"Our Take" - CRM and the Lone Nut Theory

(Past Editions by: Date, Title, Topic)

 
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.
 
 
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
(Share your thoughts)
 
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
(Share your thoughts)
 
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
(Share your thoughts)
 
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
(Share your thoughts)
 
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
(Share your thoughts)
 
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
(Share your thoughts)
 
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
(Share your thoughts)
 
12/19/07 - The Cost of the Assassin Web Site
Yesterday, I asked the question regarding the percentage of a company's marketing budget that is neutralized by the work of an assassin web site or other acts of brand terrorism. These are very strong words with very visual connotations. And it is not a pretty picture.
 
But maybe the question was posed in too narrow a perspective. Because I asked for a percentage, I assumed that an assassin or brand terrorist could only do a limited amount of damage. But what if the damage was so complete or effective that no amount of marketing spend could overcome the negative impact? Some studies suggest that individual comments are more credible and trustworthy than the brand message.
 
If you follow that line of thinking, any spend on marketing without addressing, and perhaps embracing, the lone nuts is wasted resource. Do you buy that?
 
Gary Lemke, Publisher
(Share your thoughts)
 
12/20/07 - I'm Not Trying to Scare You
A few readers have commented to me that all this talk of assassin web sites, lone nuts, and brand terrorism is too scary. Trust me, I am not trying to scare you.
 
These topics may seem unpleasant and perhaps that is why many people don't like to think about it let alone discuss it. It is not a natural comfort zone especially for the majority of us customer centric folks that like to see the glass as half full.
 
Here is a suggestion. Consider all this bad stuff that we have been discussing as an opportunity. Rather than trying to work against the negative forces, how does one redirect that force, that energy, in a positive vector? Figuring out how to turn these customer lemons into lemonade can be quite refreshing. Don't you think?
 
Gary Lemke, Publisher
(Share your thoughts)