Observing Customer-Centricity From An Outside Perspective

Ever since I began aligning my thinking to customer-centricity and an outside-in approach to life, I’ve seen good and bad examples everywhere. Gee, you’d think being a CRM consultant would have exposed me to this on a daily basis. Well, it did. I just wasn’t paying attention to it. Many in my field, including myself, were more focused on the technology of things. And more often than not, the only criticism we had was that we were only dealing with the sales organization; or worse, the IT department. When I looked back at where I started my career, this technology focus really started to bug me.

For the past few years I’ve started breaking down companies I visit into their respective locations on the customer-centric maturity scale. Well, “a” customer-centric maturity scale. There are a number of scales out there. One post I wrote reflected my opinion on the complexity of some models. Then there is the new book by Ranjay Gulati that identifies the pillars of a resilient organization. Not really a linear scale but great cornerstones for laying the ground work. Either way you look at things, knowing where a company is will help you understand how far they need to go in order to become resilient. And you, if you’re a consultant, need to know this if you’re intention is to communicate with your clients effectively.

When It Looks Like Spaghetti – Beware of the Sauce

Very often, because it’s my job, I get involved with trying to understand “as-is” process. You’d think it was to be able to demonstrate how silly it was and come up with a better idea, but it’s usually done simply to highlight features of software. After all, we’re in the software game, right? Well, we all know we shouldn’t be, but since the selling process starts with a lead from a software vendor, you’re kind of stuck on that one. Many companies have already made up their mind what the solution is by the time they contact you.

In fact, the solution to nearly every problem I’ve ever seen in a business has nothing to do with software. Ultimately, some well selected software can be a great help to get those extra few percent of operational efficiency. But, the dramatic improvements in capacity – even while surgically trimming your business resources (people) – are going to come through higher level strategic thinking, leadership and cultural change.

Take for example the recent Powerpoint slide that was used to explain the problems for the U.S. Military in Afghanistan. Now, I’m not trying to undermine the Military, because they can be masters at logistics and strategy. But, this slide is so funny because it reminds me of many customer engagements I’ve had.

image

No, on the surface of things you never get this picture presented. It’s usually when we get deeper into designing system solutions that seemingly silly questions on my part will elicit a response that goes well beyond the bounds of silliness measurement. Paint a large office cubicle around this picture, and you will enter the world of the lower level supervisor who has been given free reign to independently build their work process empire.

You have to paint a cubicle around it, because it was designed with only one thing in mind. My needs. Not the needs of the functional silo next door. Trust me, they’ve got the same silliness going on over there. So, they’ve ignored their silly neighbors – oh yea, they still love to make fun of the other silo for their silly process – and ultimately, and more importantly, they’ve ignored their customers.

From a customer’s point of view, a silly internally focused process can look like a slow response, no response, the wrong response, a handed off response- and handed off – and handed off. It can also look like an invasive response, where the burden is put back on the customer to continue the process; because it’s more convenient for the inside people that way.

How the heck do companies get to this point?  And when they realize how desperate the situation is getting, isn’t the answer always to throw more human resources at the problem? That’s the successful manager’s secret spaghetti sauce in their world of entangled, slippery process noodles. Cover it up with sauce and let someone else worry about it.

The thing is, a long held set of complicated, internally focused processes is a warning system for me that they also don’t understand customer needs. Not just the customer experience needs, but that they are not adapting over time. If you are focused from the outside -> in, you will inevitably have to re-evaluate how you do things. Your customers change, and so do their needs.

And you don’t need to be a big company to mess this up. Employees at small companies can build a career around a process they own. And don’t try to take it away.  Ethel and Jimbo won’t like that one bit!

Does A Customer Need Your Product More Than They Need To Do Their Job?

I’ve been in so many client companies that are seemingly successful. Joe, over there, well he’s been here 30 years, and so has his wife Ethel, and Jimbo over there 25 years. You know the story. A dreary office / manufacturing / warehouse scenario with decor from the 1970’s. Heck, if it ain’t broke, don’t fix it. Companies like this have sometimes had great success.

When you begin digging in you find that their products are pretty much the same as they were 30 years ago, sometimes with computerized updates instead of switches and tubes. But, nevertheless, it’s pretty much the same. You’ll also notice that, adjusted for inflation and all that, they really haven’t been growing at all. Sure, the owner’s doing fine, but they’re simply too satisfied to find the key to growth – innovation.

The interesting thing is that these companies think they are dominating their market – and in their way of looking at it, they are because no one is competing with them product for product. Here’s the rub, the market left them behind because the jobs of their potential customers have changed over the years. While they sat idly by all happy with themselves, the world had moved on. And if you look hard enough, you will see that the companies that could’ve bought their product 30 years ago, operate in a totally different way today.

This difference is the way that innovators zero in on the problem. They look at the job, not the product, and find gaps, holes and breakdowns that they can solve.  They don’t ask a customer how they can improve their product because it will focus the customer on their product and what it does, not on their job and the opportunities you’ll find there. Then they change their products or services, or create brand new ones, to take advantage of what they’ve learned.

These are the companies with the shiny new buildings. These are the companies that are kicking butt. And while they may not truly be customer-centric day to day, a key element – in my mind – to customer centricity is understanding the jobs of your customers so you can address the needs of the job – usually through continually innovative ideas. And don’t stop just because you had one successful innovation.

Every Business Is Different

So what does the perfectly resilient, customer-centric company look like? I haven’t seen it. But let me give you a example. How many of you have watch Holmes on Homes on the HGTV? It’s a reality show about a guy named Mike who happens to build houses. And he builds them well.  Unfortunately, that cannot be said for many of the other builders out there. In fact, he takes jabs at the government too for having code standards that are well below par, and inspectors that get fooled by silly attempts to hide code violations.

image Throughout his show, he goes into the home of someone who has been ripped off and left for dead, so to speak. A contractor has come in, made promises, lied, and leaves the job unfinished or defective. It’s not about the home owners. It’s about the quick buck – and the easiest way to a quick buck is just the easiest way. Living up to the expectations of your customers just seems so hard. Heck, Mike comes in and rips down everything and rebuilds it from scratch. Simple! Generous? Yes. But, he’s trying to make something right that was very very wrong.

Getting back to customer-centricity, beyond just doing the job well – which he and his team do – they learn about the homeowner and their situation. Equate the situation to the job. Everyone has struggles. Some have a handicapped child. Maybe the homeowner is elderly and has no one living with them. In these cases, Mike Holmes not only completes a project well above code – so he won’t have to do it again – he adds little things that mean a lot.

Take for example an episode I just saw where he was dealing with a bathroom project for an older woman living on Paradise Island in Canada. There were a lot of things about that project that he redid differently not because he had to, but because it made sense. It was a lot of hard work. But, in the midst of all that, instead of focusing on how hard his job was, he recognized that the walkway from boat landing to the house had a railing on the safe side and not on the downside where there was a danger of falling back into the water and on the rocks.

Not only that, the lighting was broken and ineffective. So, he built a new railing on the correct side, at the correct height and put low energy pod lighting on timers inside the floor boards. He also put a new non-slip surface down. Let’s see, he knew this older lady was there all by herself and that she wouldn’t be able to use this new bathroom if she fell down and broke her neck. Hmmm.

Did he make any money off that? No not directly, and this is a charitable show. But! If he’s doing these things in the course of doing business, his business is going to boom because he’s creating advocates, not just loyal customers. In fact, if he’s doing his job right, his customers won’t be calling again – at least not while they live in the house he built. He may even get a television gig!

Summing It Up

To some people this whole customer-centricity thing comes naturally. The group gets even smaller when you factor in the will to withstand the pressures of the historical business school thought.  It’s tough to transform a business this way from below. And I can tell you that it’s nearly impossible to do it as a consultant when you’ve been brought in through the cellar door.

However, it’s worth trying. And I do. Probably at the risk of my job sometimes. Because in the end you’ve gotta get the deal because something is better than nothing – the easy path in life. The pressure against a change like this is great. Is the good news that I hear more companies talking about loyalty and other such things? Maybe, until you dig a bit and find that they think it can be measured by a single survey and a simple and flawed score. No, the good news is that there are a lot of people talking about these things today.

Eventually, it will gain a foothold. Will every company be willing to do the hard work necessary to reshape their culture and redesign the way they do business? Or will they simply work hard to keep their heads above water?  Either way, it’s hard work, one just sounds easier.

To Measure Customer Engagement or Customer Disengagement? That Is The Question

April 21, 2010 2 comments

The new Social CRM frameworks being bandied about are talking about customer engagement models under the premise (in some cases) that this is an outside-in, customer-centric strategy – not a toolset. But is it? I’m going to suggest that in most cases, it won’t be. If 95% of the businesses today our inside-out, what makes anyone believe social monitoring tools will drive an outside-in cultural change anymore than CRM did?

In this light, I read a recent post by Mark Tamis which he wrote after reading about data-driven marketing in a book by Jim Novo, called Drilling Down. Mark quickly reconciled the “you must engage” rhetoric of Social CRM to the pragmatic logic of relationship marketers who are always held to account on the dollars they spend. For them, measuring disengagement is critical to their success. Why disengagement? Because that’s where value is lost as opposed to exists.

But, let me use the words of Jim Novo – who responded to the post.

If I could make a suggestion, taking a cue from your inside-out / outside-in reference: I think social folks would find more success by not focusing so much on measuring engagement, but instead by measuring *dis-engagement*.

Jim made a very interesting point in his response to Mark. He suggested that trying to measure the value created by Social is problematic. However, you can more accurately measure the value lost “due to the improper handling of social.” The value regained, in a scenario where it would otherwise be lost, is something you can show the numbers people and it will make sense to them. Of course, you need to know how to measure this, which Jim has written an entire book about.  Measuring the value of customer engagement isn’t nearly as easy, harder to explain, and possibly a waste of effort.

But is this the outside-in culture that we should all be striving for? Having read Jim’s book, I can say that customer-centricity is a consistent theme throughout, and something he mentions a lot. Understanding the behavior of your customers is really no different than any other means of understanding customer needs. We’re all trying to make our products meet their needs, their experience better, or whatever. If you can spot a problem by measuring behavior (transactional or social), and then you fix it, aren’t you doing this for the customer?

As Dick Lee defined it for me, CRM is about delivering value to your customer in a way that delivers value back to the company. Swap CRM out with customer-centricity or outside-in. The bottom line is that even an outside-in culture’s purpose has to be to gain value by delivering value. The whole going concern thing doesn’t work if you give value away. You have to do it in a way that allows you to provide value to others, and over time. Basically, there’s nothing inside-out about receiving value or planning for ways to receive it, as long as you’re providing it.

There are a number of methodologies out there for understanding customers needs so your business can innovate and adapt. That’s not what we’re talking about here. What we’re talking about is the listening and measuring part. Any strategy you employ must recognize that things change and have built in the mechanisms for monitoring change and learning why things change. Measuring disengagement is one very powerful method of measuring when things change so you have the opportunity to learn why and to fix it – delivering value to your regained customer and to your business at the same time.

Categories: CRM, Outside-In, Social CRM Tags:

Your CRM versus My CRM – Which One Is Better

March 25, 2010 2 comments

I know what most of your are thinking.  You’re going through your personal list of issues with your implementation of:

  • Microsoft CRM
  • Salesforce.com
  • SalesLogix
  • Goldmine
  • ACT! (?)

It’s not fast enough. It doesn’t have a button over here. This list is wrong. My mail merge isn’t working. I can’t see this Account. My Outlook integration is creating duplicate activities. It’s too hard to create a report. I ran out of user-defined fields.

I know, it’s very very frustrating when you figure out that your magic solution isn’t getting the job done.  Every single day, my trusty Google Alert displays case after case of software vendors trying to sway users loyalty with silly whitepapers tweeted about and blogged by their channel partners.

Our CRM has more satisfied customers

    Your CRM? Your CRM solution? Solution for what? Everyone is looking for easy answers. If someone tells them a piece of software will drive the success of their business, they really, REALLY, what to believe them – because it’s easy. When polled, business people will agree that market growth comes from innovation, and then next day they are sold a new CRM solution by a vendor with a better list of features for their sales organization – and skip the work needed to drive innovation.
    This is your CRM and therein lies the problem many of us have been struggling with for many years. This is not my CRM. CRM is not an object! It’s not a piece of software. So, if you’re a business owner or C-Level executive who knows deep down that there is much more work involved in driving success, I urge you to keep reading. I’m going to layout some basic things that you need to do to create your CRM.

What Is The Better CRM?

Better is a matter of perspective, so I will start be suggesting that while I know you all work hard, get ready to work even harder. Why? Not because you’re actually going to work harder. It’s because whenever you go out of your comfort-zone, fatigue seems to set in more quickly. But, I can assure you that each day you will begin to see more and more progress and this fatigue will quickly turn into forehead slaps. That’s because you will have revelations every single day that seem so obvious, you won’t know how you missed them

But you will be very happy your customers are missing them! Ready?


Be prepared to change the culture of your organization

If you have a product or service, or resell a product, be prepared to change it. Yea, I’m serious! Stop making everything about your product. It makes you look needy. Start treating your customers like they’re needy – because the are! It’s about your customers’ needs, not yours.

Your customer’s needs are important for a few reasons.

  • Reduce Relationship Friction. Make certain your process and workflow makes sense to the customer, not some internal need. Each of you have experienced customer facing operations where you entered information into the call routing system, only to be asked for the information again. And then, when they find out what that information is, you have to be handed off to a different department – and they give you a phone number to call, where you enter your information again, and then verbally provide it again, and again, and again. That’s not fun. Your business has silos like this that disrupt your workflow. Fix it!
  • Opportunity! If you take the time to regularly understand the jobs your customers are trying to perform, you will find opportunities to enhance your product or service, create a new product altogether. And don’t forget related jobs. If you find gaps around their job, a little innovation on your part can have a huge impact for your customer and you!.
  • Create An Experience They Want – If you know your customers you won’t make silly assumptions about their experience. For instance, don’t force them to interact in a social community just because it’s the hottest Twitter topic today. Some people want a phone call, some people just want to place a darn order! Don’t create a place to have a tea party with your product if it’s a brass fitting – and not an American Girl doll!

    Develop a Customer-Centric Business Strategy That Fits Your Business

It’s going to take a new culture to look at your business differently and develop the right kind of strategy (outside-in). But once you do, you need to align your process to this new strategy. A process isn’t just about technology, it’s also about people, so culturally, the need to be onboard. But maybe just as important is the need to give them ownership in these changes. You can’t do that by simply announcing the change. People have invested a lot into a career that looks inside-out, so make sure they you get their help when turning outside-in.

      At this point, you may not really know the needs of your customers when you begin thinking about the strategy. But, you should be taking steps learn whether you have different types of customers. Whether you have one type of customer or multiple types, it’s important to design your business around their behaviors or some other key attribute. This really depends on your business, but you may find that it makes sense to create complete teams around customer segments, instead of creating them around products or brands. Whatever it takes for you to deliver value to your customer in a way that keeps them loyal – which will deliver value back to you in the form of retention and possibly a more active relationship (buy more frequently, etc).
      Stop thinking in terms of your product or service. Maybe it isn’t even your product or team that will meet the need of your customer. Blasphemy!!!

    Design Process From The Outside In

    Are you doing things your customer doesn’t need? Are you doing things poorly that your customer expects to be done better. Do turf battles create process based on internal avoidance? When times are tough, do you snip 15% around the edges – potentially losing value and leaving dead weight?

    A lot to think about. But this is how most businesses operate because they are in the product delivery business. Make product, deliver product. Source product, resell product. Acquire consulting force, all solutions look like their skill sets. It’s really ugly if you think about it as a customer. After all, you are a customer. Just think about it.

    Think about how to remove obstacles and silos from your process so information flows smoothly, quickly and with zero failure rates.  Failure can come from missed hand offs, long queues, dropped phone calls with no call back, etc, etc, etc. Then there are the inefficiencies, redundancies and plain old we’ve always don it that way‘s. 

    If you start mapping this stuff out, you will see just how silly it looks. And no, don’t go out and start using process-speak and flow chart symbology. Nearly everything looks stupid that way. Check out the approach someone like Dick Lee takes using pictograms (pictures/cartoons of people doing a job). It let’s everyone take part in this process design fun because they can understand it. If they can laugh at it, so much the better.

    Adopt a Methodology For Understanding Customer Needs

    Over time, markets tend to mature and flatten out. You can either go along for the ride, trading margin for revenue, but that will eventually tap out. Then you’re stuck or in a mad rush to innovate through mass marketing.

    How about let’s try continual innovation by getting know the jobs of your customers.  No, don’t ask them what you could do to improve your product. They don’t have a clue! What they do know about is there job. The expected outcomes from the boss. They also have other jobs that don’t relate to your product. So?

    • Ask them what they find frustrating or inconvenient about doing their job.
    • Ask them what makes their job time consuming
    • Ask them what makes their job get derailed
    • Ask them where the waste and inefficiency is in doing their job today.
      If you ask simple questions like these, you will uncover the opportunities for innovation. It could be a new product because of some new job that’s being performed. It could be improvements to your product. It could also be different product/service bundling. If you focus your attention on your product, you’ll simply miss the opportunity.

    I would strongly suggest that this process be a combination of surveying and interviewing. A reliance on social media will derail your job unless you create communities related to jobs and not your product. And that my friends, could be challenging.

     

    My Benefits Versus Your Features

     

    My Benefits

    Your Features

    Increased Customer Lifetime Value Automated quote generation
    Increased Customer Retention Twitter integration with Contact records
    Loyal Customers Become Advocates Automated newsletter delivery
    Continual Innovation and Growth 360 degree view of the customer
      Graphical dashboard of over 1000 metrics
      A hyperlink to Google Maps
      An iPhone app
      etc
      etc

    Oh look. You have more features than me….

     

    I Could Go On Forever, But….

    The key thing about my CRM is that it is an outside-in business culture, supported by a customer-centric business strategy, supported by outside-in process design -  and the processes supported by people (with ownership) and technology.

    My CRM works because I know what to expect from it, it encompasses my entire organization and it delivers value to my customers, not just a product. My competition isn’t doing that – which is good. Yours probably won’t be either. Businesses that view the world this way outperform their peers – in good times and bad.

    If designing a business around your customer, instead of a product, is weird….

    Then be weird!

     

    Recommended Reading

     

    Categories: CRM, Social CRM Tags: ,

    Is Social CRM The Key To Innovation?

    March 11, 2010 4 comments

    We all want our businesses to grow and most of us can agree that growth comes through innovation. To innovate, a company must understand the needs of their customers. But research shows that very few companies have a methodology for accomplishing this, let alone having complete agreement on a what a customer need actually is.

    As a CRM consultant who is interested in customer-centric business design, I see this as a fundamental piece of the CRM puzzle. From a strategic perspective because it creates value, and from a technical perspective because we have to design solutions that allow businesses to collect and analyze this information. This is the work that must be done before a company can design products and services (or communities) around customer segments. That means we’re getting outside-in before we get to Social CRM, right?

    As I read about methodologies for understanding needs, two questions are whirling around in my head. First, does the concept of Social CRM, or even the tools of Social CRM, move the ball forward – or possibly replace the ball -  in understanding the jobs our customers are trying to do with our products? Are they trying to do things (and failing) that we hadn’t envisioned and/or are they trying to do jobs better? Looking for answers here requires us to understand the inputs we are looking for, suggesting some structure in the process. We can’t really rely on our customers to give us the ideas can we? The research I’ve read, and my experience, suggests not.

    Second, as a CRM practitioner, does Social CRM offer any innovation (either strategically or as a toolset) to my business as a consultant? Is it opening up opportunities for me as a consultant to deliver value to my customer. And when I say value, I mean something that is understandable and measureable. That question is exactly why I’m think about this. Even if social only extends the existing capabilities, it will probably have value from my customers – and therefore me.

    Social CRM: The Concept vs. The Toolset

    While I’m still struggling with the understanding others have of Social CRM, I’m pretty clear on what it is to me. Essentially, it’s a conversation we’re having to address the fact that consumer habits, expectations and opportunities have been slowly changing with technical advancements in communication. And those changes are beginning to accelerate now that the technology is solid enough that ideas are able to multiply like rabbits. They’re not all good ideas, but they are planting the seed for major changes in the way we operate as both businesses and as consumers. There’s no doubt about that.

    Outside of my personal thinking, other schools of thought are that it’s a comprehensive strategic replacement for CRM; implying that outside-in business design didn’t exist until online communities with built-in sentiment analysis existed. Others believe that SCRM is merely an extension of CRM, with a seemingly heavy bias on the technical side of things. And of course we have the Social Media people who are trying to take ownership of a market segment that they don’t traditionally occupy.

    Whatever it is, it has to pass muster on the value-add side of things. And with success so often tied to growth, and growth being driven by innovation, the question that needs to be asked is how does Social CRM help us to identify customer needs? Can we just listen to the unstructured chatter of teenage girls (Oh, m’ God!) and suddenly understand the jobs being done with products we sell? Will we suddenly understand what people are trying to do with our products; especially where they may be struggling – so we can design solutions? How do you find this information when you haven’t defined the questions you are seeking answers to? And how can you guarantee they questions you need an answer to are being answered in a cloud of confusion?

    There are those out there that I know truly believe that Social CRM – at least the way they perceive it – is the holy grail. Frankly, I’ve yet to read any research that demonstrates that social anything, generally unstructured in nature, can lead a company to have the understanding of it’s customers that it needs. At least no on its own.  Nor can it independently provide the information required to design products or services to support emerging job processes or needs, or fill some type of efficiency gap.

    Just as with regular old CRM – which, by the way is not software – methodologies have been in place for years to design outside-in business process, understand customer behaviors and patterns or more importantly, understand the requirements of the jobs our customers do with our products. These have been around, and they’ve delivered value – and the value is measureable.

    So I ask you, is Social CRM the key to innovation?

    Categories: Social CRM

    The Search For SCRM Accidental Community 2.0

    March 9, 2010 5 comments

    Some of you may have heard of the Social CRM Accidental Community if you’ve been following Social CRM. Most of us met on Twitter early last year using the hashtag #SCRM – and while it’s a challenge having a real conversation on Twitter, we somehow figured each other out. Since then, we’ve actually developed strong relationships with each other, ultimately meeting in Herndon, VA for the first Social CRM Summit (#scrmsummit).

    It came to a point where we felt a need to move on from Twitter due to it’s inherent social weaknesses. Social relationships can’t be maintained in 140 character, unthreaded, sound bites.  So, we tried Google Wave.

    Google Wave

    I had high hopes for Google Wave. Unfortunately, it was too slow, some said it was too threaded (threading 2.0), some said it wasn’t threaded enough, real time group conversations were impossible to follow and it had no email notifications (that one has changed).

    We barely gave this idea a few days before our group members began dropping like flies. The leader of this pack was crusty old Esteban Kolsky (Gen X). One of the leading proponents (me) was next (Gen X / Baby Boomer).  Was it our age? I mean, I remember black and white television. Maybe our brains just don’t work this way. So, it was time to move…

    The AC Back Channel Finds a New Home With Skype

    I can’t believe how long it took. Not to find Skype, but to get invited to the new back channel conversation happening on Skype. I didn’t even know Skype had groups even though I’ve been using it for IM for a few years. Us old farts just don’t pay attention.

    Suddenly, as the rest of the community got on Skype and added to the group, we began having high speed conversations (CRM at the Speed of Light?). These were real time. They were happening with group members from all over the world. And no matter what time of day, you were likely to see a pencil race, as we began calling it. It was fun. It still is fun. We’re actually getting to know each other here – which made meeting face to face very easy.

    The other great thing about Skype is that we could/can have group video conference calls, or video one on ones. To me, growing up with rotary phones, that’s pretty cool. I’ve been hanging out in BBS’s, forums, communities and IM for nearly 25 years and finally we have something the Jetsons had (yea, I watched that in first run).

    The Next Evolution of the Accidental Community

    The back channel is great – for us. However, we’re looking for ways to get back in front of the world to move the CRM and Social CRM conversation forward. As it stands, we’re all doing our own thing and then coming back to the back channel to hash out our thoughts and ideas – and sometimes just to have fun, since we’re all becoming good friends.

    So, we’ve begun looking for the perfect way to do this as a non-enterprise enterprise. There are solutions out there that do the enterprise stuff, social blog consolidation sites (I don’t know what they’re called and I don’t do research), domain-based business social suites like Social Text and Yammer and the list goes on. We’re not finding what we need yet. So, instead of bashing tools that others may find valuable, I’m going to begin a list of things we seem to be looking for as the Social CRM Accidental Community.

    1. We want a group IM (or micro blogging interface that works) interface that is private and only for the core members of the SCRM group. It has to handle our real time conversation needs. It should also handle threading. Threaded context can not be an inhibitor as it is in most solutions we’ve tested to date. We’re looking for the ultimate real time group chat. One that lets us follow the conversation in real time without hopping around (enter key must post the message!)
    2. We want to extend this capability out to the public either through a public micro blogging interface, or the ability to publicize certain threads. Many of us are not thrilled by how difficult it is to find one that is easy to follow (like Skype).
    3. We all blog. And while we intend to remain independent, we would like a place to aggregate the blogs of core members as well as do some article or blog collaborations.
    4. We need a place to work on projects in small groups, or as a whole group
    5. We need the ability to search all content
    6. It has to extend to portable devices like the Blackberry, iPhone and Android.
    7. I should have a full featured Windows (or Air) client for those of us with an aversion to web applications
    8. If there is a workable threaded feature, the ability to open multiple threads in separate windows (web or Windows).
    9. The ability to brand a public presence on the web.
    10. The ability to broadcast messages not only within the application, but to sources like LinkedIn, Facebook, Twitter, etc. TweetDeck and others can do it, so what’s the big deal.
    11. We need to know when other community members are online, both private members and the public members.
    12. We need to be able to create Accounts using whatever email address we choose (not domain based!)
    13. It has to cater to what this group is, not for profit.
      So far, there is a somewhat general agreement that the solutions we’ve seen to date fail in at least one major way (for this group). I’m not sure what that says for Enterprise 2.0, but it is what it is for the Social CRM Accidental Community 2.0. I’m sure other members will keep the world up to date on our search for the ultimate platform, or expand on this list of requirements.
    Categories: Social CRM

    Social CRM: The Center of Your CRM Strategy – Or A Complete Strategy Itself?

    March 7, 2010 4 comments

    I just got done reading through Altimeter’s new paper entitled Social CRM: The New Rules of Relationship Management. While there is little to argue with regarding Altimeter’s report on the 18 use cases of Social CRM, there are some statements that I feel could have been worded differently – or simply left out. I also feel it could have buit a 5M chart that includes more traditional uses cases (even ones most business don’t do well), and how the two aspects of customer engagement relate to each other (traditional and social). The bottom line is…

    Social CRM is not an all encompassing strategy

    Sure, the Social Customer is different than customers of the past. A Social Business is one that recognizes this. However, Social CRM is a channel – another means of communication and engagement; regardless of the dimensionality of it. Do you really know your customer by monitoring social channels? If the answer is no (and it must be in my opinion), then the strategy must incorporate all listening and understanding methodologies and frameworks, including social, if you really want to avoid product design failures and/or business process friction.

    Here are a few excerpts and some of my thoughts. Understand, we are all trying to move the ball forward. Differing opinions will, hopefully, keep the ball in the center of the playing field and not let it drift too far towards any sideline.


    Social CRM is more that just another channel.  Properly practiced, Social CRM recognizes the depth of the relationship and understanding the current state – good, bad or ugly.

    • Yet, at the end of the CustomerThink post, Ray Wang lets you know they are ready to help you design a Social CRM strategy. What if the company doesn’t have a CRM strategy yet? Are we going to apply social tools to inside-out organizations and hope for the best?
    • This doesn’t analyze the relationship. It only analyzes the aggregate of sentiment (maybe some ideas) at a point in time (good, bad or ugly)
    • A relationship is still 1:1. If the ultimate goal of a customer-centric business is to understand customers needs (not project the needs on the customer), then social media will tell them little. Why? A vocal minority may not be statistically valid (not every customer is social) – nor will they represent real needs of the overall customer base. And, the company doesn’t really have the ability to use an open-ended, iterative interviewing process to uncover the true needs – things that they may not know individually, or even collectively in a social community.
    • Reading the social channels is like reading the wind. It reflects what’s happening right now, and right now and now and now and now. Can you really call something strategic when it’s going to be used to react right now?  Sure, you can say you’re making a strategic change…right up until NOW when the next set of sentiment comes in. Real relationships carry history and can also discuss the future. The strategy is the framework for reacting to information you glean from tactical pieces of the strategy.

    Social CRM programs may start at the departmental level, but over time, must gain corporate buy in to transcend functional fiefdoms in sales, marketing service, etc.

    • SFA started at the departmental level and CRM took over, remaining at the departmental level – especially in middle market companies. Starting here makes little sense. Cultural change is required and it starts at the top. Always.
    • It’s easy to penetrate the department, which is what software vendors, resellers, consultants and evangelists have known for ages. This is the easy way out, and delivers the least value. A cultural change leveraged across an entire organization is what really delivers value to the customer, and to the shareholder. This should be emphasized, even though more companies will take the easy path – let’s not help them, though.
    • Why tell us “Get Value: Adopt the 18 Social CRM Use Cases?” I mean, if it typically starts at the departmental level, why then argue that all 18 need to be adopted? This sounds a lot like tools to support a corporate-wide customer centered strategy – without the customer-centered part, or with the other 90% of CRM.

    Tech Maturity

    If the underlying value driver for CRM (or business)  is customer-centricity, then shouldn’t cultural maturity on this point by tied to Market Demand? Whether we’re talking about Tech Maturity of a business, or Tech Maturity of a <ahem> Social CRM solution, why are we returning to technology as a driver when we’ve learned, clearly, the cultural evolution toward customer-centricity is a key piece of the puzzle – and that tech focus has often failed us (no offense vendors – us consultants are to blame too).


    Tie back social world and channels to existing innovation, marketing, sales, support and service processes. Triage profiles to create prioritization frameworks.

    • A better way might be to not start at the tactical level and then fit it into a series of other tactical, silo’d processes and then call it a strategy. Maybe it was just the way I read this, but seems very backwards to me.

    Organizational friction, customer experience and customer advocacy do not require "Social” CRM. Sure, advocacy is easier in an online community, but #SCRM can’t lay claim as the only, or even the best, way of creating advocacy. Let’s face it, social solutions are unproven in many ways – time being one of them. But, advocates have been around, outside-in process consultants have been removing friction for a long time and companies have been designing great customer experiences – all without the social piece. The failure has been the tendency to rely on technology first and unfortunately, this is still fairly prevalent.

    Complement existing CRM processes.

    • I just can’t get past the customer-centric strategy part, I guess. Shouldn’t this really be expanding, enhancing or evolving the CRM strategy with social engagement? Processes are support of strategies and technology is supportive of process. The process is not creating substantial customer value, it’s more operational in nature. The value has to be driven from a higher strategy- within which you will find social aspects.

    In Closing

    My common theme is customer-centricity and designing CRM strategies around this sort of cultural change. Core to this is defining a methodology for understanding customer needs. Certainly, companies that have well known brands should incorporate social tools to protect their brand as well as empower their customers (to some degree – after all, it’s still a business). But let’s face it, do lesser known brands really have enough chatter to worry? I don’t know the answer to that. My middle market customers have never really identified this as a problem, and isn’t this where most of the businesses are?

    What I like about this paper is that it does a great job of taking what have been complex, theoretical concepts and putting them into a readable format. Each of us participating in this space are being social. There are conversations being attempted (and failing IMHO) on Twitter, there are social communities cropping up where many of us are able to write lengthier posts to move the topic forward, and there are also back channel group (and individual – NO!) conversations going on related to Social CRM. It’s time that we begin building public digests that people will actually read. Real people – not just us. This is a good step in that direction.

    The next step, I feel, is for someone to simply describe a complete customer-centric culture which drives CRM strategy, process and technology – each level addressing the need for, and execution of strategy or tactics for embracing the social customer – if even required ;)

    Categories: Social CRM

    Social CRM: The Social Media Plugin To Make Businesses Customer-Centric

    March 5, 2010 5 comments

    “Sure, we’re customer-centric”, I hear you saying. “Now, this new social stuff…how can we use it to promote our products?”

    One of the big dangers, each time a new term is introduced to the world, is the “latching on” that takes place. People and companies latched onto the term CRM and sucked it dry until it really had no meaning left – and it had been commoditized. The term SCRM is also in grave danger – already. While it has been clearly defined (and a stake put in the ground), social media gurus and consultancies are trying to lay claim to a concept that has little or no cross-over into their specific skills and experience. Sorry for being blunt, but it has to be said (repeatedly).

    Whether you like the term Customer Relationship Management or not, the underlying concept is important to understand before you start running out the door waving your CRM or SCRM flag for the world to see. Nothing against software vendors (including social media solutions), but they do it. I get why they do. But when social media consultants do it, I have to draw a line. CRM is about changing business cultures to focus on customer needs and design experiences that add value and reduce friction. The process derived from these strategic changes is supported by both people and technology. Somehow, we allowed the term to be tightly associated with the technology.

    I think we’re prepared to fight this battle on the SCRM front. The social extension to CRM is really a means to expand something customer-centric businesses already do – listen to their customers, understand their needs and adapt to fulfill them in a way that creates value. SCRM has more roots in technology, yes. But, it doesn’t change what we’re really talking about here. So, if we’ve already licked this software is the solution problem – after a decade of death spiral – what is the new danger we’re facing?

    Enter the Social Media Consultant

    Social media is media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media uses Internet and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). ~Wikipedia

    imageThe next time a social media consultant tells you that you can’t run your business without social just keep in mind that the only tool in their arsenal is social media. You can’t just plug in a piece of technology and transform your business.  Read the definition above- written, no doubt, by a social media person.

    At first glance, this appears to be a definition for a new SPAM channel. But then it moves on to many-to-many, so maybe that’s a little bit harsh.  I have this bad habit of assuming that certain types of people believe if you make something (like an email) look pretty enough, it’s effective – and not spam. Unfortunately, too many graphic designers have taken over marketing departments – it’s all about touchy feely with them. But do they really understand customer relationships?

    Darren Roanoke: How can you be the Love Guru if you’ve never been in a relationship?
    Guru Pitka: Well, there is someone I like. But until I learn to love myself, I can only go out with three girls named Ann.
    Darren Roanoke: Three girls named Ann?
    Guru Pitka: Yeah. Ann Visible, Ann Flatable, and Ann Job.

    Let’s be frank, social media gurus are popping up all over the Internet and also in your local business clubs (maybe your board rooms) – trying to use the momentum of SCRM to jump start their consultancies. Maybe they actually believe this is a new market, and that this market will transform a business by simply adopting solutions in their arsenal. And let’s be honest, these solutions didn’t transform any businesses to customer-centric, or improve the customer experience, before the term SCRM, so why would we believe it to be the case now? Where’s the track record to back it up?

    Don’t get me wrong, I would never pretend to be an expert in social media. If it becomes a component in a CRM strategy I’m working with, then I will bring an expert in soc med onto my project team. But, what I won’t do is come on board a project that started with a social solution and tries to work itself backwards to a comprehensive customer-centric business strategy. Or worse, it never even attempts to work backwards as it’s seen as the complete solution. In these cases, businesses will simply leverage the solution more and more until it’s simply abused. Gotta get results, right?

    Sounds too much like the good old days of CRM failures. Leave CRM to the CRM people, even if there’s an “S” on the front. We’ve been there and done that.. Mariska Hargitay everybody!

    Categories: Social CRM

    Two Social CRM Confusions You Can Live Without

    February 18, 2010 12 comments

    For those of you who are not CRM thought leaders, academics or social media companies trying to invade the CRM space, I’d like to hit the reset button and explain a few things – hopefully in terms that the average business person (who’s creating value) can understand.  I’m am not a thought leader, or a big thinker, so I’ve had to burn some brain calories on this one to get the conversation back on track.

    Business is business is business is business is business. Smart businesses have always known that a great customer experience is the best value driver. And delivering that kind of experience comes from knowing your customer’s needs.  The companies that are able to determine customer needs (and here’s a great paper on the subject I got from @GrahamHill) are in the best position innovate and grow.

    To be a customer-centric business, you have to ask questions, listen, adapt and execute based on what you learn from your customers’ changing needs. As soon as you begin assuming you know what they need, or misinterpret what they’re telling you, you will be at the mercy of competitors that get it. This is nothing new. Slapping Social or Co in front of existing terms will never change that. It simply muddies a message that is simple and powerful – deliver value to your customer in a way that delivers value back to you.

    If you don’t get that, then all the terms, definitions and new social software tools will simply accelerate your demise or weaken your competitive position – in my opinion

    Confusion # 1: Social CRM is the Replacement For CRM

    Sure, no one is happy with where CRM went. It fell right into the arms of the software vendors -  oh so many years ago. But, forward thinking evangelists like Paul Greenberg have done a lot to shift that momentum. He, and others, were talking about customer-centric business strategy (as CRM) a long time ago. To them, CRM was not a platform, it was a program – the difference being that the platform is technology designed to support the program – e.g. an initiative.

    As new avenues have been created on the Internet for customers to take some control back from inside-out thinking companies, a shrill cry is in the air that the new Social CRM will replace CRM as both a strategy and a platform. image People – listen up. I understand why everyone is excited. But really, assuming that this social stuff is going to magically change inside-out business cultures to outside-in? That’s just not going to happen! What will really happen is something akin to what happened when unscrupulous marketers realized how cheap email delivery was.

    It’s also what happened when CRM vendors told you their software had best practices built into it. Just install it and your wildest dreams will come true (taken from Napoleon Dynamite without permission)

    We need to realize the CRM 2.0 (social) is a new version with some new pieces – both as a business strategy and ultimately as software (it ain’t there yet). You will not understand the needs of your customer simply using social tools no matter how many times a social media evangelist says it. If you’re not already having direct conversations with your customers (interviews, surveys, golf outings, happy hour, whatever) then bolting on this social stuff will just frustrate you in the long run – maybe even the short run,

    But, this does give us a great opportunity to go back to our clients and help them see the benefits of customer-centricity. If we start talking about social this and social that, they could very well just run away. Let’s take this back to basics please. And software vendors, please understand that we will sell your software, we’re just going to to do things in the proper order, so step back and enjoy the ride! :)

    Confusion # 2: “Value” is Now Co-Creation of Value (In Use rather than In Exchange)

    OK. You lost me when you added the “Co” on the front. I didn’t bother listening to “creation” or “in use” etc etc. Seriously, what the heck does this mean?! What is this discussion all about? The best definition I’ve seen to date was in Paul Greenberg’s new book (CRM at the Speed of Light 4th Edition) where he simply gave an example of the game Doom. I don’t have time to tell the story here. Read the book, it’s excellent!

    When we start debating at which point value exists defeats the purpose of nearly everything (for me, maybe not you). When I sell something to someone, assuming I’ve met their needs (and exceeded their expectations), I’ve created value and I’ve received compensation for it. Maybe you depreciate the value as you use it (if it wears out – like a car), but I started with value and I continue to have value as long as I can put it to use. Suggesting that value is “co-created” by the consumer as they use it is a waste of time (in what I do). I don’t even understand that. I made it after all (the car) so they are not creating value, I AM! They are deriving value from it – for certain. Does the “co” mean that I helped create value? How, I’m not driving the car with them?!?

    If you’ve listened well, you will increase customer value by delivering value (not just when they use it, when they salivate for it) to your customer. In turn you will see your shareholder value increase. Simple.

    Anyway, this topic keeps coming up in the conversations around customer experience and CRM (and Social CRM) and simply frustrates me that we have to get so granular with a piece of the CRM pie when overall, most businesses don’t have the culture to give hoot about it. So, let’s focus on the fundamentals of outside-in thinking and cultural change. If things get going really good for your business and you have lot’s of free time, invent a board game called “Redefining Words For Family Fun Time.”  It’s perfect for late evening entertainment – especially when you’ve been drinking.

    What This Post Is Not About

    1. This post is not bashing Social CRM (although I still like CRM 2.0 because it’s next next version of CRM with new features). In fact, I agree that while our customers expectations have always needed to be well understood, and exceeded, they have much more control over the way they buy now, and how they decide to buy as well. That doesn’t change the fundamentals in any way shape or form. It’s a facet of the customer ecosystem that any business that listens and adapts has probably been dealing with for some time now.  Revelation: your customers talk about you behind your back, and now they have megaphones. Deal with it.
    2. It’s not about bashing the discussion of value. Value is key. It’s one thing we should be measuring instead of actual sales vs. quota by month,  The question is what we’re measuring. Sure, value is created along the entire (value) chain. But we need deal with this in terms that Barney Fife would understand.  Let’s not cloud the real customer-centric mission here.

    I believe all businesses will have to embrace some realities of the social customer going forward. Some more than others. It depends on your customers, after all, and that’s really what CRM has always been about.

    I’m sure I got this all wrong, so please set me straight by continuing the conversation below.  Otherwise, just tell me how awesome I am. If too many people give me a thumbs down, I will have to turn my rating system off. Transparency in action folks.

    Categories: Social CRM

    Your Secret Is Out – And Now the “Get Customer-Centric Quick” Industry Is Here

    February 14, 2010 5 comments

    As with most things in life, that little secret you knew (and didn’t tell your friends) gets “outed” because something changed. Suddenly, your competitive advantage is exposed to the world – and then Paul Greenberg has to go write a book about it. What changed? Well, the customer, of course! But while exposing this little gem something that many businesses had used as as competitive advantage was revealed – customer-centricity.

    There are at least three types of business cultures out there.

    This list could go on forever, but I’m making a point here —

    1. Passive Inside-out culture – competitive because they dominate a niche. Don’t know if and when a competitor will out-innovate them and don’t really think about it. They are focused on delivering the product that got them there and not much else.
    2. Aggressive Inside-out culture – when email came they abused it thinking the numbers would simply work in their favor. The have a product to sell, and they want you to know about – when you open your inbox, during dinner hour – they expose us to their product at the most inconvenient and uninvited times.
    3. Dynamic Outside-in culture – Always listening to their customers through any channel available; learning and adapting their offerings along the way – focused on creating value for their customers and keeping them loyal. Knowing when their customers want to hear from them and how they want to be communicated with. Key difference – they listen before they act which makes the act more impactful for their business.

    We’ve always had customer-centric businesses and there is evidence to suggest those that focus on customer experience outperform their peers. But should these businesses fear the gradual change to the social customer and the sudden emergence of new channels and tools (monitoring and delivery)?

    Has Spam Found a New Home?

    Beyond the basic attempt to explain what a social / customer-centric business is, there is suddenly a lot of noise about social media. Twitter. MySpace, Facebook, FriendFeed – the list goes on – are all confusing the issue and making it difficult for people like me to provide the proper focus to my clients. As with CRM, they think these technology channels are going to solve their customer problems.

    Heck, I know at least one (there are more) so-called Social CRM evangelist that is using these technologies improperly for personal branding, so shouldn’t we expect that the get rich quick mentality in many businesses will take over and do the same – essentially spamming us all on Twitter and Facebook? Between you and me, it’s already begun. I’ve been experimenting lately with Twitter following and it’s scary how many people I follow send me a direct message with a link embedded in it. Obviously, they are trying to sell me something. These are worthless relationships, Enough said.

    Don’t let companies that behave this way convince you they are the customer-centric model just because they use tools classified as social. Nothing social about them. If you are customer-centric and engage your customers the way you’ve learned from listening, you have nothing to fear just because there is a new QVC type channel in the ether. Your customers probably aren’t listening to it.


    I’m confident there are more customer-focused business cultures out there today (thanks to guys like Paul Greenberg), and that we are a step ahead of the fiasco that was the migration from Sales Force Automation to Customer Relationship Management – one where software companies were able to hijack terms and obfuscate the potential value-creation that could have been realized by more companies.

    I know from first hand experience that there is a better-prepared army of consultants, writers and thought leaders out there ready to do battle with their inside-out thinking foes. Many of us had the privilege, after meeting and bonding through social media channels and stumbling into the SCRM Accidental Community, to meet at the first ever Social CRM Summit (#scrmsummit on Twitter) in Herndon, VA this past week – hosted by BPT Partners and thought leader Paul Greenberg.  I was lucky enough to be one of the attendees.

    If you’d like to learn more about it, here’s a post from my colleague Brian Vellmure with some of the things we learned. Fortunately, many of us knew and were sold on this before arriving – and are well on our way to achieving the successful customer outcomes of outside-in thinking.

    Thanks for bringing it all together Paul! I’ve done enough rambling for one post

    Categories: Social CRM

    Is Your CRM Vendor Social?

    February 2, 2010 4 comments

    If your CRM vendor has a website, a blog and an online community powered by Lithium, you probably think they get the whole social thing, right? And if they have the Ideas module installed you’re probably thrilled because now you have a place to offer your ideas directly to the vendor.

    What a great concept. You offer ideas, they get voted on by the community, and some are ultimately considered for inclusion into the product. This whole idea of crowd-sourcing can be debated as to it’s effectiveness. But, in a small community of experienced professionals, you’ll usually identify a few ideas that really stand out, and the community votes them into prominence.

    I have such an idea. It’s been at the top of the list since it was submitted – months ago. The Ideas community has been around for quite awhile now as well. So, I was pretty disappointed when I found out recently that none of the management had heard of the idea. Then, as I was poking around this community today, I noticed this box….

    image

    Do you see what I see? 62 ideas, yet none of them are under consideration. None have been implemented. None have been accepted. And none are even up for future review. Hmm…..

    So, I decide to submit a new idea. This idea was

    Why don’t you update the statuses of the Ideas so we are inclined to post more ideas?

    A friend of mine tagged it and responded to it. How do I know? Because I got an automated email from the community with the message. However, when I clicked on  the link, I found that the Idea had been deleted within 5 minutes of its posting.

    OK, fine. They don’t like being criticized for pretending to be engaged with their community. But, that’s exactly what they appear to be doing, and it concerns me a great deal. I have a vested interest in their success, yet they don’t listen to their partners and simply create product roadmaps they then ask us to sell for them.

    I Don’t Expect Every Company To Be Customer-Centric

    But, I do expect a CRM vendor to get customer-centricity – even if at the end of the day they have to sell a product. Being out in the field, my colleagues and I simply know more (collectively) than any of the corporate guns.  Why aren’t these companies looking for people like me (or my battle hardened colleagues) to fill their ranks? Yes, I’ve read the resumes. They often come from a channel .So, why the heck aren’t they listening to ours – and what channel were they operating in, certainly not mine.

    The Ideas community is supposed to provide the experience that we can bring to the table. Yet, it’s ignored. It’s not taken seriously. And I’ve found myself asking “Did you read my idea?” only to find out that they hadn’t.  And the idea statuses are a clear indication of that. They are simply being ignored in favor of an internal agenda.

    So why bother putting up this module in the community? I’ve already asked myself if there is any point suggesting any more ideas. This embarrassing reaction to my Idea tells me a lot about the people I’m counting on to deliver an excellent product – one that meets the needs of my customers’ business strategies.


    Every interaction my peers and I have had (with them) starts and ends with them telling us what they are doing, under the guise of getting our ideas (consent). I find it disturbing and also pretty offensive that I’m expected to pretend like this; while at the same time trying to educate my customers on customer-centric strategy and social engagement – admittedly, I’m still in the learning process here.

    I am therefore exercising my rights as a social customer and social partner to voice my opinion on this matter – in a venue I control – where nothing will be deleted, including comments from anyone who feels I’m talking about them :)

    Update

    Suddenly, the status are being updated. Yet, not according to votes, and with a few twists. It seems that Ideas are being forced to fit into their plan instead of building a plan for the Ideas. I guess my Idea to update the statuses is the only one that’s actually been accepted, although it’s not reflected in the statistics.

    Everything is under consideration, accept the top idea….by far the top idea.

    Nice….

    Categories: Social CRM Tags: ,
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