Category Archives: Customer Insight (inc VoC)
What can we learn from Havas Media’s 2013 Meaningful Brands survey?
For me, the highlights from the survey report are:
- Just 20% of brands worldwide are seen to meaningfully positively impact people’s lives;
- The majority of people worldwide wouldn’t care if 73% of brands disappeared tomorrow;
- Only 32% feel brands communicate honestly about commitments and promises;
- 54% of us don’t trust brands; and
- The meaningful brand index outperforms the stock markets by 120%.
It would appear that the case for making a shift towards a ‘meaningful brand’ is compelling according to Havas Media and yet most brands do not show up as meaningful. This shows up as interesting for me given all the talk-spend on brand, branding and brand building.
Let’s shift perspective and take a look at the situation through the eyes of Customer Experience.
What is the state of Customer Experience at the end of 2013?
In her November post, “Sucking Less” is Not a #CX Strategy, Annette wrote:
“Are organizations seeing the value of delivering a great customer experience? Clearly they pay lip service, but we know that actions speak louder than words. Do they really get it? No. There’s no real commitment of time, resources, and budgets to initiatives that improve the customer experience.
I spend a lot of time talking to prospects and clients about how to sell the value of customer experience to company leaders. It’s so disheartening …..”
My experience resonates with Annette’s. And our experience is not unique – talk with Customer Experience professionals and you get a taste of how difficult it is to move the Customer Experience ball beyond conducting VoC surveys and collating-publishing the results.
So what is going on here? If Tops are VCs and Customer Experience is seen as investment then the Tops do not see the value of investing in Customer Experience ventures.
What is the state of CRM at the end of 2013?
It occurs to me that large established companies have spent large sums of money in the name of CRM – usually in procuring and implementing so called CRM systems. What is there to show for this investment in terms of generating superior value for customers and cultivating meaningful profitable relationships with customers?
As I look around I find that the single customer view is just as elusive today as it was when Siebel was promising it, through the adoption of its CRM suite, back in 1999. The gulf between the talk and the reality continues to stun me. So many companies still struggle to work out the totality of their relationships (products purchased, interactions) with their customers.
I notice that many marketing, sales and service (customer, field) processes are just as broken today as they were in 1999. Why? Because too many people implemented CRM to automate the existing way of doing business.
It occurs to me that the challenge of getting the marketing, sales and service folks to genuine work together to build meaningful relationships with customers is beyond almost all companies. These functions and the people in them continue to work in silos, pursue their functional objectives, and work to their particular style.
I notice that the state of fragmentation within the marketing function is higher today than in 1999 due to the proliferation of digital channels. Marketing has become so complex that a whole industry, marketing automation, has grown up with the aim of automating marketing with a view to taking the complexity out of it.
Why do organisations continue to grapple with the same challenges despite their investments in CRM and Customer Experience?
Having been in the field since 1999 I am struck about how little has really changed despite all the changes that have occurred outside and inside organisations. What is going on here? Why is this the case?
It occurs to me that most of that which has taken place in the areas of CRM and Customer Experience has occurred in the domain of doing. And this doing has arisen from the same old domain of being. And as such, the mode of being has poisoned-corrupted all the doing. How best to illustrate this? Think King Midas. Whatever King Midas touched it became gold. Being has that kind of power: every action is tainted with the being that gives rise to it. Yet, those who have walked the CRM and Customer Experience path have been oblivious to this corruption because the the current style of showing up in the world is so taken for granted that it is invisible to us:
“The way of life of a culture is not an explicit set of beliefs held by the people living in it. It is much deeper than that. A person brought up in a culture learns its way of life the way he learns to speak in the language and with the accent of his family and peers. But a way of life is much broader than this. It involves a sense for how it is appropriate and inappropriate to act in each of the social situations one normally encounters; a familiarity with how to make sense of things and of how to act in the everyday world; and most general of all, a style, such as aggressive or nurturing, that governs the actions of the people in the culture although they are normally not aware of it. We can think of it as a cultural commitment that, to govern people’s behaviour, must remain in the background, unnoticed but pervasive and real.“
- All Things Shining, Hubert Dreyfus and Sean Dorrance Kelly
This sense of the being, of the default ‘style’, of organisations (and the people who work in them) is spelled out clearly by Vik Maraj in an interview published on the Huffington Post where he talks about the challenge of transforming the not for profit sector:
“Question: What is the over-arching challenge in the not for profit sector?
Answer: We act mostly inside of a context of charity not empowerment. Very few people are “learning to fish”. And this is a societal issue not just a not for profit issue.
Question: With respect to the not for profit sector, what is the truth that we don’t want to talk about?
Answer. We compete with each other with a smile on. We protect ourselves. And we collaborate in an opportunistic way. And the game is rigged such that this behaviour is almost inevitable. And the rigging is usually done by a decades old governmental policy…….
At first some of the obvious challenges are a lack of funding, a lack of resources, a lack of volunteers, turnover, a lack of being valued, lower salaries, lack of training and development, lack of policy, political unwillingness, the economy, etc. There are many more that I have not mentioned and what they all have in common is that none of them are the real problem.
Question: What’s the real problem, and what’s the answer?
Answer: The real problem is that we don’t collaborate and align our vast, often duplicated resources, talents, and mandates, to have a collective voice. Collaboration is both a missing mindset as well as a missing process. We mostly define collaboration as “getting together”. As one of our clients said, “[we act as] independent islands chipping away at symptoms”.
Almost all transformative change started with a series of small groups led by a few courageous people. They came together to tell the truth to one another, did the tough work to get over their differences, and then whole-heartedly went after an intolerable circumstance that each could not surmount on their own! The answer is to move from a “me or you” mindset to a “me and you mindset” and to stop pretending that we are always noble or even often noble!
Question: If this is the answer, at least one powerful answer – so then why aren`t we doing it?
Answer: Good question. Given the common goals, overlapping skillsets, and in many cases overlapping client bases and services, why aren’t we truly collaborating and coming together to increase the power of our voice and share resources, information, and talent? Why? The answer is that there is too much self-interest and survival thinking to allow for this. Making it and surviving forms an almost inescapable context within which people operate.
If you are awake and have any lived experience of the for profit sector you will see the parallels.
Summing up, excellence in CRM and Customer Experience requires a transformation in the character (being) of organisations (and the people in the organisations especially the Tops) not just a change of clothes to project a more ‘customer friendly’ personality. This is a challenge that few have taken on wholeheartedly – arguably the CRM and Customer Experience fixes were actions designed to bypass the need for a genuine shift in being, in transforming from extractive capitalism to conscious capitalism.
On LinkedIn, Don Peppers is sharing his perspective on making better decisions with data. This got me thinking and I want to share with you what showed up for me. Why listen to my speaking? I do have a scientific background (BSc Applied Physics). I qualified as a chartered accountant and was involved in producing all kinds of reports for managers and saw what they did or did not do with them. More recently, I was the head of a data mining and predictive analytics practice. Let’s start.
Data and data driven decision-making tools are not enough
Yes, there is a data deluge, and this deluge is becoming down faster and faster. Big enough and fast enough to be given the catchy name Big Data. What is forgotten is the effort that it takes to get this data fit for the purpose of modelling. This is no easy-cheap task. Yet, it can be done if you throw enough resources at it.
Yes, there are all kinds of tools for finding patterns in this data. And in the hands of the right people (statistically trained-minded, business savvy) these tools can be used to turn data into valuable (actionable) insight. This is not as easy as it sounds. Why? Because there is shortage of these statistically trained and minded people: amateurs will not do, experts are necessary to distinguish between gold and fools gold – given enough data you can find just about any pattern. It statistical savvy is not enough you have to couple it with business savvy. Nonetheless, let’s assume that we can overcome this constraint.
The real challenge in generating data driven decision-making in businesses is the cultural practices. We do not have the cultural practices that create the space for data driven decision-making to show up and flourish. A thinker much smarter-wiser than me has already shared his wisdom, I invite you to listen:
On the whole, scientific methods are at least as important as any other research: for it is upon the insight into the method that the scientific spirit depends: and if these methods are lost, then all the results of science could not prevent a renewed triumph of superstition and nonsense.
Clever people may learn as much as they wish of the results of science – still one will always notice in their conversation, and especially in their hypotheses, that they lack the scientific spirit; they do not have the distinctive mistrust of the aberrations of thought which through long training are deeply rooted in the soul of every scientific person. They are content to find any hypothesis at all concerning some matter; then they are all fire and for it and think that is enough …….. If something is unexplained, the grow hot over the first notion that comes into their heads and looks like an explanation ….
- Nietzsche (Human, All Too Human)
It occurs to me that the scientific method never took route in organisational life. Put aside the rationalist ideology and take a good look at what goes in business including how decisions are made. I say you will find that Nietzsche penetrating insight into the human condition as true today as when he spoke it. The practice of making decisions in every organisation that I have ever come in contact with is not scientific: it does not follow the scientific method. On the contrary, managers make decisions that are in alignment with their intuition, their prejudices, and their self-interest. It is so rare to come across a manager (and organisation) that makes decisions using the scientific method that when this does occur I am stopped in my tracks. It is the same kind of unexpectedness as seeing a female streaker running across the football pitch in a league match.
What are the challenges in putting data driven decision-making practices into place in organisations?
Technologists have a gift. What gift? The gift of not understanding, deeply enough, the being of human beings. Lacking this understanding they can and do (confidently) stand up and preach the virtues-benefits of technology. If life were that simple.
Truth shows up as attractive to those of us who do not have to face the consequences of truth. Data driven decision-making sounds great for those of us selling (making a living and hoping to get rich) data driven tools and services.
The challenge of putting in place data driven decision-making practices is that it disturbs the status quo. When you disturb the status quo you go up against the powerful who benefit from that status quo. Remember Socrates:
The very nature of what Socrates did made him a disruptive and subversive influence. He was teaching people to question everything, and he was exposing the ignorance of individuals in power and authority. He became much loved but also much hated …. In the end the authorities arrested him for …., and not believing in the gods of the city. He was tried and condemned to die …
- Bryan Magee, Professor
Beware of being successful in putting in place a culture of data driven decision making!
With sufficient commitment and investment you can put in place a data driven decision making culture. Like the folks at Tesco did. And by making decisions through harnessing the data on your customers, your stores, your products, you can outdo all of your competitors, grow like crazy and make bumper profits. Again, again, and again. Then the day of reckoning comes – when you come face to face with the flaws of making decisions solely on the basis of data.
Tesco is not doing so great. It has not been doing so great for several years – including issuing its first ever profits alert in 2012. What is the latest situation? Tesco has reported a 23.5% drop in profits in the first half of this year. What has Tesco been doing to deal with the situation? This is what the article says:
Last year, Tesco announced it would be spending £1bn on improving its stores in the UK, investing in shop upgrades, product ranges, more staff, as well as its online offering.
There are a number of flaws on data driven decision making. For one data driven decision making assumes that the future will be a continuation of the past. Which is rather like saying all the swans that we have come across are white, so we should plan for white swans. And then, one day you find that the black swan shows up! The recession and the shift in consumer behaviour that resulted from this recession was the black swan for Tesco.
Furthermore, I hazard a guess that in their adoration at the pulpit of data driven decision making the folks at Tesco forgot the dimensions that matter but were not fed into the data and the predictive models. What dimensions? Like the customer’s experience of shopping at Tesco stores: not enough staff, unhappy staff, stores looking more and more dated by the day, the quality of their products ……
It looks like the folks at Tesco did not heed the sage words of one of my idols:
Not everything that counts can be counted, and not everything that can be counted counts.
What Is The Achilles Heel of Strategy?
My colleague and I put our whole selves into our work talking with folks in the business, listening to customer conversations, reviewing research, looking at competitors and trends, looking at various approaches, evaluating these approaches and coming up with optimal course of action for our client and our client’s customers.
To our delight the strategy was accepted-approved by management. A month or so later we got busy on implementation planning. It was during the implementation planning when hard decisions had to be made that the commitment to the digital strategy unravelled. Our clients got the value of pursuing the digital strategy and they found themselves in a particular situation which called forth and drove a different set of choice and actions.
This is the Achilles Heel of strategy, every executive finds himself in a particular situation. And every situation has its own ‘logic’ and a momentum. As such it really it takes something to alter course and make any significant headway. It takes resolve – fierce resolve, the kind of resolve that grabs you and keeps hold of you. It is not the kind of resolve that is created through the intellect.
Why Don’t We Do What We Know We Should Do?
Have you wondered why your organisation sucks at being authentically customer-centric: practicing relationship marketing, client centred selling, pleasing customer service? Have you wondered why it is that your organisation sucks at calling forth the best from your people?
Now and then someone speaks and their speaking is wisdom. Today, I share with you the wisdom of David Maister as articulated in his great book ‘Strategy and the Fat Smoker‘:
“In business, strategic plans are also stuffed with familiar goals: build client relationships, act like team players, and provide fulfilling motivating careers. We want the benefits of these things. We know what to do, we know why we should do it, and we know how to do it. Yet most businesses and individuals don’t do what’s good for them….
The primary reason we do not work at behaviours which we know we need to improve is that the rewards … are in the future; the disruption, discomfort and discipline needed to get their are immediate…..
Our default pattern and why it doesn’t work
When it comes to improving performance at the individual, team or organisational level we tend to follow a self-defeating pattern. I have seen this pattern played out again and again over the last 10+ years as organisations have grappled with relationship marketing, CRM, customer experience, employee engagement, digital. Here’s what David Maister says:
We start self-improvement programs with good intentions, but if they don’t pay off immediately, or if a temptation to depart from the program arises, we abandon our efforts completely – until the next time we pretend to be on the program.
That’s our pattern. Try a little, succumb to temptation, and give up. Repeat until totally frustrated. Unfortunately, there is rarely, if ever, a benefit from dabbling or trying only a little. You can’t get half the benefits of a better marriage by cutting out half your affairs, cure half the problems of alcoholism by cutting out half the drinks or reduce the risks of lung cancer by cutting out half the cigarettes.
You can’t achieve competitive differentiation through things you do “reasonably well most of the time.” You not only cannot dabble, but you also cannot have short-term strategies ….. The pursuit of short-term goals is inherently anti-strategic and self-defeating.
You are either seriously on the program, really living what you have chosen, or you are wasting your time.
Why strategic analysis and listening to customers is not the answer
I worked in an organisation which expended considerably time-effort-cost in doing NPS quarterly. We had access to the voice of the customer. And the voice tended to speak the same tune quarter after quarter. Why? Because the people in the organisation were not willing to change behaviour in any significant way.
Is it possible that setting up VoC listening programs are a ruse? A way of saying to yourself and others that you are serious about improving the customer experience so that you hide your unwillingness to change your behaviour, the behaviour of your team, your organisation? What does David Maister say?
Improving the quality of the analysis is not where the problem lies. The necessary outcome of strategic planning is not analytical insight but resolve.
What are the essential questions of strategy?
If we know the why-what-how of employee engagement, meaningful customer relationships, and customer loyalty then what are the strategic question? Here’s what David Maister says:
The essential questions of strategy are these:
 Which of our habits are we really prepared to change, permanently and forever?
 Which lifestyle changes are we really prepared to make?
 What issues are we really ready to tackle?
Now that’s a different tone of conversation and discussion (and the reason that real debate is so often avoided).
What am I getting at here?
To come up with products that enrich the lives of customers requires resolve, analysis is insufficient. To create-deliver truly personalised-relevent marketing requires resolve, analysis and marketing technology are insufficient. To call forth the kind of service that generates gratitude from customers and makes them feel good about doing business with your organisation requires resolve, analysis-outsourcing-technology are insufficient. To orchestrate an end to end customer experience that calls forth customer loyalty requires formidable resolve, VoC and customer journey mapping are insufficient. Put different, dabbling won’t do; it occurs to me that most are merely dabbling.
I say, it is worth listening to David Maister once more:
There is no shame in aiming for competence if you are unwilling to pay the price for excellence. But don’t try to mislead clients, staff, colleagues or yourself with time-wasting, demoralising attempts to convince them that you are actually committed to pursuing the goal.
Relax, it’s ok to be just ok
As I get present to the world of business as it is and as it is not, I get present to the following and contradicts all the evangelising about customer focus, customer service, customer experience, customer relationships and customer-centricity:
1. Almost all businesses are unexceptional. They provide ok products (that do the job well enough). They provide OK digital real estate (websites, social media, apps, mobile). They provide OK stores. They hire OK people. They provide OK customer service – whether in stores or via the call-centres. And they generate an OK end to end customer experience, by default. As a result they do OK – they survive and make OK profits.
2. It is only against this background of OKness that the exceptional can and does show up. It is because almost all banks and insurance companies are ok that USAA glow so brig and htly. It is because most digital retailers are OK that Amazon shines brightly. It is because most high street retailers are OK that John Lewis and Waitrose (part of the John Lewis Partnership) shine brightly. It is because most organisations provide OK customer service that Zappos and Zane’s Cycles shine brightly.
Are the Tops are the biggest obstacle to your organisation becoming a “Customer Company”?
Some of you have questioned my emphasis on the Tops and their critical importance to any successful shift towards your organisation becoming a “Customer Company”. Some of you have asked me why it is that I have focussed on the Tops and not the Middles and the Bottoms. The answer is twofold.
First, there is the fact that every system has certain points that have much higher leverage than others. Isn’t that what we are looking for when we map the customer journey, assess the customer experience, and look for the “moments of truth” – the interactions that really matter and leave customers happy or unhappy, promoters or detractors? Ask yourself who you would approach and seek to convince/persuade if you wanted to trigger major organisational change. Would you approach the sales rep or the call-centre agent or would you approach one or more people in the C-suite?
Second, there is my 20+ years of experience at the coal-face of organisational change and business performance improvement in its many disguises. Yes, the Middles and Bottoms have some capacity to resist/impede change initiated by the Tops. What is missed is that they rarely have the capacity to initiate major organisational change nor to bring it to an end abruptly. This capacity, this power, lies with the Tops.
Never underestimate the Tops addiction to control and the fear of losing it!
Allow me to share a real life example with you. This example is provided by Judith E. Glaser in her book Creating We. In this book she shares the story of a weight loss company and its shift toward customer-centricity. Here is an abridged version of her story:
Major change – or transformation – usually involves a huge shift in power that takes place across a company. In the 1990s, a weight-loss company was experiencing customer defection at a high rate….
Customers were defecting from their programs and, worse than that, they were telling other potential customers that the company was awful…… The company was getting a bad reputation for high cost/low value…..
The company leaders didn’t believe how serious the situation was. They felt that Weight Watchers and Jenny Craig were no match for their billion dollar powerhouse. But they were wrong and the feedback proved it.
……. we did extensive customer research, as well as franchise research among their 4,500 sales consultants, and discovered that the hard-sell style did indeed cause customers to rebel at some point and to spread the word that the company was insensitive, pushy and only out for money.
….. we engaged hundreds of internal consultants and totally revamped the sales approach, and, most of all, its relationship to its customer. The company changed its value proposition ……. we created a sales-training process to teach everyone how to be sensitive to customers, to talk and partner with them……. the program was called “Partnership Selling”….
Customers loved the new approach, and sales consultants did, too. Interestingly, however, the new approach created great problems for the leadership team.
The previous hard-sell approach…… enabled the company to track each sales consultant’s every move. Each was trained to memorize a sales script and not divert from it….. This highly structured, predictable, customer insensitive approach enabled them as a company to track what everyone did and said down to the last word, giving the company control of every customer interaction. They rewarded sales consultants for getting the pitch perfect…….
The new customer-focused process reduced the control of the corporate headquarters and increased control for the sales consultants to manage the “customer experience”. Corporate went along with the new approach for a short while, maybe six months, then retracted the whole value proposition, for fear they were losing control. Corporate were unable to ensure that everyone followed the same process. They therefore were unable to reward the best sales consultants for following the script…… Their focus was totally internal and control-based.
…. during this time, the former president returned to run the company. He favoured the canned controlled interaction with customers and reinstated the old approach to selling. The hard sell returned and the customers left……
During the process, they were hell-bent on reinforcing their own way of doing business, dominating the customer and the sales organisation, and being in total control. After they went out of business, a few of the executives realised they had authored their own demise.
They executives were at the edge of new insights. They were taking the coaching and doing well. Then their insecurities kicked in, the fear of losing control returned, and they went back to square one. They could not leave their Comfort Zone of doing things the way they’d always been done. The only WE they could see was the familiar WE of their fellow senior executives, not the inclusive WE of the enterprise as a whole, and certainly not the WE of the customers.
When organisations are faced with change, fear often causes them freeze and hold on to the current way of doing things, even if its not working…..
Unhealthy cells stop taking nourishment from outside, stop taking feedback, and defend their position; and the president responded the same way. He stopped listening to the marketplace, to the customer, and defended his point of view; he was not open to feedback or to new ways of thinking. People had to please the boss, and they did.