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	<title>Third Idea Consulting &#187; budget</title>
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	<link>http://www.3rd-idea.com</link>
	<description>Social CRM, branding, and customer experience</description>
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		<title>What&#8217;s the Real Value?</title>
		<link>http://www.3rd-idea.com/2010/03/whats-the-real-value/</link>
		<comments>http://www.3rd-idea.com/2010/03/whats-the-real-value/#comments</comments>
		<pubDate>Tue, 02 Mar 2010 00:52:38 +0000</pubDate>
		<dc:creator>Marshall Lager</dc:creator>
				<category><![CDATA[Opinions]]></category>
		<category><![CDATA[budget]]></category>
		<category><![CDATA[CRM]]></category>
		<category><![CDATA[Denis Pombriant]]></category>
		<category><![CDATA[insight]]></category>
		<category><![CDATA[market share]]></category>
		<category><![CDATA[Snoopy]]></category>
		<category><![CDATA[value]]></category>

		<guid isPermaLink="false">http://www.3rd-idea.com/?p=285</guid>
		<description><![CDATA[It's important for us to stay current with the best thinking in the CRM industry, which is why I try to read the output of my friends and colleagues as much as possible. I ran across this excellent piece of opinionizing by Denis Pombriant, founder and principal analyst of Beagle Research Group.]]></description>
			<content:encoded><![CDATA[<p>It&#8217;s important for us to stay current with the best thinking in the CRM industry, which is why I try to read the output of my friends and colleagues as much as possible. After falling behind a bit—there&#8217;s a lot out there that my blogroll doesn&#8217;t cover, must update—I ran across <a href="http://denispombriant.wordpress.com/" target="_blank">this excellent piece of opinionizing</a> by Denis Pombriant, founder and principal analyst of <a href="http://beagleresearch.com/" target="_blank">Beagle Research Group</a>.</p>
<p>Denis is without a doubt the world&#8217;s second smartest beagle. (Sorry man—I have a long-standing loyalty to <a href="http://comics.com/peanuts/" target="_blank">Snoopy</a>.) Clear thinking and the ability to look at the long-term effects of short-term actions make him a great source, and if I have nothing useful to say, I can always direct people to him. As usual, he&#8217;s spot on with his comments, so I&#8217;ll only add a few thoughts.</p>
<p>When Denis writes, &#8220;Too often in early markets customers buy market leading products regardless of their merits and vendors accommodate this need by bragging about market share,&#8221; he shows how eager so many of us are to follow the herd. Basing a business operations decision like CRM on market share is the grownup&#8217;s version of &#8220;all the cool kids are doing it.&#8221; It&#8217;s fair to include measurable market share—not necessarily leading, just on the charts—as one criterion of the buying decision, but it&#8217;s something that should be graded pass/fail. I might not even include it on my list unless there&#8217;s likely to be pushback from shareholders worried about where their money is going; there&#8217;s a place for small vendors, and not just for catering to customers with tight budgets.</p>
<p>Speaking of tight budgets, there&#8217;s this: &#8220;[T]ightness in the credit markets has caused a significant amount of demand destruction and that has changed the terms of selling.&#8221; I&#8217;ve been saying it for years, but it bears repeating that it&#8217;s much more important right now to hold onto existing customers than to find new ones. If you know what you need your CRM for—and you&#8217;d better—then you have a good head start on picking your vendor criteria. Allow yourself to be guided by what will provide the customer insight to keep your regulars on the balance sheet.</p>
<p>Kudos again to Denis for rocking the smarts.</p>
<p><a href="http://www.3rd-idea.com/wp-content/uploads/2010/03/snoopy2.jpg"><img class="alignleft size-medium wp-image-289" title="snoopy2" src="http://www.3rd-idea.com/wp-content/uploads/2010/03/snoopy2-200x300.jpg" alt="Our Hero" width="200" height="300" /></a></p>
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