Third Idea Consulting

Note #1: This is not the second part of the comparison article between RightNow Technologies and Salesforce.com. I’ll write that next.

Note #2: A disclosure. As with most conferences, the host (in this case Salesforce.com) paid for my flight, lodging, a few meals, and some entertainment.

Welcome back, my friends, to the show that never ends

This year marked the 8th annual Dreamforce conference, a gathering of Salesforce.com partners, customers, and observers at the Moscone Center in San Francisco to see what the software-as-a-service pioneer is up to. This year was the largest one yet, as attendance has risen steadily with the growth of the company and its influence. when I first attended in 2005, I think there were 6,400 attendees; this year there were more than 30,000.

I’ll get this part out of the way, because it’s subjective and because I’ve said it before: Marc Benioff (the founder and CEO, for the three people reading this who didn’t know that) is a heck of a showman. Many vendor conferences are built around the idea of news and advances, but Dreamforce is always about energy and enthusiasm. There’s plenty of news here too, but the first order of business is to get the crowd fired up. The exact same company-product-service would likely not have achieved its current level of success in somebody else’s hands, because Marc knows how to play to the crowd and to the media. He also knows business and software, so it’s not like he’s just a pretty face, but he leads with his personality.

So what happened?

There were four main announcements to come out of Dreamforce ‘10, at least from Salesforce itself—the show has become too big for any one person to have a realistic hope of covering all the partners. Of the four, two were what I would call minor (changes to existing relationships or services) and two major (new ventures). We’ll hit the former first.

First thing was showing off full integration of Jigsaw, a provider of crowdsourced contact data for businesses which Salesforce acquired in April of this year for $142 million. Jigsaw was formerly a Salesforce partner, and its app integrated fairly well with Salesforce CRM, but the combined entity is a step up. Jigsaw data automatically populates the fields, so blank lines in a contact record should be a rare thing. Users can provide new or updated information to the system, so there’s no need to separately maintain it—your contact records are the world’s contact records, at least insofar as you make them public.

The second minor bit was the introduction of Chatter Free. Chatter is Salesforce’s social networking service that allows your employees to communicate in a secure Facebook-like environment. The free version is—you guessed it—free, and allows Salesforce users to invite any colleague to join whether or not they use Salesforce themselves.

Up to the majors

The previous two announcements definitely matter to Salesforce and those who use it, but the following two will be what drive speculation and interest for the next few months. Therefore, I’ll devote more space and detail to them. (What, you didn’t think I was writing a short blog, did you?)

There’s a new cloud in town, and its name is database. Database.com is a standalone open-standards database in the cloud. The PR copy says it can run on any platform, in any programming language, on any device. It’s a relational database that can swallow both structured and unstructured data, and can serve as the backbone for apps in use by many thousands of users simultaneously. And it’s secure down to individual rows.

Salesforce can claim this because database.com has been in beta for the past 11 years—it’s the productized version of the database used to power Salesforce.com itself. There’s no sense in me listing all the features it promises, so here a link to the database.com FAQ. It’s getting a push from early-adopter pricing as well: The first 100,000 records are free, as are the first 50,000 transactions per month, for up to three users (the ones who actually work with the database). After that, it’s $10/user/month, plus $10/month increments for each 100,000 records or 150,000 transactions.

You might think the big deal here is the reasonable pricing, or the fact that Salesforce is opening itself up for somebody to make a competing product using its own infrastructure. What I think is most telling is the open standards. Salesforce has resisted open source and open standards for years, claiming its own APEX development language was open enough, being similar to Java and freely available to anybody who wished to develop apps for it.

Users and critics still clamored for the option to use actual Java, or PHP, or some other open-standards development language, and now Salesforce has conceded. This means anybody can write Salesforce apps, or port existing code into it. The barrier to entry has never been lower.

[UPDATE: I've been informed by Denis Pombriant of Beagle Research Group that database.com doesn't support SQL and doesn't run on any platform other than its own servers in the cloud. This is important information which I missed, so thanks.]

Big Deal Number Two is the announcement of intent to acquire a company named Heroku for $212 million. If your first response is “So what?” then don’t feel bad—I felt the same way until I read deeper. Programming languages and development platforms aren’t my specialty, but this is big.

Heroku is the leading development platform for apps built in Ruby, the language at the heart of many popular social media cloud apps. You may have heard of some of these apps: Hulu, Twitter, and Groupon are the three easiest to pick out of the 105,000 created via Heroku.

Let me be crystal clear about the significance of these two announcements. Salesforce.com is making its own on-demand database technology—which supports its own service and everything on AppExchange—available to anybody with the smarts to type some code. It also has acquired the favorite development tool of some of the farthest-reaching social media apps in the world. In essence, Salesforce.com has just turned itself into a fire hose that sprays the future of cloud computing.

If nothing else had happened this week, this would still have been enough. I’d like to point out that it’s not all business over at Salesforce.com, and call some attention to the philanthropic efforts of the company. Marc Benioff is a firm believer in the 1/1/1 philosophy, donating one percent of Salesforce.com’s equity, time, and products/services to good causes—something that really adds up with a billion-dollar-plus organization. The current project is working with UCSF, including endowing a children’s hospital [UPDATE: I should have mentioned this was with his own money] and building a new research campus. Good stuff.

Tune in later this week (or early next, because I’m a little busy) to see part two of my message comparison between Salesforce.com and RightNow Technologies.

It has been a busy couple of weeks for followers of CRM, Social CRM, and all that goes along with it. I haven’t got my head around all of it yet, but I’ll provide a handy link-dump at the end of this post to give you some starting points. It’s good to know that even when there’s more happening than I can reasonably cover, I can always link to my friends.

I’ve just returned from BPT Partners‘ Social CRM Summit (search the hashtag #scrmsummit to see some of what went on) where I had a great time refreshing and expanding my skills. Paul Greenberg—friend, mentor, mensch—was at the helm as usual, and it never ceases to amaze me that he always has something new to say on the topic of social CRM.

I don’t want to say too much about the specifics, since this is professional development and I need to be able to sell the result of what I’ve learned instead of giving it away, but there was a lot of emphasis on usable business strategy. A few years ago, social media strategy for business amounted to, “Get involved now, because this is gonna be huge.” It was good advice in 2006, and it’s still good, but we’ve had a lot of time to refine our techniques since then. With the addition of social media monitoring and analytics, it’s possible to make a really solid business case for SCRM adoption.

Catching up with friends and meeting new ones is always a benefit at events like this. Brent Leary even showed up—the trip from his neck of the woods to ours wasn’t trivial, even if it was in the same state—to say hi and let me talk smack about his alleged free throw skills. There was an escalation, and something tells me we (along with Mike Boysen, Mitch Lieberman, and others) will be putting it on the line to shoot from the line in the near future for bragging rights. I don’t care how bad I do, since basketball is my anti-sport, but as long as I outscore Brent I’ll be happy.

A few days before heading down to Atlanta (actually Kennesaw, which is near Atlanta in the same way that Northampton is near London), RightNow Technologies held a launch event here in New York for RightNow CX. I provided a lot of my thoughts on the company’s new social platform in October, but I want to reiterate that this looks really good. While history may show that CRM got the most traction among sales professionals, today’s customer-driven social CRM has a natural starting point in customer service and support. RightNow, with its contact center pedigree, is definitely one to watch here They’ve got some great customers, including CBS Interactive, Match.com, MySpace, and Aircell (the gogoinflight people), that show off what a natural fit SCRM is when grown in contact center soil.

A few days prior to that, I took a call with Clare Dorrian of Sword Ciboodle to discuss the company’s direction and new offerings. Ciboodle is more of a traditional CRM vendor (which is fine), serving larger enterprises. It also has strength in the contact center—I love the look of Ciboodle One, its new unified agent desktop—and is further building out its work flow and Web self service capabilities to capitalize on that. I just got hold of some of Ciboodle’s customer case studies, so that should give me some fun reading over Memorial Day weekend. (That’s not as sarcastic as it sounds; I have genuine interest in some concrete examples of how the company is helping businesses.)

And now the link dump. Actually, it’s more of a shout-out to two of my friends, but since they write so much and so well, it can serve both purposes.

Denis Pombriant (previously mentioned here) has been extra-prolific with his blogging lately, with a lot of coverage from Sage Insights among other things. Wish I could’ve been there, but this is the next best thing. See all of his May content here.

Ray Wang, now of Altimeter Group, got to see what was up at SAPPHIRE 2010, the big annual SAP conference that I would also have loved to attend. He’s also been banging out a lot of news coverage, especially where acquisitions are concerned (SAP and Sybase, IBM and Sterling Commerce, Lithium and ScoutLabs, Attensity and Biz360). See his blog here.

I’ve never been the most social guy, which makes it ironic that I make my living through consulting on social media. I’ll be saying as much in my June Pint of View column for CRM magazine, but I wanted to get out in front of it with this. Social CRM and community software vendor Lithium—specifically Dr. Michael Wu, Lithium’s principal scientist of analytics—just released a study of Lithium customers that sheds light on just who participates in online communities.

Conventional wisdom states that 90 percent of online community members are passive participants, or lurkers; they monitor the content and events but don’t contribute. The next 9 percent are active participants who post and engage with some regularity. But the majority of activity in the community comes from just 1 percent of members, called hypercontributors (or grognards, to some). This is sometimes known as the 1-Percent Rule. Conventional wisdom isn’t always wise, so Wu set about putting numbers to the theory.

It’s hard to get decent data on how non-participants contribute to a community—it’s like proving an unbounded negative—so the study focuses on the top 10 percent of community contributors. Lurkers aside, it turns out that conventional wisdom is actually wise: The hypercontributors in the top 1 percent create an average of 56 percent of community content, with the rest coming from regular contributors in the next 9 percentiles.

There’s more to it than this brief outline, and I recommend reading the study results in depth. Knowing your audience is key to serving it.

As usual, my patented, trademarked, hermetically sealed and hypoallergenic live coverage of this morning’s event (Dreamforce 09) will be appearing in the Twitter stream to your right. Follow @Lager if you don’t already, and I will be adding my analysis afterward in this space.

If you’re wondering why I don’t just liveblog it here, the answer is simple: I like words, and the temptation to editorialize is much easier to manage at 140 characters a pop.

UPDATE 11:40 am PST: Tweetdeck just crapped out on me, with the “recipient not following you” error message. I’m over my limit.

11:44 am PST: Generally speaking, Salesforce Chatter looks a whole lot like Facebook. There’s also Twitter embedded. It’s a secure social business interface. I want a lot of demo time with this.

11:48 am PST: Marc is wrapping up now. Force.com has been modified so you can build collaboration apps. Chatter collaboration cloud is an attempt to change the way we work and make it more like … well, how we kill time at work when we should be working. Your coworkers are now your community, with the closer contact that implies. The biz apps, dashboards, and workflows are still there, but social networking is now built in instead of layered on.

11:53 am PST: For those of you who are worried about security, Chatter is as secure as Salesforce.com in general. You can pull in info and interactions from outside the enterprise, but I assume that once it’s there it is shielded from malfeasance.

11:55 am PST: Sales Cloud 2 is built on Chatter. Service Cloud 2 has been rebuilt for Chatter (that two rebuilds of Service Cloud). It’s all mobile capable.

12:01 pm PST: True to social form, content can be followed or broadcast automatically-you don’t have to go into a group and post to it. Your content, your apps, and your people are all talking to you. And, to judge by this demo, they’re all talking about how bad Sharepoint is.

12:04 pm PST: Demo is over, now announcing pricing. Available early 2010 in all editions of Salesforce.com and Force.com-standard in all editions. If you want to bring outsiders into Chatter, there’s a $50/user/month product. Very nice, and a welcome departure. We’ve got Jason Goldman, from the board of directors of Twitter. @goldman if you want to know.

I’ve just spent (and am still spending) a busy and informative demi-week at the RightNow Summit in lovely Colorado Springs, and I’m glad I came. Greg Gianforte and company are doing some very smart things.I’ve dinged RightNow in the past for sometimes lacking in effective media/analyst outreach, but that appears to no longer be the case, and the timing is excellent.

The reason for my enthusiasm is that RightNow’s message of customer experience is now a product and a strategy, CX. The social CRM and SaaS stars are finally in alignment, and the RightNow CX customer experience suite that Greg G. announced on Tuesday was born under those auspices. My tweets from that morning’s general session will give you some idea of what RightNow CX is all about, but I’ll summarize it here in a more coherent fashion. I’ve got to rely on text because I’m having trouble getting slides to work, but bullet lists are clear enough.

From the ground up, there are five main components of RightNow CX, each containing part of the package. RightNow CX Platform is the technology that supports the traditional CRM functions of RightNow Engage, which in turn supports the three customer experience components (Web Experience, Social Experience, and Contact Center Experience). Thus,

RightNow CX Platform

• Knowledge management
• Integration
• Mission-critical SaaS (more about this later)

RightNow Engage

• Marketing
• Voice of the Customer
• Sales
• Analytics

RightNow Web Experience

• Customer Portal (including Web self-service and mobile)
• Chat and Co-Browse
• Email Management
• Web Experience Design

RightNow Social Experience

• Support communities
• Innovation communities
• Cloud monitoring
• Social experience design

RightNow Contact Center Experience

• Phone and multichannel interaction management
• Case management
• Voice automation
• Contact center experience design (including desktop workflow, agent scripting, and contextual workspaces)

Mission-critical SaaS includes something the company is calling Invisible Updates, with elimination of downtime as the goal. The concept appears similar to Salesforce.com’s 5-minute upgrades, but RightNow is aiming for true seamlessness. It also prides itself on having always provided service level agreements with teeth—the company cuts checks for its customers when downtime exceeds what’s spelled out in the SLA. It’ll be fun to see how the two rivals stack up in this matter.

A lot of the new customer experience functionality, especially the knowledge base and Social Experience parts, are the fruit of RightNow’s acquisition of HiveLive in September of this year, followed by what must be the fastest assimilation of technology since Star Trek introduced the Borg. A six-week turnaround from acquisition to deployment was unheard of before this, as far as I know.

RightNow takes the position that customer experience is everything, and is making “ridding the world of bad experiences” its goal. The path to achieving this leads through the contact center, and recognizes the power of the customer to make or break a business no matter how good the products might be. Numbers from the 2009 Customer Experience Impact Report (commissioned by RightNow from Harris Interactive) back this up:

• 86% of consumers will never go back to a company after a bad customer experience
• 60% will always or often pay more for a better customer experience (up from 58% in 2008)
• 82% who had a bad customer experience told others about it (up from 67% in 2006)
• 53% will recommend a company to someone else because they provide outstanding service

To illustrate the potential impact of one bad experience, we were treated to one more showing of the “United Breaks Guitars” video—but with a twist, because Dave Carroll (the creator) took the stage partway through to finish out the song and give us a first-hand account of his experiences. As he finished up, he revealed what I’d call PR gold for him and RightNow: Carroll’s only option for getting to the conference was to fly United, and the airline lost his luggage. If you listen carefully, you can hear United’s market capitalization dropping even further than the $180 million attributed to the initial incident.

If RightNow CX Platform is as good as it looks, and the company is true to its word, 2010 could very well be RightNow’s year. Every single one of Greg G’s customer visits in the past three to four months (he’s done more than 300 customer visits in the past 18 months) has had social CRM as a focus—driven by the customers, pulling RightNow into the conversation. That’s encouraging to me, since I’d hate to have established a practice in a field nobody cares about.

You’ll also be glad to know that I am now officially Huge On Twitter, at least as far as the PR team from Horn Group and RightNow Technology is concerned. I hope to continue living up to the accolade.

I keep forgetting that there are other settings for San Francisco weather than, “hey, that’s really nice.”

Tuesday at Oracle Open World was the single worst climatic day I’ve ever experienced in California, and in fact the heaviest rain the state had seen since 1962. That’s right—the last time it poured like this, the LA Dodgers were still a relatively new idea, the NY Mets were truly new (and truly terrible, losing 120 games their first season), and working class people could still afford to see a baseball game. If you’re wondering why I keep referring to baseball, it’s because I’ve spent most of my time here in the company of Paul Greenberg, a fine fellow traveler who harbors a passion for America’s Pastime and a deep, uncanny lust for the NY Yankees. For better or worse, Oracle Open World + the Bronx Bombers in the postseason = associating enterprise CRM with baseball whenever Paul’s in the room.

Back to the weather: It’s fitting that the skies opened up and drenched us, because Tuesday amounted to Cloud Computing Day at the show. There are plenty of software-as-a-service (are we still calling it that?) vendors at this convention, and in fact they’ve got their own section of the show floor staked out in Moscone South, but the biggest one of all—Salesforce.com—pulled out all the stops. In addition to their sizable booth presence (not in the SaaS area) and excellent T-shirts, there’s a fleet of SFDC-liveried Mini Coopers circling the downtown area. As a special treat, Marc Benioff himself hosted a session in the nearby Yerba Buena Arts Center.

By “special,” I mean there was a massive queue of people waiting in the drenching rain, with no shelter, for a good half hour. By “treat,” I mean SFDC was giving away HD flip cameras to the first 500 attendees, which probably helps explain the queue. To be fair to myself, though, I didn’t know about the camera until after I was indoors, so my soaked-to-the-skin experience was all about seeing what Marc would have to say in Larry Ellison’s back yard.

If I’m honest, I must say that there was little news to be had at the event, at least for people who track SFDC at all closely. Marc modified his message to play better for the enterprise crowd that comes to OOW, many of whom are less interested in SaaS than his typical audience, and the demos were compelling for those who hadn’t seen them before. As always, Marc brought his considerable force of personality to bear, and made a strong case for cloud computing. He was respectful of his host (a company that has a cloud product of its own) and didn’t step on toes, though I felt the overall effect was toeing the line. SFDC makes all its bones on the cloud, whereas Oracle devotes only a relatively small amount of its efforts in that direction; to make that strong case at the show of somebody who is comparatively weak in that area is bordering on poor taste. Note that I said bordering; Marc and his team stayed classy, but controversial enough for me to point it out.

There are numerous companies here using the appearance of unrest as their marketing approach, arguably with less class. They cover a range, from businesses I’ve never heard of to Microsoft SQL Server, all taking turns on the streetcorner with placards, prisoner costumes, and the rhetoric of a World Bank protest to generate interest. It’s such a common theme this year that I wonder if there was a planning meeting with Oracle to plan it. Phrases like “Better Dead than Red” (stolen from the McCarthy era), “Encryption Shouldn’t Be a Pain in the App,” and “Stop the Spindle Swindle” are stuck in my head, though I doubt any of the associated companies will follow suit. The use of protest imagery by so many organizations dulls the effect of each, so it looks like the sort of picketing you can safely tune out.

On another note, I get a second chance to hear Larry Ellison speak this afternoon, at the 2:45 closing keynote. While it’s too late for me to redeem my Sunday failure (necessary though it was), it will help my sense of accomplishment for the week. More importantly, I get to see one of my idols. Not Larry—Roger Daltrey of The Who will be performing at tonight’s appreciation event. The headliner is Aerosmith, and we’ll also have a shot at Three Dog Night, The Wailers, and Shooter Jennings, but for me it’s all about Rog.

It’s Tuesday, thus time for Monday’s bloggery. I pretty much failed to liveblog Oracle Open World’s keynote, but at least it wasn’t through my incompetence; spotty WiFi and simultaneous Twitter overloads and outages conspired to keep me mostly silent, and the rest of the day had me on the move too much to post for you.

So many things happened Monday at oracle open world, though to be honest I think the day needed to accelerate before it got really good. The morning keynote led by Charles Phillips and Safra Catz was fairly sedate, as it felt like there was no binding force between the many segments. To be fair, I missed the Sunday night keynote due to personal burnout, so it’s entirely possible that Larry Ellison-a man I’ve never heard speak in person-really did the setting of tone last night and Monday was the start of the “business” part of the conference. Esteban Kolsky pointed out that there was an undercurrent of unrest in the room (something you never want when there are more than 10,000 people), and his tweets really captured the flow of the morning. He had much beter WiFi connectivity than I did, and seemed less affected by the problems experienced by Twitter, so I recommend checking out @ekolsky to see all the stuff I wanted to liveblog. Props to Esteban.

There were two stand-out segments, though. One was with Anthony Lye, which (and whom) I’ll come back to in a moment. The other dealt with retail, particularly “fast fashion” as implemented by H&M.

I have no use for the store or its brand, but I must say that the way H&M is using Oracle technology to change the way the apparel industry works. Any apparel business can (and should) use CRM and ERP technologies to make their purchases more efficient, but that still uses the antique method of basing inventory decisions solely on the debut of fashion “seasons” that might be nine months ahead of actual time. Fast fashion is a step beyond. Presenter Duncan Angove and an associate whose name I missed explained how H&M uses it to spot current trends and new products and act on them every month, perhaps even sooner. Combined with dashboards linked to regional maps, this means H&M can put what items will be most likely to sell well in each individual store, change out stock efficiently, and entice customers with promotions as needed to keep sales coming. Smart business and satisfied customers.

Now to Anthony Lye, who gets the other allotment of props for Monday. His part of the keynote delivered what the entire session should have done: a real tactical and strategic sense of how enterprise apps (like CRM) fit into a company’s efforts to increase efficiency and profitability, but without ever forgetting that it’s all about the customers and what you can do to make them not just content to do business with you, but happy enough from doing so that they encourage others to do the same. He didn’t stop there, either; he led two sessions later in the day that drilled even deeper into modern customer engagement strategy, and both were spot-on. His first had him and his team demonstrating how the Siebel CRM family is helping Oracle customers find their way in social CRM via cross-channel, experience-driven business practices. Very sharp. Then he put two powerhouses-Paul Greenberg and Denis Pombriant-together to discuss social CRM and cloud computing. A session with either Denis or Paul is always worth the time; both of them plus Anthony is more than most can hope for. The conversation was lively, though Anthony’s questions did seem (understandably) to support Oracle’s mostly-on-premises model. Regardless, Anthony Lye is everything Oracle needs in a CRM exec: he’s sharp, relatable, works well with the rest of his team, knows the industry, never forgets the customer, and is a pleasure to speak with. This man needs a raise.

More to come after today’s happenings, and I’ll try to post my thoughts in a more timely maner. No promises though; I still owe you my impressions of a great social CRM dinner I attended with Tealeaf last week revealing its latest customer experience survey results. Great stuff, and I want to do it justice, but I feel funny about the time delay.

The busy part has ended for the moment. Here’s what you missed—or got from somebody else, I don’t mind. For those of you who might criticize me for cramming multiple updates into one post, too bad. I want to get these things off my plate, and they’re conceptually related.

1. Salesforce.com announced updates to Service Cloud, the award-winning customer service component for its SaaS business computing environment. It’s now called Service Cloud 2, based on changes to the way it all works as the integration with InStranet has progressed. Salesforce.com fans will be glad to know that the Twitter integration is available now for free download, and tentative dates have been attached to the other two components (the knowledge base and the crowdsourced customer service).

I will tell you it’s looking very good, and I stand by my assessment of Service Cloud’s potential in the first linked article. One of the key concepts Service Cloud is built on is that a great many customers turn to the Internet for help before (or instead of) asking the vendor, and building customer service around this is going to be big for Salesforce.com. The announcement, however, is very similar to what we saw in January—if there’s one thing I can regularly ding that company for, it’s the issuance of multiple press releases for what is essentially the same news. It’s more a journalistic quibble than a complaint about their business practices—the fact remains that Salesforce.com has become a billion-dollar concern by making sure nobody forgets what they’re up to.

2. RightNow signed an agreement to acquire HiveLive, the social networking platform vendor. I’ve met and spoken with HiveLive before (though not recently enough to have had any inkling of the buyout), and I’ve got to say this is potentially an excellent move by RightNow. Greg Gianforte’s Bozeman, MT-based RightNow has always been very strong in the customer service end of CRM, and the move to community-based help environments impacts that. HiveLive’s platform is highly customizable and capable, so if all goes well RightNow will have just what it needs to make itself the go-to provider of SaaS customer service, Web self-service, and e-commerce apps.

There are a number of ifs, of course. Buying technology isn’t the same as integrating it; I’m still waiting for the Salesnet acquisition from 2006 to bear visible fruit. And I can’t say for certain where the deal came from or where it’s going, because—unlike rival Salesforce.com—RightNow tends to be very closed-mouthed about its activities, and the company doesn’t make nearly enough regular noise for its own good. (This time it’s understandable though, because certain messages need to be held until the markets close.)

Caveats aside, I think it’s a good move. I am imagining the combined product and it’s awesome. Here’s hoping there’s something to see very soon, at least by the RightNow Summit this October.

[UPDATE 9/15/2009, noonish] Regardless of what I think about RightNow having slipped a bit in the industry’s perception, the company is still doing right by its customers; Three of its implementations won Gartner/1to1 enterprise CRM awards today. Congratulations to RightNow, iRobot, Distance Minnesota, and National Cable Networks. See the release here.

3. I spent Wednesday afternoon at the live component of an Acxiom Webinar, which you can view here. David Daniels of Forrester Research was the leadoff speaker, giving a great talk about the relevancy of the messages and channels businesses use to engage customers. He was followed by Chriss Marriott, Acxiom’s global managing director and vice president, who presented his ideas on “Winning Elections in the Marketing Democracy,” a clever way of discussing the use of social CRM for marketing. It was a pretty low-key session, but informative and even inspiring. If you need a primer on the ROI of social media in marketing, you could do worse than watch the recording. David and Chris are both very engaging speakers, and the day provided me some new ideas on how to open discussions.

Right after the opening keynote at CRM Evolution ‘09, Sage North America (as represented by Larry Ritter and Ryan Zuk) gave me the lowdown on the next iteration of the venerable ACT! contact manager/CRM system. The official announcement dropped via Pitch Engine today, complete with social media integration, so I figured I’d provide my thoughts on what Sage has got going on.

I always refer to ACT! as “venerable”; it has a much nicer sound than “old,” and conveys a certain degree of respect. The product has had its ups and downs since its birth 23 years ago, but it’s hard to argue with success. A software product line that survives 20 years is rare enough, but ACT! has managed to thrive. According to Larry Ritter (senior VP and GM of Sage CRM Solutions, in case you didn’t follow the link), 2008 saw a 12 percent revenue increase year-over-year for ACT!, which is impressive given the economy and the competition. As much as we like to say that CRM needs to be in every part of a business, the fact is that many companies (especially small ones, where ACT! has most of its customers) do very well with contact management, sales force automation, and some marketing tools—which is pretty much what ACT! provides.

ACT! By Sage 2010, the new version, presents itself as a big change from previous installments. The interface is different, very clean. It reminded me of SAP’s new user interface for SME.

The redesign isn’t merely cosmetic; Sage employed keystroke-level modeling to discover how users perform tasks and made its changes based on ease and efficiency. The results give Sage something to sell against: based on seven standard activities (see below), ACT! 2010 allows 25 percent higher productivity Microsoft Dynamics CRM, and 37 percent more than Salesforce.com—figures I’m sure both companies will refute or minimize if asked. Those tasks are:

• Find information about last meeting with a contact
• Create a new contact
• Search for all contacts in a specific area
• Schedule a call
• Record notes about a contact/customer meeting
• View your work week calendar
• Mark an activity complete and schedule follow-up

Still, if that’s all you really need from CRM or contact management, Sage makes a compelling argument for its product instead of Microsoft’s or Salesforce.com’s.

The other cool thing in ACT! 2010 is the social media integration—you knew I’d be getting to this sooner or later, right? ACT!’s Web Info tab will keep you posted on a contact’s social networking profiles and updates, links their Web site to the contact record, and lets you add data feeds to the record (Hoovers, Twitter, and ESPN are the examples given). Web searches from this tab pass information back and forth between ACT! and the activity, and it’s persistent, so you can do a Google search or get travel info without leaving the screen and update the record with what you find.

Marketing isn’t forgotten in this release. It ships with several email marketing campaign templates and a campaign designer. Drip marketing—a series of touches over time—and customer surveys are two of the functions Sage showed me. Everything is tracked and reported, of course, so hot leads with high open and forward rates can be piped directly to sales when appropriate so they can schedule a call or meeting.

In a nod to the changing face of the inbox, those meetings can be sent as iCal invitations—which work in Google Calendar as well as Microsoft Outlook. It’s a minor benefit (unless you don’t use Outlook) but it’s still very nice to have.

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So that’s the product. Let’s talk about the press release. If you follow the link provided above, you’ll see that the release has social connectivity built right in. There’s a short Twitter pitch in addition to the full-length announcement. Share buttons abound. There are links to fact sheets, images, videos, tags, related news … it almost makes me feel useless. When I discussed timing with the highly media-savvy Ryan Zuk, he indicated that there was little sense in setting an embargo date because all of the information was already in the hands of Sage partners and customers because of Sage’s blogs. Fluid, free exchange of information is a beautiful thing, huh?

I’m sure there will always be press blackouts, whether for legal reasons or just because a company wants to deliver a nice surprise. But information wants to be free, so I applaud Pitch Engine for a terrific delivery format—and Sage for making use of it.

If you’re wondering why the blog has been quiet for the past few days, it’s not a question of laziness—I’ve been working. Specifically, I was at CRM Evolution 2009 in NYC (co-located with SpeechTEK 2009), experiencing my first professional conference as an independent. It was fantastic, and before I write anything else, I have to express my gratitude to the people who made it possible. David Myron (editorial director of CRM and Speech Technology) and Paul Greenberg (conference chair and all-round great guy) outdid themselves from their positions at the top. Bill Spence and Paul Johnston kept the technical side of the show running smoothly. Josh Weinberger, Jessica Tsai, Lauren McKay, and Chris Musico (the staff of CRM); Len Klie, Adam Boretz, and Eric Barkin (the staff of Speech Technology); and all the support staff of Information Today should be proud. I’m sure the staff of the Marriott Marquis Hotel deserve thanks and credit as well. I just don’t like the place as a conference venue, so it’s hard for me to be as magnanimous with my praise.

The reason you’re hearing about CRM Evolution ‘09 now, instead of during the show itself (except for my tweets, hashtag #CRMe09) is because I am not used to doing it all myself. I’ve always had access to a laptop, but I don’t own one—there was no need, and I prefer desktops for personal use. While I knew I’d need to buy one before the conferences started in mid-September, I figured that for late August I’d be able to write my reports from home after hours. Little did I realize that there would be no “after hours” for me. I was getting home so late I only had time to sleep, shower, and go back. Lesson learned.

Paul kicked the show off right with his opening keynote, “The Social Customer: Listen, Then Act.” Not surprisingly, he made an apparently bulletproof case for the power and relevance of social networking technology as applied to CRM. Some highlights:

• The most trusted source of info for customers today is other customers.
• Customers want to do business with companies that are transparent, and that understand and cater to their needs.
• Social CRM humanizes the company in the customer’s eyes, and gives the company insight into its customers.

Of course there’s much more to it than that, and I expect the transcripts and recordings of Paul’s presentation and the many conference sessions will be available before too long.

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It’s been said that trade shows and their ilk are more about meeting and greeting than about learning anything. I have sometimes felt this was true. This conference was both for me. I learned what Sage North America’s next ACT! product will be like (more about that next time), and also got a sense of what SugarCRM is planning in the near future, but most of the learning wasn’t about specific pieces of software.

• I learned how speech analytics can be leveraged in social CRM, courtesy of Steve Graff, vice president of technology and chief architect for Autonomy/eTalk.
• Bruce Temkin of Forrester Research gave a great talk on the CRM journey, teaching more about what it takes for a company to fully embrace customer experience as its chief mission.
• Michael Krigsman, ZDNet blogger, extended his coverage of IT failures to include failures in traditional and social CRM efforts, yielding a lively discussion.
• Brent Leary (CRM Essentials, CRM Playaz, biscuit fiend) unloaded tons of great info in his talk on CRM and the Socially Empowered Customer. Next to Paul’s keynote, it may have been the most eloquent discussions of the power of social CRM I’ve heard.
• Casey Coleman from the government’s General Services Administration and Bob Greenberg (CEO of consultancy G&H International Services) amazed me with examples of how government agencies are using social technology to improve information flow, especially in times of crisis.

That’s just some of what came out of this show; I missed a lot of sessions I’d otherwise have attended due to scheduling conflicts. I also learned more about my own position as a consultant and analyst in the CRM world—there were too many sharp minds around, so I couldn’t help but improve myself by talking to them. Meeting and greeting them—old friends and new, including some I’ve known for some time but never encountered face to face—gave me a serious case of the warm fuzzies.

Maybe it’s because I was working for myself instead of providing coverage for an employer, but this felt like the best trade show I’ve been to in a decade. And that’s just for a relatively small event. My head might explode at Dreamforce.