Cool CRM
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 "Our Take" of the Day
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About
"Our Take"
"Our
Take" is a collection of daily
vignettes covering a wide range of CRM
topics. It's an attempt to add our own spin
to the world of CRM. We will use the column
to share our perspectives, opinions,
epiphanies, web nuggets, or quite frankly
anything that moves us. Get ready to expect
the unexpected. And, don't be shy about sharing
your thoughts.
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4/29/08 - Nothing Personal, You Understand
Yesterday, I shared a story about my recent visit to a restaurant about a server who, in her own way, practiced personalization. Her personalization technique worked fine for years without fail only to blow up this time because I dined with a new companion, er . . . I mean friend.
Her personalization strategy was based on an assumption- a fine assumption that had served her well (no pun intended) for as long as I can remember. But assumptions are, for lack of a better word, merely assumptions.
Personalization strategies work well when the assumption is verified each time. For instance, the launderer might know I like light starch but he can acknowledge and re-confirm that I still want light starch this time. The coffee maker might know I don't need room for cream but should acknowledge and re-confirm each time. And yes, my server at the local sushi restaurant should have acknowledged and re-confirmed my lack of need for menus. Personalization doesn't mean preferences never change.
Gary Lemke, Publisher
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04/29/08
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4/28/08 - What's A Guy Have to Do to Get a Menu?
Around the corner from our office building is a restaurant we CRMAdvocates often visit. It's a mom and pop sushi restaurant. Nothing fancy but the food is good enough to keep us coming back on a regular basis.
I consider myself a value guy. Others say that is simply a different way of saying I'm cheap. Regardless, I often dine with other "value" minded people and we consistently and reliably order from the specials board rather than the menu. Since the beginning we have been served by the same person and she knows we order off the board so she no longer presents menus.
Imagine the surprise of my dining companion who, by the way, owns a chain of restaurants when he did not get a menu. He began to look uncomfortable but I didn't know why at first. When he blurted his request for a menu, the server looked startled and I just laughed. In her own way, she was practicing personalization but the 1to1 touch failed today. It made me think how personalization strategies reverently discussed years ago had declined in popularity. Do you know why?
Gary Lemke, Publisher
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04/28/08
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4/24/08 - Mistake Proof CRM
You might remember last week we discussed how one company realized the error potential, and related customer frustration, associated with the use of "O" and zero in customer identification codes. The similarity of the letter and the number creates the opportunity for someone to input the wrong customer ID when trying to log in.
One might consider that mistake prone CRM. One reader wrote about borrowing the manufacturing discipline of making the process mistake proof saying, "The concept is to think about how someone could do it wrong, and design the process to not allow that. The same concept should be applied to customer service -- even more so since customers aren't trained in the same way that employees are."
He went on to offer an example - the polarized electrical plugs. It all starts with an attitude. Are you looking to reduce the instances of unpleasant customer experiences or are you looking to make the experience mistake proof? Care to share your mistake proof CRM experiences?
Gary Lemke, Publisher
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04/24/08
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4/22/08 - Happy Earth Day!
OK, I know I'm a day late sending you warm Earth Day wishes (no global warming pun intended). However, not sending you this wish on Earth Day is part of the point I want to make. I'm not sure how the day originated nor do I understand the fullness of the day. Regardless, I can tell you how we at CRMAdvocate have done our part for Mother Earth.
We have published almost three thousand email newsletter dating back to 1997 and we have never printed a single edition on paper. I can only imagine spotted owl advocates thank us for not using the tons and tons of paper we would have used. We have always been electronic so postmen worldwide have a slightly lighter load as well.
Lest you think our motives are purely "eco," let me tell you that I hope our efforts were more driven by customer demand. By being purely electronic, we can deliver information to you more quickly since we are not limited by the process of printing and mailing. I hope you have enjoyed these benefits. Here's to Earth every day.
Gary Lemke, Publisher
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04/22/08
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4/21/08 - Get Your Head Out of the Software
How often does your company successfully deliver projects on time? If your answer is "not often," you are in the majority. There are countless reasons why projects are delayed or even go "off the rails." What can you do to improve your odds for your current or next project?
Baseline Magazine published an article on "eight ways to save your next project." Number one on the list is to get your head out of the software. Many software solutions are bought and justified on features and functions. If one spends time focusing on those attributes upfront, it makes sense that one might continue that affection during implementation.
Rather than spend time with the software, the article suggests spending more time collaborating with project constituents. Common sense? Yes. Always practiced? No. A reminder now and then is a good thing. Oh, by the way, read the rest of the article to learn about seven other ways to save your project.
Gary Lemke, Publisher
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04/21/08
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4/18/08 - Good Experience
This week, I shared an example how one company found an opportunity for improvement by studying the customer experience. They learned that some customers would mistakenly use the "O" instead of the zero when entering their ID on the web site. I passed the finding on to you so you wouldn't have to spend the effort to learn for yourself.
However, let's take step back. While you got that tidbit for free, what other areas for improvement can you discover? Do you have systems in place to observe and learn more about the customer experience? I hope so.
If you are looking for more information and motivation in this area, I recommend you consider signing up for Mark Hurst's email newsletter. He has made a practice of studying "experiences" under the title of Good Experiences. Mark didn't pay for the plug. In fact, we've never met and he doesn't even know that I'm sending you his way. Enjoy!
Gary Lemke, Publisher
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04/18/08
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4/16/08 - When Zero Costs You More Than Zero
Yesterday, I shared a Wall Street Journal article about how one company discovered an annoying aspect of their web experience. Specifically, U.S. Airways found a significant number of instances of customers mistaking the "O" for a zero and vice versa when entering their frequent flyer ID. The result was less than a positive customer experience.
In addition to being a bit annoying, a number of those instances created a call to the call center for help. That is a real cost of doing business. And it is one that can be addressed. Could you place a definitive number to the cost savings if your company were to eliminate the "O" and the zero from user ids?
Add in the soft costs of an improved customer experience and I bet the aggregate savings among CRMAdvocate subscribing companies is easily tens of millions of dollars. Maybe more. How much can you save?
Gary Lemke, Publisher
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04/16/08
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4/15/08 - Revealing Experiences
I read an article in the Wall Street Journal this morning with the title, "Web Sites Want You to Stick Around." I believe you need to be an online subscriber to read the story on their web site so that is why there is no link to the full story today. Sorry.
Although you might not be able to read the story, let me share one piece of information that might help you improve the online experience for your customers. U.S. Airways Group discovered that many customers were typing in their frequent flier numbers incorrectly, entering the letter "O" instead of the number zero.
You might want to check your customer support records to see if this common error is generating calls into your call center or email inquiries. Regardless, consider eliminating the "O" and the zero from your palate of customer ids. Does anyone do that today?
Gary Lemke, Publisher
(Share your thoughts)
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04/15/08
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4/14/08 - Bookends
We've been talking about strategies for how airlines like American Airlines can do a better job with the customer experience associated with massive grounding of aircraft. While we have focused our attention on American Airlines, it is not my attention to single out American or any other airline. I simply see this as an opportunity to discuss customer experience strategies.
Many of you have written to suggest that more pro-active communication is so critical. I agree. Furthermore, I like what American Airlines has done to refine their customer experience strategy by being more pre-emptive in their actions as well as more proactive on the back end with compensation and more communication. That's a good "bookend" strategy. Of course, making sure there is something good in the middle is important too.
You can read the apology letter that was sent via email to their frequent flyers Airline Biz Blog.
Gary Lemke, Publisher
(Share your thoughts)
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04/14/08
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4/10/08 - Are the Airlines Listening to CRMAdvocate?
American Airlines found it necessary to ground more aircraft as part of an on-going effort of inspections and updates to be in full compliance with safety standards. The new effort started earlier this week, but it seems the airline learned a little bit from the last encounter on how to better deal with the customer experience. Could it be they are reading this column?
One of our recommendations was for American Airlines (and all airlines) to be more pro-active with affected passengers. Don't wait until they get to the airport to give them the bad news. It seems AA took our advice with announcements in major media outlets and on their web site. I'm assuming they pro-actively communicated with some passengers via email and cell phone too. Good for them.
An article in my local newspaper today suggested up to 100,000 passengers on 1,094 cancelled flights were affected yesterday adding the company would give $500 travel vouchers to anyone stranded overnight. If they had to pay out to all affected passengers, we are looking at a $50 million tab. Ouch! I bet the advanced notice significantly reduced that exposure. Don't you?
Gary Lemke, Publisher
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04/10/08
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4/8/08 - Not Using the Tools You Already Have
I've never worked for an airline so talking about what American Airlines, or any airline, should do when faced with a massive customer experience altering event like grounding hundreds of aircraft can be a bit reckless. But then again, an out-of-business perspective might be needed.
Many of you wrote to comment on what you would do to better serve the customer community if faced with a similar situation. The common philosophy of many airlines is to get the passenger to the airport and then best deal with each situation in a reactive way. The consistent answer among CRMAdvocate readers suggests a more pro-active strategy to reach out and communicate with customers prior to arriving at the airport.
For the airline employee, they were going to be at the airport anyway so it is no big deal. However, for most travelers, getting to the airport is more than a simple commute. It involves a higher degree of logistics, planning, and expense. Most airlines have one or more ways of communicating with passengers and potential passengers beyond the terminal counter. Why are they so under utilized when needed most?
Gary Lemke, Publisher
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04/08/08
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4/7/08 - What Could Technology Do?
What would you have done? That is the question I asked if you were in charge of handling the customer experience side of an airline canceling more than 10% of the daily flights for aircraft inspections. I've receive many good responses including this one:
"The airline could have communicated with the passengers via email, phone number in the reservation record, or even via an announcement on TV. There are outbound dialers that can be programmed with a list of numbers to call and leave a message or give a prerecorded announcement and that would have been better than nothing. There would have been a rush of calls to the call center, but the chaos in the airports would have been reduced as many would not have even gone to the airport in the first place. And the explanation of an FAA driven process would have protected the airline's image at the same time."
Outbound dialers are one technology. What other technologies could help a company facing this issue? I may regret this but I'll unleash the vendors to boast a bit. Stay tuned for more.
Gary Lemke, Publisher
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04/07/08
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4/4/08 - What You Would Have Done
On Wednesday, I posed the question about what you would have done differently to manage the customer experience American Airlines created when they cancelled more than 300 flights for aircraft inspections. As promised, I will start sharing reader comments. Here's one to consider:
"When a large scale issue affects a customer, there definitely is a 'surprise' factor that affects their disappointment. And, it seems to increase exponentially when the situation is something the customer should have been advised of but hadn't been. We now have our customers' email addresses, cell phone numbers, mailing addresses-- which we use for our own benefit, but rarely use as a means to provide our customers with a minor amount of preemptive notice and, ultimately, respect for their time or for their business."
The reader went on to conclude by saying, "Wouldn't a notification of the cancelled flight provide the customer with options to alter their travel plans thus driving positive future behavior? I absolutely think we miss the chance to build relationships with our customers in the bad times-- which leaves us with no loyalty in the good." Do you agree?
Gary Lemke, Publisher
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04/04/08
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4/2/08 - What Would You Have Done?
Yesterday, I asked two questions about the way American Airlines handled their voluntary grounding of 300 aircraft for inspections. The two questions were: 1) why ground more planes than you can handle at one time, and; 2) could the plan been executed more proactively to minimize customer conflict?
The first question has to do with complex safety procedures and risk management business decisions that outsiders like me will never grasp. However, the second question is perfect for a forum of seasoned professionals like the collective group of CRMAdvocate readers. That means you!
It seems the airlines had an opportunity to do something proactive with regard to the customer experience but fell back on the same routine of cancel and react. Tell me what you would have done to improve the customer experience side of things of canceling so many flights. I'll start sharing your responses later this week.
Gary Lemke, Publisher
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04/02/08
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4/1/08 - No Foolin' Around
Happy April Fool's Day. However, this story is no joke. Last week, American Airlines cancelled about 300 of its estimated 2,300 flights without notice for aircraft inspection. The news was widely covered in print and electronic mediums with countless personal stories of people missing interviews, connections, the comfort of their beds, etc.
The airline said the inspections were voluntary and did not pose a threat to safety. I'm the first guy to applaud an airline for grounding an unsafe plane - especially if I'm a passenger of said plane. However, without knowing the details of why the orders were given, I'm left scratching my head on two accounts. First, if it was voluntary and not a threat to safety, why ground more planes than inspection/repair crews can handle thus creating a more severe shortage of aircraft resulting in a larger number of stranded passengers?
My second question is this: Why the surprise? Could the plan and communication been done better to minimize passenger disappointment? How about something more pro-active, rather than the same old reactive stuff? More on this tomorrow.
Gary Lemke, Publisher
(Share your thoughts)
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04/01/08
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3/31/08 - Did You Pay Attention?
On Friday, I shared with you a one minute awareness test (http://www.dothetest.co.uk/). I enjoyed the many comments from readers about the test. If you didn't take the test last week, I encourage you to try it before reading on.
Most people were able to come up with the right answer to first the question. However, very few were able to say "yes" to the second question. There is a very good point in this simple test. Sometimes we only see what we are looking for. We miss the bigger picture because external influences narrow our vision or divert our attention.
Take this test to your next staff meeting to challenge people to look for what they are no seeing as it relates to the customer experience. Set you mind free.
Gary Lemke, Publisher
(Share your thoughts)
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03/31/08
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3/28/08 - Pay Attention
We can become keenly aware of those things that capture our attention. However, sometimes that focus means we aren't paying attention to other things going on around us.
I was guilty of inattention last week when I was thinking about other things while riding a bike. I wasn't paying attention, hit a curb, and crashed my bike. I'm OK, just a little sore. And that soreness is a reminder to pay attention to everything. And I mean everything.
Take this one minute awareness test (http://www.dothetest.co.uk/). Tell me if you passed. I didn't.
Gary Lemke, Publisher
(Share your thoughts)
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03/28/08
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3/27/08 - Want To Accelerate Call Center Performance
If you are reading this column as part of the daily CRMAdvocate Today email newsletter, you are a registered CRMAdvocate subscriber. And if you are a subscriber, I have an offer for you.
The 2008 Call Center Optimization Forum scheduled for Dallas, Tampa Bay, Chicago, Kansas City, and Los Angeles is now open for registration. You're invited to uncover the secrets of the best call centers, and find out how to apply them in your organization. You'll learn strategies and techniques you can use to exceed customer expectations, raise performance standards, and achieve your career goals.
The registration fee is $299 but as a CRMAdvocate subscriber, you can attend for free. When registering, you have the option to sign up for a free 1-year CCNG New Community Membership Trial. I hope to see you there.
Gary Lemke, Publisher
(Share your thoughts)
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03/27/08
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3/26/08 - It's Just That Simple
If you have been reading this column for any length of time, you know I have repeatedly used the phrase, "It's just that simple." Much of the discussion points in the column seem simple, maybe too simple to some of you.
As I test my position against the "it's just that simple" filter, the answer is always affirmative. I realize that many of you don't feel like it is always that simple. Guess what? Because it is SIMPLE, doesn't mean it is EASY.
Providing good customer experiences and doing right by the customer are SIMPLE truths most of us can embrace without objection. But delivering is not always EASY. Recognizing that SIMPLE does not mean EASY is the first step to increasing your probability of success.
Gary Lemke, Publisher
(Share your thoughts)
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03/26/08
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3/24/08 - Did You Get the Information You Needed?
What challenges do you face with regard to extracting information from your CRM systems? For years, I have seen countless CRM systems that are much better at storing information than providing information. The effort to extract the needed information at the needed time is a common frustration.
That is why we have seen the rising importance of business analytics tools in the last few years. That is why we have seen a surge in demand for real-time solutions that can provide the needed information to the right people at the right time.
If you are faced with reporting and analytics challenges, I encourage you to spend 26 minutes listening to our new webcast - Secrets of On-Demand Reporting. I especially want to encourage you if you are using or thinking of using Salesforce.com. Get a cup of coffee, close the office door, and learn how Salesforce.com cut reporting time by 88%.
Gary Lemke, Publisher
(Share your thoughts)
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03/24/08
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3/21/08 - Buy Versus Build - Is There a Third Option?
Every time I broach the question of build versus buy, I get a flood of comments. This is obvious a question many organizations continually wrestle. I have recently had some discussions with advocates offering a third option - open source CRM.
Companies like SugarCRM boast more than 3,000 installations. They claim to be offering similar functionality to SAP and Siebel with a higher degree of flexibility. They consider open source an alternative to on-demand and observe migrations away from the hosted model.
No doubt we are seeing open source momentum especially with market movements like Sun's billion dollar acquisition of MySQL. The open source movement is moving up the software chain from operating system, communications, tools, databases, etc. to applications. Is open source ready for CRM? Is CRM ready for open source?
Gary Lemke, Publisher
(Share your thoughts)
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03/21/08
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3/19/08 - Smart New Strategies
I read a story from the salesautopsy.com email newsletter about sales approaches and how predictable they have become. The story goes something like this:
You are led into a wildly decorated office with an array of eclectic wall hangings, knick-knacks and figurines. You make a wise comment about one of the items in the room feigning interest. Later you find out the buyers have wagered on what item would get comment from the "sales dude." You are like every other rep - so predictable.
If you are in sales, do you find yourself the amusement of the buying community? If so, maybe it is because you moves have already been anticipated. What's the lesson? Don't be so predictable. The same old stuff is just that. It's time to learn smart new strategies.
Gary Lemke, Publisher
(Share your thoughts)
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03/19/08
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3/17/08 - Happy St. Patrick's Day
This weekend, I pondered how best to weave CRM into a St. Patrick's Day theme. Some may feel it takes the luck of the Irish to satisfy some customers. Or, maybe there is more "green" when we remain customer centric. Instead, who couldn't use the encouraging words of the famous Irish blessing?
May the road rise to meet you,
May the wind be always at your back,
May the sun shine warm upon your face,
The rains fall soft upon your fields,
And until we meet again,
May God hold you in the palm of his hand.
Smile and enjoy the day.
Gary Lemke, Publisher
(Share your thoughts)
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03/17/08
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3/14/08 - Aim High
Yesterday, I highlighted a story about a company that achieved best-in-class customer loyalty as measured by the Net Promoter Score (NPS). If you didn't have a chance to see the story, take a chance to review the story.
This company achieved an NPS score of 79 when the typical score, stated by NetPromoter advocates, is in the range of 5 to 10. If these numbers are correct, this company is way ahead of the competition. So you can't really blame them if they rest on their laurels. Right?
What I like about this story is the CEO's comment: "Until we hit 100 percent there is still room for improvement. We have no plans to rest on our laurels. Instead, we will continue to evolve our products, systems and service to assure that they reflect the ever-changing needs of our customers." That's the winning attitude!
Gary Lemke, Publisher
(Share your thoughts)
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03/14/08
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3/13/08 - NPS High Points
If you have been reading this column for any length of time you have learned a bit about the Net Promoter Score (NPS). If you are new to the column or would like to see a review of columns and reader comments, please visit the archive of NPS related stories.
Today, we have news (see the first item below) from MyFax claiming to have achieved an NPS score of 79. That is the second highest score ever - at least to my knowledge. To tell you how phenomenal that number is consider what is needed. On a scale of 0 - 10, at least 79 out of a hundred customers must rate MyFax with a 9 or a 10 when asked if they would refer the company to a colleague. For every score of 6 or less, the company must have an addition score of "9" or "10."
Such stellar benchmark figures tell me a few things. First and foremost is that exceptional customer loyalty is attainable. I cannot comment on the company's secrets or their profitability but they do claim to be the fastest growing in their market segment. Coincidence?
Gary Lemke, Publisher
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03/13/08
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3/12/08 - 20 Minute Miracles
I'm taking a break today from the on-going discussion about one thing to improve the customer experience. I can tell the topic is very important to a great number of readers because of the volume of feedback emails. But today, I want to share a CIO Magazine article.
The article is titled 20 Things You Can Do In 20 Minutes to Be More Successful at Work and deals with the struggles I face - a to-do list of stuff that is "hard and insanely long term." It deals with that feeling of being overwhelmed by an overbooked schedule, unrealistic job expectations, and surprises that take us out of our game plan.
I encourage you to look through these 20 tactics that just might make you a better manager, sharpen your technical acumen, or even give your career a little extra kick. Is this the start of something new for you?
Gary Lemke, Publisher
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03/12/08
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3/10/08 - What Did You Expect?
Last week, I shared one reader's comment that people make the difference. The reader said that a great hotel is nothing without great people. That sparked the following comment from another reader:
"It depends on how value is delivered in terms of the what or who. When I go to a discount store, I don't expect people to wait on me and the prices are usually in line with that. If I go to the Ritz, I expect to get great service ... if I don't, I remember it. The question is around the expectations you bring to the experience, which could be realistic or non-realistic. If you expect to get amazing service when you are paying a deep-discounted price, you are fooling yourself. Satisfaction = Perception - Expectation."
I buy into the pragmatic approach. No frills airlines seem to thrive when they set expectations low and have the ability to deliver or even exceed expectations. There is wisdom in the old saying, "Give them a little more than they expect."
Gary Lemke, Publisher
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03/10/08
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3/7/08 - Keep Asking
As we discuss the one thing companies can do to improve the customer experience, we have explored what one question is most effective to ask customers. We've also pondered whether it is the question, the feeling of empowerment, or simply giving the customer a sense that their opinions matter. Today, I'll share one reader that captures the essence of passion in learning. Think about this:
"I find it quite humorous to say there are right or wrong questions with regard to the one idea. There are a multitude of questions that you need to ask to get the full picture of most situations. A cursory read of the literature shows that the best diagnosticians, doctors, and sales professionals typically ask the most amount of questions. Not to say to that it's a pure quantity game, as they can also be of high quality, but any complex phenomena has numerous angles that you want to attack. There's often a parsimonious signature, but it's usually 3-5 variables, which each have their own drivers. Like most portfolios, it only take a few high return ideas to eclipse all the rest. Keep asking."
Keep an open mind. Keep asking. It's just that simple. Isn't it?
Gary Lemke, Publisher
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03/07/08
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3/5/08 - It's Not the Question, Stupid
We continue today with more thoughts on the one thing to ask customers when looking to improve the customer experience. Yesterday, we discussed what the question should be. Today's reader input suggests that it isn't the question. Consider this:
"You wrote about the experience of meeting the marketing guy and the empowerment he gave by asking the question if you owned this resort what is the one thing you would change. I would suggest that the primary empowerment was not the specific question, but that he took the time to ask you, that you mattered. Its all about people. You can have the most wonderful hotel with every luxury and every potential facility, but what makes such a hotel truly special are the people who care for you during your stay. My belief is that what people ultimately remember in any customer experience is not the 'what' but the 'who.'"
I agree that people can make the difference. However, if I apply that back to my ski experience, the resort personnel could be awesome but I probably would not have had a good experience had the snow conditions been marginal. So the people side is necessary, but not sufficient. Do you agree?
Gary Lemke, Publisher
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03/05/08
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3/4/08 - Great Idea, Wrong Question?
I still have so much input on the "one thing" question topic we've been covering in this column. For those of you playing "catch up," the questions is this: "If you were president of this company, what one thing would you change?"
One reader had the following perspective to consider: "Great question, but it is the wrong question. We, as business leaders, don't want to know 'what would you change,' but rather, we want to determine, what would change your behavior. Unfortunately we need to derive that answer because most individuals aren't able to answer it accurately. If you ask me what is the most important thing to me about flying, I would say landing safely. However, I don't make a buying decision based on airline safety records. Airlines should be figuring out what will change my behavior and make me a more satisfied and loyal customer."
Excellent point. There is often a large chasm between what people say and what they really mean. It is an easy trap to take act on the exact words. In doing so, one might scratch their head in bewilderment wondering why that "one thing" didn't change customer behavior. Do you agree?
Gary Lemke, Publisher
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03/04/08
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3/3/08 - Still Working on that One Thing
For those of you that have ever taken the time to comment on something written in this column, thank you. Your input is more valuable that you will ever know.
As part of the one thing discussion, I asked what one thing we could do to improve this newsletter. We are still working through the comments to discern our "one thing" but there was a common comment that deserved immediate attention. It seems the form we use to ask for input was cumbersome to the point of discouraging input.
So we've simplified the share your thoughts page to make it easier for you to include your comments. If we put you off last time with our feedback form, can you take a moment to try again?
Gary Lemke, Publisher
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03/03/08
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2/29/08 - There's Always a Chance
Last time, I discussed the risk of empowerment - asking customers what one thing they would change if they owned the company. The risk is that if you don't do the one thing they ask, customers may feel you aren't listening.
One reader offered the following: "We often use this 'one thing' type of question in our consulting engagements but I call it 'Playing Buck Rogers' where money is no object and anything is possible. But we always mention that we can't guarantee that their request can be met, but many are. That lets them know that it is just a request from one person and it may or may not be possible, but at least we want to hear it and there is a chance it will be acted upon."
A simple matter of setting expectations. It's just that simple.
Gary Lemke, Publisher
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02/29/08
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2/27/08 - The Risk of Asking
"If you owned this business, what is the one thing you would change?" That was the question I was recently asked during a customer satisfaction survey while on the ski lift at a resort.
As a frequent visitor to the resort, I knew right away what one thing I would do to improve the joint. I felt such a feeling of empowerment. At least for the moment. However, I don't own the ski resort and my input is but one among dozens, hundreds, or thousands. What is the chance my input would result in action?
I don't know the probability of my input being the "one thing." However, I know that I anxiously await my next visit to see. It is a powerful question. But maybe it is a dangerous question because if they don't do what I would like them to, is my loyalty to them a casualty? Is the risk in asking worth it? What do you think?
Gary Lemke, Publisher
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02/27/08
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2/26/08 - If You Were President
I've been having a bit of fun with the movie "City Slickers" and the scene about learning what one thing will give meaning to your customer experiences. First, I want to thank all of you that have taken the time to respond with ideas on how we can improve CRMAdvocate. (There is still time to provide your input.)
Just as I asked you for "one thing" we could do to improve this newsletter, my input was solicited in such a manner. I thought I would share the story.
I was captive on a ski lift with a marketing guy asking me questions about how I felt about the ski resort. Many of the standard questions - line lengths, friendliness of staff, cleanliness of bathrooms, etc. - filled the survey. But consider this last question: "If you owned this ski resort, what is the one thing you would change." What a feeling of empowerment!
Gary Lemke, Publisher
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02/26/08
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2/25/08 - Our One Thing - Part II
I'm going to continue my quest for the one thing that matters with regard to the experience we create for you.
Last week, I asked you to share what you believe to be our "one thing." In the spirit of that request, consider these three follow-up questions:
What do you like best about CRMAdvocate? What do you like least? And, what would you like to see us do that we are not doing now?
Gary Lemke, Publisher
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02/25/08
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2/22/08 - Our One Thing
It is only fair that if I challenge you to figure out the one thing that makes your company's customer experience unique, I should likewise challenge myself. Shouldn't I figure out what "one thing" makes this email newsletter a better experience than the other emails that bombard your electronic in-tray?
I know it is up to me to figure out that secret. However, that doesn't mean I couldn't use a little help. In fact, it would be crazy to suggest that I didn't get input from you.
Today, this column is my focus group. And you are a part of it. Tell me what you think CRMAdvocate's "one thing" is or what you think it should be. Don't pull any punches. Curly wouldn't have.
Gary Lemke, Publisher
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02/22/08
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2/21/08 - A List of One
Yesterday, I suggested it was up to you to figure out the one thing that constitutes the secret of your customer experience.
And it is one thing. Yes, just one. Not two or three, or a list of contributing factors. Just one thing. Figuring out what one thing makes the difference is a great exercise in focus. It is a matter of separating the wheat from the chaff. Everything that really matters is embodied in "one thing."
The list of secrets to your customer experience is a list of one. It is just that simple.
Gary Lemke, Publisher
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02/21/08
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2/20/08 - Figuring Out "One Thing"
I had a bit of fun yesterday sharing a "City Slicker" movie scene about the importance of that one thing.
Beyond suggesting there is one thing, the character says it is up to us to figure out that one thing. In the complicated world we live in, or perhaps more appropriately the one we create, we often feel many things contribute to the situation. Indeed, there are likely many contributors. But there is only "one thing." Have you figured out that "one thing" for your business?
Consider the customer experience you provide. What is the "one thing" that should make that experience better or unique? Can you reduce your list to one thing?
Gary Lemke, Publisher
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02/20/08
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2/19/08 - That One Thing
Jack Palance played tough cowboy named Curly Washburn in the 1991 movie "City Slickers. If you saw the movie and remember the character, you probably remember the scene where he gives Mitch (the city slicker) advice. It goes like this:
Curly: Do you know what the secret of life is?
Curly: This. [holds up one finger]
Mitch: Your finger?
Curly: One thing. Just one thing. You stick to that and the rest don't mean anything.
Mitch: But what is the "one thing?"
Curly: [smiles] That's what you have to find out.
What does that have to do with the buy versus build discussion? Simply this. Figure out that one thing that makes your company unique and make sure you uniquely take advantage of it. That may mean using off-the-shelf software in a way no one else does or building technology that supports your "one thing." Or your "one thing" could be totally different.
Gary Lemke, Publisher
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02/19/08
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2/18/08 - Are Vendors Really Smarter?
Last week, I shared one reader's assertion that vendors are smarter. These comments are part of the bigger discussion we've been having about the pros and cons of build versus buy.
I admit to agreeing that vendors are smarter for many of the reasons given. However, that doesn't mean I believe they are smarter at everything. They may know software technologies better. They may be smarter at building code and supporting it. They may have the collective knowledge of hundreds or thousands of users.
But there is one area where you are probably smarter. That is in-depth knowledge of your business and your customers. You see, the vendor has to build a product applicable to one or more market segments - groups of companies rather than the specific needs of a single company. What is your vendor or potential vendor doing to learn about your specific business needs? And what are they willing to do for you?
Gary Lemke, Publisher
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02/18/08
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2/15/08 - Vendors Are Smarter
One well reasoned reader response regarding the "build versus buy" discussion didn't pull any punches. You need to read this one because it will almost certainly spark a reaction. But that reaction could be polar in agreement or disagreement.
"It almost never makes economic sense to build your own. The vendor spreads R&D costs over hundreds or even thousands of customers. The vendor has an entire staff to support you. If one person leaves, there are still others there to pass on the institutional knowledge. The vendor is smarter than you in designing the system. The vendor has feedback from hundreds of users over years or decades. As your needs increase (and they will) the off the shelf system probably already has features to support you. Your in-house system will not."
It is hard to argue with those points. Taken at face value, why would you ever build? Check back next week and I'll tell.
Gary Lemke, Publisher
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02/15/08
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2/14/08 - It's All About Support Stupid
As I read through the array of reader responses to the "buy versus build" question, one theme seems to be bubbling to the top more than others. And that issue is technical support. It seems many people are extremely frustrated with the poor technical support they receive from their CRM vendors.
Consider this thought: "Based on our experience, the vendor's first response might be 'its a customization, we don't support that', followed by weeks of poor customer service and little to no response, until you get 'its a known bug that MIGHT be fixed in the next few releases'. That is, if you can understand the person from the company to which your vendor has outsourced their support!"
I see this as an extremely important issue and an area for differentiate among CRM vendors. Let's face it, the most common and necessary functions of a CRM system are available from just about every vendor. Hey vendors, do you agree?
Gary Lemke, Publisher
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02/14/08
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2/13/08 - Is Build an Option?
Not every organization even considers building their CRM solutions. The primary characteristic of this type of company is size. The smaller the organization, the smaller the IT staff. The smaller the staff, the less likely an in-house solution will be considered.
So smaller organizations can take a "pass" on the build option? Probably, but not necessarily. While in-house expertise may not exist, companies of any size can always consider using contractors to get the exact solution set they desire. I will be the first to admit, this option is not for most organizations, large or small.
But the right functional requirements matched with a third party contractor that brings specific CRM expertise to the table can be a real "build over buy" win. And that goes for double for larger organizations. Do you agree?
Gary Lemke, Publisher
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02/13/08
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2/12/08 - My Turnover is Bigger Than Your Turnover
The build versus buy question is something most organizations that have the luxury of in house expertise will eventually ask. One issue that has surfaced has been employee turnover - when the employee leaves, the expertise leaves. But technical support people leave vendors too. Consider this reader's perspective:
"Based on our experience, the vendor's support turnover far exceeds most company's (and consultant's) turnover, so many companies are much better off depending on our own personnel, processes and documentation. From our experience, the vendor's first response is 'its a customization, we don't support that', followed by weeks of poor customer service and little to no response, until you get 'its a known bug that MIGHT be fixed in the next few releases'. That is, if you can understand the person from the company to which your vendor has outsourced their support! If your business already has appropriate standards and processes in place, the loss of people experienced with your system will be unpleasant, but not painful."
Consider these questions: How does employee turnover in your company compare with employee turnover at your vendor's company? Do you get better response from your vendor or from in house technical support?
Gary Lemke, Publisher
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02/12/08
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2/11/08 - I Wish I Had Bought
Allow me to share one more real life story about the "build versus buy" question. This individual has been on both sides of the argument as both the owner of a software development company and as a company with in-house code. Here's the story:
"Right now I am stuck with an in-house custom built contact database that has no means of support, no programmers available, and little opportunity to improve. For the dollars wasted on development on this product a few years ago, I could have purchased a COTS (Consumer Off the Shelf) CRM systems, paid for the complete implementation, and had enough money left over for numerous 3rd-party add ons needed for growth and change."
When the decision was made to build in house, the expectation was something different. It was determined that there was more bang for the buck in coding than buying. The point is this - when making such a decision, it is important to make sure the expectations are set closer to worse case than best case. Mr. Murphy would probably agree.
Gary Lemke, Publisher
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02/11/08
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2/8/08 - Build But Don't Forget
Everyone has a story about building CRM solutions. And, everyone has a story about buying a CRM solution. OK, "everyone" is an exaggeration but it appears both building or buying has challenges. Sometimes organizations "grow their own" so they have control of their own destiny. Others like to buy so they can focus on their core competencies. Regardless of the strategy, both have one thing in common - you have to rely on the availability of someone. Consider, this story:
"We have been known to pay the employee, who resigned, significant dollars to continue to support the application, until we could design, implement, train, and replace an old "home grown" application. Our solution has been to standardize on specific platforms/programs throughout our organization with a mix of vendor and in-house IS support depending upon the application."
Many like to have internal support for their in-house solutions. However, what happens when the employee experts no longer show up for work? Has the expertise and support walked out the door leaving you without options? Is that worse than dealing with technical support from the vendor?
Gary Lemke, Publisher
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02/08/08
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2/7/08 - Build And Forget?
We continue with the "buy versus build" discussion today by sharing more reader comments. Consider this real life story:
"People go down the build it yourself route and find themselves in difficult straights a few years later when the programmers who built it left the company and no one knows how to fix it or maintain it. No matter if the IT department has the source code, the reality is that the people who wrote the applications know what they did in the code and why, and someone coming later may have no real clue. So the users find themselves in a situation with a largely unsupported system, little or no upgrade options, and frustrations that are different but just as real as those who bought off the shelf."
Has this happened with your home grown code? Have you found yourself "left out" from a vendor that goes out of business or is acquired? Is the risk the same regardless if you build or buy?
Gary Lemke, Publisher
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02/07/08
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2/6/08 - Can You Afford to Buy?
Conventional wisdom suggests buying off the shelf software is more economical than writing your own code. I wholeheartedly agree with the statement under one specific condition - your company needs the majority of the functionality provided by the packaged software. Typically, you pay the same price for a particular software product regardless if you use 10 or 100 of the features. Consider, this reader's thoughts:
"We had a 'buy if we can, build if we can't' attitude for several years, until we saw the real total cost of ownership (TCO). You pay for the product, add in a small fortune to install the product, include ever spiraling yearly licensing fees, support that reaches mediocre on it's best days, and forced upgrades with their associated costs, and you start to see the build side become much more attactive. When you build it yourself, you do not have a vendor to call if there is a problem, but you do have the source and people in-house, available now instead of in a few weeks, when the vendor's short support staff finally gets back to you."
The level of frustration is obvious. It is difficult to determine the buy versus build decision for this particular situation or any situation. Have you ever thought about determine the percentage of features used versus not used? If you are using less than half the feature set, are you paying more than double?
Gary Lemke, Publisher
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02/06/08
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2/1/08 - Justice is Complicated
Inspired by a Martin Luther King, Jr. quote, I've been writing a bit about CRM justice. I've been greatly moved by the many deep emails I've received from CRMAdvocate readers. You guys are real thinkers! Here is another excerpt for you to consider:
"For the past 100 years, businesses large and small worked from an equation I would depict as: Product + Processes = Value & Profit with value primarily being cost element. This is a hard way to do things (hard meaning standard, time honored, methodical approaches). The new paradigm is much softer. It would read something like this: Product + Processes * (Customer service, justice, responsibility) = Value & Product + Profits. It makes it a tad more complicated. With the choices educated and informed consumers have, companies are compelled to adopt a much more customer centric model. By bringing responsibility, justice (using the definition), and customer service to the table, we are now faced with new currency."
What currency does customer justice have in your organization?
Gary Lemke, Publisher
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02/01/08
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1/31/08 - Buy Versus Build
Earlier this month, I summarized the results of a study on the buy versus build question as it relates to CRM technology. Many of you weighed in with comments and opinions that were quite interesting.
Looking back into the CRMAdvocate archives, I found a compilation of reader feedback on this particular question. Although the comments were written more than a year ago, most still apply today.
Take a moment and read what your fellow readers have to say on both sides of the "buy versus build" question. How do these strategies apply to your decision making?
Gary Lemke, Publisher
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01/31/08
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1/30/08 - Taste Buds Get Trumped (Again)
Yesterday, I shared the results of a study that suggested people thought a $10 bottle of wine tasted better when it had a $90 price tag. Of course, they didn't know it was the same wine when they tasted it. It goes to show you how the price tag can affect our perception of value. The study reminded me of a story about ice cream (another favorite of mine).
The study was conducted to determine the best tasting ice cream. People were blindfolded and served various types of vanilla ice cream - gourmet ice cream, homemade ice cream, cheap ice cream, and everything in between. It seems the top factor was the percentage of fat in the ice cream and not the type - the more fat content, the more people liked it.
I've also read other studies about low-fat versions beating the fat full versions too. But people don't buy the product blindfolded, do they? Among other factors, price, packaging, and brand can easily beat taste buds. We humans are funny beasts, aren't we?
Gary Lemke, Publisher
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01/30/08
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1/29/08 - The Price is Right
There is nothing like a glass of wine in the evening hour to calm the senses after a busy day. Last night I had the opportunity to open a bottle of wine and enjoy some quiet moments. I'm not what one would call a wine snob, but I like to think I appreciate the "good stuff." But can I really tell the difference between a $10 bottle and a $90 bottle of wine? I'd like to think so.
However, a recent study reported in Proceedings of the National Academy of Sciences suggests that I might not be as discerning as I think. Applicants took five different sips of wine while still connected to a machine that pinpoints specific brain activity. They were told each sip was a different wine, and each wine was a different price. The study showed that alleged $90 wine tasted better than the exact same wine priced at $10.
I have this picture of people nodding approval for the $90 wine while drinking the exact same grape extract as the $10 bottle. I can't help but smile. Price and value. These are two very powerful levers in the marketing of your product. Do you cheapen the perceived value of your product by playing the price game?
Gary Lemke, Publisher
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01/29/08
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1/28/08 - CRM Justice . . . One Last Time
Last week, I shared a Martin Luther King Jr. quote that "injustice anywhere is a threat to justice everywhere" with additional thoughts about how that ties to CRM (More CRM Justice; Even More CRM Justice). Let me ask you a question - are you the MLK at your company with regard to customer justice?
One reader wrote: "Martin Luther King led a crusade to effect change, to achieve a status of human rights where we may all be treated with fairness and as equals. In the cynical world of commerce and in our role as 'protectors of the customer,' can we or will we stand up and make a difference. Our injustice is not just to our customers, but to ourselves. If we don't, who will? To seek not to blame others, but to take up the cause, to make a difference in how we run our business, how we treat our staff and how we honestly relate to and care about our customers."
I simply love CRMAdvocate readers. They care. You care. You strive to make a difference. Who will make a stand for CRM justice at your company today?
Gary Lemke, Publisher
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01/28/08
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1/25/08 - Even More CRM Justice
Yesterday, I shared a reader's response to a column I wrote about CRM justice. I want to share a bit more from this reader.
"Through scripting, process, productivity and KPI's, we have lost the common touch, the courtesy of simply recognizing those around us in a personal way. The humanity of being. The sad part is that we may gain a few seconds or minutes here and there, but we loose the natural feedback and positive interaction of the people we are trying to serve and the benefits that brings all around. It's ironic that the collapse of Enron led to a worldwide review of financial ethics in commerce and the need for greater openness, honesty and transparency. Due to the demands of those changes, even greater pressure has been placed on companies and organizations to assure that the numbers are right. But what about the people? What about the customer, what about the staff and where are the ethical or moral guidelines in our work practices?"
Something about these comments triggered a connection to a conversation I recently heard about the importance of the customer perspective. Listen to this three minute dialog about how innovators can only remain innovative if they integrate the customer perspective.
Gary Lemke, Publisher
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01/25/08
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1/24/08 - More CRM Justice
Should the idea of justice have a seat at the CRM table? I asked that question earlier this week and received quite a few responses I want to share with you. One reader wrote:
"I have tried to influence and mentor others to the importance, the value and the ethics in our dealings with customers. Many listened and most wished to believe, but too often the dynamics of commercialism and the bottom line prerogative won out. Whether that be in dealing with end user customers or in an outsource capacity with the owners of those customers, what drives our actions are not people but numbers. In satisfying the needs of the market and delivering to the financial demands of same, we have had to find ways in which everything can be summarized in a number or a form of empirical data. Value is now in a number and too often humanity is forgotten. Our human instinct is to be kind, considerate, fair and moral, but somehow that instinct and that desire are over powered by the everyday demands and expectations placed upon us."
The comments come from a seasoned veteran who has obviously participated in countless discussion about values only to have those values compromised by business decisions. It seems to be an endless cycle resulting in the same injustice each time. How do you break the cycle?
Gary Lemke, Publisher
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01/24/08
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1/23/08 - Simple - Yes, But . . .
Last week, I wrote I believe most decisions are simple. "It is just that simple," I said. But why don't many of our customer related decisions seem simple? Seeing the simple truth is often clouded by emotion and past experiences. One reader offered:
"Simplicity is a paradox; I think it is easy to change from the inside out if you are passionate enough about it - if you have to quit smoking to see your children grow up because the doctors tell you you'll die if you don't - well love of your kids will make the change simple. Conversely if change is thrust upon you with no visible value you can see, you'll resist it. So I think the bottom line is that it really is simple as long as those leading customer management and experience strategies tap into the passions people have to excel. I can change anytime if I am passionate enough about it. The trick is tapping into the passions people have for serving others while also benefiting themselves by winning, retaining and growing customers."
Passion. You either have it or you don't. It's just that simple.
Gary Lemke, Publisher
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01/23/08
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1/22/08 - CRM Justice
Many CRMAdvocate readers are finding me out. I like to draw from life's experiences and tie my observations and thoughts to the world of CRM and the customer experience. Why? Simply put, I believe there is a strong tie between providing value in the world of commerce and the values of everyday life.
Yesterday, the United States observed a national holiday - Martin Luther King Day. He once said that "Injustice anywhere is a threat to justice everywhere." The statement was made in the context of social injustices but does it apply in the world of the customer experience? Does justice have a place at the CRM table?
One dictionary defines justice as, "the quality of being just; righteousness, equitableness, or moral rightness." With a definition like that, how can 'justice' not have a chair at the table? Maybe it should have the end chair. Don't you think?
Gary Lemke, Publisher
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01/22/08
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1/18/08 - Not So Simple
Earlier this week, I wrote about how we human beings tend to make things more difficult that they really need to be. The centerpiece of my decision making in business and in my personal life is this guiding thought - "It is just that simple." I am still discovering the power of this idea and the early dividends are mind-boggling.
At the same time I fully expected to hear from loyal CRMAdvocate readers that maybe things aren't always "just that simple." And I did. I am so glad I did because it gives me the opportunity to test this simple, yet powerful idea.
Next week, I am going to share reader comments challenging the idea that "it is just that simple." So if you believe it is just NOT that simple, I want to hear from you. Tell me why you think making the customer experience is not simple. Tell me why it is not simple to create loyal customers. Tell me why business and personal decisions can't be "just that simple." In the meantime, let me simply wish you a great weekend.
Gary Lemke, Publisher
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01/18/08
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1/17/08 - Build versus Buy
It has been a while since we last talked about the build versus buy question as it relates to CRM technology. In fact, it was December 2005 that Gartner said we would see a rejuvenation of "build your own" CRM applications.
A new study from CRMIndustry suggests that 53% of respondents currently use an in-house CRM solution. The report goes on to say the top three factors that motivated choosing an in-house solution are cost (48%), flexibility (41%) and speed to implementation (41%).
I'm a big believer in build your own for specific situations but not for the reasons reported in the study. I think it is a good choice for those desiring a technology advantage not readily available to competitors, more seamlessly integrated CRM capabilities, and control over the evolution of the technology. Do you agree?
Gary Lemke, Publisher
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01/17/08
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1/16/08 - It's Just That Simple
Some of you asked for a little bit more detail regarding my comments yesterday about things being just that simple as it relates to managing the customer experience. I would be glad to share more thoughts because I believe there is such power in taking a "simple" perspective.
Do you ever find that giving advice to someone else is easier than making decisions in your own personal life? Is that because other's dilemmas are less complicated or easy in comparison? Probably not. The reason is most likely because you are not encumbered by their past experiences and emotions. You are freer to understand and embrace "the right answer" because you are not distracted by the extra stuff that really doesn't matter.
In short, it is easier to strip away the extraneous 'stuff' to get to the right answer for others. Getting to the right answer for customers is a matter of freeing ourselves from the extraneous stuff that distracts us from doing the right thing. If you are thinking, "Well, it's not that simple," let me tell you this: It is that simple!
Gary Lemke, Publisher
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01/16/08
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1/15/08 - It's Just That Simple
Time for a bit of confession: I grew up thinking most things in life were complicated. When faced with decisions, I often pondered options and fretted about the consequences of my choice. But nowadays, I try to live by the motto, "It is just that simple."
I won't bore you with more of my thoughts on my adopted mantra but I will apply the idea to the world of customer experiences. You know, it seems so many businesses get away from doing the right thing for the customer because they don't understand that it is "just that simple." What do I mean by "it?" "It" refers to doing right by the customer and doing right for the customer. Nothing less.
Customers want it to be "just that simple" so why wouldn't we make it "just that simple." Try a little experiment today. Regardless of what side of the customer experience you are on today, take an "it's just that simple" attitude. See how something that simple (pardon the pun) can make a big difference. You might just surprise yourself.
Gary Lemke, Publisher
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01/15/08
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1/14/08 - Give Someone an Ego Snap
Did you read my Friday column on ego snaps? Many of you replied that a little bit of positive attention outside the norm of the customer experience can be an incredibly powerful thing.
I don't have research on the subject but the common reaction is that it "feels good when some one pays attention to you." That good feeling can linger longer than a 10% savings or a few extra points on the rewards card. For some businesses, it may be the number one factor to increasing loyalty.
Are you in a business where a few well placed "ego snaps" would directly translate to a bigger top line as well as a much larger bottom line? How do you encourage the use of ego snaps in your business?
Gary Lemke, Publisher
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01/14/08
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1/11/08 - Ego Snaps
Ego Snaps are not a new breakfast cereal. It is my new phrase for you. I recently came across the term during an airplane flight when the flight attendant paid a bit of attention to me and I got a good feeling about the encounter. Later, I was told by the person sitting next to me that I had just been party to an "ego snap." When I said that I had never heard the term, the observer told me the phrase was spontaneously inspired by the encounter.
Hmmm. . . I was a bit skeptical that such a bland encounter inspired such a neat phrase. But a quick Google search suggested that it was not a widely used term. Even if it existed, I had never heard it before. I've had the opportunity to use the phrase over the last few weeks and I really like it. I continue to ponder my feelings about the encounter and what that means in the context of the customer experience.
The more I thought about it, the more I believe the customer experience is often biased by that feeling of an "ego snap." I believe there is real power in giving the customer an "ego snap" now and again. Here is the interesting thought that I want you to consider. How much of the time is the "ego snap" conscious versus subconscious? If the observer sitting next to me on the plane had not said that I just got an ego snap, would I have consciously realized what had happened? Probably not. Do you agree?
Gary Lemke, Publisher
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01/11/08
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1/9/08 - It's Scary Outside the Box
It's the middle of winter. Right now, it's cold outside and inside is a much more pleasant and safe place to be. So living outside the box can be down right uncomfortable. For many organizations, encouraging employees to work "outside the box" implies a negative hit to the bottom line. Consider these thoughts from one reader:
"While I totally agree with 'out of the box' thinking for agents, that takes some empowerment that many manager are not willing to give. Too many centers have very specific scripts and rigid rules that agents must follow, leaving little room to do what the caller needs or wants. Management fears that agents will give away the store, but our experience suggests that empowered agents give away less than supervisors do when calls are referred to them. This improves the customer experience through one call resolution with someone who appears to care and be able to help, reduces transfers to supervisors, and increases agent satisfaction. How bad is that??"
In my opinion, that is not bad at all. Here's a thought. Recall my story about the agent that shared her "I don't live in a box" exclamation. She was not the first person I talked to. I was passed to this empowered seasoned pro but it took me 54 minutes to get to the person that could help me. Would I be more loyal if it had been 14 minutes? I think so. Do you think so?
Gary Lemke, Publisher
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01/10/08
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1/8/08 - Living Both Inside and Outside the Box
I've started out the year with a suggested CRM resolution of not living in a box. Based on the proud words of an agent that was extremely sensitive and helpful, this resolution brings with it an attitude and a challenge to current perspectives. Consider this reader's response:
"I agree that Customer Experience is driven by the ability of our front line staff to meet the needs of callers. We try to talk about the difference between 'Doing the right thing' and 'Doing the thing right': When we 'Do the thing right', we are following procedures, following the script and along the way, meeting the average customer's needs appropriately. When we 'Do the right thing', we step outside procedure to meet the unusual need. The ratio of 'Do the thing right' to 'Do the right thing' may be 95/5, but knowing when to do each and being empowered to do each as appropriate, makes all the difference."
The reader eloquently points out there is a time and a place for living inside the box as well as outside the box. It is not a matter of one or the other. It's a matter of judgment and compassion. Do you agree?
Gary Lemke, Publisher
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01/08/08
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1/7/08 - Don't Live in a Box
"Don't live in a box." Those were the valuable words of a call center agent and the ones that I am embracing as the one CRM resolution to make a difference for customer experiences around the world.
Consider how often your customers become frustrated with your company's procedures and rules. Examine the way you have done business in the past and how the status quo can become outdated and uncompetitive. Look for ways to work outside the box to delight your customers with the unexpected.
If you "live outside the box," you are free to think in more creative ways. It requires one to listen a bit more to what the customer is really saying and really feeling. It may even get the compassionate juices flowing with a focus on the experience and not on the rules. Do you agree?
Gary Lemke, Publisher
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01/07/08
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1/4/08 - My CRM Resolution for 2008
Yesterday, I promised that I would share a single CRM resolution you could embrace for 2008. Today, I will tell you that resolution and the story behind it. First, the story.
Like many parents with teenagers, I found myself staring at a monstrous cell phone bill. I won't bore you with how my son racked up the charges but I felt wronged that it could have happened. After multiple conversations with multiple agents, I was passed to someone in "retention." Retention means they knew they had lost me and wanted a last chance to win me back.
I lamented to the agent that all previous agents told me about the company rules and procedures and there was nothing that could be done. The retention agents retorted, "I don't live in a box." And that is my suggestion for the one resolution to consider for 2008. Don't live in a box. More on that tomorrow.
Gary Lemke, Publisher
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01/04/08
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1/3/08 - Happy New Year
- This is the first 2008 edition of CRMAdvocate Today and what better way to start than to wish you peace and prosperity in the coming year. There is always something about the changing of the calendars that moves people to reflect on what they did or didn't do in the last year and what they pledge to do in the year ahead. You know the feeling as resolutions.
For me, the problem with resolutions is not what I write on my list of goals for the year. It is the length of the list. It seems my eyes are bigger than my stomach and I find myself almost immediately overwhelmed by the number of things I hope to accomplish. With that in mind I want to share with you a single resolution to consider as it relates to creating customer experiences.
That's right. I'm going to give you a single resolution that can make the difference for not only the next customer you interact with but each and every one in 2008 and beyond. Before I tell you what the single CRM resolution is, I need to tell you the story about how I came to learn about it. I'll share the story tomorrow. Happy New Year.
Gary Lemke, Publisher
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01/03/08
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12/21/07 - Happy New Year
Today is the last edition of this publication for 2007. We are going to take a break next week and I hope you are able to enjoy some time off as well. Our next edition will arrive on Wednesday, January 2nd.
However, if you are like me, you might suffer a bit of laptop withdrawal syndrome. So let me leave you with a popular set of columns from last year regarding Six Steps to Losing Your Customers. While you consider next year's resolutions, you can gain some fodder for new customer experience strategies for 2008.
Thank you for being a loyal CRMAdvocate reader. I hope in some special way, you consider yourself a CRM Advocate. Enjoy the holiday season. Happy New Year to you and yours.
Gary Lemke, Publisher
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12/21/07
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12/18/07 - Monetizing the Cost of the Assassin Web Site
Yesterday, we talked about the power of the assassin web site and its potential to pounce on a company's revenue, profit, and brand.
One reader pondered if "companies will figure out how much marketing dollars get assassinated by an assassin web site." Good question. If a company allocates a certain portion of its revenue to marketing endeavors with the intent to build a brand and generate sales, why couldn't an organization determine how much of that money is rendered useless by the assassins? What an excellent way to put a dollars and sense perspective on the cost of a negative customer experience.
My guess is that if a business had a line item in its profit/loss statement, appropriate business decisions could be made to address rather than ignore the negative impact of the disgruntled activist customers. Do you agree?
Gary Lemke, Publisher
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12/18/07
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12/17/07 - Assassin Web Sites
We covered quite a bit of ground last week regarding the supercharged influence of the lone nut - the disgruntled customer that uses the power of the Internet to air grievances. Such actions by a single individual might not have made a difference in the past. But today it can lead to loss or revenue and profit as well as brand terrorism. This week I'll share some comments mailed in by our readers.
One reader commented, "We are hearing more about 'assassin web sites.' According to a recent study done by Forrester, recommendations from customers ranked higher than traditional television, newspaper and radio advertising as far as forms of advertising most trusted by consumers. That means that companies are going to be forced to look at these "assassin websites" - even if they don't want to.. There was an article in the December 4th issue of USATODAY about a web site titled, ComcastMustDie.com that is wreaking havoc with Comcast.
Pick a brand. Any brand. Chances are you will find an assassin web site. The reader went on to summarize this situation by saying, "This is a serious topic. For the first time consumers have control." Indeed, the Internet changes everything. How will your customer experience evolve to acknowledge the negative potential of an assassin web site?
Gary Lemke, Publisher
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12/17/07
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12/14/07 - Brand Terrorism
This week we have been talking about the disgruntled customer that become so fed up they take action against the offending company. The action can impulsive (Mona "The Hammer" Shaw) or pre-meditated. If you missed out on the discussion this week, take a minute to catch up on the lone nut theory and CRM.
When customer frustration boils over, emotions can evolve to anger and retribution. Consider a Land Rover customer by the name of Adrian Melrose. He became so disgruntled with his vehicle that he started to air his grievances on the web. But he has gone beyond simply sharing his horror stories and has engaged in brand terrorism.
As I wade through his site and ponder what I would do as a vendor, I remember a few discussions we've had in this column - Trust and Loyalty and Care and Compassion.
Gary Lemke, Publisher
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12/14/07
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12/13/07 - Today's Lone Nut is Tomorrow's Zealot
This week, we've been discussing the new power of the lone nut customer who armed with new communication tools can complain about your company to literally to thousands if not millions of potential customers. Armed with an Internet that provides almost frictionless abilities to communicate grievances, these lone nuts can have a dramatic effect on your company's brand. Direct hits to the brand often translate to direct hits to the bottom line.
So you can't ignore the lone nut. Different nuts need to be handled different ways. But what should be your goal? In some instances, it may be damage control. In other instances, the activist nature of the lone nut might be an untapped opportunity.
Consider the fact that the mollified dissatisfied customer often becomes an even more loyal customer. Consider the fact that if the lone nut can broadcast a negative message effectively enough to get on your radar screen, he probably has the ability to project some powerfully positive statements too. Take a look at your current nut basket. Are there in future zealots that you should be working on?
Gary Lemke, Publisher
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12/13/07
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12/12/07 - Nuts Are Scary
Every business has at least one story about that one customer acting alone that seems to cause all sorts of havoc, public embarrassment, and/or financial loss. (CRM and the Lone Nut Theory) So I am a bit surprised I have not received more feedback on my last few columns about the lone nut theory.
I shared my surprise with a friend and she said that people don't want to talk about it because they are scared. It's no fun to talk about scary things and if we ignore it maybe it will go away. The image of the scary guy waiting to jump out of the closet immediately came into my head. I know he is there, I know if I open the door he will jump out and scare me. So I don't open the door. But he is still there.
Same is true with the lone nut. If I don't acknowledge and deal with him, he will dash through the door at the most inopportune time. Consider this question: before the next lone nut comes to your store, visits your web site, or calls your contact center, what are you going to do to keep from jumping out of your skin? (P.S. Happy Birthday, Jeff C.)
Gary Lemke, Publisher
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12/12/07
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12/11/07 - CRM and the Lone Nut - II
"Invariably, it starts with one dissatisfied customer." That statement was made in a June 2007 article written by Rob Lewis entitled, "Customer blogs: the lone nut theory debunked.
Yesterday, we talked about a single dissatisfied customer's ability to capture the attention of traditional media (CRM and the Lone Nut). This article is about the power of a single customer to capture the attention of prospective clients via the Internet through blogs, web sites, email campaigns and the like. What can a company do about it? In short, deal with it.
One cannot hide from it. One cannot capture it and put it in a bottle. It has to be dealt with. The "lone nut" that initiated the virtual bitch has an agenda. The first order of business is to understand that agenda. More on this tomorrow. But until then, I know your business has at least one lone nut. How have you dealt with that nut? Please share.
Gary Lemke, Publisher
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12/11/07
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12/10/07 - CRM and the Lone Nut
You may have heard the term "lone nut theory" before. It has been ascribed to the discussion of assassination plots like that of John F Kennedy. It has also been used when investigating various political scandals. The basis of the idea is that a single individual can actually have a dramatic effect on the course of events. The bigger the event, the less likely we are to believe that it could be the work of a single individual. So we believe it must be the work of a collective group rather than a lone nut.
Now how does the lone nut theory apply to CRM? Or, perhaps the real question is "does it apply to CRM?" You may remember an article in this column a while back about Mona "The Hammer" Shaw. She was the grandmother that vented her frustration via a hammer on the office equipment at the local Comcast store. Did she make a difference?
You could say she did because her rage and subsequent arrest garnered national media attention. I can only imagine the Comcast PR people working overtime to address the inquiries from the press. I can only imagine the number of internal meetings held at the company to figure out what business processes need to be reviewed so it doesn't happen again. The list of things that might change based on the actions (premeditated or not) of a single individual could be endless. Let's talk more about the lone nut theory tomorrow.
Gary Lemke, Publisher
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12/10/07
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12/7/07 - Thanks for Asking
It seems my thoughts for the week have created concern among some of you - if not concern, at least surprise. Indeed, my words this week have not dealt directly with the harsh realities of managing the customer experience vis-à-vis technology or strategy. Rather, it has been about quiet reflection, dealing with the whirlwind of issues, and seeking new perspectives. All inner reflection type stuff.
I enjoyed the following comment from one reader: "I hope you are well! I am not sure what is going on with you but something changed when you took your quiet time. It is like - you had an awakening! Whatever is going on, it's refreshing and if you need any support in any way, I am here for you man!" Comments like this make everything I do totally worthwhile. Thank you to everyone that has sent such encouraging words.
I really am the same person and nothing of much significance changed when I took a break from writing this column. Sorry no big trek to the mountain to visit the swami. Nor was it the result of some great epiphany. Rather it was simply me sharing a side of me I have not offered in this column before. So to directly respond to some concerned inquiries, I am doing just fine, thank you - actually, better than I deserve. I appreciate your concern. Have a great weekend.
Gary Lemke, Publisher
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12/07/07
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12/6/07 - Step Outside the Tornado
The other day, I sat at my kitchen table listening to a friend talk about an issue weighing heavy on his mind. He had spent quite a bit time to understand the problem, ponder potential solutions, weighing the pros and cons of various options. Then he leaned over towards me, looked me in the eye, and asked for advice.
I leaned back and said that I didn't necessarily have the answer. However, I did have something he didn't have. Perspective. He was in the middle of his tornado. No amount of quiet time would help discern an answer because everything is flying around him creating distractions that cannot be ignored. No matter how smart we are or how much we focus on particular problems sometimes we lack perspective because we are caught in the middle of the whirlwind.
However, his friend (me) stood a mere three feet outside his tornado and I had a perspective of an uninvolved spectator. My vision was not clouded by swirling emotions. Now, while I had my opinions about what he should do, I simply offered an "outside the tornado" perspective so he could figure out a course of action. The point of the story is that complicated issues you are now dealing with might be confusing because you are in your own tornado. When quiet time doesn't help it might be time for you to seek a trusted advisor standing right outside your tornado? What customer experience issue needs an "outside the tornado" perspective?
Gary Lemke, Publisher
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12/06/07
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12/5/07 - Quiet Strength
Yesterday, I shared some of my personal thoughts regarding the need to find quiet moments to consider matters of importance. It seems my suggestion to "be quiet" struck a cord with many of you. I couldn't help but share the following response from one reader:
"It is interesting how comments bring certain images to mind. Some years ago I and several friends periodically visited a Benedictine Monastery in southern Michigan. When I read your comment on the value of 'quiet,' I was immediately reminded of the Monastery and its grounds, both of which are characterized by silence and appreciation of the life of the mind and spirit. Due to your reminder, I will go back, and take my 13 year old son."
I too remember a retreat I took many years ago on the grounds of a Southern Indiana Monastery. I grin a bit thinking my comments might spark action in someone I don't know. I grin even more that his reaction would further spark my commitment to re-visit the peaceful solitude I now recall. Maybe you will be moved to re-visit a place that once gave you energy and insights.
Gary Lemke, Publisher
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12/05/07
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12/4/07 - Be Quiet
I very much appreciate the kind notes of support from many readers regarding my recent break from writing this column. Many of the notes used the phrase "Welcome back." I never felt I was gone but since you didn't see my column, I was gone from your perspective. As you look toward 2008, let me give you a piece of advice. Be quiet.
More specifically, take time to be quiet. This busy world of ours often robs us of quiet time. Daily demands make us rush from task to task and we are constantly distracted by the noise around us. Your soul requires quiet time to reflect and listen. That is the only way to capture a peak into the things that really matter - things that matter to you and things that matter to your customers.
For many of us, December is the busiest time of the year. So my suggestion to "be quiet" might come at the toughest time. Stop. Consider the heightened chaos of this particular moment and why it may be exactly the best time to get off the merry-go-round for a few turns. Be quiet and see what happens.
Gary Lemke, Publisher
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12/04/07
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12/3/07 - What Happened?
Without warning I took a break from writing this column. It has been about two weeks. I really enjoy the time I spend crafting these messages and I always appreciate the insightful comments from readers from all over the world.
So why did I take a break? Let me first eliminate some reasons that might be swirling in your heads. No, I did not take an exotic vacation to an Internet starved island in the south Pacific. No, I did not suffer from an overdose of Thanksgiving turkey. And, no I did stop because someone had kidnapped my favorite road bike holding it hostage until I agreed to stop writing.
I simply needed to recharge my internal batteries. I simply needed a break. So I am back rested and ready to go as we count down the days in 2007 and gear up for 2008. I've got my thoughts but tell me what is on your mind. That is what I really like to write about.
Gary Lemke, Publisher
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12/03/07
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11/16/07 - More on Trust and Loyalty
A while ago, I spent time talking about the relationship between trust and loyalty. The topic received quite a bit of response. There is one response I didn't get to at the time but I kept to shared with you at some point. The poignant comments have remained with me for quite some time and I thought I want to share them with you. Think about this:
"You can't trust the powers that be. Clinton-Lewinski. Iran-Contra. Enron. MCI-Worldcom. Iraq WMD. Integrity is no longer valued. Kids learn to cheat in school, and when it comes to standardized tests that impact their bonus, teachers encourage them to cheat. Athletes have turned cheating into a high-tech science. Self-respect is derived from available cash flow, not honesty or hard-work or self-sacrifice. Cynicism rules and people are living down to reduced expectations. If no one is trustworthy, you cannot operate as you would in an environment of trust. Loyalty in the business sphere has been reduced to a measure on a spreadsheet."
There are more comments but you certainly get the "glass is half empty" perspective. I'm more of a glass is half full kind of guy, but the realities of the comments make me take pause. A true trust-loyalty relationship is certainly an exception in today's world. That is why it is so valuable if you can create it and share it. Do you agree?
Gary Lemke, Publisher
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11/16/07
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11/15/07 - Narrowing the Referral Request
We've been talking about the right and wrong ways to ask for a referral. One reader added a suggestion regarding a non-direct and more effective approach to asking. Consider the following:
"To increase your referrals, you must ask. To increase them even more, you must ask properly. 'Who do you know who could use my services' is much better than not asking, but it is still weak. Instead, ask 'Who do you know with a sales staff of more than 20 people' or 'Who has been complaining about sales staff turnover in his company?' Narrow questions allow your customer to easily focus on the right people. It also lets you ask him for referrals in different ways at different times."
Creating the vision of your qualified prospect can greatly improve the quality of the referral you get. It also helps the customer feel their referral may be more appropriate for the colleague or friend too. Do you agree?
Gary Lemke, Publisher
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11/15/07
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11/14/07 - Personal Attention
Yesterday, we talked about the concern of being silent with a loyal customer that might, over time, forget to put that loyalty to action in the form of repeat purchasing. It's not much of an issue for annuity business where there is a monthly bill generated regardless of inaction on the customer's part.
However, it can be a serious issue for the loyal customer with a short attention span when he hears more from your competitors than from you. One reader wrote about retail clerks that develop a relationship with customers to the point of following up with personal phone calls. That brings up an interesting point. How does a retail clerk earn the right to contact a customer? How does that clerk know when the contact is welcomed and when it is viewed as uncomfortable?
These questions can be compounded by the fact that some clerks are good at personal follow-up while others may not have the proper skills. So, how does a business empower a diverse workforce to act according to their individual talents, or lack thereof? The variability of clerk/customer connections is infinite making hard-and-fast rules nearly impossible. Do you agree?
Gary Lemke, Publisher
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11/14/07
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11/13/07 - Loyalty and Short Memories
The topic of customer loyalty is always popular among CRMAdvocate readers. And for good reason. I won't beat the business case for loyalty drum today but needless to say there is a strong financial upside to customer loyalty. However, what is the value of loyalty if the customer forgets?
More specifically, consider the customer that is happy with your products, your services, and your people. He has a longstanding record of repeat purchases, positive feedback, and even provides references on occasion. However, attention spans seem to be at an all time low these days. If you take this loyal customer for granted and fail to "stay in touch," do you risk losing this customer to nothing else than being too silent?
TThere is the risk of overbearing marketing, bothersome communication, and otherwise pestering your customer base. But the opposite extreme of "being silent" or "invisible" can be just as costly. How does your organization determine the balance between over and under interacting with your customer?
Gary Lemke, Publisher
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11/13/07
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11/12/07 - What's in Your Comp Plan
Let's start the week with a question. It's a simple question and I hope to hear from you. We have been discussing the merits of customer satisfaction and customer loyalty assessment strategies and metrics. So let's talk about what you do with the numbers.
Here's the question: Do you use your customer satisfaction survey results as a basis for compensation and incentives? In other words, do one or more people in your company benefit from a higher or improving customer satisfaction score?
It's a simple "yes" or "no" question but usually there is a story. Tell me your story.
Gary Lemke, Publisher
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11/12/07
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11/9/07 - Asking for a Referral
If you have been following the discussion this week about asking for a referral, you know there are many times it is not good to ask. One specific example is when you are surveying the customer (recent columns). Beyond timing, we have learned there are inappropriate ways to ask.
Specifically, is an incentive a good thing to offer for a referral? Most of you believe it is not a good thing simply because it often has the appearance of "selling out" a friend or a colleague. From the vendor side, it can appear to be a bribe. And bribes don't breed loyalty.
However, there is a difference between a bribe and an expression of thanks for a referral. One reader wrote, "I have had a lunch delivered or sent a dinner certificate to thank a customer for taking their valuable time to talk to a prospect about us." Isn't that just good business basics?
Gary Lemke, Publisher
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11/09/07
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11/8/07 - A Genuine Reference
What is a genuine reference and how does that differ from other references? I received a number of responses to yesterday's column about creating programs or business practices to encourage references. The question of the day is this: Is it a real referral if it was obtained through incentives?
One person responded, "I read your column and I would somewhat agree with the comments you have received. If the products offered are genuinely good and you yourself are sold on those, then I ask, would you need an incentive to tell your friends about the products? I don't think so. It is human nature to talk about good things that one does. And if someone thinks that they have done a wonderful job buying a product and they are quite satisfied by the services... well, there is no need for an incentive to get him/her to spread the word. It will happen naturally. I think the focus of the organization should not be to get more names ... it should be to satisfy the existing customers to the extent that they genuinely refer their friends without any strings attached. And anyways, genuine referrals are more likely by far to try out the product than incentive based referrals."
All good points about the genuine nature of a reference. You could replace the word "genuine nature" in the last sentence with "value." But regardless of the quality of the product and service, there is always a certain amount of marketing and sales that has to occur. We can't just assume the product sells itself. Free market forces and competition don't let that happen on a sustained basis. Do they?
Gary Lemke, Publisher
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11/08/07
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11/7/07 - Selling Out or Ratting On a Friend
Yesterday's discussion about offering an incentive for a referral was met with stern comment from many of our readers. Many of you feel that offering an incentive for a referral is nothing short of befriending your friend. Consider these two comments:
"Because there's been so much marketing abuse of customers, in some cases this scenario would be interpreted as taking a bribe to rat on a friend. I'd love to see some side-by-side testing, but tracking is very arduous." Or this perspective: "As soon as you offer an incentive, you have biased your NPS data. You have either bought yourself a higher score, or sabotaged your self if the offer is not attractive (or awkward)."
Our world of less-than-genuine offers makes us suspect incentives like this. However, if I feel the product or service is outstanding, why wouldn't I want my friends to share in that value proposition (assuming they see the value too)? Which leads me to the big point. The question is "would you tell a colleague" not "would you make a referral?" See, it is about the person sharing the information with their friend, not their vendor. So no question, no incentive.
Gary Lemke, Publisher
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11/07/07
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11/6/07 - How Much Is a Referral Worth?
Last week, I shared the story about a company that used the NPS question - "How likely are you to recommend us to a colleague?" - beyond the metric for lead generation. If the respondent answered "very likely," the company would ask for a name. This created a bit of awkwardness that affected the results (read the story) because the interviewer would record a different answer as to avoid a follow-up question they didn't feel comfortable asking - "Can you give us a referral?"
One reader suggested using the follow-up question "Would you be willing to do so in exchange for a month's free checking or some other inducement?" There is great value in lead generation and the reader has an excellent suggestion to avoid the awkward moment - offer an incentive. The incentive could be to the person making the referral or it could be an offer the customer passes on to their friends and colleagues.
Someone that might feel satisfied with the service enough to make a recommendation might not feel comfortable enough giving a colleague's contact information to someone else. At least, not on the spot. A less direct method could be direct marketing totally independent of the survey thus totally disconnecting the customer experience measurement from lead generation.
Gary Lemke, Publisher
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11/06/07
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11/5/07 - Is Your Product Worth More Than a Pizza?
I found this gem stashed away in my folder and I thought I would share it with you today. Unfortunately, I did not keep the source. Apologies for the lack of attribution.
"If the place that you order pizza delivery from over the telephone knows more about you, your buying habits and your preferences than you know about your customers, you don't know enough about your customers."
The statement is not meant to say pizza establishments are not customer-centric. In fact, some pizza establishments do a great job of knowing their customers. However, if your company's product or service has more value than a large pepperoni pizza, this statement might be the one-liner at the next department meeting to jar people's thinking a little bit. If this helps one company among the tens of thousands we touch, it will be worth it in my eyes.
Gary Lemke, Publisher
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11/05/07
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11/2/07 - Keep the Customer First
On Halloween, I shared with you a quote about the importance of designing a product first for the customer and secondly for monetization (see quote). As expected, your responses were a collective, resounding affirmation for the customer over monetization/
One reader wrote, "Designing your product for people first, if done right, should always take precedence over monetization. Assuming you have done your product development, you should have identified your target market, one that will happily pay for the product you are offering. Hence design your product for the target market, not just to make a profit." Another wrote, "Pricing it to be profitable comes second. Many offer early products at a loss just to get the market excited about the product and then jack the price up when everyone thinks they have to have it."
Lastly, we have this input: "We define a customer opportunity as adding new value to customers in ways that add new value back to the company." This last thought seems to answer the chicken and the egg question quite well. It's both! Make it a great weekend.
Gary Lemke, Publisher
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11/02/07
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11/1/07 - CRM's Chicken and the Egg - II
Yesterday, I shared a quote to ponder - "Designing your product for monetization first, and people second will probably leave you with neither," (Tara Hunt). I further asked if the design center should be monetization or people, or something completely different. Because we have a customer focused readership, I knew the overwhelming response would be for the customer. And, the response volume tells me you are passionate about that. Here is one response I want to share with you today:
"It's all about value creation. This cannot be done unilaterally or in a vacuum. Many companies still try and create value using industrial age strategies with its primary focus on financials to derive measures of success. Some don't yet realize that capital has been replaced by information and knowledgeworkers as the most important factors of production. Value creation should always be co-developed with the collaboration of the customer to reaffirm the strategy. This relationship minimizes risk and offers a forward view to profitability through differentiation."
The email finished with a quote that gets to the heart why the business of customer experience doesn't simply boil down to a few metrics - A strategy with a multi-perspective view echoes the eloquent words of Albert Einstein, "Not all things that can be counted count and not all things that count can be counted."
Gary Lemke, Publisher
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11/01/07
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10/31/07 - CRM's Chicken and the Egg
I ran across a quote a while back that I tucked away in my notes. This morning I happened to find it and I thought I should share it with you: "Designing your product for monetization first, and people second will probably leave you with neither." - Tara Hunt
I share it with you today because it leaves me a bit perplexed. I am having a difficult time resolving what I can really take away from the pearl of wisdom and how it applies in the real world. My first impression is that all products should be customer focused. However, a customer focused product that is unprofitable will not be long for the world - especially in a free market world. The other side of the coin, a profitable product without regard for the customer experience, seems equally doomed.
To me, this is CRM's "chicken and the egg" debate. Perhaps the right answer to the question is neither of the ones presented. But if we were set free from just these two options, what would we choose? Tell me what you think.
Gary Lemke, Publisher
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10/31/07
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10/30/07 - Unexpected Consequences
I received a story from VocalLabs about the use of the Net Promoter Score (NPS) that I just had to share. Especially since we just talked about NPS last week. Here's a summary:
BigBank (not the company's real name) did an ongoing customer service survey which took the form of a follow-up interview with customers a day or two after they call BigBank's toll-free phone number. One of the questions on the survey was "Would you recommend BigBank to your friends or colleagues," the famous NPS question. A couple years ago, someone in Sales got a brilliant idea: if a customer answered "yes" to the recommendation question, then the interviewer would ask for the name and phone number of someone the customer would recommend BigBank to. BigBank, of course, would use those names as sales leads. As soon as this question was added to the survey, BigBank's "net promoter" score plummeted. After some months of investigation, BigBank discovered that the interviewers found the follow-up question unbelievably awkward. So awkward, in fact, that they absolutely did not want to ask the question. But if a customer answered "yes" to the recommendation question, the interviewers would get in trouble if they didn't put something down for a new sales lead. So when a customer said "yes" to the recommendation question, the interviewer would simply enter "no" in the form for the survey -- intentionally miscoding the answer to avoid having to ask the awkward follow-up. BigBank removed the follow-up question and the net promoter score promptly rebounded.
Isn't it interesting how something totally unrelated to loyalty can dramatically impact loyalty measurements? What other customer-centric metrics do you use that might be influenced by something totally unexpected? You might never know without really investigating.
Gary Lemke, Publisher
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10/30/07
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10/29/07 - Com-Smash-Tic
I want to thank everyone who contributed thoughts regarding the Net Promoter Score. This is a good time to remind you to take a trip down memory lane or simply catch up on past topics in the Our Take archive.
As we transition away from the NPS, I thought I would share a story I recently read about customer service gone terribly wrong. I realize that I could run these every day of the year and I promise I won't. But now and again, these stories remind us to stay on our toes each and every time. I encourage you take a moment to read this Washington Post article entitled, "Taking a Whack Against Comcast. It describes the frustrations and reactions of 75-year old Mona "The Hammer" Shaw who feels taken advantage of and decides to do something about it.
I hope you have never had a customer take a hammer at you. A few of the story details caught my attention. First and foremost, the press makes Mona out to be an outlaw hero. Although carted away in handcuffs, we hold her up because we have all shared her frustrations at some time. And we secretly applaud her passion to do something about being mistreated. Do your business practices create heroes among your customers?
Gary Lemke, Publisher
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10/29/07
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10/26/07 - In Review: Rethinking the NPS
The last four editions of this column have been dedicated to four findings from Foresee Results regarding the Net Promoter Score (NPS). If you missed one or more of these columns, please take a minute to catch up on the four findings (one, two, three, and four).
In case you are interested in more information, you can read the full white paper ("Rethinking Net Promoter: Serious Flaws Tarnish Simply Idea"). If customer satisfaction and loyalty metrics are important to you, I encourage you to download this paper.
I believe it is time to rethink the Net Promoter Score. But rather than tell you why you shouldn't use it, I want to specifically encourage you to use it right now. At least make NPS a priority for 2008. It won't solve your customer loyalty issues but it can be the catalyst to getting you closer to new ideas and solutions to improve customer satisfaction and retention. In my opinion, NPS is necessary. But it is not sufficient. It just might be the nudge your organization needs to get really serious about customer loyalty. Get started today.
Gary Lemke, Publisher
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10/26/07
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10/24/07 - Rethinking the Net Promoter Score - IV
The Net Promoter Score (NPS) is the idea that companies don't need to do in-depth customer surveys anymore. Instead, companies only need to ask one question: "would you recommend us?" ForeSee Results, an online customer satisfaction firm that uses the methodology of the American Customer Satisfaction Index (ACSI) from the University of Michigan, studied NPS to see if it could replace more comprehensive metrics. We've already reviewed the first, second and third of four findings. Today, we will continue with the fourth and last finding.
Foresee Results believes that "Using only the Net Promoter question of, 'would you recommend us to someone else' is like being left at the alter empty handed. They contend that if a customer answers "no" to that question, wouldn't you want to know why? Of course you would. It is the only way to fix what is broken. Customers want to sound off not be left empty handed."
In my opinion, this last finding didn't require any research. If you have used the NPS question and methodology in your organization, you quickly realized the same thing immediately after you derived your organization's unique NPS. You would be looking at a number asking yourself "why did we score that number" and "what do we do to improve?" And that is the beauty and value of the NPS. It is a straightforward step to get you started asking the tougher questions - it gets the ball rolling. Loyalty assessment is hard work but NPS can help organizations get started when they might not otherwise.
Gary Lemke, Publisher
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10/24/07
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10/23/07 - Rethinking the Net Promoter Score - III
The Net Promoter Score (NPS) is the idea that companies don't need to do in-depth customer surveys anymore. Instead, companies only need to ask one question: "would you recommend us?" ForeSee Results, an online customer satisfaction firm that uses the methodology of the American Customer Satisfaction Index (ACSI) from the University of Michigan, studied NPS to see if it could replace more comprehensive metrics. We've already reviewed the first and second of four findings. Today, we will continue with the third finding.
Foresee's research suggests that NPS vastly overstates detractors. In their study, they found the NPS would have categorized 27% of all respondents as "detractors" or "bad profit." When they asked more questions, they found that only 1% of all respondents are actually likely to communicate a bad experience.
The "one question" is asked in a way that seems to pinpoint the likelihood of a positive reference. It does not specifically ask about the likelihood of a negative reference. Is it accurate to call a low numerical response a detractor if we don't know the likelihood of sharing negative feelings? The customer may not be loyal. They might not do repeat business. But we really don't know how likely they are to be a negative reference. Return tomorrow for the fourth and last finding. Reader comments continue to pour in and we will be covering them later in the week.
Gary Lemke, Publisher
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10/23/07
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10/22/07 - Rethinking the Net Promoter Score - II
The Net Promoter Score (NPS) is the idea that companies don't need to do in-depth customer surveys anymore. Instead, companies only need to ask one question: "would you recommend us?" ForeSee Results, an online customer satisfaction firm that uses the methodology of the American Customer Satisfaction Index (ACSI) from the University of Michigan, studied NPS to see if it could replace more comprehensive metrics. Last week, we shared the first of four findings. Today, we will continue with the second finding.
NPS methodology summarizes responses to the one question into three categories based on their numerical response from 0 to 10: An answer of a 9 or 10 categorizes one as a Promoter. Passives answer a 7 or an 8 and Detractors answer a 6 or less. Foresee concludes the "The scale is misleading and oversimplified. For example, we found that people who answered the Net Promoter question with a "6" were 10 times more likely to buy offline than people who rated themselves a '1", yet they are all lumped together as detractors.
Without the benefit of the research details, I lack the ability to make an academic statement. But my gut tells me that two people providing the same numerical answer to one question may indeed represent widely disparate loyalties. While it is nice to think we can put customers into nice little segments, at some point we have to remember their respective individualities make coarse characterizations just that - coarse characterizations. Read tomorrow's edition for the third finding of four.
Gary Lemke, Publisher
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10/22/07
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10/19/07 - Rethinking the Net Promoter Score
If you are not familiar with the Net Promoter Score, the idea was advanced in a Harvard Business Review article and in the 2006 book by Fred Reichheld, the Ultimate Question. The book says that companies don't need to do in-depth customer surveys anymore; instead, companies only need to ask one question: "would you recommend us?" Some people love it, some hate it.
ForeSee Results, an online customer satisfaction firm that uses the methodology of the American Customer Satisfaction Index (ACSI) from the University of Michigan, does a bi-annual customer satisfaction survey of the top 100 online retailers. They decided to use this survey (20,000 plus respondents and years of consistent methodology and questions) as an opportunity to investigate Net Promoter and see if it could replace more comprehensive metrics. Over the next few days I'll share four conclusions they have made.
The first conclusion is the NPS has a margin of error so high it cannot be taken seriously. Their research indicated NPS scores had a +/- 10 point margin of error, which means if your NPS is 24, it could actually be anywhere from 14-34. In comparison, they found the margin of error for their customer satisfaction studies to be +/- 2.6%. Next week, I will share the next three conclusions. Until then, write me to tell me if you have used the NPS and how it has worked for you.
Gary Lemke, Publisher
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10/19/07
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10/18/07 - Rethinking the Net Promoter Score
Next week, I am making a presentation at a user group conference on measuring customer loyalty. I am an advocate for customer retention (I know you know that) so the customer loyalty question is front and center for me. Many also know that my analytical nature means I love measurement. Put all that together and the topic of Net Promoter Score (NPS) has to be included. (past columns on NPS)
The primary NPS concept is that a single question to the customer can help organizations quantify loyalty (Learn more about NPS). I don't believe in coincidences, so it was meant to be that I would read something from ForeSee Results concluding that it is time to rethink the value of NPS.
ForeSee Results owns and applies the American Customer Satisfaction Index (ACSI) that many of you might have seen attributed to the University of Michigan. They have used their past experiences and new research to evaluate the effectiveness of the NPS. Over the next few days, I'll share various aspects of their findings under the title of "Rethinking Net Promoter(r): Simple Flaws Tarnish Simple Idea." As the title implies, they are not very supportive of the NPS. See you tomorrow.
Gary Lemke, Publisher
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10/18/07
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10/17/07 - Are You Customer-Aligned?
OK, let's try this again. Yesterday, I shared a self assessment tool that you can use to understand the degree to which your organization is aligned with your customers. Unfortunately, a technical glitch with the survey tool created a situation such that the link I gave you didn't work. We found out within minutes of the newsletter being sent via your many responses.
Your many responses tell me a tool like this is important to you. So I want to make sure you have the right link so you can get an instant self-read on your readiness to align with your customers. We have an alternative link and you can take the survey now. I apologize for the inconvenience and confusion.
The assessment takes about 15 minutes and your input is completely confidential. You are not asked for your name, email or anything else that would identify you or your company. I encourage you to take the assessment. Please share your score and your impression on how well the assessment characterizes your perceptions of customer alignment. (Take the Survey)
Gary Lemke, Publisher
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10/17/07
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10/16/07 - Are You Customer-Aligned?
That is indeed a subjective question. However, I ran across a tool that can help you put a number to the degree of customer alignment in your organization. It was created by the people at High-Yield Methods, a boutique consultancy that helps companies business processes especially as it relates to customer alignment.
Here is why you should take the alignment assessment. First, if you are looking to improve your customer alignment, it's a good idea to know where you are starting from. Second, you will get an instant self-read on your readiness to align with your customers. Third, you'll receive a score as soon as you complete the survey so you can compare how you are doing to others. Lastly, you will get guidance regarding your likelihood of success.
The assessment takes about 15 minutes and your input is completely confidential. You are not asked for your name, email or anything else that would identify you or your company. I encourage you to take the assessment. Please share your score and your impression on how well the assessment characterizes your perceptions of customer alignment. (Take the Survey)
Gary Lemke, Publisher
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10/16/07
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10/15/07 - Bike Shops and Computer Stores
In my last column, I shared how one reader suggested the "talked down to" feeling experienced in the bike shop is awfully similar to the typical computer store experience. It turns out many of you made the same correlation. Consider this response:
"Re-read your last couple of columns (Are Bike Shops to Blame?, Who's To Blame?, How About a Little Noblesse Oblige?) replacing the words bike shop with computer store. Sound familiar? We read this countless times about the snotty know-it-all geeks who made everyone hate going to the computer store. They spoke their own language and made you feel like an idiot. But the computers still sold out because there was an actual demand."
Bike shops, like many businesses, don't have built-in demand. Customers have exercise alternatives to the bike. We have the car for transportation. For most people, riding a bike is not about carbon fiber, titanium, and racing at Lance Armstrong-like speeds. Often it is about sharing an outdoor experience with friends and family. If I feel some guy at a bike store is going to spoil that experience, I'll simply move on to another activity. The employee that projects his experience on to the customer without regard for what the customer wants the experience to be creates the grand divide - the big disconnect. Yeah, it's as simple as "walk a mile in my customer's shoes." But if it really is that simple, why do so many businesses fail to do it?
Gary Lemke, Publisher
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10/15/07
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10/12/07 - How About a Little Noblesse Oblige?
The last two days, I've talked about one hypothesis why 17 million people have given up riding their bicycle in the last decade (read Are Bike Shops to Blame? and Who's To Blame? for more background). Many of you have had similar bike shop experiences. Consider this perspective about bike shops and computer support. . .
"At one shop, my son and I were totally ignored, and we felt very unwelcome. At another shop, my daughter and I were abandoned when the guy found out the bike was not for my daughter but for me. Without the help of a friend, I wouldn't have been able to handle the awkwardness I felt throughout the process. I'd felt I'd been judged and come up short. Tech support can feel like that to the non-technical person seeking help. They know that a lot of help desk people have prejudged callers as if not idiots, inferiors. There's a vocabulary gap. The playing field is clearly not level, and respect is not a given."
Now here is the really good thought: "There's an old concept of Noblesse oblige - that if you have the advantage in a situation, it is incumbent on you to be generous toward the disadvantaged. Or, to put it another way, you shouldn't use your skills and knowledge to make the less skilled and less knowledgeable feel bad while you're helping them. Callers have a problem, and are vulnerable. Yet we have scripts and processes that cause them to be treated like idiots. Too often we dumb things down, instead of extending our hands and lifting our customers up."
Gary Lemke, Publisher
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10/12/07
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10/11/07 - Who's To Blame?
I have a bit more information regarding yesterday's column why some believe bike shops are a reason so many people have quit cycling. One online survey suggests 35% of all bike shop visitors frequently encounter poor treatment and another 25% encounter poor treatment on an occasional basis. That's more than half the qualified market - those with reason to enter a bike shop.
The local bike shop is under pressure from online retailers that offer a wider selection at a lower price. But the local bike shop can be better at some things. One is advice and experience. But if I feel dumb in asking and the response is rude, I quickly learn to not walk through the bike shop door. I'll take my chances online.
I have read countless responses from other cyclists suggesting it is about "snobby little punks" immersed in their own cycling prowess and disinterested employees on the payroll for a discount. Regardless of the employee motivations, let me give my local bike shop owner a piece of advice. I'm in your store to learn as much as I am to purchase. Teach me something and I will buy product I can enjoy. If the coffee guys can charge a premium, you can too.
Gary Lemke, Publisher
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