four steps to crm success - fbconsult.ru · 9 17 tactical vs. strategic crm benefits copyright 2005...

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8 15 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. Four Steps to CRM Success 16 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. Four Factors Drive 72% of Success Customer-centric strategy Frontline training and support Organizational change Goals measured statistically Source: CRMGuru

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Page 1: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

8

15

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Four Steps to

CRM Success

16

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Four Factors Drive 72% of Success

Customer-centric strategy

Frontline training and support

Organizational change

Goals measured statistically

Source: CRMGuru

Page 2: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

9

17

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Is your strategy driven by your senior executives,

with front-line managers participating?

Was your strategy developed based on customer

research and experience?

Did you start from the buyers perspective, then

develop the seller’s response?

Does your strategy focus on reducing customer

attrition, increasing share of wallet and referrals?

Does your strategy create value for customers and

improve their satisfaction with your company?

Step 1: Develop Customer-Centric Strategies

18

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Have you modified job responsibilities and training

around customer needs?

Do performance measures and employee rewards

encourage customer-centric behavior?

Do you have sufficient change management

supporting this transformation?

Are senior executive leading the redesign of roles

around customers and segments?

Step 2: Re-design Roles and Responsibilities

Page 3: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

10

19

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Are functional and front-line managers leading, with

front-line personnel participating?

Are you carrying out comprehensive data mapping of

all information associated with a customer?

Are you re-mapping information flows following your

customer-centric strategy?

Have you found process improvements without new

technology investment?

Step 3: Re-Engineer Work Processes

20

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Are IT managers working closely with functional

managers and front-line staff?

Is there sufficient quality and depth of business

analysis and program management?

Is there equal focus going into low-tech CRM

solutions as there is into high-tech?

Have you seen quick, early deliverables demonstrate

great customer experience and positive ROI?

Are business managers enthusiastic for planned new

CRM systems?

Step 4: Implement Supporting Technology

Page 4: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

11

21

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Role of CRM

Technology

22

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

CRM spending is trending up…

Major Increase 19%

Some Increase 51%

No Change 19%

Some Decline 4%

Major Decline 1%

No Opinion 6%

Source: CRMGuru Online Survey, 2004

70%

5%

Page 5: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

12

23

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

…and technology continues to evolve

CRM Maturity

Po

ten

tia

l C

om

peti

tive

Ad

va

nta

ge

LowHigh

Automate

Streamline internal sales and service processes.

More of the same, done faster and cheaper.

SFA, Call Center

Single

Channel

Collaborate

Engage customers and partners for win/win/win

Enable many-to-many relationship networks

C-Biz Solutions

Collaborative

Network

Innovate

Design different, more effective processes

Use new channels and customer touch points

eCRM, PRM

Multi-

Channel

High

24

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Management and people issues continue

to outweigh technology challenges

0% 10% 20% 30% 40% 50% 60%

Other

Selecting service providers

Selecting software vendors

Training end users

Executive buy-in

Understanding IT trends

Integration to legacy apps

Customer data bases

Process redesign

Customer-based metrics

Organization change

Strategy and planning

ManagementPeopleTechnology

Page 6: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

13

25

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

When CRM Doesn’t Work, Why Not?

It’s not about Customers

Ensure customers will perceive value

It’s not about Relationships

Relationships are two-way streets

It’s not about Management

You can’t manage what you don’t measure

26

Tactical vs. Strategic CRM BenefitsCopyright 2005 CustomerThink Corporation. All Rights Reserved.

Thank You!

Bob Thompson

CEO, CustomerThink Corp

Founder, CRMGuru.com

[email protected]

650-343-8529

Page 7: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

CRM Guru &

Andrey Pavlov

Russian CRM Guru & General Director, FB Consult

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Page 22: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 23: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 24: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 33: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 37: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 40: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

,

,

Olga Sabinina

Director IT & Telco, Kontakt Recruitment Agency

Page 41: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

1

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Page 42: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 43: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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Page 44: Four Steps to CRM Success - fbconsult.ru · 9 17 Tactical vs. Strategic CRM Benefits Copyright 2005 CustomerThink Corporation. All Rights Reserved. ¾Is your strategy driven by your

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5

,

,

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6

CRM

CRM HR-

CRM - :

,

«

»,

« »

[email protected]. (7 095) 956 9159

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1

Human Resources Management

changes as an essential part of

any successful CRM strategy

implementationOlga Sabinina

Partner,

IT & Telecom Recruitment Manager

AGENTSTVO KONTAKT

[email protected]

tel. (7 095) 956 9159

Why HR consultants are involved in CRM

implementation?

Traditional CRM implementation

Successful CRM implementation

customers

front line personnel

middle-

management

topmanagement

bu

sin

ess

pro

ce

sses

CR

M

bu

sin

ess

pro

ce

sses

customers

front line personnel

middle-management

topmanagement

CR

M

bu

sin

ess

pro

ce

sses

bu

sin

ess

pro

ce

sses

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2

TIME

«

»

Easy to get a small result Hard work without visible results

Maximum results with relevant efforts

RESULTS

EFFORTS

Critical stages

Who really manage your relationships with

your customers?

CRM SYSTEM PROVIDER

YOUR WEB-SITE DESIGNER

CALL-CENTRE OPERATOR

CUSTOMER

? ??

?

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3

Who we are?

More than 14 years experience in recruitment in Russia

A unique team of successful and professional consultants experienced in IT recruitment since 1996

Up to 80% of revenue we receive from our permanent customers

Our clients are multinational market leaders in IT and Telecom industry operating in Moscow

We are rated among the top 5 leading recruitment companies in Russia

RE

STR

UC

TU

RIN

G

RE

CR

UIT

ME

NT

IND

UC

TIO

N

PR

OG

RA

M

TR

AIN

ING

&

DE

VE

LO

PM

EN

T

PE

RF

OR

MA

NC

E

MA

NA

GE

ME

NT

MO

TIV

ATIO

N

CA

RE

ER

PLA

NN

ING

CRMCRM

Our customers are industrial leaders. Most of them have passed

through CRM implementation

CRM + HRM

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4

Key competences profile changes

0

1

2

3

4

5Decision Making

Influence

Analytical skills

Communication skills

Business skills

Innovation

Strategic thinking Planning

Motivate/Develop people

Change management

Stability

Team work

Make things happen

Required for the position Candidate competences

Management by objectives (MBO)

Key Performance Indicators (KPI), which reflect to the organizational goals

Performance based compensation & benefits system

Personnel Relationships Management

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5

Former employees relationships

management

APPLICANTS

TARGET

CUSTOMERS

INVESTORS EMPLOYEES

CUSTOMERS

PARTNERS

STATE

APPLICANTS

TARGET

CUSTOMERS

INVESTORS EMPLOYEES

CUSTOMERS

PARTNERS

STATE

Users

Providers

Holders Administrators

DATA

Information workflow

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6

Successful CRM implementation

CRM Strategy HRM

Strategy

Require the HRM transformation

CRM implementation:

Influence to all level of the company management and employees

Olga Sabinina

Partner,

IT & Telecom Recruitment Manager

AGENTSTVO KONTAKT

[email protected]

tel. (7 095) 956 9159

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- , CRM-

Elena Ponomareva

Commercial Director, Sky Link and Vice-President, CRM

Association

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1

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Customer CentricityCRM Fundamentals & Practices

CRM AssociationElena Ponomareva, VP, CRM Association

Vladimir Dimitroff, Director, PRISM Consulting

Moscow - 2005

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Why Focus on Customers?

The 3D View – Three Dimensions of Competitiveness

Product Excellence

Operational Efficiency Customer Intimacy

- All three are important, but you can only excel in one –and should choose your focus.

- Competitive edge based on cost (and price competition) is not sustainable in the long term.

- Product leadership is short-lived, too. Technology moves fast and even products that are not overtaken are easily replicated (copied).

- Customer centricity is about long-term relationships, therefore provides sustainable advantages.

- It also results in added competitiveness in the other two dimensions

see Treacy & Winselma: ‘The Discipline of Market Leaders’

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2

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Market share vs. share of customer

Relationship Marketing

Traditional Marketing

Cu

sto

me

r N

ee

ds

Sa

tisf

ied

Customers Reached

IncreasingReturns

Diminishing Returns

Source: Peppers and Rogers Group

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Customer value segments

Most Valuable Customers: Retain with 1to1 service.

Most Growable Customers: Grow with personalized offers.

Marginal customers: Business as usual?

Service costs

Actual value Strategic value (potential share of customer)

‘Below Zero’ Customers:

Dismiss, or?

Different Customers By Value

Source: Peppers and Rogers Group

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3

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Nu

mb

er

of C

ust

om

ers

Customer Value

CRM

Picket Fence

Mass Marketing

Highest Value Customers

Source: Peppers and Rogers Group

Where To Start Value Segmentation?

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Fundamentals:

Any business only exists if it has customers.

Customers have specific needs that have to be satisfied.

A business only exists to satisfy specific needs.

The Link to Value:

In satisfying needs a business provides value.

Products and services represent value to the one with needs (the Customer).

(see Added Value concepts in economic theory, supply/demand concepts etc.).

In the process of satisfying needs value ‘changes hands’.

(see Value Migration concept in strategy models and theories).

Why Needs?

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4

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Customer Profiles (Who they are?)

-Demographics

-Geo-demographics, Psycho-demographics

-B2B equivalent of demographics (company typology, business

classifications, vertical sectors)

Customer Behaviour (What they do?)

-Transactional (e.g. frequency and time of purchase, $ spend)

-Motivationsl (impulse, prestige, ‘planners’, ‘bargain hunters’)

-Hybrids (lifestyles)

-B2B equivalents

The World of Proxies - indirect needs indicators

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Give me … (speed, safety, confidence, a positive experience,

success-personal or corporate).

Help me to … (get to a destination, connect to a

person/organisation, enhance my life).

Save me … (time, money, hassle, risks or hazards, negative

experiences).

The 3 Question Test

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5

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

What is a loyal customer – Is there such a thing?

Loyalty - widely seen as desirable, or?

101 definitions, all fuzzy

The NFO TRI*M, the Insistence Scale and other assorted measures

How about profitability?

Scoring opportunities

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

But who are those loyal, profitable customers?

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6

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Loyalty defined (an example)

• Long tenure (duration of relationship)

• High intensity (frequency) of interactions

• Resistance to competitive offerings

• Depth of relationship

• Brand preference in all circumstances

• Evidence of advocacy, recommendations, referrals

• Active participation in company life

• High permission level, intimacy in communications/dialogue

• Participation in community building and community life

Loyal customers of a more customer centric company tend to demonstrate

behaviours that are more profitable

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

How do we manage all this?

• What software to buy? What systems to install?

• Most organizations want to “plug in” technology and hope for a miracle!

• This is the most common seed for

inevitable IT/CRM technology

failure.1

• You should focus on people and processes to ensure this does not happen!

1Source: “The ‘Real’ Silver Bullet,” Ron Meyer

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7

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Q: How do you recruit staff for your stores?

A: We hire the smile and train the skill.

* * *

Q: Who trains your sales people?

A: Their parents.

Bruce Nordstrom

CRM: A People Discipline

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

““Quote of The Year 2004Quote of The Year 2004””

break screen

If you want loyalty If you want loyalty

. . . go get a dog!. . . go get a dog!

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8

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005The link between employee engagement and customer centricity

Studies by leading research organizations* have determined that:

“70% to 80% of the factors behind

employee loyalty, productivity and

organizational goals contribute

directly to customer loyalty.”

*Source: Walker Information, Hudson Institute, Customer Retention Associates (CRA).

THE WINNING EQUATION FOR HIGHER PROFITABILITY :

EMPLOYEE ENGAGEMENT CUSTOMER LOYALTY

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005The link between employee engagement and customer centricity

THE NEW ROI : RETURN ON INDIVIDUALS

A study by the Harvard Business School* revealed that:

“Every 1 percent improvement in

employee engagement boosts

customer satisfaction by 0.5

percent.”

* Harvard Management Update, 2003 Article: Vol. 8, No. 8 August 2003

http://hbsworkingknowledge.hbs.edu.

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9

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

The Customer-centric Effort is Cross-functional

Sales CustomerService

Collections HR ITMarketing ProductManagement

The mission, vision and values that guide a firm into the future

What a company does to manage different types of customers differently across the company’s touchpoints and through the customer’s lifecycle

How the company achieves a culture and structure that most effectively supports the talent required to deliver the customer strategy

How a company specifies the data and supporting technology required for the organisation to deliver the customer strategy

How the company implements a balanced set of measures across theorganisation to drive continual change and improvement

Enabler

BusinessLeadership

CustomerStrategy

OrganisationDesign

InformationArchitecture

PerformanceMeasurement

Source: Round (UK) Ltd

First Base

Companies dedicated to maximising efficiency through a

functional organisation design and transactional performance

measuresHigh error-driven customer contact

rate

Second Base

Companies focused on satisfying the customer and creating a consistent

customer experience through end to end business processes

Low error-driven customer contact rate

Third Base

Companies who build on the foundation of service

excellence to maximise customer value through the application of strategies for

each customer

Fourth Base

Companies who place customers at the heart of everything they do resulting in customers becoming stakeholders in their success

Customer Centricity is a Journey

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10

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

The State of Customer Centricity

3%12%

70%

15%

Where’s Everyone?

Source: “The State Of Customer Centricity” – reportby V. Dimitroff/T. Craddock, published CRMGuru.com 2003

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

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11

PRISM Consulting © 2004-2005

INFOR-MEDIA CRM CONFERENCE, MOSCOW 2005

Thank You!

CRM Association in Russia:

http://www.acrm.ru

PRISM Consulting

http://www.prism.ch http://www.prism-gb.com

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Sputnik Labs – ,

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,

Pavel Mikhailov

Senior Marketing Manager, Sedmoi Kontinent

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1

««

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10-11 2005 ., Renaissance Moscow Hotel,

[email protected]

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CRM 2005

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2

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3

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4

[email protected]

« »

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,

Dimitry Sokolov

Director, Not-for-profit partnership of software suppliers

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1

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7

,

:

: (095) 684-1646, 287-9871

: [email protected]

- :

www.appp.ru (www.n4p.ru)