Category Archives: Marketing

Why Have CRM, 1:1 Marketing, and Customer Experience Failed?

I am clear that CRM, 1:1 Marketing and Customer Experience have failed to deliver on the promises made by professors/academics, authors/gurus, consultants and technology vendors.  Why?  Given the choice between changing our way of showing up and operating in the world or changing our words, almost all of us get busy learning-speaking a new vocabulary.

I have been investigating the domains of ‘digital marketing’ and the  ‘marketing cloud’. In the process I have been listening to pitches made by marketing vendors.  All the relationship-experience centred buzzwords are there: customer experiences, digital experiences, the mobile experience, customer engagement, customer relationships, responsiveness to customers…..  Yet, to the listening of a skeptic like me, something lies hidden under this fine rhetoric.

If you dig underneath what is it that you might find?  You might find that the narrative comes down to the following:

  1. We will put at your disposal an advanced scalable platform where you can suck in anything and everything that you have or can purchase on your customers (and prospects) to give you a 360 view of your customers irrespective of any concern-respect for the privacy of your customers.

  2. We have great tools that allows you to set-up customer journeys and determine when you want to hit customers with your messages, and how often you want to hit them with these messages.

  3. You can use our advanced decisioning engine to figure out what ‘product’, what offer, what message to push at your customer. And If the customer doesn’t respond to that message then our engine will learn and use this learning to come up with a better-different-more attractive message.

  4. We will put at your disposal the ability to send your messages to your customers 24/7/365 through any and every digital interaction channel that your customer uses. So there is no escape. Wherever the customer is, you can invade his privacy, and message him/her.  And,

  5. By doing this you will drive up your marketing effectiveness, make more money for your organisation and live happily every after because you have the tools to make your customers buy, buy, buy – from you.

This is not technology enabled relationship building.  It shows up for me as direct marketing on steroids. It is the nightmare scenario that my coauthor and I envisaged back in 2001 when we were advocating and advising on 1:1 marketing.  It occurs to me that this is technology enabled stalking/harassment: it is the epitome of the business as usual (transactional) way of showing up and travelling in the world.

How is this best summed up?  Allow me to share these words of wisdom from David Maister:

What all these problems have in common is that firms are not only “in it for the money,” but they want the money now! As a result, they talk a good game about long term relationship building marketing efforts, the truth is that these efforts are never really executed well unless they deliver results immediately.

Here is my prediction:

  • marketers (and their IT advisors) will lap up the story being pushed by consultants and technology vendors;

  • only a subset of marketers will do what it takes to become competent at making this technology actually work;

  • those marketers who do figure out how to make this advanced technology actually work (or who use outside agencies with technology savvy) will bombard customers with messages; and

  • the novelty of this ‘seduction’ will wear off and customers will learn to tune out and/or work around the marketer’s arsenal.

I have been wrong. And I may turn out to be wrong again. What do you think?

 

Why Aeroplanes Don’t Fall Out Of The Sky; Why Business Screws Customers and Hospitals Kill Their Patients

I invite you to ponder the following

  1. Why is it that commercial aeroplanes don’t fall out of the sky?
  2. Why is it that terrorism did not take root, establish itself, and grow in the USA/UK?
  3. Why is that it is rare for criminals to kill a policeman in the UK?
  4. Why is it that the bankers lied-cheated-stole, brought the western capitalist system to its knees, and prospered whilst the rest of society has been paying the price of their actions?
  5. Why is it that hospitals in the NHS have been killing their customers (the patients) for ten years (or so) despite whistleblowing (by doctors and nurses working in these hospitals) and complaints made to hospital management, the regulators, and the politicians?
  6. Why is it that employees have no voice in large organisations and domination-intimidation of the less powerful by the more powerful is rife in these organisation – public and private?
  7. Why is it that large established businesses, and those who lead-manage-run them, continue to screw (cheat, swindle) their customers?

What did you come up with?  I suspect that you came up with the standard excuses and explanations – this is what we do when we show up from the taken for granted way of seeing and explaining.

What shows up when I look beyond the accepted excuses and explanations? 

I invite you to put aside the standard, commonplace, complaints, excuses and explanations.  Instead I invite you to grapple with the question that I have posed in a zen like manner. What shows up for you?  When I grapple with this question this is what shows up for me:

  1. When a commercial aeroplane falls out of the sky it is clear-obvious that the aeroplane has fallen out of the sky. When such an aeroplane falls out of the sky people die and often there is carnage.  Loved ones grieve and demand answers. The media is on the scene and gives voice to the grief-loss of the loved ones and vividly displays the carnage.  All of which makes it unacceptable for commercial aeroplanes to drop out of the sky.  Put simply, commercial aeroplanes don’t fall out of the sky because we do not accept them falling out of the sky!

  2. Terrorism failed to get established in the USA and UK because it was unacceptable to allow terrorists space to terrorise.  Because it was not acceptable, massive resources were mobilised and draconian measures put in place to deal with threats of terrorism.

  3. It is not ok for criminals, or anyone else, to kill a policeman in the UK. Killing a policeman is going to far and that is something we will not allow. Because we do not allow it, it rarely occurs.

  4. Bankers lied-cheated-stole and got away with it because we accept lying-cheating-stealing as business as usual. Greed is good. Lying is good. Cheating is good. Stealing is good. As long as this lying-cheating-stealing generates bumper profits, generates employment and yields the requisite tax revenues.

  5. A number of NHS hospitals have been killing their customers, the patients, over a period of some 7 – 10 years because we accept it. It is OK to kill patients provided the instructions of the Tops (the government ministers) are carried out. It is not OK to disobey our masters. It is OK to kill patients. Besides the killing of patients by neglect-negliance is not evident unlike the clarity of aeroplanes falling out of the sky.

  6. Domination, intimidation and bullying is common place because it is OK to dominate, intimidate and bully people. It is the way that the powerful get the powerless to do what they want them to do. It is the way to exercise control.  It is business as usual in public and private sector organisations.  It occurs because we accept it.

  7. Large established businesses, and those who run them, continue to screw their customers because it is not obvious when this screwing is taking place. And even when it is obvious it is perfectly OK to screw customers. We accept that business and those who run them will seek to and find way so screwing customers. This is simply business as usual.

Lloyds Banking Group is fined a record £28m by the Financial Conduct Authority

If it occurs to you that I go too far then I invite you to read the latest revelations as showcased in the following piece in the Guardian newspaper: Lloyds Banking Group fined record £28m in new mis-selling scandal.  This is what Tracey McDermott, the Financial Conduct Authority’s director of enforcement and financial crime is quoted as saying:

Customers have a right to expect better from our leading financial institutions and we expect firms to put customers first – but firms will never be able to do this if they incentivise their staff to do otherwise.”

Why has the FCA handed down a record £28m fine?

According to Guardian piece:

1. “for putting staff under intense pressure to sell products customers did not want – or face demotion and pay cuts”; and

2. “the fine had been increased by 10% because Lloyds failed to heed repeated warnings about sales practices and because it had been fined 10 years ago for poor sales practices. 

Summing up

It occurs to me that which shows up and continues to show up in our world, the human world, is that which we accept, that which is OK by us, that which we assent to in our way of being-showing up in the world. As customers we get what we accept – no more, no less. As employees we get what we accept – no more, no less. As citizens we get what we accept – no more, no less.

2013: Where Are We At With CRM, Customer Experience and Customer-Centricity?

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.

Boots Opticians: A Disappointing Customer Experience

I get a letter

I got a letter through the post informing me that I was due for an eye test.  Given that it has been several years since I had my eyes tested I welcomed the colourful reminder from Boots.  I noticed that I could book an appointment online or by calling.  At that moment I did not have a laptop handy so I chose to call. My call was picked up almost immediately and a helpful chap booked an appointment for me at the local Boots (Opticians) store.

How am I feeling? Happy.  What kind of impression do I have of Boots?  This is an organisation that has its act together: it has sent me a useful reminder, it has offered me several options, it has made it easy for me to book an appointment, and the fellow on the phone exuded human warmth.

I turn up at the store for an eye test

Several days later I turned up at the local Boots Opticians store. The store looks spacious and clean – I notice the whiteness of the store and I wonder if Boots is ‘stealing’ from the Apple retail stores. Walking up to the woman at the counter, I smile, I give my name and let her know I am there for an eye test. This is an opportunity for her to show up as a human being. She declines. In her best robotic voice, she tells me to take a seat.

Looking around the various stands housing the spectacles, I notice four seats in line. Two seats are occupied, two are free.  As I approach the seats I notice that one of the seats is dirty – obviously dirty. The dirtiness of seat clashes with the sparkling whiteness of the store. And I notice that the seats (for customers) look crammed in comparison with the spaciousness of the rest of the store.

What does this tell me?  It tells me that the star of the show at Boots Opticians is the product: the range of spectacles. How am I left feeling? Disappointed. Unwanted. What am I thinking? I wonder what the rest of the experience is going to be like.

The eye test happens

Shortly, and on time, a professional looking man comes out from the ‘back’ of the store, calls my name, and asks me to follow him. He shows me into a ‘tiny area’ which houses three machines. At one of the machines, a member of staff is testing a customer. I am handed over to a young woman. She proceeds to conduct an eye test.  Whilst another member of staff takes my glasses to get those tested.

What am I thinking? I am asking myself how it is that there is so much space in the front for the spectacles and so little space at the back for conducting eye tests on customers.  And I am asking myself if a lack of ‘human warmth’ goes with the opticians and/or the Boots brand.  I am clear that for the staff, I show up as a ‘widget’ to be processed and not as a ‘flesh and blood’ human being.

Thankfully, the eye test does not take that long and the professional looking man is back. He asks me to follow him and walks me to a room that occurs as positively spacious-luxurious.  Over the course of the next 10 – 20 minutes he proceeds to test my vision by inserting different lenses into the spectacles he has placed on my nose.  His manner is professional. He shows up as knowing what he is doing.

At the end of the testing he tells me that my short-sightedness is slightly worse. And that I have started to become long-sighted too.  He tells me that I can either have two pairs of spectacles – one for short sightedness and one for reading. Or I can go for one pair of spectacles that will cater for both needs.  He suggests that I go for the single bifocal pair of spectacles. He then hands me over to another member of staff.

I walk out without buying spectacles

The new member of staff, a good looking lady with a smile, is keen to take me to the front of the store to pick spectacles.  I decline. Instead I ask for my prescription, receive the prescription, make my way to the robotic lady on the counter, pay and leave.

Why did I not buy?  I did not buy because I did not feel valued.  I did not buy because it did not occur to me that I was consulted on my needs. I did not buy because it occurred to me that the focus of the staff in the store was to sell me spectacles.  I did not buy because the people in the store and the experience lacked any semblance of humanity.  Put plainly, I was looking for an ‘I-Thou’ relationship and what I got was an ‘I-It’ relationship – I was the ‘It’.

I look forward to the day, that an ‘Amazon’ like competitor puts the likes of Boots Opticians out of business.

Worth remembering

Investments in CRM (including database marketing) are not likely to yield the desired results if the customer experience sucks! To generate ROI from CRM investments you have to pay attention to the customer experience.

Marketing and Customer Experience: 6 Core Emotional Needs That Shape Human Behaviour (Part 2 – Control)

If you read the first post of this series you may remember that Mark Ingwer in his book Empathetic Marketing asserts that there are 6 core emotional needs of customers: control, self-expression, growth, recognition, belonging, and care.   In this post I share my thoughts and Mark’s assertions-insights regarding the primary emotional need: CONTROL. 

Satisfying the need for control provides the best access for building customer loyalty

Mark Ingwer is bold in his assertion when it comes to the need for control and the access it provides the smart business:

satisfying the control needs of the consumer, more than any individual need discussed in this book, holds the most potential for a company to build loyalty to a brand, product, or service through intrinsic motivation, which is the internal sense of satisfaction with the purchasing process and the resulting purchase.

Through the iPod and iTunes, Apple handed control of music over to the music listener.  Through the iPhone, iPad and the apps store, Apple handed over much more control over these devices to the user such that each iPhone, each iPad, can truly be customised to the user by the user.  Please notice the genius here. By handing so much control over to the user and making it easy for the user to exercise this control, Apple has created a context where each iPhone, iPad is unique and thus irreplaceable.  Hence, the value if iCloud.

Why is the need for control such a vital need?

Think for a moment about the last time that you did not have any control over an important aspect of your life. What showed up for you in your body? What emotions surfaced? Was it a pleasant experience? An experience you want to repeat?  If you are human then it is likely that this experience was a deeply unsettling one when it occurred. Here’s what Mark Ingwer says on this matter

The need for control fuels our motivation in every aspect of our lives. Positioned near the individuality pole of the needs continuum, control is essential to our every day functioning. We see how this need influences our lives most profoundly when we’re not in control. Some of life’s worst and most stressful predicaments are colored by feelings of helplessness – events in which we are unable to prevent or alter the inevitable. 

I invite you to consider the direction of human progress. Is this progress, as in increasing control over that which showed up an threatening for us or made life uncertain or merely difficult?  Do you doubt that our ideal, even if unstated, is to have complete dominion (control) over that which shows up on planet Earth. And then our galaxy and eventually the universe.  Why might this be?  Here’s Mark Ingwer again:

Many situations that fall outside the purview of personal agency hit us in the gut. We feel insecure. We feel small. We fear losing control. And we strive to regain that control. Not only does that loss of control prevent us from achieving our specific outcomes, but it is also often wrenching evidence that signifies our relative insignificance in a large (and largely random) universe.

When we feel in control of external events, in control of ourselves, and in control of our core relationships, we have a broader and more satisfying feeling of contentment and confidence …. we can’t grow as individuals without attending properly to this need.

Customer service and the power of control

Why is it that I do most of my shopping online and do all of my banking online? Because I experience being in control of the shopping process, the banking process. Why is it that I dread having to call up most call-centres? Because, even before I pick up the call I expect a long-tedious-unpleasant experience where I am at the mercy of the IVR, long waiting times, call-centre agents who lack the expertise-will-freedom to actually help me …..  Here is what Mark Ingwer says on the matter:

Nothing reveals the power of control – and the destructive power of lack of control – than customer service situations. Companies that sell services or routinely interact with their customers in service settings must pay special attention to a customer’s sense of control.

Poor customer service results when proxy control is ineffective. If the proxy does not behave as the customer desires, the customer loses control of the situation.

If you are wondering what proxy control is then think about wanting to do your banking online and finding that the website is out of operation. Or imagine needing cash, turning up at the ATM and finding that it is out of order and there are no other ATMs available. Or imagine, ringing up the call-centre and coming face to face with an call-centre agent who speaks with an accent you find hard to understand. Or imagine going to the restaurant with the family, having eaten your meal, finding your young ones tired, looking for a waiter to pay the bill, and the waiter seems to take forever to come back to take your payment. You are desperate to go home and yet cannot do so until the waiter comes over to you and takes your payment.

What advice does Mark Ingwer have for marketers and customer experience specialists?

What I like about Mark Ingwer’s book is the practical suggestions that he provides at the end of each chapter. Here is his advice for marketers and customer experience specialists, as it shows up for me:

1. Review your core marketing message. It should say to customers: you can be in the driver’s seat – assuming products and service can deliver.

2. Examine the customers’ experience. Are prospects and customers in control throughout the path to the final sale and afterwards?

3. Simply after-sales processes. 

If you want to learn more about these practical recommendations then you will have to buy the book and read it as I do not want to give away Mark’s secrets and deprive him of readers for his book.

If you remember only one sentence then remember this one

It occurs to me that when it comes to the end to end customer experience then this is the one sentence that captures it all when it comes to the human need for control:

From start to finish, customers must never sense that they are at the mercy of a company or product. 

The last time I was in such a situation I walked out of the cinema, choosing not to watch a film that I really wanted to watch, rather than be at the mercy of the cinema and its staff.

In the next post, I will cover the human need for self-expression.  It occurs to me whole industries are based on this need. I thank you for your listening.

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