I am your Customer

I am your Customer

I may also be your Supplier, your Employee, your Partner, your Student, your Stakeholder, your Consumer, your Influencer or your Citizen.

I reserve the right to voice my opinion about you, your products, your people, your services and my experience with you at any time and across any channel I want.

I reserve the right to be wrong but be treated as if I was right and reserve the right to  accuse you of being wrong, even if you were right.

I expect to be treated as if I was your only customer but I also expect to be treated as the best customer, regardless of whether I may or may not be.

I am your Customer.

However, I reserve the right to go to someone else. It is your job to stop me.

I reserve the right to shop around. It is up to you to make me loyal to your brand.

I reserve the right to expect you to get it right first time, every time even though I realise that nobody is perfect.

I reserve the right not to tell you that though.

I reserve the right to avoid telling you anything about myself although I expect you to know.

I reserve the right to expect the same “deals” as an existing customer as you would to attract new ones.

I am your customer.

I creserve the right to be difficult, annoying, irritable, demanding, irrational and a downright pain in the backside. Sometimes all at once.

However, I am YOUR customer and without me and my fellow customers, you won’t have a business. We know that and expect you to get that.

I am your customer but if you accept me on my terms, I will be your customer for life and will help you achieve your dreams.

 

 

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A Banking dichotomy

A recent experience with UBank has got me wondering whether the intention to create a good customer experience has led to a bad experience?

I first want to say that I am not expressing a view in this post, merely an observation. This is in the light of a very good recent experience with UBank who are an Australian Internet bank (part of NAB- National Australia Bank) and an incident with them that may cause me to churn. Hence the dichotomy.

The Internet site is supported by an excellent 24/7 Contact Centre which appears to be very customer centric and well organised. I recently set up my Internet Banking from home using my home broadband connection which uses the only phone line coming into the house. We live in a rural location so have no mobile phone signal at home. When I went to update my personal details online, UBank sent a SMS code for me to enter onto the website to verify the change. Of course, I could not receive the SMS as I had no mobile signal. The SMS was only valid for 10 minutes.

I soon realised that UBank had set up this “security measure” for every single transaction that I would make online. Payments, Transfers, Changes in details all receive SMS verification. With most of the Australian population living in areas with decent mobile coverage, I’m sure this isn’t a common issue to the banking giants but it is to me.

I rang UBank to ask whether there was another option. I was told it is the banks policy to provide this “more secure” method to protect their customers. This is very noble but why couldn’t I receive an email notification instead? Apparently UBank and NAB do not believe this option is as secure so they have adopted the SMS as the standard verification method.

This renders the site useless to me for “home” banking and I am now about to churn. It raises an interesting point though. This initiative has been taken to attempt to protect the customer. It is done with the customer in mind. However, because I have no other options of validation, the approach means that anyone in remote areas of the country will struggle with this issue.

I therefore wonder whether this is an example of good or bad customer centricity? It is good in wanting to make my banking experience safer but bad in that it does not give me the choice in how I want to receive that experience.

I would be interested to know what others think?

Becoming Customer Centric…5 Top Tips

The difference between experience and wisdom is a subtle one. To learn from an experience, one will make a mistake and learn not to do that again. That is learning by experience.

To learn from wisdom is to learn from the experience of others so not to have to make that mistake in the first place. That is learning by wisdom.

Therefore I find it puzzling that many organisations still prefer to learn by experience when attempting to fulfil their promise to become a truly customer centric organisation. Therefore, here are five quick tips that uses the wisdom gained from other organisations (who shall remain nameless but all of whom I have worked with) that can help on that journey towards customer centricity.

Tip #1: To change behaviour, change the comp and hire appropriately.

If you want your Managers accountable for delighting the customer and improving retention, then change the comp plan to focus them on that objective. If it is important, make it something that becomes an economic necessity! In a similar vein, ensure that your hiring policy is aligned to ensure that only applicants who can demonstrate a passion for customer centricity are hired. Gradually, the culture of the company will change.

Tip #2: Give the Customer a voice in the Boardroom

Invite the voice of the customer into the boardroom by appointing a Chief Customer Officer. If you cannot afford one, get a cardboard lifesize cut-out and sit it on a chair in the boardroom. At all relevant moments during a board meeting, turn to the cardboard cutout and ask “What does the customer think about this?”. Believe me…it works!!!!

Welcoming the CCO to the Boardroom

I had been preparing a blog post on this subject but I would rather defer to someone who has the experience of being a Chief Customer Officer. You can learn more from her excellent blog here.

Tip#3: Interview your churning, loyal and indifferent customers

Do you provide Employee Satisfaction surveys, exit interviews and other such HR charm offensives? Well, why not extend similar concepts to former customers, current customers (noth advocates and the silent majority). Hold focus groups, use Social Media, surveys, bribes whatever it takes to gain the insight you need to gain a true customer perspective on what you do well, what you do not do well and what they would like to see you do. It is very powerful. I heard a stat recently that said in a survey of clients, 95% said their customers “loved them”, a perception that was only supported by 6% of their customers.

Tip#4: Educate, Empower and Enable everyone

Everybody within your organisation must feel empowered and able to provide an outstanding customer experience. To do this, everyone needs educating. Who are THEIR customers? What benefits will this approach bring? What behaviours and values need to be developed? This education should not be a Webex or DVD to watch. It must be participative, ongoing and cross functional, involving every staff member from Chairman to Janitor. One organisation invited all of its directors to spend a day answering phones to “real” customers. Only half took their turn. Those who did found the experience “career changing”. Those who didn’t turn up, in my opinion, should have been given an ultimatum to do their stint or leave. Customer Centricity needs to be fully inclusive.

Tip#5: Consistency across customer touchpoints

Finally, the great experience being delivered by Sam in Sales could be completely undermined by a poor after sales experience by Paul in Service. Not only is it important for everyone interacting with the customer to behave in a customer centric fashion, but it is also vital to offer a consistent LEVEL of Customer Service. I believe it is better for everyone to be very good than have one excellent and another mediocre. That alignment can be measured by surveying each different department at each customer touchpoint. The internal initiative should then focus upon improving the “lagging” departments to provide greater overall consistency.

Oh, there is a sixth tip: “Do not let I.T drive the initiative”, but that deserves a blog post of its own!

Of course, this list is not inclusive or exhaustive. Success could be achieved without these tips but I believe that they will increase your chances of success.

Buying a CRM system? Top 10 tips

Buying a CRM system? These tpis from an Independant CRM Specialist can give you food for thought before you start the procurement process. As a Vendor and Purchaser of CRM, Nick provides some tips based on years of experience to help mitigate risk, reduce cost and make a quality decision.

Over the years, I have been both a Vendor and Purchaser of CRM systems. I have always maintained that choosing the right CRM system is not one of the critical success factors for an Organisation wishing to gain benefits from a CRM initiative. It is , however, the subject of many long hours and a lot of the program costs.
It is also highly emotive as many stakeholders will wish to have a say and influence the eventual procurement decision.
However, a lot of time and money can be saved by establishing some ground rules and a strategy up front. Without wishing to patronise Procurement Specialists, I argue that by considering a few simple tips, a decision can be reached more quickly, cost effectively and lead to better outcomes.
Therefore, this blog highlights a few suggestions aimed at helping Organisations wishing to buy or upgrade their existing systems. These tips are based on experience, not theory and is certainly not an exhaustive list. Neither is the list in any particular order of priority!

Tip #1. Do not buy “generic” requirements

Many Organisations put together a RFP (Request For Proposal) by compiling or acquiring an exhaustive list of generic features or functionality and then score vendor responses against “weighted” values such as Highly Desirable, Desirable and Very Highly Desirable, even Mandatory. The challenge of this approach is that business users are often lulled into stating system attributes or features that may bear little or no difference to their future “To Be” process. It becomes more of a “wish list”, rather like a child compiling a list for Santa having visited the Toy Shop. A better approach is to take the requirements to a higher level and then determine which group of functions is likely to be important for the future. Lists of generic “functionality” or requirements can be bought on the Internet. These lists are very thorough and detailed, often drilling down to a level where the relevance of each function may not be understood. Keep it simple and just use the groupings or categories to give vendors a good idea of what you are looking for. Another reason for doing this is to be fair to the vendors who could have overly high opportunity costs to fully respond to 2648 questions (as I saw recently) where the RFP had gone to 15 vendors. In that example, I decided that the effort to respond was not worth the small chance and we chose not to respond. The sad thing is that we might have had the best solution.

Tip #2. Apply weightings carefully
Getting the weightings right to score the responses and presentations is critical.
Start at the highest level: What weightings should be applied to different aspects of the Procurement? Price, Functional Fit, Non Functional Requirements etc? Often the Business users will wish for a higher percentage on Functionality, I.T will push for Non Functional with Finance and Procurement keen on Price or Value For Money. I cannot say how you should do it but I will stress that the overall weightings will greatly affect the decision you eventually reach. The weightings are then cascaded down through to the requirements and open questions. My suggestion is to keep in mind that what the system does is not the main success factor. Compromises may have to be made in order to get, for example, broader integration versus deeper functionality. The irony is that the impact of the weighting decisions (often made before issuing the RFP) is not really understood until you start the short listing process. That is the time when earlier weighting decisions may be regretted. Spend a little longer to get this right and the quality of the final decision may be much better.

Tip #3. It’s not the software, it’s the process
We have all heard of examples where the “software was poor” yet subsequently changed (at great expense) for something just as bad. The irony is that the same “poor”software is being used elsewhere and delivering value. Every software vendor has customer reference sites and customer horror stories. The difference is therefore not the software. It is the people and the processes. I cannot stress enough but to become truly customer centric, you must regard CRM as a transformational journey and ensure that people are willing and able to change to adapt to the new world enabled by the software change. Similarly, the software must enable great processes that deliver internal and external benefits. We have all experienced ringing a Call Centre to be routed around the organisation before finally reaching the right person. It may be great technology employed but you cannot hide a bad process. Implementing cRM with poor processes is like putting lipstick on a pig.

Therefore when buying CRM software, make sure the business representatives are change agents who are not bound by what they have always done. Similarly, stretch the vendors by testing their industry understanding to propose new processes and practices, rather than just reimplement what you do today.

Tip #4. The Integrator and the Integration
So you are buying new software. Who will implement it?

The Vendor? A Systems Integrator? A Shared Service provider? Maybe your own I.T department?

The answer to this question should drive part of the assessment. What skills are required to administer the system? How will Knowledge Transfer be managed and assured? What training is available, where and how often? Again, there is not a prescribed answer to this but the overall strategy is hugely influenced by the direction your Organisation chooses to take. The implementation is (in my opinion) more important than the software being deployed. Make sure the implementation is considered aspart of the decision with at least the same importance as the choice of software.

Tip #5. The role of I.T and alignment to architectural direction
Your IT department should be the facilitators to the process by providing an Organisational strategy and Architectural direction to which the solution should comply and conform. Decisions such as Cloud, Integration, Database and other Enterprise considerations should be informed by I.T and help the procurement. This direction should be reflected in both the weightings and evaluation team composition. However, be wary of the situation where IT chooses a solution on behalf of business users. In CRM, the importance of adoption and acceptance by the end users is probably more acute than in many other types of software selection. The trade off between IT and the Business is often as necessary as it is emotive but without trade off, time and costs escalate and the “losing party” often starts to undermine the chances of future success.

Tip#6. Composition of Evaluation team
The size of the Evaluation team will vary by Organisation but I tend to find that the larger the Organisation, the more likely it is to have an unnecessarily large evaluation team. It goes without saying that the larger the team, the higher the cost and the slower the process. Does it lead to better decision making? I don’t think so because the internal politics are then brought into the Evaluation team. Surely it is more important to create a lean and empowered team who can represent the interests of multiple departments without feeling the need to follow a particular political directive? This may sound like a Utopian state but it should be the objective of the overall Owner to create the optimal team to represent the best interests of the Organisation (not department). One other consideration is to empower a panel representative of differing levels of seniority. It is often a mistake for Managers to buy a system for their staff to use and vice versa. Ensure staff from the most junior to the most senior are represented on the assessment panel and decision making.

Tip#7. The value of the business scenario
If you want to really test (and differentiate) your shortlisted vendors, develop some typical business scenario’s that require a product demonstration requiring flexibility and creativity. Do not ask for what you do today. Imagine a future state and a desirable outcome. For example, imagine you are a traditional retailer. Create a scenario asking the vendor to demonstrate how their solution could utilize new channels and media to identify and acquire new customers whilst measuring the impact and effectiveness of each channel? That scenario is not prescriptive or specific. It allows the vendor to demonstrate potential value of their solution whilst offering you a glimpse into their understanding of your business and industry. A good vendor will have researched your needs, your weaknesses and gained a good idea into the potential opportunities their software might provide you. Give them a scenario whereby this can be demonstrated. In saying that the scenarios should not be too prescriptive, it must obviously cover your requirements as highlighted by the categories described in Tip#1.

Tip#8. Mandatory or not
If you make a requirement “Mandatory”, it has the potential to eliminate solutions that may have been a strong fit otherwise. Therefore think very carefully about what should be mandatory and use it as an initial screening process. For example, imagine you are an international business and believe that your solution must be multilingual. If you make “Multilingual” a  Mandatory requirement, you will eliminate a large number of solutions that may currently only have one or two languages. Is that requirement truly a “Showstopper” or is it just simply very highly desirable? By making it a “Very Highly Desirable” requirement, you can assess these solutions without them being rejected as non compliant. Usually, the first pass of assessments eliminates vendors who are non compliant. Therefore only make requirements that you simply cannot operate without the only ones that are mandatory. This tip may not sit well with many but, in my experience, it is easier to seek compromises than it is to live with the implications of the wrong choice.

Tip#9. The after sale strategy
One of the often hidden and unforeseen aspects of procurement surrounds the strategy once the solution has been deployed.

Who will provide Support? Is it required 24/7? What is the Upgrade strategy and frequency? What is the future product roadmap and vision?
Often Evaluation Teams can be caught up in what the solution can do today rather than thinking about the future state. One can never predict the future but mitigation should be considered for different scenarios and be managed within the procurement process. As a former General Manager responsible for the CRM Product of a Software vendor, I was often asked to make commitments to future development but was rarely asked to commit to this new functionality contractually. Why not? I would have been happy to had I been asked but without the contractual need, the client has no assurance of that future capability which increases their future risk and exposure. Even if software companies cannot commit to future development, this could be used as a bargaining chip in negotiating price. There is a big difference between intention and committment, especially to Software providers!

Tip#10. Benefit realisation
How will you measure whether you made the right choice? It will be whether your business case was justified. Therefore a win/win scenario whereby your vendor helps develop and is incentivized to help you realise genuine benefits (and thereby justify your business case) is compelling. These benefits must be quantifiable and the inter dependencies (people, process etc) understood and managed. However, wouldn’t it be nice to select a vendor that is motivated to help you realise benefits rather than simply deploying software for a set price?

This may again sound utopian but it is the way things are moving in our customer centric universe and is worthy of consideration.

 

Of course, these tips are only suggestions and you may get great outcomes even if you ignore them. However, I do believe that these can only add value to you and hope that they do help in some small way. Good luck!

CRM and Xmas

Why is it that some companies good work in delivering customer service throughout the year goes to pot over Xmas?
I have had a few recent examples where it appears that a lack of preparedness has undermined any goodwill generated previously.
A good example is an excellent web site that I use frequently.

It is called “I Want One Of Those” and features novelty gift items. It is innovative, fresh and well designed. However, it appears to be a victim of its own success.

However, the increased pressure from Xmas has overstressed a poorly designed “non delivery” process. I ordered a present from Australia to be delivered to my parents in the UK. It never arrived. When I enquired, they responded promptly to tell me that I had to complete a “Statutory Declaration” stating that it hadn’t arrived. In other words, they didn’t believe me. They put the Stat Dec form in the post to the RECIPIENT (therefore spoiling any potential surprise) and my parents promptly filled it in and posted it back. By now Xmas was upon us and nothing more had been heard. I chased them up and they had no record of ever sending a Stat Dec to my parents or of receiving one back. Therefore, we had to do it all over again. I asked whether, given that we are in the 21st century, we couldn’t use email to save time. After another day of delibaration by IWOOT, they agreed (poorly designed process!!!) and within 24 hours, they had the 2nd Stat Dec.

By now, it is nearly 2 months since I ordered. I chased them up again yesterday. They confirmed that, yes, they had the Stat Dec but that the item I had ordered was now ‘no longer available” and they would refund me my money.

Think about the Customer Experience. How do you think I feel as a Customer? It was meant to be a birthday present so, thanks to inefficiency at IWOOT, the secret was spoilt and remained unfulfilled. Very unsatisfactory. A refund is hardly what I wanted to hear.

How much of this is due to Xmas and how much to poor processes, it is difficult to say. I do know, however, that their processes have been designed to suit IWOOT (inside-out) and not from a customer perspective (outside-in).

However, there is an interesting conclusion. Have I churned? No. Why? Because the “product” is that good that it is worth more to me to continue using them until a viable alternative appears. This challenges the notion that customer experience drives loyalty. It certainly is a major factor but is not the only factor.

CRM without software

I have just spent an amazing couple of days with a major car dealership in South Australia. This company knows where it wants to be but is struggling to sort out the “how”.

I have been helping them sort out a potential strategic roadmap of initiatives. The interesting thing is that they are, in many ways, well on the way to becoming Customer Centric. Their Dealer Principal is an eneregetic, innovative customer champion who has implemented many initiatives that are outstanding. His team are equally passionate about enhancing the customer experience and already offer an experience that is loved by their loyal customers. Whether it is their use of customer follow-ups. Net Promoter or obsessive attention to customer service quality, it appears to be working. But here is the interesting thing: It has all been achieved without the use of any software. Many of the processes that CRM software automates is done manually. Their customer data is in the heads or on the notepads of their customer facing staff. It really is amazing to see just how effective a paper process can be! Just think what they could do with a CRM system enabling these processes. It is an exciting prospect for them but equally inspiring for me to see the power of good people combining with good processes to enable customer centricity.

What is CRM? My point of view…..

My view on the Million Dollar question. I argue that it is not one thing in particular. It is the whole of all of those things.

I am often asked and have often read about this question. I felt it about time to come up with my perspective.

CRM (Customer Relationship Management) is a term coined by the Software Industry in the mid-late 1990’s. Since then, there have been attempts to modify the term, usually to introduce a new variety of software. There has been eCRM, CIM, Citizen Relationship Management and CRM 2.0 (of course!) to name but a few. However, CRM has stuck and many of those now becoming aware of this previously unexplored part of the universe are guilty of equating CRM to a tool. I find that view very limiting and narrow. Usually it comes from one’s own perspective. For example, if you are a Salesperson and use CRM software to manage your sales opportunities, customers, leads and forecasts then CRM is a Sales tool in that context.

Let me first of all explain how I view organisational decision making. This applies to any organisation from the largest multinational to the “one man band”. Everyone has a slightly different take on this and there are other steps I have omitted e.g Values that are also important but have less impact upon CRM than some of the other steps.

GOAL – VISION – OBJECTIVE – STRATEGY – ACTIVITY – TASK

Everything starts with a motive. What is your reason for existing and doing what you do? For many private organisations, the goal could be to maximise shareholder wealth. For the one man band, it could be to not have to work for another person. Irrespective, it all starts with an overarching goal.

Therefore the next step is the vision. Where do you want to be to realise that goal? A corporate vision is a hugely important statement and is often confused with Mission Statements. To me, a Vision is inspirational, stretching, future. A Mission Statement should define what the organisation will be (note: not ‘do’) to deliver that vision.

From the Vision, we need corporate objectives. These objectives should be S.M.A.R.T.

Next, we need a Strategy. A strategy tells us what we need to do to reach these objectives.

The Strategy will then break down into a series of actions and sub-tasks that should enable realisation of the strategy.

So where does CRM fit in? To many people, CRM is a class of software that can help organisations better manage their customer relationships. This is correct. However, to me it is like saying that Space Exploration is all about Rockets. Sure, you need a rocket but what about Astronauts, Scientists, Engineers? What about the leveraging of knowledge? What about the planning? Is that not equally important?

My definition of CRM uses the space analogy to suggest that CRM is the entire universe containing many galaxies. I will start my explanation with a look at the decision making hierarchy many organisations use:

“CRM” should start at the vision stage. What importance does an organisation put upon the type, nature and interaction with its customers? To some organisations, it isn’t important. They focus on price competitiveness or other competitive differentiators that allow them to be successful even with mediocre customer satisfaction. Just look at your mobile phone provider for evidence of that. How many of those providers are truly customer focussed or offer outstanding customer service?

Assuming the Customer is central to an organisational vision e.g “Our Customers loyalty to our products and services will be the envy of all of our competitors”, then we now need to come up with a way of realising that. The objective will help define timeframes, measurements etc but will not tell us HOW. For that, a CRM Strategy is required. What do we need to do to achieve the objective to help realise our vision? It usually starts with a blunt appraisal of where you are today: (“How do you know where you are heading if you don’t know where you are?”)

The Strategy should define a series of initiatives that impact upon the entire organisation. It might affect the Corporate Culture, Organisational Design, R&D, Sales Strategies etc. Nevertheless, the CRM Strategy will be the focal point for all subsequent tasks and activities that are required to help realise the vision. It is likely the CRM Strategy will cut across functions which leads to another key question: Who is accountable for CRM. I will address that in a subsequent post.

The activities required to reach the objective can take many forms.

  • One of these activities might be to analyse and redesign the Customer experience.
  • Another may be to develop systems and tools to better capture, understand and monitor inbound and outbound customer facing initiatives. In other words, CRM Technology.
  • Another might be to train the workforce on customer communications and customer service.
  • Another might be to change the hiring strategy to evaluate potential recruits against a templated “customer focus” criteria.

There are many, many more things that could be done but nearly all activities will impact upon and/or involve People, Process and Technology.

Therefore CRM to me is the entire universe of customer orientation. This universe contains many galaxies of activities which contains many solar systems of tasks.

Customer Centricity is a journey through the universe without a real destination. Why? Because the goal (destination) keeps changing. Customers have different expectations and needs today than even a year ago. Even as recently as five years ago, how many organisations had a Digital Marketing or Social Media Strategy?

As the world evolves, so must our vision and enabling strategies to ensure that if customers are important to our overall vision, then we never lose sight of the need to evolve in alignment to the changing world.