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The Real ROI of Collaboration: Kroma MakeUp

If you didn’t catch the Verizon and Cisco-sponsored research study this week about the return-on-investment of collaboration technologies, you might want to take a peek.

The study, conducted by Frost & Sullivan, found that businesses and government agencies deploying sophisticated collaboration tools saw a corresponding improvement in business results relative to the amount invested. It further indicated that 80 percent of organizations that have not deployed such tools plan to deploy some form of them in the next two to three years.

Wow. 80%. That’s huge.   

As I delved deeper for examples of how and where those businesses and governments were achieving their ROI, a colleague in our Small Business group brought a fantastic example of the collaboration effect in action to my attention via BusinessWeek’s Small Business section .

As BusinessWeek reports: “Christopher Tillett, CEO of Kroma Makeup (a Cisco customer), had a marketing problem: To reach buyers for his high-end, custom-blended cosmetics, he was sending out about 200 sample kits a year….at a cost of $10,000….with a hit rate of only 10%.”

If you read the full story, you’ll get the picture on how Cisco Webex and the Cisco Smart Business Communications System stepped in to lend Tillett a hand with his marketing problem.

However, if you’re a small business owner yourself, we know you likely won’t have time to read the article, so feel free to get the quick version via the video below!

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22 Comments.


  1. Hey,Great post. I kinda stumbled upon your blog and now I’ve added it to my bookmarks. Interesting stuff.Best,Micah

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  2. Very interesting Post .. it is really unbelievable 80 % is a huge number.

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  3. Do you believe that video conferencing will replace meeting the customers face to face? If so will this be better or worse for the industry? Thanks for your time and effort.

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  4. It’s no surprise that they were able to save financially. The cost of traveling to do business is increasing, while conferencing technology helps lower that cost. I must say that 80% seems surprisingly high. It must mean that these government organizations are finally figuring out how to save.

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  5. Our customers increasingly are turning to us for consulting, design and implementation services to make the most of their IP connections as a platform for advanced collaboration. Our expert UC&C professional services capabilities combined with our comprehensive solutions portfolio can help organizations embrace this new work style and mobilize their workforce for a competitive advantage.

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  6. This is really interesting post. As a new blogger I have learn lot from your blog. Thank you.

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  7. As BusinessWeek reports: “Christopher Tillett, CEO of Kroma Makeup (a Cisco customer), had a marketing problem: To reach buyers for his high-end, custom-blended cosmetics, he was sending out about 200 sample kits a year…

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  8. Well explained elaboration of ROI. yes, 80% is a real huge shocking figure.

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  9. Wow, 80% is a hube number, but I doubt the source of this number. It looks too high.Most of all, management of a company is the key of success, not a tool, I believe. coupons

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  10. The part about the samples is what caught my eye. Our per piece cost is nowhere near that high but when the costs of shipping are factored in they are pretty significant. This type of collaboration would work and could potentially save a tremendous amount of money. I’m not aware of anyone in the industry that is doing it yet. It is something we may attempt to roll out on some items in 2010 as a vendor-suppler-end user type collaboration.

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  11. Thanks for sharing wonderful service for small business guys like us!!Grass

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  12. Thanks a lot for posting this, definitely worth reading. I’d appreciate watching more videos similar to this one.

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  13. very interesting video. i have learned a lot by watching that video and by reading into your posts.

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  14. Very informative article, 80%! I can’t stop believe it.Will bookmark this site now.

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  15. Great read.One thing that caught my attention:As BusinessWeek reports: “Christopher Tillett, CEO of Kroma Makeup (a Cisco customer), had a marketing problem: To reach buyers for his high-end, custom-blended cosmetics, he was sending out about 200 sample kits a year….at a cost of $10,000….with a hit rate of only 10%.”Thats ridiculous!

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  16. Yes, I believe it can help to make stronger relationship between the company and clients. I have positive experience with video calls with some long-term clients.

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  17. Nice blog, I am looking forward for what cisco have to say! It really does not surprise me to hear that over 80% of businesses have not applied the correct methods to achieving their ROI. I worked with a marketing agency who signed multi million pound deals, yet their online division was a total joke!

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  18. collaboration technologies is obviously he big thing”” of tomorrow. Interesting read!”

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  19. that’s a great number.. indeed it was agreat post

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  20. i watch the video,but i like more the post :) thx for the info

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  21. I agree. I have not read the research, but 80% is fantastic number … Many small business think short term …

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  22. Set your own life time more easy take the personal loans and all you need.”

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