Thursday, November 13, 2008

Customer-Facing CRM Systems Could Change Retail Experiences

The idea of customer-facing CRM systems isn't new. Anyone who has booked a ticket on an airline's website or set preferences for their online banking has experienced at least a basic CRM application. And, for the past few years, many companies have wrestled with translating the copious amounts of data they have collected on customers into the kind of accessible system that makes shoppers feel welcome. After all, nobody likes that "Big Brother" feeling that a company is watching your every move.

So, it's with great trepidation that some retailers are moving into the realm of in-person, customer-facing CRM applications. For many companies, this kind of system might automate or enhance the role of a receptionist or a concierge.

For instance, when I got my most recent flu shot, I dropped in on one of Caremark's Minute Clinic locations. These low-cost, high volume health care facilities are located inside CVS pharmacy locations, Target stores, and other familiar retailers. Staffed by a single nurse practitioner, Minute Clinic automates the registration process for their no-appointment service by using a customer-facing CRM application hosted on a low kiosk. In about a minute, I entered my personal details and connected my health records to their national database. A few minutes later, I was on my way, and my insurance company had already settled the bill. A similar trip to the doctor's office might have resulted in an hour of forms and waiting, but the simple CRM system actually shared more information with me than I would have asked in less time than it would have taken in a traditional setting.

Customer-facing CRM systems can go deeper than appointment-based services, however. For instance, Nike extended the reach of their online customization service to many of their Niketown retail stores using a revamped version of their existing CRM application. Customers can experience an array of materials and colors, then select the elements of their personalized footwear using a special kiosk and the aid of a Nike staff member. It's an enhanced version of the online CRM system, but with the added benefit of real-time feedback and the ability to change personal information.

Now that many customers carry their own smartphones, CRM systems eliminate the need for expensive kiosks that remove customers from the flow of a store. The Body Shop recently demoed the first iteration of its own customer-facing CRM software. By connecting to customers' phones, Body Shop servers can feed product reviews, make recommendations, and even use customer purchasing records to push customized promotions that can generate impulse purchases. As retailers use customer-facing CRM systems to streamline common interactions, they can create strong word of mouth from repeat shoppers.

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