
Advances in the 1990′s
In the 1990′s companies began to improve on Customer Relationship Management
by making it more of a two-way street. Instead of simply gathering data for
their own use, they began giving back to their customers not only in terms of
the obvious goal of improved customer service, but in incentives, gifts and
other perks for customer loyalty.
This was the beginning of the now familiar frequent flyer programs, bonus
points on credit cards and a host of other resources that are based on CRM
tracking of customer activity and spending patterns. CRM was now being used as a
way to increase sales passively as well as through active improvement of
customer service.
True CRM comes of age
Real Customer Relationship Management as it’s thought of today really began
in earnest in the early years of this century. As software companies began
releasing newer, more advanced solutions that were customizable across
industries, it became feasible to really use the information in a dynamic way.
Instead of feeding information into a static database for future reference,
CRM became a way to continuously update understanding of customer needs and
behavior. Branching of information, sub-folders, and custom tailored features
enabled companies to break down information into smaller subsets so that they
could evaluate not only concrete statistics, but information on the motivation
and reactions of customers.
The Internet provided a huge boon to the development of these huge databases
by enabling offsite information storage. Where before companies had difficulty
supporting the enormous amounts of information, the Internet provided new
possibilities and CRM took off as providers began moving toward Internet
solutions.
With the increased fluidity of these programs came a less rigid relationship
between sales, customer service and marketing. CRM enabled the development of
new strategies for more cooperative work between these different divisions
through shared information and understanding, leading to increased customer
satisfaction from order to end product.
Today, CRM is still utilized most frequently by companies that rely heavily
on two distinct features: customer service or technology. The three sectors of
business that rely most heavily on CRM — and use it to great advantage — are
financial services, a variety of high tech corporations and the
telecommunications industry.
The financial services industry in particular tracks the level of client
satisfaction and what customers are looking for in terms of changes and
personalized features. They also track changes in investment habits and spending
patterns as the economy shifts. Software specific to the industry can give
financial service providers truly impressive feedback in these areas.
Who’s in the CRM game?
About 50% of the CRM market is currently divided between five major players
in the industry: PeopleSoft, Oracle, SAP, Siebel and relative newcomer
Telemation, based on Linux and developed by an old standard, Database Solutions,
Inc.
The other half of the market falls to a variety of other players, although
Microsoft’s new emergence in the CRM market may cause a shift soon. Whether
Microsoft can capture a share of the market remains to be seen. However, their
brand-name familiarity may give them an edge with small businesses considering a
first-time CRM package.
PeopleSoft was founded in the mid-1980′s by Ken Morris and Dave
Duffield as a client-server based human resources application. In 1998,
PeopleSoft had evolved into a purely Internet based system, PeopleSoft 8.
There’s no client software to maintain and it supports over 150 applications.
PeopleSoft 8 is the brainchild of over 2,000 dedicated developers and $500
million in research and development.
PeopleSoft branched out from their original human resources platform in the
1990′s and now supports everything from customer service to supply chain
management. Its user-friendly system required minimal training is relatively
inexpensive to deploy. .
One of PeopleSoft’s major contributions to CRM was their detailed analytic
program that identifies and ranks the importance of customers based on numerous
criteria, including amount of purchase, cost of supplying them, and frequency of
service.
Oracle built a solid base of high-end customers in the late 1980′s,
then burst into national attention around 1990 when, under Tom Siebel, the
company aggressively marketed a small-to-medium business CRM solution.
Unfortunately they couldn’t follow up themselves on the incredible sales they
garnered and ran into a few years of real problems.
Oracle landed on its feet after a restructuring and their own refocusing on
customer needs and by the mid-1990′s the company was once again a leader in CRM
technologies. They continue to be one of the leaders in the enterprise
marketplace with the Oracle Customer Data Management System.
Telemation’s CRM solution is flexible and user-friendly, with a
toolkit that makes changing features and settings relatively easy. The system
also provides a quick learning environment that newcomers will appreciate. Its
uniqueness lies in that, although compatible with Windows, it was developed as a
Linux program. Will Linux be the wave of the future? We don’t know, but if it
is, Telemation’s ahead of the game.
The last few years…
In 2002, Oracle released their Global CRM in 90 Days package that promised
quick implementation of CRM throughout company offices. Offered with the package
was a set fee service for set-up and training for core business needs. .
Also in 2002 (a stellar year for CRM), SAP America’s mySAP began using a
“middleware” hub that was capable of connecting SAP systems to externals and
front and back office systems for a unified operation that links partners,
employees, process and technologies in a closed-loop function.
Siebel
consistently based its business primarily on enterprise size businesses willing
to invest millions in CRM systems, which worked for them to the tune of $2.1
billion in 2001. However, in 2002 and 2003 revenues slipped as several smaller
CRM firms joined the fray as ASP’s (Application Service Providers). These
companies, including UpShot, NetSuite and SalesNet, offered businesses CRM-style
tracking and data management without the high cost of traditional CRM start-up.
In October of 2003, Siebel launched CRM OnDemand in collaboration with IBM.
Their entry into the hosted, monthly CRM solution niche hit the marketplace with
gale force. To some of the monthly ASP’s it was a call to arms, to others it was
a sign of Siebel’s increasing confusion over brand identity and increasing loss
of market share. In a stroke of genius, Siebel acquired UpShot a few months
later to get them started and smooth their transition into the ASP market. It
was a successful move.
With Microsoft now in the game, it’s too soon to tell
what the results will be, but it seems likely that they may get some share of
small businesses that tend to buy based on familiarity and usability. ASP’s will
continue to grow in popularity as well, especially with mid-sized businesses, so
companies like NetSuite, SalesNet and Siebel’s OnDemand will thrive. CRM on the
web has come of age!
This article on the “The History of CRM” reprinted with
permission.
Copyright © 2004-2005 Evaluseek Publishing.
Windows Hosting against Linux Hosting – Which is appropriate for you?
There are literally hundreds of thousands of web hosting companies out there. Many of these companies offer both Windows hosting and Linux hosting plans. Windows plans usually cost more because of the license costs imposed by Microsoft. Knowing this, how can you know when you need Windows hosting and when Linux hosting will work just as well or better? Keep reading to find out.
Windows operating systems are found on something like 95% of all personal computers in the world. With such a total dominance, Microsoft Windows is top of mind to most new people looking for web hosting.
In the web server world though, Windows based servers are behind less than 20% of all websites on the internet. This is according to the latest web server survey from securityspace.com. By choosing a Linux hosting plan, you will find yourself in good company.
When do you have to use Windows Hosting?
1. .NET technologies including ASP.net are not available on Linux platforms. If you have a website built with Microsoft .NET technologies you will have to choose a Windows hosting plan. In fact, if you need ASP without .NET features, most Linux hosting plans do not offer support for it.
2. Access Databases are only available with a Windows hosting plan. Access runs on a Microsoft Windows platform and cannot run on a Linux Operating system.
3. MSSQL is an enterprise class database put out by Microsoft. If you need an enterprise class database there are some alternatives that run on a Linux platform but if you need Microsoft’s MSSQL database, a Windows hosting plan will have to be your choice.
4. If you are using Microsoft’s Sharepoint services like some of the Sharepoint features found in Frontpage 2003, a Windows Hosting plan is your only choice.
What is the advantage to choosing Linux Hosting?
All the major services you need to run an enterprise class website are available on Linux based systems for free. Linux, Apache, MySQL and PHP are being used together to provide the infrastructure behind some of the most traffic intensive sites on the internet.
PHP runs better on a Linux server than on a Windows server. Having said that, unless you are putting a heavy load on your PHP scripts, this will not be noticable.
In general, Linux hosting plans are at least 20% cheaper than Windows hosting plans. If you don’t need any of the features mentioned above, Linux hosting is a fine choice for your needs.
For Microsoft specific technologies, Windows hosting plans are usually your best bet. For everthing else, Linux hosting plans will usually do quite well. With the cost savings usually found with Linux hosting plans, Linux hosting is usually the right choice for you.
Do I Require a Dedicated Server?
You had many choices to make when you made the decision to start your own website. Most likely you were offered many design choices, email addresses, blogging interfaces, and e-commerce choices. Once your decision is made on everything above, it is necessary to decide about hosting and the different kinds you would like for your website. Most of the people start the computer business in a small manner and hence they would not need too much on the hosting server. A lot of people decide to go with basic or deluxe shared hosting.
The meaning of shared hosting is that many websites are being hosted on a single served. Often, this is all that is needed by a small business owner. What if your level of business increases, or if your clients assume that their information and business will be handled confidentially? Are you nervous about someone hacking into your server and causing damage on your website? Can one ensure that one’s database and server are secure from unauthorized visitors? Definitely, there is. A dedicated server is how you can be sure of this guarantee.
In contrast to other types of servers, a dedicated server is distinct. Not like a shared server that is not secure. When hosting companies get customers ready to host, the selection of shared servers is used often, hard drive space and monthly bandwidth is shared by each customer on the server. If you use this method, you can have a lot of security issues with people on that server. The complete opposite of this is a dedicated server.
The only thing on that server will be you and your website. Only you can access and use a “dedicated” server. A dedicated server would be a good idea if you are running a highly confidential website such as a banking institution, doctor’s website, high traffic ecommerce site, and anything with content-sensitive material.
Numerous banks and hospitals employ dedicated servers for hosting their sites. A dedicated server can easily be obtained by asking for one from your hosting company. Be aware, unlike shared hosting, that there can be hefty fees associated with the monthly use of a dedicated server, since you have a server for you alone. There is no other way to share your costs. In order to view the dedicated server plans that are available to meet your website hosting needs, check with your present hosting company.
There are tons of pluses regarding using designated servers. One primary advantage is its security. Now it will be impossible for someone to hack into your website. You have the rights to the server and everything that is included in that. You have maximum storage space, more bandwidth, data transfer, and above all you have your own control panel.
Most control panels use Plesk Cpanel. And with the Cpanel come the many choices in software, for instance: WordPress, PHPBB, Joomla (CMS), Drupal, Siteframe, phplinks, MySQL databases, phpAdmin, apache, and the list goes on! However, dedicated servers tend to be costly as it was previously discussed. Rather than renting shared space, often it is more cost efficient to obtain a dedicated server.
Consider all these things before you choose and then ponder over them for a while. Before making your choice to switch to a dedicated server or to stay with a shared server, decide whether or not you can risk any compromises in your website’s security. If security is not an issue as much as lots of bandwidth, then maybe you could upgrade your shared server. But if you deal with credit cards and other personal information on your site, you should really consider switching to a dedicated server hosting plan. It’s better to be safe than sorry.