The Economist Intelligence Unit has recently published a report titled ‘Outside looking in: The CMO struggles to get in sync with the C-suite’, sponsored by SAS. This report has showed up as rather interesting for me and I want to share with you that which has caught my interest.
CMO’s face a number of big problems
The fundamental problem is that CMOs don’t get much respect from the rest of the C-suite. CMOs say that they are doing a difficult job well: making a contribution/delivering significant value to product development, sales and customer service. The problem is that the rest of the C-suite don’t agree – they question the value/contribution that CMOs are making. And it doesn’t look like they listen to CMOs with much respect. Here is how the EIU report puts it:
“CMOs believe they are constrained because the rest of the organisation does not consider marketing to be strategic; the C-suite believes marketing has not earned the right to be more strategic because it is ineffective at demonstrating value of its investments.”
Here are the other big problems that CMOs face:
1. Many organisations have trouble defining, clearly/exactly, the CMO’s role and responsibilities. Which could explain why it is that there is no agreement on what business objective the CMO (and the marketing function) should focus upon and be held accountable for. Worse still there is a fundamental disagreement between what CMOs see as marketing’s priorities and the priorities that the other members of the C-suite assign to the marketing function. Which makes me wonder if members of the C-suite actually talk with each other, share and agree what they expect of one another. Doesn’t look like it. The EIU report says “..their greatest challenge: getting everyone to agree on marketing’s priorities.”
2. The marketing function is not coping with the challenge that comes with the territory that falls under the market umbrella: advertising, brand, market research, communications, customer analytics, social media, mobile and so forth. Why? First, the marketing function lacks people with the necessary skills and expertise to cope/deal with this broad/dynamic challenge. Second, members of the C-suite do not feel the CMO’s pain – they are not approving the necessary marketing investments.
So whilst it looks like CMOs are in a difficult position, there is no need to despair. The EIU reports offers a route to influence, credibility, impact and respect from the C-suite.
What can CMOs do to make an impact and amass influence/respect in the C-suite?
The EIU report advises CMOs to focus on the customer experience and the voice of the customer. The authors pin their hopes on the following quote from Steve Cannon, CEO, Mercedes Benz USA:
“Every single customer experience is a brand moment of truth. If we create an aspiration through our advertising, and a customer walks into a store and does not deliver on that promise that reflects on marketing.”
Any intelligent person could drive a coach and horses through this assertion. And for the the time being lets just accept and go with this assertion.
OK, if Customer Experience is the unifying theme and the rallying call for the organisation then how exactly can the CMO contribute to this play given that the CMO is not the CEO and does not control all the touchpoints, which as a whole, generate the Customer Experience?
Focus on the voice of the customer:
“Chief marketing officers (CMOs) stand a better chance of increasing their internal influence – and changing lingering doubts about marketing’s strategic contribution to the business – if marketing can consistently deliver insights and tools that benefit others across the organisation, from salespeople to call centre agents to merchandising teams.”
How feasible is this ‘success route’ being put forward by the EIU?
I say that there is a big difference between a poor strategist and a good strategist. A good strategist takes into account feasibility. Specifically, he asks this question: what is the likelihood that my client can execute this strategy? And the good strategist keeps on going until he comes up with a strategy that the client has a good chance of being able to execute successfully.
So let’s ask this question, how likely is it that marketing can:
a) marshal the voice of the customer from all the disparate sources and turn this into a comprehensive view – single view of the customer;
b) generate actionable insight into customers, how they interact with the business as a whole, the jobs that they hire the business to do for them, and their experience of using the product and dealing with the company?”; and
c) inspire the various members of the C-suite to act – to make changes in their priorities, policies and practices – so as to improve the customer experience?
I’ll let you decide for yourself. For my part I could not help noticing the following hurdles identified in the same EIU report:
1. Single customer view. “The airline [BA] has spent the better part of the last decade integrating its systems to support the effort; data warehouse not stores 200 separate data sources from different parts of the business to provide a more granular view of the customer, based on information they have volunteered.”
2. Converting data into actionable insight. “For all the talk about data-driven customer insight, marketers are just starting to understand how they should be using the growing repository of information they are collecting through digital media and other channels.”
What do I say?
I say that if you and your organisation are serious about building your competitive position and commercial success on the Customer Experience then follow the example of Steve Cannon the CEO of Mercedes Benz USA. Why?
Because, the role and this responsibility or organising the business around the Customer Experience is a huge change full of organisational politics. And as such it is beyond the remit and the capacity of the CMO and the marketing function. This role/challenge – that of aligning the organisation around the customer experience requires marshalling resources, reassigning resources, engendering and dealing with organisational conflict - belongs to the CEO.
Here is what Steve Cannon did in the words of the EIU report:
“..aligning the organisation around a superior customer experience has been the focus of Steve Cannon since he took over as CEO in January 2012…. Investments in customer experience programmes have been large – such as the formation of a dedicated customer experience team – and small – like providing Mercedes Benz dealers with iPads equipped with custom apps and videos.”
As regards what Steve Cannon is doing at Mercedes Benz USA I draw your attention to the following:
1. Steven Cannon was the CMO before he came the CEO. When he was the CMO he did not take charge of “aligning the organisation around a superior customer experience” No, he did it when he became the CEO. I say he is a smart man who has a sound grasp of reality.
2. If the CMO had come up with the clever idea of buying hundreds of iPads for dealers it is highly likely that he would have reinforced the C-suite’s already always listening of the marketing function as the “department of coloured pencils” (how one CEO described the marketing function) and s/he would not have got the budget approved by the CEO/CFO.
What do you say?
Corephone: a great example of the service ethos, customer experience and customer centricity! (Part I)
If your smartphone or iPad needs fixing then contact Spencer at corePhone
It is rare that I come across a person, a company, a business that has cracked the customer-centricity code. It looks like Spencer and corePhone have done just that. All you have to do is to take a look at the website (the entire design of it) and read the testimonials to get that Spencer / corePhone is a world apart when it comes to the customer experience they generate and the delight they engender in customers. So if you have a broken smartphone or iPad then you should contact Spencer at corePhone (www.corephone.co.uk).
Have you noticed that smartphones have a design flaw?
Smartphones are easy to use & useful so they are heavily used. In the process of using them we drop them and that is when we find out that smartphones have a serious design flaw: they are fragile, they don’t bounce. Have you dropped your smartphone? What thoughts/feelings did you experience? I dropped my iPhone 4 and was shocked to find that the expensive case ‘fell apart’. Yet, thankfully, it did that when it hit the ground and so my iPhone was ok. I let out a sigh of relief as I was not looking forward to paying £400+ to get a new one. Some of us are not that lucky. Recently one of my colleagues dropped his iPhone, allow me to tell you his story using his words:
“We’ve all either seen it happen or had it happen to us…shiny iPhone one minute, a moment of clumsiness / butter fingers and the next minute it looks like this…
This is what happened to me today. I have no idea how it happened but I saw it all take place in slow motion and I was left cursing …. To make matters worse, my iPhone did have a bumper on it but as happens when you drop a piece of buttered toast on the floor, my iPhone landed face down……. I couldn’t even answer the phone when it rang as the cracked screen had affected it ‘touch screen ability’!….
Luckily sense prevailed and I left the screw drivers and claw hammer in the draw and Googled ‘iphone 4 cracked screen and Portsmouth’…..and bingo!! I came across a helpful chap called Spencer.
A quick phone call later he gave me his address and instructions to be there at 6:30pm (no earlier please as he has his tea at 6pm !). By 6:45pm I skipped out his front door £60 lighter but with what was effectively a new looking iPhone. All fixed, cleaned and shiny !
…… If you find yourself in a similar situation I cannot recommend Spencer enough. Whilst he’s an air traffic controller by day, he’s running a handy side line fixing iPads, Blackberrys, Nintendo’s, Camera’s, laptop screens etc.. by night. A link to his site is below…probably worth book marking! As I live local to him I’d be happy to hand deliver your broken item to him should you want me too! Core Phone “
Let’s take a closer look at Spencer / Corephone: testimonials to die for!
It is not often that I read that kind of review, that kind of delight, that kind of enthusiasm, that kind of advocacy. So I took a look at the CorePhone website to see if my colleague’s experience was exceptional. It is not. I was totally blown away by the testimonials - specifically the way that Spencer is treating his customers, how he is making them feel and the impact he is having on their lives. Here are a selection of testimonials (I have highlighted what speaks to me by ‘bolding’):
“I cannot start without saying how amazing this company is! My iPhone was smashed front and back and my home button was faulty after dropping the phone. Spencer replied quickly to my request of a repair and he offered me a next day service. In addition, he offered an amazing price for all jobs. When the repair was conducted, it was an amazing job, the phone looked brand new and Spencer even cleaned my earpiece and other ports out of courtesy. And even more amazing, it was fixed in 20 minutes! I would definitely use this service again and would recommend all to use corePhone for any iPhone repairs as the service you will receive is first class. Gary Coldwell, Hampshire, March 2012“
“Many thanks Spencer. It is nice to find such a genuine guy who could repair my iPhone. I texted Spencer to see if he could repair my iPhone. He texted me back and booked for the repair to be done Monday night. I waited for the repair to be done and could not believe how fiddly it was, but it was soon all put back together and looks like a new phone. Phone this guy; you cannot go wrong. John Tucker, Titchfield, September 2011“
“I would like everyone to know what a fantastic service spencer(corePhone) extended to me. I texted spencer at 7:40 am on Saturday and he replied straight away. I asked if he would take a look at my I phone 3G home button as it hadn’t worked properly for a while. He allowed me to come to his home at 8am and had my phone all fixed and ready to go by 8:15am !! Nice, friendly, quick & professional service is worth every penny,especially at Spencer’s fair rates. I recommend this service 100 %. Jim, Pickfords Segensworth, January 2011“
What can we learn from Spencer / corePhone?
The testimonials show that Spencer / corePhone create superior value for people who have damaged their smartphones. Let’s take a closer look at this superior value.
The central insight that corePhone is built upon is the understanding that customers are attached to their smartphones. Smartphones break – especially the screens. Getting these screens replaced through the high street retailers is both time consuming (long delays) and expensive. Customers want a fast turnaround and more affordable repairs.
The value proposition is what converts people with a problem into customers who reach out to you and buy from you. So what is corePhone’s value proposition? According to the website, “affordable iPhone repairs”. Read through the testimonials and you will find that this is a compelling value proposition. Customer after customers speaks about the fairness, the reasonableness, the affordability of the repairs when compared to Apple and other high street retailers.
The Customer Experience
It is the Customer Experience that generates delight, indifference, disappointment and/or anger. It is the Customer Experience that generates advocacy, word our mouth recommendations, customer loyalty and repeat business. Why? Because this is where you keep or break the bargain that you struck with the customer through your value proposition. This is the area that Spencer / corePhone excel in.
If you reach out to Spencer / corePhone then Spencer responds quickly even on a Saturday morning at 7:40am or Sunday when he is out shopping. And Spencer fixes your iPhone quickly – one customer rang at 7:40 am Saturday, was at Spencer’s workshop at 8am (that day) and left delighted at 8:15. That is the next clue: Spencer fixes your iPhone quickly – seems to be between 15 minutes and a half-hour. Furthermore, by the time the iPhone is handed to you it looks new, perfect. Finally, it looks like Spencer does more than he has to (‘”cleaning out ear pieces and ports..”) and treats his customers well – his customers like him as a person not just as a professional.
In short, the Customer Experience exceeds the value proposition. The value proposition only talks about affordability and sets that expectation. The Customer Experience delivers that extra: responsiveness, speed of turnaround, the intimate contact – being with /watching Spencer fix your iPhone in front of your eyes! What must it be like to see a master craftsmen open up your iPhone before your eyes and convert it from a wreck to a work of beauty? And how many of us want to take a look inside our iPhone and see how it is put together? This is all included in the Customer Experience!
Have you noticed that corePhone doesn’t have a loyalty or social media program to generate advocacy?
At a recent CMO dinner I asserted that companies that create superior value for customers through compelling value proposition/s and delightful customer experience do not have to pay the tax of customer loyalty. Show me a company that has a loyalty program and I will show you a company that is selling ‘me too’ products, services, solutions. Please notice that corePhone is not having to go out and bribe customers with customer loyalty and social gimmicks. Why? Because it is a strong value proposition and it delivers an amazing (wow!!) customer experience.
Part II coming next
Enough for today, in the next post I will take a look at the corePhone website, extract and share with you the lessons for building a website that works for customers. Very few websites do that especially if they belong to a big company!