The Next Generation of Contact Management Software

Do you use an electronic contact manager?Mostservices might be useful for the user -- but are not
people who work in a field that depends onso useful for the recipient of the "update your
relationships -- salespeople, recruiters, andcontact information" request. As the centralized
consultants, for example -- do. People in thosenature of some of these become known, people will
professions are starting to use social networkbe even more reluctant to send their contact data
software, but the primary portal through which theyoff across the Internet.Q: But a lot of people already
view their relationships today is their contacthave. How can people better manage the rolling flow
manager and their email program.We recently had theof commitments that our contact management
chance to talk with Greg Head, former generalsoftware, our to-do list, and our email clients all
manager of Best Software's ACT! division, about thegenerate?Head: The majority of salespeople and
future of contact management software -- and thebusinesspeople are still fighting the first phase of this
convergence with customer relationship managementbattle: just tracking all of their follow-up and project
(CRM) and social networking tools. Head has morecommitments in a reliable system. Contact managers
than 15 years in the CRM industry, including roles asprovide the tools, but the habit of tracking all
VP of marketing and, later, VP of international salescommitments and managing them effectively can be
for SalesLogix. Currently, ACT! has approximately 2different for each person. People should start with
million individual users and 16,000 corporatethe principle that you will meet all of your
customers, making it the market share leader for itscommitments -- and then make sure you have put
category. Head estimates that 60-70% ofaside the time to manage these activities.
businesspeople use some sort of electronic list ofIt is illogical and inconvenient that all of the
their contacts, even if it is as simple as an Excel file.thousands of people in your personal network have a
Here are some of the highlights from our discussion:separate, and often contradictory copy of your
Q: What will contact management software look likecell-phone number, email address, and so on. You
five years from now? In particular, how will itwere the original source of that data, and ideally, you
integrate with social network software?Greg Head:should be able to update everyone automatically. We
Contact management software will always betry to provide the people we know and work with,
centered around a database of contact informationwith a lifetime email address (such as a university's
that tracks basic name, addresses, and other data --forwarding address). And we ask other people for
combined with powerful methods of managingtheir personal and permanent email addresses. If you
countless commitments and a history of allhave that information, you can always get back in
relationships. That said, we will be doing more contacttouch with someone. Social networking sites can also
management activities using an Internet browser oroffer an additional communication channel for staying
PDA phone, as opposed to just Windows applications.in contact; people are more motivated to keep their
These new methods will allow more integration toinformation up to date because there's additional
the phone and to Web services that can integratevalue from the social networking service.Contact
into contact managers -- to scrub addresses, tomanagement software, then, provides a
integrate with accounting applications, or to shareone-dimensional view of your network: you can only
your relationship data with others.Q: Andrewsee whom you know. Social network software can
Weinreich, the founder of SixDegrees, and otherprovide an n-dimensional view of your network, with
industry leaders have observed that social networka new dimension for every person in the network.
software should be part of the "operating system"While this may seem simple conceptually, it is very
of your software. Do you agree?Head: Certainly.powerful in practical application. We fully expect a
Social networking software should evolve to becometighter integration of these two views to emerge.
more integrated with the everyday tools people useOne thing's for sure: Your contact management
to manage relationship information and communicatesoftware will likely include much greater integration
with others. It's a natural evolution of very usefulwith social network data two years from now than it
software -- it can't stand alone for long.Q: Eventually,does today.David Teten and Scott Allen are
social network software might underlie everythingcoauthors of The Virtual Handshake: Opening Doors
from the purchasing we do on Amazon to theand Closing Deals Online, the first business guide to
searches we do on your corporate file network.sales, recruiting, and business acceleration with online
What happens when Microsoft integrates socialnetworks, and joint contributors to resource site.
networking into Outlook? Or even directly intoThey write a monthly column about online networks
Windows?Head: I may be a little biased in this regard,for FastCompany.com, where this article originally
but I think that Microsoft will have to make someappeared.David Teten is CEO of Nitron Advisors, an
fundamental changes to develop the level of trustinvestment research firm which provides institutional
that is required for people to track, share, andinvestors and law firms with direct access to frontline
leverage social network information in aindustry experts. To participate in paid consulting
Microsoft-hosted world. In fact, even centralizedopportunities, join Nitron's Circle of Experts. Scott
public directory services such as Plaxo might not beAllen is the Entrepreneurs Guide, providing free
able to meet every users' needs because ofresources and guidance to help entrepreneurs as
concerns with privacy and inconvenience. Thesethey start and grow their business.