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.

 

 

State of Customer: What I Learned During 2016

Some years I find myself working on matters of strategy. Other years I find myself with ‘dirty hands’ working at the coalface – helping organisations build capabilities, and deal with operational challenges in the areas of marketing, sales, service, and CRM.  2016 has been a year where I have worked both on strategy and operations. What have I learned?

Customer Strategy

Either organisations do not have a clearly defined customer strategy or the folks working at large organisations are inept at articulating it. At best, I have found the customer strategy to be something like retain existing customers and get more new customers. That is not strategy. That is talking about desired outcomes without articulating how the organisation intends to generate those outcomes.  Maybe, I just don’t get strategy.

Customer Loyalty

I have found that the hard work of engendering customer loyalty has been bypassed by putting in place some kind of customer loyalty programme: do X and get Y points. The challenge with these loyalty programmes is that there is no heart in them. Mostly they are marketing gimmicks. Enough customers realise this and drop out of the loyalty programme – too much effort to win the points, and it takes forever to earn enough points to buy anything of value with the points. A sizeable number of customer loyalty members are inactive.

Then there are folks who see customer loyalty as a one way street. These folks see customer loyalty in terms of monetising the customer base. So they are busy figuring out which kind of marketing tricks will entice loyal customers / fans to spend more. Their heart is transactional – through and through. Why do I say that? Because what is missing is commitment to generate superior value for loyal customers and earn a suitable reward for creating that value. It is like noticing that someone is into you and then using that to get your way with that person just because you know you can.

Customer Experience

Without doubt Customer Experience is the latest buzzword. It is everywhere. Anything and everything is being linked to or brought under the umbrella of Customer Experience. Just about anything and everything is being justified on the basis of improving the Customer Experience.

What isn’t happening is this: real substantive efforts to actually improve the Customer Experience not just at specific touchpoints but also across the entire customer lifecycle. Further almost all organisations are thinking in a blinkered manner when it comes to CX. What do I mean by that? Think Amazon Echo.  What an improvement in the customer’s experience. How many organisations are working on new products that create entirely new, delightful, customer experiences?

Why so much talk but so little real action?  Because for many it involves the equivalent of turning the caterpillar into the butterfly. Just about everybody prefers the butterfly to the caterpillar. Yet, rare it is to find an organisation where the folks are up for the effort, pain, time, and risk involved in the transformation process.  There are easier-safer things to do like embracing ‘best practices’ and the latest channel or fad.

Digital Marketing / Marketing Automation

There is real shortage of skills when it comes to digital marketing / marketing automation.    It is easier to buy digital marketing / marketing automation systems than it is to operate these systems with skill.  There are folks with sophisticated content management systems yet the sophisticated features, like personalisation, are not being used.

Or you have organisations with digital marketing hubs that are not being used well. One organisation that I came across was sending out welcome emails, birthday emails, anniversary (of signing up) emails, and weekly/monthly newsletters. Why just these? Because only these emails came out of the box!  No event driven marketing communications. No dynamic content / personalisation. No predictive content… Yet, all of this functionality is there in the marketing automation suite.

Single View of The Customer / CRM

The biggest challenge / hurdle many organisations are facing is that of constructing that much desired yet elusive single view of the customer. The theory was that CRM systems would make that challenge easier by bringing more and more customer-centred data into one system. This hasn’t actually happened. What has happened is that there are more and more systems holding customer related data – each disconnected from the rest.  If anything cloud based vendors have driven fragmentation as it is easy for marketing folks to buy a marketing system ignoring rest of the organisation. What goes for marketing goes for sales, for the call-centre, for field service……

The Core Challenge is That of Integration

My experience is that the core challenge is that of integration. There is the challenge of integrating the various systems (data sources) to provide the single view of the customer. Then there is the challenge of integrating the organisation players around a well defined, coherent, clearly articulated customer strategy. And a clearly defined customer experience across touchpoints / interaction channels, for the entire customer journey.  It occurs to me that it is only worth gluing up the systems if the folks that run the organisation are willing to glue up the organisation itself. In the absence of that commitment, money spent gluing up systems is likely to be wasted.

Until the next time I thank you for your listening and I wish you the very best.