Want to Make a Success of Your CRM/CX/Digital Initiative? Listen to Montaigne

I’ve read many times that something like 70% of CRM initiatives fail to deliver the goods?  What about CX. marketing automation, and digital transformation initiatives? I don’t remember reading any statistics on the success / failure of these. Yet, I have been involved in these areas. My experience is that the process tends to be painful, and failure is more likely than success.

What Accounts For The Dominance Of Failure?

Success is an option. So what accounts for the dominance of failure in change / transformation initiatives? This is the question I found myself confronted with this week.  So what is my answer?

Before I provide you with an answer, I want you to know that over the last 30 years I have been involved in many kinds of projects-programmes-initiatives: accounting systems, management information systems, business process re-engineering, ERP systems, shared services, lean, CRM, website design & development, ecommerce design and implementation, customer loyalty, customer experience design, marketing automation, digital transformation….

Montaigne’s Insight Provides The Answer

Back to the question. What is the primary reason that many, if not most, change / transformation initiatives fail to delivery on the promise?

I say that THE primary cause of failure is a certain blindness/arrogance in those who initiate-shape-lead-manager such initiatives.  Blindness to what?  Blindness to the workings of human beings – as individuals, as groups, as the crowd. Arrogance?  The arrogance of the powerful in assuming that they can ignore the working of human beings and treat people like widgets.

Allow me to bring home that of which I am speaking by sharing the following with you  by sharing the following:

“His Scepticism makes him celebrate imperfection: the very thing Pascal, as much as Descartes, wanted to escape but never could. To Montaigne, it would be obvious why such escape is impossible: however high we ascend, we take that humanity with us.… He wrote:

It is an absolute perfection and virtually divine to know how to enjoy our being rightfully. We seek others conditions because we do not understand the use of our own, and go outside of ourselves because we do not know what it is like inside. Yet there is no use mounting on stilts, for on stilts we must still walk on our own legs. And on the loftiest throne in the world we are still sitting only on our own rump.”

Sarah Bakewell, How To Live, A Life of Montaigne

Now let’s make this real by looking at some examples.

Customer Relationships.  Take a moment look around you. How do human beings do when it come to relating and relationships?  Are we masters at this? No. Most of us struggle most of the time when it comes to relationships: unhappy husbands, unhappy wives, unhappy parents, unhappy children, broken marriages, affairs/cheating, unhappy teachers, bored/unhappy students, dissatisfied bosses, resentful employees….

Customer Loyalty. In the world as lived do we reward loyalty?  Yes? Then consider that parents spend a great deal of their lives caring for their children and in the process making many sacrifices. What happens when these parents get old? Do the children exercise loyalty – make sacrifices and look after their elderly parents?  Or is the reward of such parents a place in a nursing home – out of the way with strangers?  How about that employee who has worked for you for 20+ years when you make his job redundant by moving it offshore?  Or the employee who can get a similar/better job with a competitor with higher pay? If we do value loyalty then why it is that the new customer gets a better deal than an existing-loyal customer?

Customer Experience.  Walk in the shoes of the customer! That is the mantra which few really step into and live. Yet even if I did step into your shoes I wouldn’t necessarily experience that which you experience?  I am not you! It may be that when you step in your shoes they pinch whereas I find them comfortable. How can man experience what it is like to be a woman?  Or youngsters what it is to be elderly?  Or a English person what it is to be French?

Cooperation & Collaboration.  There is much talk about the need/importance of cooperation and collaboration. What is the reality?  In my home there has been fierce completion between siblings to be the first/best.  In the classroom there is completion to be the best. When it comes to school plays each actor wants the prominent/leadign role. In the corporation, employees are force ranked so that only a small percentage come out as high performers, and most come out as merely ok. Why? Rewards and honours are reserved for the few so as to encourage competition at all levels.  In the context of competition what will most people do most of the time? Compete!

CRM and Marketing Automation.  Look at the way that these technologies are implemented and you are likely to find that there is minimal time-effort-money given over to educating and training the people who will be expected to use these systems. Further, the folks are expected to go from novice to expert instantly.  The reality?  These systems are not intuitive – they require time, effort and even certain kind of dedication. Time, effort, and dedication that most users are simply not willing to put in – this shows up as extra burden on a back that is just about carrying the existing burden.

Summing Up

If you wish to make a success of your change / transformation initiate then you have a choice: to work with the ‘human nature’ or not. Remember, if you are not actively working with ‘human nature’ then it is almost certain that you are working against ‘human nature’. If you work against ‘human nature’ then you are likely to end up where most folks do end up when they take this route: failure.

 

 

Sales Effectiveness: What Does It Take To Make A Sale?

Does sales effectiveness require process – following a particular process in a particular manner?  Perhaps. Does sales effectiveness necessitate using the right technology/tools – say like a CRM system? Perhaps.  Does sales effectiveness require  a deep insight into the customer’s industry / business?  Perhaps. Does sales effectiveness require great negotiating skills. Perhaps.

Last week I presented a sales proposal. It was well received and we were awarded the work.  Several members of the client team mentioned that the proposal was spot on – exactly what they were looking for. A member of the proposal team stated that we had been successful because I had rapidly built a rapport with the client team – by honing in on their core need and talking to that. Another member of our (sales) team attributed success to the “highly contextualised presentation deck”.

To whom and to what do I attribute the success of this sales proposal?  First, let me say that I do not attribute it to killer insight to the client’s industry. I had little understanding or insight into that industry – a highly specialised industry.  Second, I neither followed a sales process nor used a CRM system.  Third, I did not put the solution together – others much more technical than me did that work. Lastly, the occasion to use negotiating skills never arose.  If there is a clue it lies in the comment “highly contextualised presentation deck”.

What I did do was a number of things. I recommended that the first cut presentation (put together by the technical folks) be presented to a key member of the client team. On that call, whilst the technical folks, presented that deck, I listened intently to the client. Where anything was fuzzy (to me, to the client) I asked clarifying questions. Following the presentation I talked extensively with the technical folks to understand the solution, implementation plan, assumptions they had put together.  This was not a comfortable discussion – I asked question after question to get from the abstract to the concrete.  Finally, I did desk based research.  After all this work, I cut down the presentation deck from 20+ slides to less than 10; I did my very best to make sure each slide spoke  to the client – relevant to the client’s problem/desired outcome, and written in language that the ordinary business person can easily understand.

Does that mean that I attribute success in ‘closing’ this opportunity to myself? Before I answer that question allow me to share some relevant information with you.  I/we (sales team) turned up on time but at what turned out to be the ‘wrong’ building. Sorting this matter out took something like 30 minutes. In the meantime the technical team via conference call had been asked to deliver the sales proposal. Having no choice they commenced delivery using the original presentation deck – ignoring the one that I had put together. By the time I/we (sales team) turned up the client team (about ten people) looked baffled and somewhat annoyed.  Then we (sales team) apologised and I delivered the sales proposal.

I attribute our success in being awarded the work to the client.  The client gave us (the sales team) a second chance: to wipe the slate clean and represent the sales proposal.  The client has a pressing need with a fixed deadline.  The client was looking to and in fact had to buy from someone – someone competent. The client considered us to be competent based on prior experience.  Put differently, the client was fertile soil for our sales proposal.

Summing up, I say that sales effectiveness comes ultimately comes down to a client that is sold on you (reputation, personal chemistry, word of mouth recommendation), has the necessary authority to influence/make a purchase, and most importantly has an urgent need to get started today to put in place something for the not to distant future. Now ask yourself how much of this is under the influence of the sales guy. Or how a sales process, a CRM system, or negotiating skills are going to make much of an impact on these dimensions.

I thank you for your listening. I wish you the very best and look forward to the next conversation.

 

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Erich Fromm On The Central Challenge Of Cultivating Meaningful Relationships With Customers

What Is The Central Challenge Of Building Meaningful & Profitable Relationships With Customers? Is this challenge about opening up 24/7 access to your business through any and all channels?  Is it about coming up with new products and services that attract customers like bright lights attract moths at night-time?  Is it about taking out costly, unpredictable, unreliable human beings and replacing them with technology?  Is it about collecting and mining all the data you can get your hands on to generate insight to customers and entice them with the right offer, at the right time, through the right communication channel?  Is it about redesigning processes and gluing up all the interaction channels so that the customer experience across the customer journey is an effortless one?

Perhaps. Or maybe this is simply thinking inside the existing way of showing up and travelling in the world.  What way am I referring to? The technological way. What kind of way is that?  It is the way that refers to human beings as human resources. It is the way that refers to customers as assets. It is the way that thinks that listening to the voice of the customer is the same as reading statistics and text which summarises and details the survey responses coming in from some customers. It is the way that seeks to replace human beings and human to human conversations with automated interfaces and self-service…..

I invite you to listen to the speaking of Erich Fromm written in the 1940s (bolding mine):

The insignificance of the individual in our era concerns not only his role as a business man, employee, or manual labourer, but also his role as a customer. A drastic change has occurred in the role of the customer in the last decades. The customer who went into a retail store owned by an independent business man was sure to get personal attention: his individual purchase was important to the owner of the store; he was received like somebody who mattered, his wishes were studied; the very act of buying gave him a feeling of importance and dignity.

How different is the relationship of the customer to a department store. He is impressed by the vastness of the building, the number of employees, the profusion of commodities displayed; all that makes him feel small and unimportant by comparison. As an individual he is of no importance to the department store. He is important as “a customer”; the store does not want to lose him, because this would indicate that there is something wrong and it might mean that the store would lose other customers. As an abstract customer he is important; as a concrete customer he is utterly unimportant. There is nobody who is glad about his coming, nobody who is particularly concerned about his wishes. 

– Erich Fromm, The Fear Of Freedom

It occurs to me that many (if not most) organisations struggle to cultivate meaningful-profitable relationships with customers despite spending significant sums on the likes of customer analytics, CRM, marketing automation, and VoC. Why?  My experience of the last 15 years working in the Customer space is that action has been at the abstract level of customer and customers. And almost nobody has paid attention to the experience of the concrete flesh and blood customer as a human being.  As such technology has been used to remove rather than enhance what little was left of the human to human relating.  Technology can do many useful things including increasing access and reducing effort. What it cannot do well is this: create, enliven, enrich human relating.

What Is The Single Most Critical Factor in CRM / CX / Digital Success?

Recently I was pitching for new work and the question that keeps coming up came up. This question is alway some form of “What is the single most critical factor in ……..?”   Examples include:

  • What is the single most critical factor in coming up with a great strategy?
  • What is the single most critical factor in CRM / marketing automation success?
  • What is the single most critical factor in customer experience success?
  • What is the single most critical factor in making a success transition into a digital business?
  • What is the single most critical factor in effecting organisational change?
  • What is the single most critical factor in managing CRM projects and programmes?
  • What is the single most critical factor in getting folks to adopt new systems?

You get the idea.  No matter the domain, sooner or later a client will want to know what is the single most critical factor to success.

If find it interesting how it is that intelligent folks ask such a stupid question – with no awareness as to what makes this a stupid question. Do you get what it is that makes this question stupid?

The assumption behind this question is that the world, in which we find ourselves, is simple, silo’d, and linear.  It assumes that the when it comes to dealing with challenges (and creating new futures) you can identify, isolate, work on one key factor – and this will ensure the desired outcome.  It assumes that this factor is invariant across time – that it is always the same one thing that matters most irrespective of time, situation, context…

What if the challenge that we face is similar to the challenge that the juggler faces? The very nature of juggling involves juggling many balls at the same time. As such, does it not involve competence in using a wide angle lens to keep track of all the balls? And at the same time, focusing on the one or two balls which are at the forefront at the moment in time? And at the same time keeping one’s attention over the environment in which one finds oneself in: the audience, the surroundings, the weather….?

I say to you that what makes CRM, customer experience, digital marketing, digital business, marketing-sales-service effectiveness challenging is that there is no single factor that is critical to success!  I say to you that no ‘guru’, no consultancy, no vendor has the magical recipe that takes the messiness out of life and guarantees a quick-easy journey to success.

So what is it that you have to put into the CRM, CX, Digital game?  You have to start working on that which needs work. You have to attract the right folks to work with you on your challenge / desired outcome. You have to get hold of the necessary resources. You have to be attuned to that which is going on within and around you. You have to accept-embrace failures. You have to fail your way to success by keenly attuned to the visible and the invisible and making the necessary corrections as and when these are called for.  You have to give up the stupid notion that there is one single most critical factor to success. And you have to continuously free yourself (and others) from the addiction to the short-cut.

I say to you that it is foolish to search for and focus on that one most critical success factor. I say to you even more foolish than this foolishness, is the foolishness of searching for and fixating on some magical potion: approach, methodology, technique, technology… I say to you that any person that offers you a single most critical success factor or magical potion is either a fool or a charlatan.

I invite you to consider that there is no single most critical factor in CRM / CX / Digital success!  Enough for today, I thank you for listening.

Customer Experience As Idea, Not Methodology Nor Technology

As a thinker, I am struck by how rare original thinking is in the organisational world. As a thinker, I am struck by how little thinking – as in stopping and reflecting on that which is occurring and the pattern of this occurrence – occurs in organisations. As a thinker, I am struck by how little space exists within organisational life for ideas to be entertained and grappled with before the mindless rush to implement these ideas usually through some off the shelf methodologies, methods, tools and techniques.

I say that the idea of Customer Loyalty had power.  And this power vanished when we rushed to turn this idea into practical customer loyalty programmes: loyalty cards, databases, offers and points.

I say that the idea of Relationship Marketing had power. And this power was drained and Relationship Marketing turned lifeless when the idea of Relationship Marketing was turned into the technology of CRM: systems that enslave human beings in data capture and script/process following slaves.

I say that the idea of Customer Experience has awesome power. And many are bleeding this idea dry, void of power, by turning it into the methodology of customer journey / touchpoint mapping, the blind worship at the voice of the customers, and the technology of Customer Experience.

What is it that I am getting at?  Let’s see if I can communicate that which I am seeking to communicate to the practical people that dominate organisational life.  I invite you to read the following words of wisdom (bolding is my work):

The word idea supposedly originates in the Greek word eidos, which means something seen like a form and a way of seeing like an eye, a perspective. So, ideas are not only things you can pick up and ponder. They also give you eyes, new ways of seeing things. Ideas are already operating in our perspectives, the way we look at things. We take our usual ideas for granted, and so, ideas have us rather than we have them….

Is the idea fertile, fecund? Does it make you think? Is it surprising, shocking? Does it stop you from habits and bring a spark of reflection? Is it delightful to think it? Does it seem deep? Important? …. This requires you to ponder it, which means weight it, feel its weight…. Pondering is an action of its own and keeps you holding the idea, from letting it go into other kinds of action before it is fully appreciated. Meanwhile you get a better feel of the idea….

You know, to have an idea and thinking about the idea are two different things, and being practical often means skipping over the hard thinking part…

For ideas to be therapeutic, that is, beneficial to the soul and body politic, they must gather into themselves, garnering force, building strength, like great movers of the mind’s furniture, so that the space we inhabit is rearranged. Your thoughts, feelings, perceptions, memories have to be moved around in new ways, because the furniture has been moved.

A long lasting idea, like a good poem or a strong character in a movie or a novel, continues to affect your practical life without ever having been put there. Ideas that live, live in us and through us into the world. Viable ideas have their own innate heat, their own vitality. They are living things too.

But first they have to move your furniture, else it is the same old you, with you same old habits, trying to apply a new idea in the same old way. Then nothing happens at all except the loss of the idea as “impractical” in your haste to make it “practical”.

– James Hillman, We’ve Had A Hundred Years of Psychotherapy And The World’s Getting Worse

It occurs to me that the conversations that take place here, at The Customer & Leadership Blog, are simply an ongoing exploration and pondering of the ideas of customer relationships, relationship marketing, customer service, customer loyalty, customer experience, customer-centricity, and leadership.

I am no expert, no guru,  in customer relationships (CRM), relationship marketing, customer service, customer loyalty, customer experience, customer-centricity, nor in leadership. Yet, it occurs to me, that it might just be that I have grappled with these ideas at a deeper level than many.  Therefore, any value that i create for you – the person who listens to my speaking – arises out of my willingness to stay with the idea rather than rushing to provide you with a silver bullet for your organisational ills.

Why I have shared this with you?  To provoke thought: to provoke you into doing deeper thinking into the Customer realm before you go and buy the latest snake oil from gurus, experts, consultancies, and IT vendors.  Incidentally, don’t reach for the dictionary to look up definitions of all things customer: customer service, customer relationship management, customer experience etc. Why? Definitions only provide the illusion of knowledge and understanding. There is no replacement for original thinking. A good start would be the following questions:

  • What world of possibility does the idea of Customer Experience open up for us and our customers?
  • What might Customer Experience Leadership look like, feel like, sound like, taste like – for us, for our customers? 

  • What is the first step on the journey of Customer Experience Leadership for us? Is it really getting access to the voice of the customer? Or is it doing that which we know needs to be done for our actions to be in tune with our words?

And finally, I invite you to consider that many if not most organisations have failed to make a success of relationship marketing, CRM, customer loyalty, customer experience etc because these ideas have failed to ‘move your furniture’ leaving the same old you, with the same old habits, trying to apply these radically new ideas in the same old way. 

If you have made it this far into the conversation, I say thanks for listening. These conversations are not easy, not simple. This is deliberate – these conversations are designed to provoke thought from the thoughtful. They are not for the impatient looking for the ten steps to customer success.

What Way Of Being Creates Access To Effectiveness In The Exercise Of Change Leadership?

Looking back, I see that I have been involved in drama of organisational change since the days I did corporate recovery work as a part of Price Waterhouse’s Corporate Recovery division.  That must have been around 1990/91 – some 20+ years ago.  What is it that I have ‘learned’ about this domain: the domain of leading-facilitating organisational change?

After 20+ years, I find myself totally clear on the following: almost every Top and Middle I have come across, in just about every type of organisation, in just about every type of industry, sucks at leading-enabling-facilitating organisational change.  I found myself face to face with this truth, in a recent organisational context, where I find myself acting as  an outside advisor on a Customer project.

If you find yourself in this ‘place’ and are content with this then stop reading and go do something useful with your life.  On the other hand, if you find yourself in that ‘place’ and looking for an access to being effective in the exercise of change leadership then I invite you to listen – really listen and grapple with these words of wisdom:

Position is everything. Everything changes, even when the circumstances remain identical, when you shift your position. Try it sometime with someone who is your adversary. Shift your position. Be that person and the adversary disappears.

Shift positions with whatever barrier you are facing … in your life. Be the barrier, and it is no longer there. It is only there because we pull back, separate ourselves from it. The more we pull back, the bigger and more overwhelming it gets, and the angrier or the more frightened we become. If we really look at the anger that makes us crazy or the fear that stops us cold, we see that it develops step by step from our thought process. And starting point of that thought process is separation ……

When you really acknowledge that it is nothing but yourself, when you realise this fact, you cannot live your life in the old way. You’ve suddenly taken responsibility for it. Before, the problem was outside – your bad luck, what other did to you, the circumstances you could do nothing about… When you realise that the cause is you, you empower yourself. You suddenly become a ten thousand-foot-high buddha……. Nothing is outside of you.

– John Daido Loori, The Great Way, Best Buddhist Writing 2008

Just about every one of us (as a human being) sucks at relationship, at experience design, at calling forth engagement, at change, and at the exercise of leadership due to the neglect of this radical truth. Some of us are not aware of this. Many who us, who are aware of this truth, choose not to give life to this truth in our way of being (showing up and travelling) in life.

Is it then any surprise that just about every organisation sucks at cultivating relationships with customer, at designing-generating appropriate customer experiences, at calling forth the best of their people popularly labelled employee engagement, and the exercise of change leadership?

What hope is their for an organisation to make a shift to a customer-centric way of being-in-the-world and doing business with customers, when the Tops and Middles are not even effective in the exercise of change leadership in the context of designing-implementing a CRM system?

What Does It Take To Shift To A Human-to-Human Way Of Doing Business?

I find myself interested and caring for the human.  So the following slogan caught my attention: “There is no more b2b or b2c: It’s human to human”.  This got me wondering: What does it take for us to show up and operate as ‘human to human’?

If we are to do business in a ‘human to human’ way then it helps to have a good grasp of what the defining characteristic of human is.  In Being and Time, Heidegger asserts that ‘Care (Sorge) is the being of dasein’. For the purposes of this conversation dasein = human being. What does Heidegger mean by this?  I take it to mean that I do not find myself indifferent: to myself and my experience of living, to the world in which I find myself in, to my fellow human beings.  It matters (to me) how I live and how my life turns out. It matters (to me) how my fellow human beings live and how their lives turn out. And it matters (to me) how this world is and is not.  I care as I am aware that I am being-in-the-world-with-others-towards death.

If we are going to show up and operate from a ‘human to human’ way of doing business then we must genuinely care for ourselves, the people we work with, the people we sell to, the people we buy from, the people whose lives are touched by us and our way of showing up and operating in the world.  How best to illustrate this?  Allow me to share a story the following story with you (bolding is my work):

Harry, an emergency physician …. One evening on his shift in a busy emergency room, a woman was brought in about to give birth…….. Harry was going to deliver this baby himself. He likes delivering babies, and he was pleased…… The baby was born almost immediately.

Whilst the little girl was still attached to her mother, Harry laid her along his left arm. Holding the back of her head in his left hand, he took a suction bulb in his right and began to clear her mouth and nose of mucus. Suddenly, the baby opened her eyes and looked directly at him. In that moment, Harry stepped past his technical role and realised a very simple thing: that he was the very first human being this baby girl had ever seen. He felt his heart to go out to her in welcome ….

Harry has delivered hundred of babies. He has always enjoyed the challenges of delivery, the excitement of making rapid decisions and feeling his own competency, but he says that he had never let himself experience the meaning of what he was doing before. He feels that in a certain sense this was the first baby he ever delivered. He’s says that in the past he would have been so preoccupied with the technical aspects of delivery, assessing and responding to needs and dangers, the he doubts he would have noticed the baby open her eyes or have registered what her look meant.  He would have been there as a physician but not as a human being. It was possible, now to be both…

-Rachel Naomi Remen, Kitchen Table Wisdom

This is what I notice about the whole Customer thing: the focus is almost exclusively on the technical stuff (metrics, data, analytics, technology, processes) and almost no recognition of the human.  Does this matter?  Yes. Why?  I leave you with these words of wisdom:

 

Quality matters when quantity is an inadequate substitute. If a building contractors finds that her two-ton truck is on another job, she may easily substitute two on-ton trucks to carry the landfill. On the other hand if a three star chef is ill, no number of short-order cooks is an adequate replacement. One hundred mediocre singers are not the equal of one top-notch singer…

– Richard Rumelt, Good Strategy Bad Strategy

We may not be able to define-measure-calculate quality. Yet we are present to it when we experience it. The quality that you/i/we experience from the people we interact with, work with, sell to, buy from, makes a huge difference to our experience of living.  This quality of caring cannot be faked, though many folks make the attempt to fake it.

Interestingly, in our age, it is easier to build this caring into the ‘product’ itself (Apple) or the digital interface (Amazon) than it is in human to human conversation-encounters.  Why?  Because we have become so wrapped up in the technical that we have lost touch with the human – including our own humanity.  Yet, it is possible to get in touch with this humanity and give it expression: to show up as a CEO and as a human being; to show up as a CMO and as a human being; to show up as CFO and as a human being; a sales person and as a human being; to show up as call-centre agent and as a human being……

Please note: I am about to go on vacation and will be out of touch for several weeks.  I wish you well and look forward to being in communication after the holiday.