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October 18, 1999 Customer-Relationship Management:Culture Can Make A Difference
In this week's cover story ("Why Siebel Matters"), senior editor Jeff Sweat takes a look inside Siebel and its customers to find out how the company has created technology that customers depend on, engendered envy among its competitors, and fostered a unique corporate culture.
Nestled in a Silicon Valley community that has established a seemingly laid-back, yet intense, work environment as the new corporate standard, Tom Siebel prides himself on his company's more-traditional, buttoned-down approach. It involves suits for customer meetings, conference rooms named after customers, and artwork from customers adorning the office walls. But, more important, the company compensates salespeople not just by the size of a deal, but by customer satisfaction. It surveys customers every month and posts results for everyone in the company to see.
Over the past several years, Siebel has attempted to turn one-dimensional sales-force automation software into a way to build relationships with customers and maintain their loyalty. This kind of customer-relationship management software is crucial for businesses that are trying to link value chains and seek out customer-driven business opportunities. Companies such as Marriott and Ford count on CRM software to better understand their customers' needs.
Of course, Siebel isn't the only company trying to get a piece of the action. In our story "Front-Office Shake-Up," you'll get the inside story on PeopleSoft's acquisition of CRM vendor Vantive Corp. PeopleSoft and other enterprise resource planning companies are trying to alter the face of CRM by more tightly linking front-end customer applications with back-office systems such as order fulfillment and logistics. Such a move could give customers one application for managing employees, customers, and suppliers, says PeopleSoft CEO Craig Conway.
All the players in the CRM market have strengths and weaknesses. The good news for companies that are putting customers at the core of their business is that options are growing. The face you put on for your customer could be the difference between customer problems and customer loyalty.
STEPHANIE STAHL
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hat is it that has allowed Siebel Systems to knock on the door of the billion-dollar club and to become one of the most important vendors in the white-hot customer relationship management market? Superior products? Competitive pricing? Bold advertising? A cutthroat sales team? There's probably some of each of these characteristics behind the company's surge in the CRM market. But Siebel's position also reflects the power that culture can have on a company's ability to succeed. Siebel embodies the kind of customer intimacy that its software is designed to provide for its customers' customers.