Customer Management: Playing for Keeps
For all the high-tech gadgets and gizmos on the market, sometimes all a consumer goods company is looking for from its Customer Relationship Management (CRM) technology provider is a commitment to be there after the installation is complete.
That's what Sony Computer Entertainment America, the U.S. division of the maker of the popular PlayStation line of home video game consoles, found out when it recently implemented on overhaul of its field sales system.
CRM is, at its heart, all about getting to know customers and developing long-term relationships with them. However, companies that provide CRM technology don't always heed their own advice.
"There's no vested interest in the company upgrading you or offering long-term support," says Dave Fiano, director of merchandising for the PlayStation product at Sony Computer Entertainment America. "It's kind of a hit-and-run model."
Upgrade In Mind
For the past three years, Fiano's business unit had utilized a field sales system it had purchased from a third-party provider and supported internally.
Fiano described the system as a "Palm Pilot on steroids," a handheld device with a black-and-white screen and limited programming capabilities that field employees used to gather and transmit data.
However, the old system had only been fully functional for the past year, Fiano says. Still, there were continued problems, in particular with the bandwidth limitations of the system.
Technology is constantly evolving, and Sony Computer Entertainment America last year felt the time for a field sales upgrade had come, Fiano said. It brought in RW3, a CRM firm that specializes in the consumer goods industry, with the idea not to build the perfect system but, instead, developing a long-term relationship with upgrades to the system over time.
This aspect was important because in Fiano's experience the CRM product you buy is rarely the one that satisfies you in the end. Needs often change after the implementation of a new technology is complete, so it must be flexible enough that it can change to meet new demands.
"What we were looking for in a provider was someone who wasn't going to build a system and disappear," says Fiano.
Sony Computer Entertainment America's PlayStation business unit employs about 150 field merchandisers, district managers, regional directors and headquarters staff who ensure placement of PlayStation products with retail shops across the nation. About half the field merchandisers are part-time and reside in the local communities they cover. Some have terrific relationship skills but low technological competence, Fiano says.
Mixing It Up
In terms of hardware, Fiano went with a mix of the familiar and the new. Sony Computer Entertainment America's PlayStation unit selected a Fujitsu mini-PC that uses a combination of keyboard and stylus for input. The old system used a stylus for input, so keeping that option open to the field force was important, Fiano said.
The new hardware also featured color screens and more screen real estate for data display. In addition to collecting and transmitting store data from the field to headquarters, the mini-PCs are used by merchandisers that conduct in-store consumer surveys.
Caught in the Web
One of the features Fiano wanted to see in the new CRM system was Web-based technology. A Web-based platform ensures that the system is compatible with any kind of hardware running a Web browser and access the Internet, he says.
RW3's ability to get up to speed on Sony's needs and accommodate them was a big factor in the success of the project, Fiano says. It proves the importance of a back-and-forth relationship between client and customer on CRM projects.
"Technology is a big piece of it," Fiano says. "But the people factor is important."
High Mileage
For example, under the old technology, the payroll system used to report merchandiser time sheets and mileage was incorporated into the field force system, and Sony wanted to keep this feature under the new technology.
RW3's ability to make that happen was a deal maker or breaker, and the CRM provider was able to comply, Fiano said.
RW3 also made the entire process electronic, eliminating phone, fax and manual paper processes that had been prevalent under the old system. Because the merchandisers are spread over a wide geographic area, administrative efforts take up a lot of Sony's time, Fiano says.
Top of its Game
Administrative processes done in the field have to be duplicated at headquarters. However, RW3 is building a payroll system that will synchronize time and mileage data with store call data, eliminating some of the duplicate processes.
By understanding the limitations and constant evolution of CRM technology, Sony has created flexible tools to keep its sales force at the top of its game.
Dashboard Determination
RW3 is enhancing the Sony platform with a "district manager dashboard," an interface that will allow managers to access store data on merchandising, stocks and compliance and shelf space in one place. The system presents data in real time and can track the routes and activities undertaken by the field merchandising force. Data is organized geographically, so district managers see where the merchandisers are and what progress they are making with which retailers. Data can also be compared across accounts, such as comparing PlayStation shelf penetration at retail. PlayStation products account for 60 percent of the $11 billion U.S. videogame market, so Sony is constantly watching to ensure it gets its due share of shelf space for the product, Fiano says. "Seeing this data in real time gives us the ability to react in real time," Fiano says. "If you have that ability, you can improve your business. If you find out after the fact, you can't."