The Principles of VRM

Doc did a foundation-setting presentation yesterday at #vrm08, and clearly laid out the key principles of VRM in an easy-to-grok format. 

1. VRM provides tools for customers to manage relationships with vendors. These tools are personal. They can also be social, but they are personal first.
2. VRM tools are are customer tools. They are driven
   by the customer, and not under vendor control. Nor to they work only
   inside any one vendor’s exclusive relationship environment.
3. VRM tools relate. This means they engage vendors’ systems (e.g. CRM) in ways that work for both sides.
4. VRM tools support transaction and conversation as well as relationship.
5. With VRM, customers are the central “points of integration” for their own data.
6. With VRM, customers control their own data. They control the data they share, and the terms on which that data is shared.
7. With VRM, customers can assert many things. Among these are requests for products or services, preferences, memberships, transaction histories and terms of service.
8. There is no limit on the variety of data and data types customers can hold — and choose to share with vendors and others on grounds that the customer controls.
9. VRM turns the customer, and productive customer-vendor relationships, into platforms for many kinds of businesses.
10. VRM is based on open standards, open APIs and open code. This will support a rising tide of activity that will lift an infinite variety of business boats, and other social goods.

These principles have a number of implications.  These are:

• A free customer is more valuable than a captive one
• Markets won’t be free until customers are free
• VRM tools are personal tools — they benefit the individual first
• VRM tools provide individuals with ways to manage relationships
• The individual is the central point of integration

There are more; here’s the video (for the folks reading on RSS).  The video is also embedded below.  Take a look.

(Thanks to Tom Guarriello for shooting this!)