The Future of Marketing and Customer Engagement – Introducing the Emerging and Rapidly Growing Practice of the Customer Defined Experience

Did you ever consider the following questions related to the future of marketing and customer engagement?:

  • What are the levels of progression of an organization’s customer engagement and marketing capabilities – from the most basic to advanced?

  • What percentage of companies fall into each customer engagement & marketing capability level?

  • What is beyond the current advanced level of customer engagement and marketing capability and the wave of the future?

  • How do you simultaneously and significantly reduce the overall cost of customer engagement and marketing delivery while also significantly increasing your overall customer engagement and marketing effectiveness?

  • What does the future look like in terms of increased customer engagement and marketing ROI?

  • What is the most effective method for creating maximized customer engagement?

If you did, then this blog is for you as it succinctly answers these questions and more.

Future Leading Practice: The Customer Defined Experience
Future Leading Practice: The Customer Defined Experience

The above chart depicts the 3 primary & existing levels of customer engagement sophistication as well as the wave of the future which is The “Customer Defined Experience”. These four (4)  levels of organizational customer engagement capability are as follows:

1) Level 1 – “Shotgun Customer Experience”, very unsophisticated, yet inexpensive. Practiced by approximately 25% of companies.

2) Level 2 – “Segmented Customer Experience”, somewhat sophisticated and moderately expensive. Practiced by a majority of companies, approximately 70%.

3) Level 3 – “1-to-1 Customer Experience”, very sophisticated & expensive, Practiced by <5% of companies.

4) Level 4 – “Customer Defined Experience  which is an emerging leading practice, only practiced by <01% of companies, but the number of companies that are moving toward this capability level is growing fast. I am predicting that this will be, by far, the most effective method in terms of both ROI and cost effectiveness.

The Customer Defined Experience, Marketing Illustration

The Customer Defined Experience Using Marketing as an Example

We will now isolate marketing as a functional example (vs. customer service, sales, etc.) to illustrate how the customer defined experience will be different than traditional marketing practices. The above chart depicts the traditional levels of marketing sophistication and the expected ROI of each level. The newest trend in marketing and customer experience is also revealed in future level called “Customer Defined Experience, Marketing”. Each level consists of the following marketing practices:

  • Level 1: Primary focus on “Shotgun” marketing (approximately 25% of companies). In this approach, companies  send the same offer to as many people as possible with the hope that some of them might take the offer being put forth. With this practice, companies send the same offer to customers and prospects, regardless of their unique interests, needs, wants, history, etc.

  • Level 2: Primary focus on “Segment Marketing” (approximately 70% of companies). This approach models the behavior and history of customers in order to group them into unique ‘tagged’ needs groups. They are then sent offers that appeal to that distinct segment group.

  • Level 3: Primary focus on “1-to-1 marketing” (<5% of companies). This approach combines sophisticated modeling techniques and artificial intelligence to ascertain the unique needs of each customer or micro-segments (depending on the level of marketing technology sophistication, pure 1-to-1 marketing might not be able to be achieved). Companies that use this level of sophistication are few and we can point to major credit card companies, Amazon, Google as models utilizing this type of approach.

  • Level 4: Future Emerging Practice “User Defined Marketing”. (<.01% of companies, but growing fast) Companies like Bank of America, Wells Fargo, Marriott and Southwest Airlines are headed in this direction with the increasing querying of their customers on preferences, needs, wants, likes, etc. The extension of this is to allow customers to define their own experience – how/when they would like to be marketed to, by which channel, which content/tone they prefer, etc. As evidenced by increasing numbers of customer insights groups, this is the trend of the future. Instead of expending all of the effort in modeling/AI/etc. to attain 1-to-1 marketing which attains a 80+% match, why not ask your customers what they want/prefer which will ensure a 100% match to their needs nearly 100% of the time? Research I have conducted has indicated that 72% of customers want a more interactive ‘relationship’ with the companies they do business with, including defining their own customer-company experience – across all of their company touch-points: sales, marketing, customer service, warranty claims, etc. More on this point later in this article.

 

Customer Defined Experience, Marketing Example

Customer Defined Experience, Marketing Example

The above chart is arranged by the levels of marketing sophistication across the top with the following categories arranged on the left for each marketing level:

  • Primary Marketing Focus – What marketing activity do organizations at this level of capability primarily focus their efforts?

  • Marketing Proactivity, Analysis Main Focus: For each level of marketing capability, how proactive is the marketing organization and what is the major focus of their marketing analysis?

  • Primary Marketing Technology Enabler: For each level of marketing capability, what are the primary technology enablers in order for them to achieve their marketing goals?

  • Main Marketing Metric: For each level of marketing capability, what are the most important marketing metrics?

  • Expected Marketing Approach ROI: For each level of marketing capability, what is the expected ROI and return on marketing for following this approach.

Level 1 Capability -Shotgun Marketing

Level 1 Capability – Shotgun Marketing

Shotgun Marketing Practices

Shotgun Marketing Practices

 

Let’s examine the first level of marketing capability, that being Shotgun Marketing. These organizations have the following organizational characteristics:

Primary Marketing Focus: The primary focus for these organizations is to expand their pool of those who will receive their marketing promotions so that there will be likely someone in the mix who will be interested and respond to their canned & generic offer. I heard a comment from a marketing organization I worked for whereby the general manager (overall leader) of the business actually said to me – “just widen the list and I don’t care if Mickey Mouse is on the list, as long as we have 1,000,000’s of folks to send our e-mail to.”

Marketing Proactivity, Analysis Main Focus: The main orientation and focus for organizations at this level is generally a reactive,  whereby the main focus is post campaign execution analysis and ‘seeing how we did in terms of number of responses they had to their offer(s)’.

Primary Marketing Technology Enabler: As you would expect at this level of marketing capability, technology  is generally very basic, rudimentary and inexpensive and would typically include simple and flat file (i.e. Comma Separated Value (.CSV) files) list generation using MS Access or Excel for list generation and very similar and simple spreadsheet type tools for post campaign analysis.

Main Marketing Metric: Since the focus noted above is reactive and post campaign focused, the main metric almost obsessed on by organizations at this marketing capability level is response rates (vs. true sales lead creation rates and actual conversion rates).

Bottom Line with Shotgun marketing organizations: With approach you save $$ by relying on very unsophisticated marketing personnel, processes, technology but this approach rarely produces a high marketing ROI with response rates generally in the 1-2% range due to the inherent high outbound volume. This approach also annoys customers and marketing recipients with mostly irrelevant offerings, products, services, etc., customer risking opt-outs, complaints, ignoring any/all offers by customers/prospects from the same (annoying) company, etc.

Level 2: Segment Marketing
Level 2 Capability: Segment Marketing
Segment Marketing Practices

Segment Marketing Practices

The 2nd level of marketing capability, is Segment Marketing. These organizations have the following organizational characteristics:

Primary Marketing Focus: The primary focus for these organizations is to ensure that the right marketing and sales offers are deployed against the appropriate segment group in order to ensure a marketing lift vs. shotgun marketing practices. An example of this is sending the frugal buyer segment offers for saving $$ by buying quantity of product or by sending offers for products that are discounted (i.e about to be discontinued products) vs. full price products.

Marketing Proactivity, Analysis Main Focus: The main orientation and focus for organizations at this level is generally what I call a ‘retrospective plus’ organization whereby the main focus is post campaign execution analysis and determining the quantitative results (response metrics, plus  perhaps ROI metrics) PLUS the main root cause analysis as to why the campaign yielded in these quantitative results.

Primary Marketing Technology Enabler: At this level of marketing capability, technology in use is fairly sophisticated such as using SAS for building segment models and customer deciles and tools for campaign execution like Salesforce.com and post campaign analysis tools like Adobe and Tableau.

Main Marketing Metric: Since the focus noted above is quasi-reactive and post campaign, the main metric  obsessed on by organizations is overall campaign and segment level response rates as well as ROI if the organization has built a direct response attribution model for campaigns (matching campaign responses to actual customer purchases).

Bottom Line with Segment marketing organizations: By utilizing this approach you spend more $$ by relying on somewhat sophisticated marketing personnel, processes and technology.  This  approach also produces a higher marketing ROI than basic shotgun marketing with response rates generally greater than the 3% range. This approach also ensures segments and marketing recipients within those segments are receiving mostly relevant offerings, products, services, etc. in respect to their needs, wants, preferences, etc.

Level 3 Capability: 1-to-1 Marketing
Level 3 Capability: 1-to-1 Marketing

1-to-1 Marketing Practices

The 3rd level of marketing capability is 1-to-1 Marketing. These organizations have the following organizational characteristics:

Primary Marketing Focus: This strategy strives to ensure that the right marketing and sales offers are deployed against the appropriate individual customer (vs. segment groups)  in order to ensure additional marketing lift vs. segment marketing practices. An example of this is recommending a product that uniquely suits and individual customer’s needs when they are your website for another reason (customer service, billing, warranty claim, etc.).

Marketing Proactivity, Analysis Main Focus: The label is place on organizations at this capability level is generally what I call a ‘proactive predictive’ organization whereby they are recommending items to customers in real-time based on their specific needs profile. The analysis focus of this type of organization is real-time algorithmic learning by analyzing the effect of the real-time offers and then adapting algorithms to further refine the offer (e.g. slightly different product, slightly different price, better warranty coverage, etc.)

Primary Marketing Technology Enabler:  The technology in use for 1-to-1 marketing is very sophisticated and correspondingly expensive.  The goal is to use artificial intelligence for building individual customer profiles based on observed customer behavior.  Automated response engines are then used for real-time customer interactions and offer generation as well as ‘adaptive learning’ algorithms based on offer acceptance/rejection.

Main Marketing Metric: Since the focus noted in 1-to-1 marketing is proactive and real-time, the main metric is customer longitudinal behavior and associated key metrics like lifetime value, loyalty rates, etc.

Bottom Line with 1-to-1 marketing organizations: With this approach you spend a great deal more $$ up-front by relying on very sophisticated artificial intelligence with automated customer analytics and offer engine technology.  This approach does produce a much higher marketing ROI than segment marketing with response rates conservatively greater than the 8-10+% range.  This approach also ensures customers and marketing recipients are receiving extremely relevant offerings, products, services, etc. in respect to their needs, wants, preferences, etc.

Level 4 Capability: Customer Defined Marketing

Level 4 Capability: Customer Defined Marketing

Customer Defined Marketing Practices

Customer Defined Marketing Practices

The 4th level of marketing capability is The Customer Defined Marketing (& Experience). These organizations have the following organizational characteristics:

Primary Marketing Focus: The primary focus here is to ensure, for those customers who are willing to co-define their own experience with your company and brands, that there is an opt-in conduit whereby customers can self-define what type of marketing and customer experience they will have across all touch-points. Examples of this is allowing customers to define, through their own personalized ‘preference portals’, customer experience parameters such as the following:

1) Their tolerable periodicity of how often they want to be marketed to;

2) Selecting the channels they prefer for marketing, customer service, product recalls, etc. ;

3) Preferred time of day, week that they would like to receive marketing, communications;

4) When it is warranted to override their current opt-out settings (i.e. critical product defects notifications).

5) The specific types of content customers are interested in subscribing to;

6) The types of offers customers would like to receive – closeouts, higher end products, types of products/services, etc.;

7) …Many more customer defined parameters.

By enabling these customer-defined preferences above, you are approaching 100% in terms of ensuring the customer receives the right offer, by the right channel, at the right time, etc.

Marketing Proactivity, Analysis Main Focus: The main orientation and focus for organizations at this level of (future) capability is generally what I call a ‘proactive, holistic, continuous’ organization whereby the company is continuously seeking to deliver the desired customer experience with the goal from each customer is rating the company as being rated as extremely open, engaging, encouraging proactive listening, is a good and reliable brand partner, drives high levels of customer satisfaction, etc.

Primary Marketing Technology Enablers: With this level of marketing capability, the technology is not as sophisticated (or expensive) as in 1-to-1 marketing, but requires a paradigm shift back to aligning with the basic premise that the customer is always right and enabling customers to self-define their preferred marketing and overall customer experience through preference portals (enabling the self-defined experience) and through business process rule workflow engines like Pega Systems to deliver the customer defined experience.

Main Marketing Metric: Since the organizational orientation as noted above is proactive and continuous, the main metric almost obsessed on by organizations at this marketing capability level will be ongoing levels of customer engagement, satisfaction and loyalty.

Bottom Line with Customer Defined Marketing (& Experience) organizations: With this approach you spend less $$ by relying on sophisticated marketing personnel, processes, and technology.  The strategy  is expected to produce a much higher marketing ROI than all other marketing capability levels by enabling the customer defined experience and inherently having 100% accuracy rate (customer defined needs/preference = delivered customer marketing/experience).  This approach also ensures customers and marketing recipients are receiving TOTALLY (self-defined)  relevant and preferred offerings, products, services, and communications.

In implementing this solution, companies will have to take into account the following considerations:

1) Not all customers will want to opt into defining their own experience. By using lucrative opt-in incentives companies have been able to achieve nearly 70% participation rates by customers. The remaining customers can be managed by simultaneously utilizing any of the two previous capability levels of segment marketing and/or 1-to-1 side-by-side with customer defined marketing.

2) Delivering a unique customer experience, once defined, will be difficult. By utilizing automated work-flow and business rules engines in conjunction with marketing automation and service automation tools, pathways (e.g. customer use cases) can be set up to automatically deliver the desired customer experience for sets of customers with the same defined preferences.

3) The customer really doesn’t know what they want. I constantly hear  from business leaders and CxOs that the customer doesn’t really know what they want/need so why waste the time and expense to ask them. These are the same executives who are shocked when I provide customer insights or focus group feedback that consistently and totally contradicts their own perception of how the customer perceives their company and brand(s). I applaud the business leader brave enough to ask for these insights since the majority of business leader tout their great pulse on their customer base to internal stakeholders without ever validating these claims with actual customers. In addition, customers today are extremely savvy, sophisticated and aware and want to be in control of their own company/brand experience.

4) Customer won’t really spend the time to tell us what they need/want. A customer insights group I helped developed has 5,000 current members who are required to volunteer several hours a week providing a Tier 1 US bank with feedback on different pre-market launch products, services and approaches. There are another several thousand on a waiting list waiting to join this insights group to volunteer several hours a week to provide company/brand insights. Additionally, the loyalty level of this insights group toward the bank is 57% higher than non-members with members providing verbatim feedback on their participation in the insights group as follows:

1) “Finally a bank that listens to its customers”

2) “We consider bank {xyz} to be a great brand partner”

3) “{xyz} bank totally breaks the paradigm of most ivory tower banks just throwing products at you to buy, they actually care about our opinions and listen to us”

4) “They actually give us feedback on how our suggestions are shaping their future products and services – WOW!”

Therefore, the bottom line is that customers today are very eager to become a brand-partner provided you ask them, allow their direct company-brand participation.

Expected Marketing ROI Per Capability Level
Expected Marketing ROI Per Capability Level

The above graphic points to the fact that, with every increase in marketing sophistication and accuracy in providing your customers and prospects what they need/prefer, the increase in ROI also rises dramatically. The holy grail of this is the practice of Customer Defined Marketing and the abandonment of the expense and exercise of hypothesis building and refinement (iteratively guessing at what your customers want/need) and simply providing a conduit in order that your customers tell you precisely what they want/need/prefer. My research has shown that over 70% of a typical sophisticated customer base is more than willing to tell you what they want/need from your company.

Join the ranks of market leader like Wells Fargo, Marriott, Southwest Airlines, Ritz-Carlton, Bank of America and many more joining the customer defined experience future who query their customers on their wants, needs, preferences, likes/dislikes, etc.

Therefore, instead of your company spending a great deal of $$ on ever more sophisticated hypothesis building (intelligent guessing) what your customers want and prefer, just simply ask them and join the ranks of these market leaders that are participating in the emerging practice of the future – the customer defined experience.

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Change Management Best Practices & World-Class Change Deployment Methodology

 

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Best Practice Change Management Framework

 

Any change initiative should employ a proven & world-class change management implementation framework

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Best Practice Change Management Project Approach & Plan – Define Goals, Obtain Buy-In

Change Management Methodology: Any change initiative should employ a proven & world-class change management implementation framework. Best Practice Steps to Define Change Goals and Obtain Buy-In for the Change

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Best Practice Change Management Project Approach & Plan – Design Change Approach

Change Management Methodology: Best Practice Steps to Designing a Solid Change Approach

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Best Practice Change Management Project Approach & Plan – Develop and Deploy Change

Change Management Methodology: Best Practice Steps to Developing and Deploying Change

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Best Practice Change Management Project Approach & Plan – Deliver Change Results

Change Management Methodology: Best Practice Steps to Delivering Change Results

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Management’s Crucial Role In Supporting Change

Management Must Have Clearly Articulated Roles in Facilitating and Supporting any Change

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Organizational Change Alignment Possible Outcomes

The graphic above depicts the various change outcomes possible. Following a solid change methodology can ensure the optimal state of “total alignment”

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Change Initiative Ranking Analysis Techniques

A best practice change approach includes proven methods and techniques to evaluate potential change initiatives to undertake

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Typical & Critical Change Initiative Roles & Organizational Structure

A world-class change approach includes mapping out change roles and delivering sufficient training and role change orchestration. This approach ensures that aspect of the organization is pulling together in synergy on every level following the implementation of the change.

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Change Management Initiative Resource Plan

A world-class change approach includes mapping out a change implementation organization including the organizational inter-relationships, special committees and groups as well as specific roles and responsibilities.

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The Role of Middle Management in Change Management

A world-class change approach must include middle management inclusion strategies

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Managing & Mitigating Organizational Change Resistance

Careful Considerations must be made to anticipate and mitigate change resistance, including from middle management

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Executive Support for Change Management

A world-class change approach includes planning how executive support will be applied during any change initiative

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Change Management Strategies for Institutionalizing Change

Best practice change methodologies and strategies can mitigate the pitfalls associated with not institutionalizing a change which risks, over time, organizational drift away from the desired change state.

Change Management 101 Primer for Senior Executives (CEOs, COOs, CSOs, CMOs, CFOs, CCOs, etc.)

The following blog was written to provide a simple primer on Change Management for Top Executives. It is written so you ‘get it’ in 15 minutes or less of reading this article.

Change IS Disruptive, but Change Management Can Mitigate Impacts to Productivity

Change IS Disruptive, but Change Management Can Mitigate The Impact on Productivity

As a business leader, have you ever encountered the following challenges within your company:?

1. Implemented new technology or IT system and people failed to adopt & fully utilize it?

2. Implemented new processes and ways of doing business and your employees continued to follow the older methods?

3. Your competition continually seems to be evolving and innovating, developing new and more effective ways of doing business, while your company culture resists change and new ways of doing business?

The remainder of this blog is dedicated to sharing some of the techniques to get your organization to embrace and be supportive of change.  These change management techniques are based on my years of implementing change at organizations like Macy’s, American Express, Intuit, AT&T, Pfizer, Bristol-Myers Squibb, Oracle, CBS Interactive, Wells Fargo, and numerous other Fortune 500 companies.


Topics in this blog:

1)      What is Change Management – A Simple Definition

2)      Why is it Important?

3)      Why is change resisted by so many employees?

4)      Do all employees approach change the same way and how do you harness the power of the innovators and change ‘early adopters’?

5)      How Change Management Helps Accelerate Change

6)      Change Management Mitigates the Impact on Productivity while Implementing Change

7)      The Organizational Change Model Facilitates Change Success & Greater Business Results

8)      Steps in the Organizational Change Model Ensure Change Project Success

9)      The Importance of the eight (8) Change Management Steps

10)   Summary – Change Management & Innovation Requires a 360°, holistic approach driven by skilled and experienced change management professionals

1)    A simple definition of what change management is:

A Simple Definiton for Change Management

A Simple Definiton for Change Management

2)    Why is change management so important?

Why Is Change Management So Important?

Why Is Change Management So Important?

3)    Why is change resisted by many employees?

Why is change resisted by many employees?

Why is change resisted by many employees?

Bottom Line: Without proper education and motivation, change is naturally resisted within the workplace by all but a few.

4)    Do all employees approach change the same way?

Employee Change Adopter Curve

Employee Change Adopter Curve

As depicted by the above chart, employees range from ardent resisters to innovators. Change management solicits the support from innovators and early adopters to help diffuse organizational change to the remainder of the organization.   

5)    How Change Management Helps Accelerate Change

How Change Management Helps Accelerate Change

How Change Management Helps Accelerate Change

Change management not only removes obstacles to change, it helps develop enthusiasm and excitement for accelerated change in the future. 

6)    Change Management Mitigates the Impact on Productivity While Implementing Change

Change Management Productivity Curve

Change Management Productivity Curve

By having a robust change management methodology and plan, disruptions to business productivity can be minimized until the desired change state is achieved.  

7)    The Organizational Change Model Facilitates Change Success & Greater Business Results

Organizational Change Management Model

Organizational Change Management Model

By having a robust change management methodology and model, change success and enhanced business performance can be nearly guaranteed.

8)    Steps in the Organizational Change Model Ensure Change Project Success

Change Steps in The Change Management Approach

Change Steps in The Change Management Approach

Change projects must have clearly defined and measurable steps that align with the overall change methodology.  This approach greatly enhances the chance that the change project will be successful as well as facilitates the achievement of desired-positive business outcomes.

9)    The Importance of the eight (8) Change Management Steps

The next set of graphs highlight the importance of each step in the change management (project) process:

Step #1

Change Management - Step #1

Change Management – Step #1

Step #2:

Change Management - Step #2

Change Management – Step #2

Step #3:

Change Management - Step #3

Change Management – Step #3

Step #4:

Change Management - Step #4

Change Management – Step #4

Step #5:

Change Management - Step #5

Change Management – Step #5

Step #6:

Change Management - Step #6

Change Management – Step #6

Step #7:

Change Management - Step #7

Change Management – Step #7

Step #8:

Change Management - Step #8

Change Management – Step #8

10)         Summary – Change Management & Innovation Requires a 360°, holistic approach

Holistic Organizational Change Components

Holistic Organizational Change Components

In summary, change management requires leveraging a proven change methodology, skilled change management practitioners and a holistic approach to implementing corporate innovation and change. The above is a simple depiction of a best practice approach I have used on many change management projects at many of the Fortune 500 companies in the US.

Blow Away Your Competition by Replacing Your Old CRM Program with the New Customer Relevant Relationship Management (CRRM) Model

Blow Away Your Competition by Replacing Your Old CRM Program with a more effective Customer Relevant Relationship Management (CRRM) Model

1)               Introduction

  1. Do you have a robust CRM program in-place, but you feel you are still missing the mark in terms of delivering what your customers really want & need?
  2. Is your organization at risk of making market decisions that can cause a backlash and mass defection by your customers like the Bank of America $5 fee decision or the Netflix business split decision?
  3. Do you have volumes of consumer data and analytics, but sales are declining or flat and customers are churning at an increasing rate?
  4. Do you feel you could improve the quantity and quality of your customer insights including ascertaining critical consumer needs, preferences, likes/dislikes, interests, preferred communication channel for you to contact them, preferred timing and frequency for you to communicate with them, etc?

If you can say “Yes” to any of these questions, the rest of this post is a MUST READ for you and it is time to consider this more effective CRRM Model to replace your outdated CRM Model.

2)               CRM vs. CRRM Model Overview

The following diagram depicts the major differences between the old CRM Model and the new CRRM Model including the problems associated with the old CRM model and benefits of the newer CRRM model.

Old CRM Model vs. Customer Relevant Relationship Management (CRRM)

Old CRM Model (left above):

  1. Relies on historical data and analytics to determine what customers need, want, etc. by the analysis of sales history, types of products purchased, categories of products purchased, views on websites, stores visited, etc.
  2. Customer activity information is a proxy to what customers really want and need. Example, you will seldom learn that a customer hates an in-store or web experience through this proxy for what they are wanting, feeling, needing, disliking, etc.
  3. Companies are unlikely to gain insights into the impact that any future company decisions will have on customer loyalty, retention, acquisition.

New CRRM Model (right above):

  1. Takes a more direct approach with customers and utilizes a systemic querying method to ascertain exactly what customer want/need/prefer/etc.
  2. Embraces customer councils, customer forums, customer voting to drive future content, interactions, product/service offerings, etc.
  3. Activity solicits ratings from customers on many aspects (marketing materials, web experience, in-store experience, product usability, quality of customer service, etc.) regarding the health of the overall customer relationship and continually asks “How well are we managing our relationship”

3)               Example of CRM Model Gaps

To illustrate how companies are struggling to really determine the real needs of their customers, I took selected comments from interactions with senior CRM executives from major US Corporations based on consulting engagements, job interviews, speaking to them in passing, etc. The following charts are their actual verbatim comments as well as my read on their CRM gap that prevents them from developing world-class relationships with their customers.

Traditional CRM Programs:

  1. Organizational culture, operations, and go-to-market strategy does not put the customer and real customer insights into the center of CRM operations
  2. Relies on data, analytics, and customer history to drive on-going customer interactions.
  3. Puts the organization at extreme risk of missing the boat from a customer’s perspective – real needs, wants, concerns, preferences, experiences, etc.
  4. Companies that rely on this model are at-risk of customer defections, decreased customer spend/loyalty, etc.

New CRRM Model – with Customers In The Center of Customer Operations

New CRRM Program:

  1. The organizational culture, operations, and go-to-market strategy puts the customer and real customer insights into the center of CRM operations rather than rely on the proxies of what customers want, i.e. data, analytics, and customer history.
  2. The customer becomes the actual judge, ‘rater’ of whether you are delivering quality, value and a good relationship to them.
  3. The customer is put in charge of CRM operations and enables a bi-directional and on-going dialog with the customer whereby they tell you their real needs, wants, concerns, preferences, experiences, etc.
  4. Companies that rely on this model are more likely to develop products, services, offers, communications that delight the customer and whereby they are more loyal, greater brand advocates, and likely to refer your company to their friends as a company who listens, cares and empowers their customers.

6)             Companies That ‘Get ‘CRRM

The following are samples of companies that, in my opinion, get the CRRM model and details how/why each of them get this new go-to-market customer model.

Companies That ‘Get’ CRRM – 1 of 2

Companies That Get CRRM – 2 of 2

Phrases That Describe Companies who ‘Get’ the New CRRM Model

  1. We don’t hide behind data and analytics to drive our customer & CRM operations, but rather we ask our customers what they want.
  2. We are eager to ask our most disgruntled customers how we can improve our relationship with them and to determine who to improve our go-to-market strategy
  3. Before we make any major market-facing decisions, we ask a cross-segment of our customers what they think about each of our proposed decisions and then ask them how to improve upon how these changes are implemented so we ensure a continued delighted customer base.

The bottom line of this post is that, if your company relies less on historical data and analytics to determine what customer want and actually builds methods, processes, and systems to put the customer in charge of rating CRM operations in order to provide you with ongoing and valuable real insights (needs, wants, likes dislikes, preferences, concerns, etc.), the customers will feel more valued and connected with your brands. The benefit of adopting this new CRRM model will be more loyal, empowered and delighted customers who will be brand advocates and brand referrers that will increase shareholder and company value.

As I have now built this new CRRM model for several major US brands, my next blog post will be on ‘how to’ develop this capability at the enterprise level.

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