LexisNexis

CRM is "Killer App" in Corporate Social Networking Shakeout

Firms achieving high ROI through Relationship Capital Management

OAK BROOK (IL) 3 August, 2004: Interface Software announced today that businesses are achieving significant ROI by investing in CRM solutions that provide built-in corporate social networking functionality. Customers deploying Interface Software's InterAction® CRM solution for relationship capital management report that the system has facilitated new client wins resulting in millions of dollars in additional revenue.

"Simply knowing about a relationship is not enough," said Ed Schechter, chief marketing officer for the Philadelphia-based law firm of Duane Morris. "In order to act on that information you need access to background intelligence and context that only a CRM solution can provide. That's one reason we opted for a strategic business solution like InterAction over tactical social networking products."

Duane Morris attributes several lucrative new client wins to InterAction's ability to uncover key relationships and provide background context essential to helping business development teams strategize effectively. In one instance, the firm sought to increase the work it does for a large international utility. A "Who Knows Whom" query within InterAction revealed the existence of several relationships, including a discovery that the brother-in-law of one of the firm's attorneys worked for the utility. Through these connections the firm was able to schedule meetings with the relevant parties, which may lead to an expansion of the firm's work for this utility.

"People do business with people they know and trust," said Ed Schechter, Duane Morris' chief marketing officer. According to Schechter, social networking functionality can turn a cold lead warm. "But the context and background data offered by InterAction can turn a warm lead hot."

For instance, by leveraging InterAction, Duane Morris' business development team discovered that a new partner within the firm had scheduled a meeting with a large pharmaceutical prospect's general counsel. This advance knowledge allowed the team to brief the partner with important background concerning the firm's history with the prospect. Duane Morris not only won the legal engagement, but also became the sole source legal provider in this practice to the pharmaceutical company. "I don't know if this would have happened without access to the relationship intelligence in InterAction," said Schechter.

Indeed, relationship capital management goes far beyond simply revealing who knows whom, but affords users the ability to uncover individuals that might be influential in a sales cycle based on an entire range of relationship criterion.

For instance, the Chicago-based law firm of Much Shelist Freed Denenberg Ament & Rubenstein, PC, leveraged InterAction in its preparation for pitching a major prospective corporate client. InterAction revealed that the firm had represented four other companies in the same industry as the prospect, of which the team had been unaware. This enabled Much Shelist to craft a tailored proposal based on the capabilities uncovered by InterAction, and to reference key industry players during its presentation.

"InterAction delivered intelligence on key industry relationships we possessed that were critical in this business development situation," said Dan Liutikas, an attorney at the firm. "We were retained for this matter and now we have our foot in the door at this client, which likely will result in considerable business in the future."

Beyond direct sales assistance, organizations have also successfully used InterAction's relationship capital management capabilities to increase the effectiveness of more traditional marketing programs. When the Boston-based accounting firm, Vitale, Caturano & Company PC, sought to expand its presence among large regional corporations, the firm purchased a list of public companies based in New England, which it then imported into InterAction.

The marketing team queried the system and determined that partners had existing relationships with fifty percent of the 200 CEOs on the new prospect list. A high-end mailing piece was sent to each of those 200 CEOs, along with a personal note by the internal relationship holder. "The results were phenomenal," said Jill Hulsen, Vitale Caturano's director of marketing. "Twenty-three of those two hundred companies we mailed to have since become clients, with resulting revenues in excess of $5 million," she added. "We could never have expected results like this from a mailer without the advantage of knowing about those personal relationships in advance."

"With more than four hundred customers worldwide, Interface Software has distinguished itself as the only provider in this technology sector with a profitable business model capable of delivering sustained ROI to companies," said Nathan Fineberg, Interface Software's president and CEO. "By combining CRM and social networking, InterAction is the only business solution actually delivering on the vision of relationship capital management — empowering corporations to transform who and what they know into a strategic capital asset."

About Interface Software
Interface Software is the leading provider of CRM solutions enabling professional services firms and similar relationship-based organizations to create the Relationship Intelligence they need to generate new business and enhance client service. Its flagship product, InterAction, is a flexible and uniquely designed platform that delivers this Relationship Intelligence throughout the organization, quickly, efficiently and cost-effectively. Relationship Intelligence is a firm-wide asset that reveals the unique and complex connections between people, companies, relationships, experience and expertise, empowering professionals to leverage who and what they know to uncover new revenue opportunities, differentiate themselves from the competition and enhance client service. InterAction is internet-enabled, allowing professionals to view information however they choose—through knowledge management platforms, corporate portals, intranets, extranets and wireless devices. Interface Software has received numerous accolades, including the Inc 500, the Deloitte & Touche Technology Fast 50 for Greater Chicagoland, the Deloitte & Touche Technology Fast 500 and the Upside Hot 100. For more information please visit Interface Software's website at http://www.interaction.com.

 
Take Action:

Request Information
Call +1.888.572.1400 for more info
E-mail this page
Add me to the Newsflash news distribution service
 

InterAction, InterAction Opportunities, InterAction Matters, InterAction Engagements, Watch List, Who Knows Whom and Relationship Map are trademarks of Interface Software, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.