Kroger CRM...Kroger CRM?

Today I received a book of coupons in the mail from Kroger. Great, I get books of coupons everyday from all sorts of companies. Once I open up the actual "coupon," it's nothing more than 25 cents off something I may or may not care to purchase.

However, I noticed an interesting thing. No, not the coupons or book packaging/design. It

was actually pretty simple and bland. It was the fact that they offered me coupons for FREE store items that I have purchased many times over: carrots and cherry tomatoes. Then the rest of the book had discounted items on things relevant to my purchase history at their stores.

I'm not too clear on the inner workings of the Kroger business--but this is fantastic marketing--and it all begins with the data pulled from some sort of CRM system. They analyze my purchases and find cheap things that I like to buy. Then, they offer them to me for free--just to get me in the store. They know I'm going to buy more things (most likely) when I come in. Giving away cherry tomatoes and carrots might cost them a few bucks. The incentive to go to the store is the free items. The incentive to shop more are the coupons. The kicker is not only the relationship development (by getting great deals from them), but then the follow through when I'm actually in the store. Friendly people, pleasant environment and convenient locations. It's all one well-oiled machine and THAT is a very good reason why Kroger is a successful business.

Another firm I've seen use similar tactics is Chik-Fil-A. Whoever is behind their marketing and customer relationship is doing a fantastic job.

The main point is that we can draw lessons from companies like fast-food or grocery stores. If you can find out enough information about your customers, treat them well and offer them creative deals to make them feel special--then follow through to deliver on the expectations you created--you can create quite the customer following and quite the business.

I've heard a lot of people say something along the lines of "Well, their company is completely different than ours--so, that would never work." In the 1950's Toyota utilized an inventory technique in a Piggly Wiggly that changed their company and eventually shaped their success (Toyota Production System). We should not shy away from great marketing. It's everywhere and with a little tweaking and imagination, it can be harnessed by AEC companies anywhere and applied to their business model as a successful strategy.

SMPS Virginia hosts: "ROI: Measuring Marketing Effectiveness"

Check out the upcoming SMPS Virginia program on measuring marketing return-on-investment! $25 for members, $35 for non-members. Should be a great program and we hope to see you there!

BIM and Yankee Stadium: An Article by John Poole of Constructonomics

We're in the heart of the world series--heading back to the Big Apple, here is a very nice article from fellow blogger John Poole @ Constructonomics!

http://constructonomics.blogspot.com/2009/11/yankee-stadium-product-of-bim.html

SMPS Virginia hosts: How to Effectively Utilize your CRM for Business Development

This past Tuesday, the SMPS Virginia chapter hosted an event entitled, "How to Effectively Utilize your CRM for Business Development." This program included Marilyn Liebrenz-Himes, a professor from George Washington University and Sharon Asgari, President of Act Technology Services.

The session began with Marilyn's introduction to an industry-specific study conducted by the School of Business at GW University. In that study, there were some disturbing numbers uncovered:

• 10% of the survey sample was utilizing CRM to its potential
• 38% of the survey sample had a CRM system that was not being used
• 8% of the survey sample had abandoned the system altogether
• 44% of the survey sample never had a CRM system

Granted, this was a regional sample and not national, however, there is a disturbing trend here: 82% of firms sampled were not using a CRM system to its potential.

That said, because CRM is all about customer relationship management, what does that mean for the Client? What kind of service--and more importantly value--are they receiving?

We know that its harder to win new clients than to keep existing ones. So, one can easily see how profit margins could be hurt when a company is under-utilizing its CRM and forced to spend money winning new clients. And when 82% of firms are doing this, it's easy to see how margins are so low across the industry. I'm not saying this is the only cause, but it certainly does not help.

The sad thing is, how many people will look at these numbers and think, "That really doesn't suprise me."

Wolfram Alpha: A Neat Tool

I recently read about a new search engine released this summer named Wolfram Alpha. Very neat tool. At first I was a little skeptical. But after toying around with it a little I can see its benefit over an alternate (like Google, Bing, etc.) Wolfram Alpha gives you results immediatlely on the same page--without having to sift through a number of separate webpages and links to find it.

Access to information like this can be helpful when looking up specific information...such as "what is the 10th largest country by population in the world" or even specialized computations like "incompressible potential flow around a cylinder".

Google killer? Probably not. But useful tool? Definitely. Wolfram Alpha is only in its infancy stage. It's database is built internally and supposedly uses little "web" information. As it's databases knowledge, data and calculations grow over time--this useful tool could become one heckuva piece of heavy machinery--with industry applications from marketing research assistance to structural engineering calculations.

Check out the tutorial here. Potential applications are examined and search methods demonstrated by the Founder, Stephen Wolfram.

SMPS Virginia "Meet the Press" Event, September 15th from 10:30-1:00

SMPS Virginia is hosting a "Meet the Press" event in Williamsburg, VA from 10:30-1pm on Tuesday, September 15, 2009.

We've assembled a Q+A panel of Virginia media experts (representing Richmond Times, Commonwealth Contractor, Virginia Engineer, Touch Points PR, Managing Communications Consulting) who will be speaking about how to get press and manage your public relations!

Great topic for managers, coordinators or even principals of smaller firms.

Cost appropriate at 25$/$35 which includes lunch.

Find out more here.

Follow the Money: Which Companies Spent the Most Q2 Capital

Yes, there are companies out there spending money. You just have to do a little digging. Once you've found what you're looking for, it's simply a matter of matching priorities, using public information and contacting the right players.

For instance, let's say you know a tech company big in R+D is starting to open the funnel a little. Well, perhaps they're looking at developing or relocating to a new market. Perhaps they're looking to build a new facility or renovate an existing space.

This type of information and a little strategic thinking can get you positioned correctly for your next contract. But it all starts with (of course) money.

Here's a list of some S&P 100s whose capital expenditures are up over the second quarter:

Altria - $69 M

Hewlett-Packard - $1,091 M

Merck - $365 M

Wal-Mart - $3,137 M

American Express - $246 M

HJ Heinz - $49 M

Amazon.com - $78 M

Entergy - $491 M