"Our Take" - Miscellaneous

(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.
 
 
1/16/06 - My Latest IVR Experience
Usually I purchase airline tickets online. I enjoy the sense of control as well as the expediency. Today, I was not able to book a multi-city itinerary due to limitations on the web site. So I picked up the phone to talk to an agent.
 
However, this time I booked my flights via the telephone without talking to an agent. Instead I had a totally voice activated experience. Was it good? I guess so. Was it great? Probably not, but it was good enough. It was efficient, fairly accurate, and very comprehensive. I'd give it a 7 out of 10.
 
But the catch is that I knew exactly what I wanted. The IVR gave me few options and I would have been frustrated quickly had I not known exactly what I wanted. The bottom line is what I've said for years - multi-channel support is great but don't force the customer to the channel you want. Let the customer choose. Care to share how your company handles multi-channel support?
 
Gary Lemke, Publisher
(Share your thoughts)
 

1/17/06 - The Last Mile in CRM Analytics
It seems so many of the CRM systems available today have voracious appetites for data but are often very stingy when in comes to providing information for decision making. The data goes in a lot easier than it comes out. Even if you can get the information out of your system, it often is done in batch long after the customer experience.
 
What if you could use CRM analytics to make real time decisions that would impact customer loyalty? Think about the ability to direct the customer experience "on the fly" in order to be more responsive to the needs and wants of the customer. That is what the last mile in CRM analytics is all about.
 
If you struggle with the last mile in CRM analytics, I invite you to listen to our on-demand webcast where you can learn how applying real-time predictive analytics to your existing customer processes can help you bridge this critical gap. It's a 37-minute broadcast that will definitely be work your time - listen now
 
Gary Lemke, Publisher
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1/19/06 - Boys Scouts and CRM
My son is considering joining the Boy Scouts and just the thought brings back so many good memories of my scouting days as a youth. One thing I remember as vividly as if it were yesterday is the scout law.
 
The scout law says a scout should be "trustworthy, loyal, helpful, friendly, courteous, kind, obedient, cheerful, thrifty, clean, brave and reverent." Well, that about sums up the goal of every customer experience. Doesn't it?
 
If you ever meet me, feel free to challenge me to recite the scout law by memory. Maybe every service agent and sales rep should be able to do the same thing. Does the scout law omit anything that should be part of the "CRM law?"
 
Gary Lemke, Publisher
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2/10/06 - CRM Isn't Easy
I can't tell you how often I have someone contact me with a CRM issue with hopes for an easy answer. So far, I have yet to find the easy answer for people looking to improve the customer experience, retain more customers or otherwise excel by addressing the needs of the customer. There is rarely the silver bullet or magic pill.
 
I have a quote on my desk. It says: great souls have wills; feeble ones have only wishes. I wish I knew who said it. (Please contact me if you know). Regardless of the source, truer words have never been spoken.
 
As it relates to CRM, success favors those with strong wills towards a defined purpose. In this ultra-competitive world, there are no easy answers. It's a matter of being better (smarter, more diligent, more caring, etc.) than the next guy. How does your will stack up against your competitors?
 
Gary Lemke, Publisher
(Share your thoughts)
 

2/13/06 - Courtesy Calls
Last week I received a call from the company that hosts our web site. It was a "courtesy call" based on an issue we had with our web site two weekends ago.
 
Over the weekend our web site was unavailable due to issues associated with migration to another set of web services. During the troubleshooting phase, we came to find out that what were doing was outside of their realm of support services but they provided service just the same.
 
The weekend service was great but the courtesy call sealed the deal. There is always another company willing to host our web sites for less. But our current vendor was willing to work outside their own support limitations and they think enough of us to make sure that we feel good about the support experience. It's a nice touch that nurtures loyalty and retention. Does your company make courtesy calls?
 
Gary Lemke, Publisher
(Share your thoughts)
 

2/14/06 - Are You Loved?
Happy Valentines Day! One reason customers remain loyal is because they love doing business with their supplier, vendor, store, supplier. Why do customers love you?
 
Do they love your product? Do they love the way your employees treat them? Do they love the way you make it easy to do business with you? Understanding the "why" can be a core competency that separates you from your competitors.
 
If you understand why customers love you, you have a leg up on refining business processes to deliver that "love" in a consistent and more perfect way. If you better understand why customers love you, you are more likely to understand the magic that keeps them coming back. Understand the love.
 
Gary Lemke, Publisher
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2/15/06 - Straight to the Heart
Yesterday's column on the love of customers invoked some interesting responses. For a bit of history as well as perspective, I'm sharing one reader's response.
 
St. Valentine could teach us all so much about relationships and trust. St. Valentine imprisoned for creating holy covenants between lovers despite the emperor banning marriages ironically carries forward to what relationships today are all about. Showing thankfulness, gratitude, and respect to customers is one of the reasons Southwest Airlines, Disney, and so many other top performing companies are where they are.
 
The essence of excellence in CRM has much more to do with what St. Valentine was all about, staying ruthlessly true to his convictions of love and human dignity, and so much less about Machiavellian politics. His aim was pure and straight to the heart.

 
Gary Lemke, Publisher
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2/27/06 - Modeling Self-Service After Conversations
What if the qualities found in human interaction could eliminate the frustration that leads to escalations out of self service? The challenge is to find a service channel that delivers the high-value service associated with live support at the cost of an automated self-service solution.
 
Tomorrow I am hosting a web conference with Forrester and Conversagent entitled "Improve Online Customer Support Performance" to share best practices on how to model self service after questions.
 
Automated conversations represent a new class of technology that enables conversational, self-service customer support. This can lead to a more satisfying experience and a lower probability that the user will search for alternative support options. I hope you consider joining us.
 
Gary Lemke, Publisher
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2/28/06 - Where Do Blogs Fit in Your CRM Strategy?
On occasion, readers will write to me asking me a question about the CRMAdvocate blog. Blog, what blog? Some consider this column ("Our Take") a blog. That's fine with me.
 
Regardless of whether you consider this column a blog, much is being written about the power of the blog to sway opinion, attitude and even social trends. But how does it sway your relationship with your customers? Should you have a customer blog?
 
Do you use a blog for CRM? If so, I'd like to hear your story. Feel free to share the good, bad, and ugly.
 
Gary Lemke, Publisher
(Share your thoughts)
 

3/1/06 - Here Come the Millennials
The first wave of millennials is upon us as they start to reach the prime age as consumers. Born between the early 1980s and 2002, the millennial generation should be of keen interest because of differences in its expectations, skills and attitudes.
 
These are the children of the hovering "helicopter parents.” This generation grew up with play dates and other organized activities and they prefer well-defined policies and responsibilities - they may not like dealing with the ambiguity.
 
What happens when a group that has always felt sought after, needed, and indispensable arrives in the workplace with higher expectations than any generation before it? That's for them to know and you to find out. What are you doing to cater to the expectations of millennials?
 
Gary Lemke, Publisher
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3/6/06 - You Cannot Hide
I was fortunate enough to visit Steamboat Springs this ski season for a few days of fun on the slope. Over the years, I've been to quite a few ski resorts and find all of them enjoyable meeting the minimum standards for a ski "experience."
 
So how does a ski resort differentiate itself? Of course, you knew I would say CRM! Steamboat is offering a new program this year called MountainWatch. Steamboat MountainWatches allow you to locate any member of your family or group within the coverage area, at any time, by waving your band in front of a kiosk located throughout the resort.
 
The system will recognize you and allow you to locate your family or group members, navigate ski trails, find lift and weather information, locate groomed trails, get detailed resort information including restaurant and retail information and allow you to leave messages for anyone in your family or group! Of course, this can make nervous parents feel a little better about letting the kids ski on their own. Can you see an application for this in your business?
 
Gary Lemke, Publisher
(Share your thoughts)
 

3/8/06 - Move Over, Baby Boomers
A week ago, I shared some thoughts about an emerging group of consumers making their first appearances in the market. This group, called Millennials were born between 1988 and 2002 so there isn't much known yet about their buying habits and expectations and how they want to be treated. But what about the group between the Millenials and the Baby Boomers?
 
A good friend of CRMAdvocate, Paul Greenberg recently wrote an article called "Move Over, Baby Boomers" where he explores the wants and needs of GenX-ers - those born between 1961 and 1982. In the article, he describes how this technology-savvy group wants more collaboration.
 
He goes on to talk about how this group can be more volatile and high-maintenance than any other generation in history given their desire for immediate information via multiple sources. Think you can ignore this group? Think again - in the U.S. there are 132 million GenXers.
 
Gary Lemke, Publisher
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3/9/06 - Do Customers Always Know Best
In Carmel (IN), the city is undergoing phenomenal growth adding parks, neighborhoods, industry, retail outlets, and yes, a new downtown. With this growth, we are seeing the upgrade of roads, parkways and intersections. One common "improvement" has been the addition of roundabouts instead of intersections managed by stoplights.
 
While roundabouts might be common in certain parts of the world, they are a novelty in the Midwest. Not everyone likes them. Like them or not, roundabouts will be the primary choice for intersection upgrades. Why? Simply, they are safer, more efficient, and more cost effective. Studies conclude that roundabouts are safer because if there is an accident, it tends to be at slower speeds resulting in less damage and less injury.
 
Even with that knowledge, roundabout would have never happened if it had been up to the "customers,” or what is more commonly know as the citizens. It took the foresight and fortitude of city planners to make it happen. With better traffic flow, most people now believe roundabouts are a better alternative to stoplights. This is one clear case where customers didn't know what was best for them. Consider looking beyond what customers are asking. They may not know what they really want.
 
Gary Lemke, Publisher
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3/10/06 - CRM and the World of Ski
My article this week on Steamboat Spring’s innovative use of tracking skiers stirred a few interesting responses. One was from an avid marketer who also happens to love skiing. He shared an article he wrote about CRM and skiing. I thought I would share it with you today.
 
So take a few moments to read "CRM and the World of Ski" written by Gordon Murphy. In the article he shares best practices from four of the bigger operators in the business as they market a product and an experience that is often affected by elements outside their control - mainly, the weather.
 
Learn about best practices as well as the use of analytics. Feel free to chime in on what you think the ski industry is doing right and what they could be doing to improve the "ski experience."
 
Gary Lemke, Publisher
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4/5/06 - Will Customers Really Help Each Other
Today I wanted to share an article in CIO Magazine called "Collaboration, CRM v.2 and the Truth about Chat." It was written by Allen Bonde of eVergance. In the article, Mr. Bonde discusses the advantages of collaboration and chat. A good extension of the "click-to-chat" topic that we've been discussing lately.
 
Mr. Bonde asks if chat is unappreciated. To put a finer point, does chat really work? Well, the answer is not a simple yes or no. How's that for consultant double-speak? The conditional answer is "yes" it does work when it is done well. The other side of the coin is "no" it doesn't work when the chat channel is added to the mix without proper planning and resources.
 
The article goes into detail to describe how chat has been effective and many of the starting questions for you to answer if you are considering adding chat to the mix. I encourage you to take a few minutes to read the article if you think chat is in your future or if you have not had success with your chat efforts to date.
 
Gary Lemke, Publisher
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4/6/06 - Bigger is Not Always Better
Another article of interest that I recently ran across talks about customer value. Often when I talk to companies about segmenting their most valuable customers, the measure of a client's worth is typically the amount of revenue. But that isn't always the case.
 
Techtarget published an article entitled "The biggest customers aren't always best." The article describes one company's approach to looking beyond revenue and placing more emphasis on profit contribution. That sounds simple enough but think about what you would have to do with your business processes to get at that type of information.
 
Read the article to learn about how one company started looking at how they interact with customers and how customers interacted with them. Customer demands in terms of special considerations beyond price can have a big impact on the bottom line. Understanding that impact can help you make better business decisions. Is it worth it? In this case, the company more than tripled pre-tax profits.
 
Gary Lemke, Publisher
(Share your thoughts)
 

4/10/06 - A Cheaper Alternative to Outsourcing
What do selling flowers and selling hotel rooms have in common? Typically, not very much. But that is changing. It turns out Choice Hotels and 1-800-Flowers.com have entered into an unusual arrangement under which the companies can rent call center employees to one another.
 
During peak periods or other uneven scheduling periods, the companies can reduce or eliminate their need for seasonal hires or outsourcing. The companies share workers at three facilities and, at a given time, as many as 100 agents may be taking calls for the other company.
 
How's it working? Employee retention is up because employees have more varied work. The companies report that they are also saving money versus outsourcing alternatives. With additional training, conversion rates for "rented" employees are approaching typical in-house conversion rates. Should you consider this strategy? (Wall Street Journal subscribers can read the whole story.)
 
Gary Lemke, Publisher
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5/4/06 - Fundamental Shifts
I have had the privilege to personally know an individual by the name of Bill Caskey. He's my neighbor and our social circles often overlap. I've always enjoyed his positive outlook on the world around him. He carries that positive outlook into his work - helping B2B sales organizations become more effective.
 
What I like about his approach is perspective. He is extremely good at getting people to look at the world in different ways. He has a regular email newsletter and I feel I can use the insights he shares not only in business but also in my personal life. Recently, he started a video blog and his first entry is about fundamental shifts in thinking.
 
He talks about how we view and interact in the world and how we change when we view our world as a place of abundance rather than a place of scarcity. I encourage you to spend four minutes viewing the "Fundamental Shifts" video (scroll to the April 14th entry). Note: Lest you think this is a cheap promotion of Bill’s services, let me tell you Bill has no idea I am sharing this with you.
 
Gary Lemke, Publisher
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5/29/06 - How Easy it is to Forget
This Monday is Memorial Day in the United States. It is a day set aside to honor those who lost their lives serving their country. It is a day to pay tribute to their personal courage, love of country, and dedication to duty. At least that is the purpose for the "extra day off work on the fourth Monday of May.
 
Here in Indianapolis (IN), Memorial Day provides the backdrop for the city's most famous event - the Indianapolis 500 auto race. For most, the race is a thrilling event, a chance to party and just enjoy the sights, sounds and smells associated with the “greatest spectacle in racing. It is a race full of traditions and I am proud that the organizers use the opportunity to recognize those that have served and currently serve in the armed forces. If you are enjoying a three day weekend, I suggest you take just a few moments to view the pre-race ceremonies on television honoring those who deserve our gratitude.
 
Consider for a moment their dedication to task. Compare the dedication and sacrifice of these civil servants to serve their customers better known as citizens. How does your organization's willingness to “do whatever it takes” to serve compare to a benchmark like that?
 
Gary Lemke, Publisher
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6/9/06 - Researching Workforce Management
Purdue University's Center for Customer Driven Quality has launched a research project addressing workforce management processes, resources and tools investigating how different approaches affect overall performance? I encourage you to see how your practices and processes compare to other contact centers.
 
Preliminary findings will be presented and discussed on July 11, 2006 at Call Center Campus at Purdue University with a report to the study participants by July 31st. As an added incentive, the research team will donate $5 for each completed survey to a scholarship for a Purdue student pursuing the discipline of Customer Relationship Management.
 
Please spend a few moments to participate in the research project by sharing your input. That is the first step to comparing your practices to others. Also, you might consider attending the 11th annual Call Center Campus conference.
 
Gary Lemke, Publisher
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6/13/06 - Satisfaction Not Guaranteed
I have retreated to the hills of Southern Indiana for a week of summer camp with my middle child. Interestingly, we are camping at the same camp and the same campsite I called home for many summers more than thirty years ago. So many good memories. . . .
 
Anyway, the retreat has given me the opportunity to catch up on reading and I ran across a great BusinessWeek article about how cost-cutting can backfire when it ignites consumer rage. The article talks of tales of service shortfalls at Dell, Home Depot and Northwest Airlines.
 
I encourage you to spend a few minutes to read the article. If you have a story about how cost-cutting backfired with customers, please share.
 
Gary Lemke, Publisher
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6/14/06 - Getting the Deal Done
A key part of any sales effort is getting the deal done. Often the effort immediately prior to the close of the deal involves hammering out the details of the sales contract. But what happens after the lawyers have added their two cents and the authorities have signed on the dotted line?
 
Of course, many contracts help manage or mitigate risk. In addition, contracts often spell out the scope of what is to be delivered and how. That means it is a living document that is often a roadmap to the customer relationship. Unfortunately, it is often filed away and forgotten.
 
So how do you manage your sales contracts and how does that compare to best practices? To learn more, you might want to read this Aberdeen research note on The Contract Management Benchmark Report which is available to CRMAdvocate subscribers at no cost.
 
Gary Lemke, Publisher
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6/15/06 - How Do the Pros Do It?
It would make sense that companies that provide CRM solutions would be best-in-class when it comes to dealing with their own customers. However, a recent study by the Customer Respect Group suggests otherwise.
 
The study found that CRM vendors do a below average job of communicating online with their customers. It was interesting to note that the study discovered that a small fraction of the CRM on-premise vendors provided something as simple and straightforward as a FAQ. For me, one of the most telling figures was the number of email requests that went unanswered - something that is unacceptable business practice these days.
 
However, the primary finding from the study seems to be the large difference between hosted versus on-premise CRM solution providers. It seems like the hosted guys have done a much better job providing support. What do they know that the on-premise guys don't?
 
Gary Lemke, Publisher
(Share your thoughts)
 

6/16/06 - Happy Father's Day
This Sunday is Father's Day in the United States. So what does that have to do with CRM? For me the connection is pretty simple. CRM is about relationships and Father's Day is the recognition and honoring of the paternal relationship.
 
A bit of history: The first Father's Day was celebrated in Spokane, Washington on the 19th of June, 1910. A women by the name of Sonora Dodd wanted a special day to honor her father, William Smart. Smart was widowed when his wife died while giving birth to their sixth child. Mr. Smart was left to raise the newborn and his other five children by himself. After Sonora became an adult she realized the selflessness her father had shown in raising his children as a single parent. President Calvin Coolidge, in 1924, supported the idea of a national Father's Day and President Richard Nixon signed the law which finally made it permanent in 1972.
 
Consider the courage and selfless nature of a good father and ponder how these and other fatherly traits can be the basis of how you manage your customer relationships. Of course, you might want to skip the part where your father scolded you for bad behavior.
 
Gary Lemke, Publisher
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6/22/06 - Statistics and Lies
I recently read a Baseline magazine article summarizing a study of top technology initiatives. In this survey, respondents indicated that CRM ranked 4th in terms of spend behind voice over IP, outsourcing and data networking.
 
It was interesting to note that the planned spend for CRM averaged a whopping $5.57M dollars. It is common knowledge that CRM can be a big investment (with hopefully bigger returns) but I thought the number seemed high for an average. Digging into the details a bit more, the median spend for CRM was a remarkable lower number - $135K.
 
The difference in the average and the median tells me that there are a few mega-mega-CRM projects out there but the majority of CRM investments are less than a couple hundred thousand dollars. I wonder how much of that has to do with new open source and hosted solutions. I bet quite a bit.
 
Gary Lemke, Publisher
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7/10/06 - In Search of CRM Excellence
This year CRMAdvocate is a proud sponsor of Gartner's CRM Excellence Awards. In its 7th edition, the CRM Excellence Awards recognize and reward the most successful recent CRM implementations.
 
I encourage all organizations who have demonstrated excellence in using CRM to apply for this prestigious award. It doesn't matter if your organization is a large enterprise or a small to midsize business. It doesn't matter if you are private, public, government, or non-profit. It doesn't even matter if you are a Gartner client. However, vision, strategy, process, metrics, technology, and a great customer experience do matter.
 
Show the world your success! Past winners have reaped tremendous media publicity and industry accolades from their Gartner Excellence Awards, along with some valuable prizes. The deadline for application is July 14th so apply today.
 
Gary Lemke, Publisher
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7/13/06 - What is Performance Management?
I had a conversation with a reader earlier this week that expanded on this column's discussion about measuring the customer experience. He said, "Aren't we really talking about performance management?" He further asked, "Do you think contact centers are focused on performance management?"
 
Good questions. First, it would be prudent to define performance management. Consequently, I just reviewed a white paper on the topic so I will use the definition offered: Performance Management (PM) provides a framework for aligning the goals of the contact center with those of the corporation.
 
Now let me make one comment and ask one question. In the spirit of our discussion about measuring the customer experience, I believe performance management should more explicitly correlate to the goals of the customer, not just the corporation. My question is for analysts, consultants and those interested in performance management - How do you define PM?
 
Gary Lemke, Publisher
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7/14/06 - What is Performance Management? - Part II
Yesterday, I suggested that performance management had more to do with alignment to customer goals than to corporate goals. In fact, my exact words were "performance management should more explicitly correlate to the goals of the customer, not just the corporation."
 
Immediately after the newsletter was sent, I received responses that a corporation's goals should already be aligned with the customer, thus one and the same. Many argued that if customer and corporate goals are not aligned, the corporation is doomed.
 
I anticipated that sort of feedback which is why I used the phrase "explicitly correlate to the goals of the customer." The assumption is that everything is aligned, but too many organizations talk about being customer focused yet they fail the audit when they try to reconcile customer and corporate goals. Assumptions can be so dangerous . . .
 
Gary Lemke, Publisher
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7/17/06 - See You in Chicago
If you have been a CRMAdvocate reader for any length of time, you probably have noticed that we do our best to share information about CRM and Call Center events. Today, I wanted to use this column to highlight one that we plan on attending.
 
We've made our travel plans for the Gartner CRM Summit (September 11 - 13) in Chicago and we will have a presence at the event. So I encourage you to attend the event to stop by and talk with us. Of course, the conference itself is top notch. You will be among the first to access the latest Gartner CRM research, learn best practices from real world practitioners and get insights on emerging CRM trends from the best minds in the industry.
 
We have negotiated on behalf of all CRMAdvocate readers to get the largest discount available. If you are interested in attending, call 800-778-1997 and use “CRMADV” to get the discount. I hope to see you in Chicago.
 
Gary Lemke, Publisher
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7/27/06 - Individual Needs Versus Group Needs
In a popular Star Trek movie, Spock in his dying moment says, "The needs of the many outweigh the needs of the few." In our world of personalization, one-to-one marketing, and individual customer needs, I wonder how those words apply to CRM.
 
Recently, Marriott announced that all 2,300+ U.S. and Canadian hotels will become 100% smoke-free. The new policy includes all guest rooms, restaurants, lounges, meeting rooms, public spaces, and employee work areas. Currently more than 90 percent of Marriott guest rooms are already non-smoking, and smoking is prohibited in many public spaces due to local laws.
 
Marriott said the policy will "enhance the level of service and care we can offer our guests." I'm not a smoker and I applaud smoke-free environments but it made me wonder where the tipping point is with regard to policies that neglect the needs of a minority group of customers. This is an interesting experiment that I'm sure other hotel chains will watch quite closely.
 
Gary Lemke, Publisher
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7/28/06 - Individual Needs Versus Group Needs - Part II
Yesterday, I wrote about customer policies that favor the majority at the expense of individual customer wishes specifically citing Marriott's recent decision to go 100% smoke free.
 
One reader in the hotel business wrote, "We are an independent 4 star property in Boston that has been smoke free since we opened in 1998. Many of our guest stay with us because we are smoke free. I think the vast majority of travelers prefer non-smoking rooms. Even smokers prefer non-smoking rooms. Marriott finally woke-up regarding guest service."
 
I wasn't expecting that type of response. I mean, what about addressing the needs of the smoking guest? What about personalization and customized service? However, the more I thought about it, lines need to be drawn when the overall customer base shares the same resource. In this case, air. So in some customer cases, the needs of the many do outweigh the needs of the few.
 
Gary Lemke, Publisher
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7/31/06 - CRMAdvocate: MarketingSherpa's Featured Partner
We're not the type to toot our own horn but I wanted to share with you that CRMAdvocate will be a Featured Partner in an upcoming edition of MarketingSherpa's "Best of Weekly" newsletter. We are happy to be recognized by MarketingSherpa because we respect the many positive things they do for the industry.
 
One of the good things the organization does is host the Business-to-Business Demand Generation Summit designed to help marketers discover the best demand generation tactics.
 
Just like many of the MarketingSherpa newsletters, the event will focus on real life examples with plenty of case studies. There's an east coast (Boston) and a west coast (San Francisco) version of the event. The early bird discount expires on August 31. (Event Registration)
 
Gary Lemke, Publisher
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8/1/06 - Free is Too Expensive
One would think that determining a market leader would be a simple task. It appears that crowning a market champion is anything but easy or straightforward. According to Gartner, SAP may be the market leader in CRM overall, but the latest Magic Quadrant for sales force automation (SFA) puts Siebel in front.
 
The report points out that SAP has sold more CRM software. But much of it has not been deployed. It seems SAP often bundles CRM capability into their mega-ERP deals but many SAP customers simply put that functionality on the shelf. As someone once told me, "that free CRM software is too expensive to run." We are seeing more companies use SAP on the back-end but deploy Salesforce.com or some other solution for front line CRM.
 
Two things are clear. First, if someone bundles CRM for free, it may mean they don't value it and maybe you shouldn't either. And, be careful how you interpret market leadership reports. There is a big difference between shelfware and valueware.
 
Gary Lemke, Publisher
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8/14/06 - Stuck in the Phone Tree
At the annual SpeechTEK conference in New York last week, GetHuman announced an initiative to create new standards for telephone-based customer service. GetHuman is a free web site run by volunteers with information on how to get a human when stuck in the phone tree of over 400 companies.
 
The gethuman standard hopes to make it easier for consumers to deal with any company over the phone, through common sense standard ways that their systems should work. As part of this standard, the gethuman team is defining a gethuman "earcon" (auditory icon), which is a very brief set of tones that gethuman-compliant phone systems can use to announce to callers that they are gethuman compliant, and thus should work as expected. Microsoft and Nuance have jumped in and other companies are expected to join.
 
Some of the proposed GetHuman standards include always giving callers the option to queue for a human, with estimated wait times provided, and also offering a call back option. The proposal also requires that systems never make a caller repeat any information that they had already provided during the call, and that all companies provide a simple mechanism for callers to rate a call for the quality of service provided. What do you think of this industry initiative?
 
Gary Lemke, Publisher
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8/15/06 - Know Your Customer
One of the basic assumptions we have always made is that it is imperative to be customer focused. Why wouldn't you want to organize your company so that your employees are doing everything possible to listen to customers more and serve them better?
 
However, now someone is questioning that common wisdom. The results of a study by George Day of Wharton School of Business suggest that the fortunes of market-driven companies may not always be worth the sacrifices that need to be made to get there.
 
The study showed that the assumption that a customer-focused strategy will somehow automatically translate into better company performance is just a leap of logic without basis in fact. Day says the transition to market focused is not trivial requiring big, disruptive reorganizations and long-term coordination costs. To me, the results suggest that we should be testing the assumptions in the context of our own operations rather than taking them at face value. Do you agree?
 
Gary Lemke, Publisher
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10/6/06 - Field Service In Review
The last ten editions of CRMAdvocate Today were dedicated to the subject of field service. It's been a great topic and I have really enjoyed and appreciated all the input from such a wide variety of readers.
 
There certainly is so much more to talk about with regard to field service but in the interest of other topics I will move on. At least for now. Next year, we'll come back to field service with more great stuff.
 
To wrap up this version, I want to share with you a new feature of the column. Each edition of this column will now be available on the CRMAdvocate web site. We will also organize topics so you can see the entire thread. So to start, feel free to review the last ten columns on field service.
 
Gary Lemke, Publisher
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10/9/06 - Catching Up
Last week I shared with you a new feature that allows you to look at past editions of this column. You can view each column by date and by title.
 
This week I will use this column to review collective groups of columns by topics. Today, feel free to view topics like best of breed versus suite solutions, the use of references, and the value of a "bake off".
 
And, as you might expect, we have a summary of all column topics. We will continue to scan our archives and add more topics during the week.
 
Gary Lemke, Publisher
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10/10/06 - Digging Into the Archives
This week I am using this column to review past topics. Today, I'm going to dig a bit deeper in the "Our Take" archives to share with you a few topics of great interest to our readers this summer.
 
So if you took an extended summer vacation or just feel like catching up, scan topics like Profits Through Penalties, Service Values, or Call Center Numbers Stink. You can also learn more about Service Branding, Self Service, or Unprofitable Customers.
 
And, as you might expect, we have a summary of all column topics. We will continue to scan our archives and add more topics during the week.
 
Gary Lemke, Publisher
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10/11/06 - Digging Into More Archives
This week I am using this column to review past topics. Today, we'll go back a bit further and review "Our Take" topics of great interest to our readers last spring and summer.
 
Please take a few moments to scan topics like If Sales is So Important . . ., How Customer Centric Are You?, or Get your Execs on the Phone. You can also learn more about Click-To-Call, Contact Center Maturity, or Customers Are the New R&D Team.
 
And, as you might expect, we have a summary of all column topics. We will continue to scan our archives and add more topics during the week.
 
Gary Lemke, Publisher
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10/12/06 - Digging Into More Archives Again
This week I am using this column to review past topics. Today, we'll go back a bit further and review "Our Take" topics of great interest to our readers last spring and summer.
 
Please take a few moments to scan topics like Six Steps to Losing Your Customers., Net Promoter Score, or Buy versus Build. You can also learn more about CRM For ChargeBacks, Gartner Predictions, or Getting to Know You Too Well.
 
And, as you might expect, we have a summary of all column topics. We will continue to scan our archives and add more topics during the week.
 
Gary Lemke, Publisher
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10/13/06 - Past Columns
This week I've highlighted some of the topics covered in this column during the last year. I'll wrap up the weeks with a few of the 'biggies.'
 
My goal is not to use this column to talk positively or negatively about individual vendors. However, some times focusing on a particular vendor helps make a point. So I've grouped the vendor thoughts for you. Another popular topic among many readers is customer retention strategies.
 
In the last year, the grand daddy topic has to be contact center benchmarking. Benchmarking as a topic received the most reader comments. Who knew? Lastly, we created a miscellaneous folder to keep those columns that don't fit any particular thread. Enjoy!
 
Gary Lemke, Publisher
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10/16/06 - Can You Color Outside the Lines?
"Ours is not an industry known for its ability to color outside the lines." At least according to Paul Stockford of Saddletree Research. I spoke with Paul a while ago and he shared that sentiment with regard to outsourcing strategies.
 
About six months ago, Paul wrote an article suggesting the establishment of contact centers on Native American Indian reservations and putting that population to work rather than sending more jobs to India and the Philippines. He reports that response to that particular article exceeded anything he had written in 13 years.
 
He has recently followed up the original article and shares a success story that you should now about. Read more at Return to the Rez: Indian Contact Centers Revisited.
 
Gary Lemke, Publisher
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10/23/06 - What Is Most Important to You?
When you conduct an evaluation of CRM solutions, you formally or informally create a set of considerations upon which you make your decision. It's a safe assumption that the decision criteria reflect what is most important to you. Gartner tracks what criteria are becoming more important.
 
According to their latest studies, Gartner sees "radical changes" from 2003 to 2006. At the highest levels, vendor viability and technical architecture are becoming much more important, while functionality and price are becoming much less important.
 
It can be difficult to determine if these changes reflect changes in needs or changes in the vendor landscape. The safe "consultant answer" is that it is probably a bit of both. However, I'll go out on a limb and suggest that it has more to do with changes on the vendor side. Read tomorrow's column to see why I think so. Of course, feel free to share your thoughts.
 
Gary Lemke, Publisher
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11/7/06 - Types of CRM Solutions
It's time to move on from our conversation vendor viability. Today, I want to share with you one view on the four types of CRM solutions. As a point of discussion, I will use Gartner's perspective.
 
Gartner divides CRM solutions into the following categories: 1) do it yourself (DIY); 2) simple; 3) enterprise, and; 4) best of breed. Interestingly, when pushed to talk about trends, the analysts see just about every combination. Some DIYers are moving to enterprise. Some enterprise folks are now utilizing best of breed. So on, and so on.
 
Why do we not seem to see a singular trend? I have two thoughts. First, different organizations have different needs resulting in differing strategies. Second, I believe there is a bit of the "grass is always greener" perception. No matter what people have, they think there is something better. In some cases, that thinking could be replaced with making what you have better rather than migrating. Do you agree?
 
Gary Lemke, Publisher
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11/16/06 - On Demand Webcasting
Here's a little known fact for you. CRMAdvocate was the first online entity to offer regular CRM webcasts. At the time, we were the only place where people could learn about the latest and greatest in CRM. Today, of course, there are many more options and that is a good thing.
 
However, sometimes all those webcast options dilute your ability to recognize the webcasts that can be of most benefit to you. It's like having hundreds of channels available on your TV and missing the program that you really want to watch. Hence the development of the DVR (digital video recorder, a.k.a. TiVo). With a DVR you can watch your favorite shows on your timetable.
 
CRMAdvocate brings that "on demand" feature to our webcast program. All our webcasts can be heard and viewed when you are ready. Isn't that how it should be? If it has been a while since you have seen a CRMAdvocate webcast, I encourage you to watch our most recent one entitled, "Optimizing the Customer Experience for Web Self-Service."
 
Gary Lemke, Publisher
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11/17/06 - A Webcast Worth Your Time
Yesterday, I shared with you the "on demand" feature of our webcast program allowing you to view them at your convenience rather than at our convenience. Since we have produced hundreds of CRM webcasts, we also have learned that the majority of our audience prefers the interview style akin to a talk show rather than a traditional PowerPoint presentation.
 
Today, I want to tell you more about the current webcast entitled, "Optimizing the Customer Experience for Web Self-Service." Listeners have ranked this webcast higher than any other CRMAdvocate webcast of the last two years. It features two of the most renowned experts in the field of Web Self-Service and it offers hard earned advice on how to do web self-service right.
 
If you are interested in avoiding the top ten mistakes in web self-service, learning best practices for user adoption, and understanding how organizations like eBay, Merrill Lynch, and Business Objects have made it a reality, I encourage you to invest 45 minutes listening to this webcast. After you do, tell me if you agree that this webcast is a real winner.
 
Gary Lemke, Publisher
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11/27/06 - Customer Self Service
A CIO Magazine article called Customer Self-Service: Automat Redux talks about how self-service makes small companies seem bigger and big companies more personal. Both are traits that can make a business more effective.
 
The article goes on to address trends on the increasing importance of self-service. Gartner believes that self-service interactions will account for 58 percent of all service interactions, up from 35 percent in 2005. I always caution people about such projections. Averages are averages and not indicative of any particular business. Some customer bases will support self-service interactions that are the norm (90-plus percent) while others will not be conducive to self-service reporting self-service penetrations below 10 percent.
 
If you want to learn more about how to optimize the customer experience for self-service, I encourage you to listen to our on-demand self-service webcast. If you want to learn how to integrate self-service with CRM, apply proven frameworks and checklists, and improve the overall customer experience, this webcast is for you.
 
Gary Lemke, Publisher
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11/28/06 - Catalogs Everywhere
Remember the promise of the paperless office? Indeed, prognosticators told us that office automation and computer technology would render the filing cabinet obsolete. How wrong they were. In fact, computing has actually increased the proliferation of paper. Now we have printers everywhere.
 
We heard the same story with regard to Internet shopping. The ability to buy anything and everything online would make "brick-and-mortar" stores less than fashionable. Among the most vulnerable were the paper catalogs. E-commerce, rising printing costs, and escalating postage were supposed to kill the catalog.
 
The opposite is turning out to be true. According to a Business Week article, "Catalogs, Catalogs Everywhere (registration required), the number of catalogs mailed last year grew by 5.5% to 19.2 billion. Victoria Secrets alone shipped 400 million. Are you integrating online come-ons in your direct mail strategy?
 
Gary Lemke, Publisher
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2/21/07 - Don't Sink
I recently read a story about how researchers who had made repeated dives to the wreckage of the Titanic challenged the accepted theory that an iceberg tore a 300-foot gash in the side of the ship. The ship's bow is stuck in mud, but the team used sound waves to "look" at the hull. They concluded that the damage is 'astonishingly small,' just six small gashes along the starboard hull.
 
Unfortunately, the openings were made at the worst possible place, along six watertight holds. Isn't it amazing how little things can do great damage: just one ignored customer, one late shipment, one unanswered telephone call. Like a little gash in a mighty ship, something small can open a floodgate of damage and perhaps catastrophe somewhere down the track.
 
Are there little holes in your customer management strategy? Do you know what is happening below the surface of your organization that could undermine all the great things going on above deck? It has been often said that the 'little things' can make the biggest difference. Ignoring the little things can be even worse.
 
Gary Lemke, Publisher
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2/23/07 - Spam and CRM
Of course, I'm not talking about the canned meat product. According to an Information Week article, spam now accounts for 94% of all email. Think about it. That means for every twenty emails sent to you, nineteen of them are unwanted solicitations or even something more sinister.
 
If you rely on email to correspond with your customers, this is a big, big concern. How do you know that email sent to your customer to confirm a shipment, send an invoice, or simply to share product information is actually getting through? For instance, I worry plenty that you might not receive your daily dose of CRMAdvocate Today. Heaven forbid!
 
So what can you do? I have talked to various vendors with a particular interest in helping organizations deal with spam. The answer is universal. It is not going away. In fact, the bad guys are here to stay and the onslaught will continue to increase. Rather than talk about what one can do to stop spam, I'd like to ask you what you are doing to address the spam issue as it relates to email communications with your prospects and customers. Please share what is working for you.
 
Gary Lemke, Publisher
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2/28/07 - Information Overload in the Contact Center
Managing unstructured data is a big, big challenge for most contact centers today. Managing voice recordings, documents, chat and email exchanges can be a daunting task. Chip Gliedman, vice president of Forrester Research, recently shared with us strategies for making more effective use of all this information.
 
Is your contact center overwhelmed by the amount of unstructured information at its disposal? Is this vast volume of information slowing processes? Proving impossible to analyze? Or even ignored? Chip feels that managing the wealth of unstructured information can become your most strategic asset. And fortunately, we can share his ideas with you via our webcast program, CRMAdvocate Live.
 
According to Chip, "You are sitting on a goldmine." Wouldn't it be great to share this information across the enterprise for a broader perspective of your customers? What could you do with a greater understanding of client needs, behaviors, responses and sentiments? Learn the answers by listening to this on demand webcast: Managing the (Unstructured) Information Overload in the Contact Center. It will be the best 35 minute investment you make all week.
 
Gary Lemke, Publisher
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3/9/07 - Reaching the Customer
Today just might be a good day for a break from the benchmarking discussion. It also gives me a chance to rant a bit. I just read an eWeek article entitled Reaching the Customer. If the data from the research is correct, the findings just astound me.
 
Let me explain. One of the questions dealt with the top customer goal for the next 12 months. The choices were: 1) Acquiring new customers - 45%; 2) Generating more business from our current customers - 26%; 3) Identifying and serving our highest-value customers - 14%, and; 4) Reducing the cost of service - 15%. Even when you combine the results from the second and third responses that have to do with taking care or fully exploiting your installed base, more organizations see acquiring new customers as more important.
 
Won't people ever get it? If they are not doing everything in their power to keep and grow existing customers, especially highest-value customers, they are reducing profit potential. It seems we live in a culture of "we can always find a new customer to replace the customers that defect." Will there be a day when we run out of the ‘new customer option’ and have to pay more attention to those that we already call customer?
 
Gary Lemke, Publisher
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4/18/07 - Customer or Slave?
Abraham Lincoln once said, "Whenever I hear anyone arguing for slavery, I feel a strong impulse to see it tried on him personally." Isn't it interesting how much energy businesses spend to discuss, plan, and otherwise create a customer experience and how little time employees spend living in that customer experience?
 
Our jobs and our lives are so busy creating that sometimes we don't take the time to actually experience what we create. Even those that take time often don't spend enough time looking at the company through the customers' eyes. I know that most of you reading this want to spend more time walking a mile in the shoes of those that pay for your products and services so I know it is not a matter of convincing you that it is important.
 
Rather, it is more a matter of finding the time amid all your responsibilities. So, today's column is a gentle question – “Do your customer’s feel like they are a slave to your business processes?” How do you know?
 
Gary Lemke, Publisher
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4/27/07 - Is Satisfied Good Enough?
I received a one-page flyer in the mail this week that cited research suggesting "satisfied" customers could be in jeopardy. The results of the survey said that customers who described themselves as "completely satisfied" were six times more likely than those who were merely "satisfied" to buy again from the same company.
 
We are not talking 6% more likely. We are talking 6 times, or 600%, more likely. To drive to point home even more, we are not talking about the difference between happy and unhappy customers. We are talking about the difference between happy and very happy customers. We have used this column to talk about how customers may be satisfied but not loyal. In other words, you did a good job but they decided to go to your competition next time.
 
So what does this mean? For many organizations, this data should be a wake-up call. Don't be complacent. A 4 out of 5 on your customer satisfaction survey is not going to win loyalty. It is not going to win you the repeat business you are hoping for. Are you setting the customer satisfaction bar too low in your organization?
 
Gary Lemke, Publisher
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5/3/07 - Letting Your Customers Know
We've been talking about the loyalty equity you can gain when you have an organization that takes an "all hands on deck" approach to solving problems when things don't work out as the customer expects. The effort can be heroic in proportion or it can be a simple gesture of caring. Either way, it can go a long way towards moving a customer from "satisfied" to "completely satisfied."
 
The proverbial saying goes, "If a tree falls in the forest, does it make a sound?" So if you solve a customer problem without the customer even realizing there was a problem, do you lose that loyalty equity? One reader wrote, "Customers forget the problem, when you parachute in at midnight, and get the system working at dawn."
 
So let your customers know that you took the extra step.
 
Gary Lemke, Publisher
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5/4/07 - Time is Not on Your Side
The other day I shared the perspective that "being prepared to jump all over problems and correct them in spades is among the best ways to generate fanatical loyalty" highlighting that a culture of addressing gaps in customer service can move some from being merely satisfied to completely satisfied.
 
We've highlighted the pro-active nature of addressing a gap in service and making sure the customer knows about it. But somewhat lost was the importance of a sense of urgency. When something doesn't go right with the customer experience, often time becomes a very important factor. In many cases, time savings is a big part of the value proposition so precious seconds can erode some or even all of the perceived value of your product or service.
 
We also talked about different customer segments having different expectations. Often those different expectations are based on their perceived value of their time. Have you valued customer time as a part of your customer experience?
 
Gary Lemke, Publisher
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5/25/07 - A Day to Remember
This Monday is Memorial Day in the United States. It is a day set aside to honor those who lost their lives serving their country. It is a day to pay tribute to their personal courage, love of country, and dedication to duty. At least that is the purpose for the "extra day off work on the fourth Monday of May.
 
Here in Indianapolis (IN), Memorial Day provides the backdrop for the city's most famous event - the Indianapolis 500 auto race. For most, the race is a thrilling event, a chance to party and just enjoy the sights, sounds and smells associated with the “greatest spectacle in racing. It is a race full of traditions and I am proud that the organizers use the opportunity to recognize those that have served and currently serve in the armed forces. If you are enjoying a three day weekend, take a few moments to view the pre-race ceremonies on television honoring those who deserve our gratitude.
 
Consider for a moment their dedication to task and their willingness to make the "ultimate sacrifice" to serve their customers better known as citizens. How does your organization's willingness to “do whatever it takes” to serve compare to a benchmark like that? (reprint from "Our Take" - 5/29/06)
 
Gary Lemke, Publisher
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5/30/07 - The Grand Disconnect
Every so often I read about a study describing customer satisfaction and the divide between what people think they are delivering and what customers think they are getting. The latest is an Accenture commission study of 1,200 customers of technology vendors.
 
Three quarters of the vendors think they deliver above average service and more than half think their service is best-of-class. On the other side of the fence, 78 percent of the customers feel vendor service is average or below average. If you had to place bets on which side carries more weight, I'm very confident I know which spot you would place your chips.
 
Each customer-vendor situation has unique traits but one common theme is that businesses sometimes will or force their customer management strategies on their installed base. That may be in the form of business processes, self-help, automated systems, etc. I can only dream of a day when the grand discount between vendors and customers is based on customer humility viewing their service at a lower level than the accolades doled out by their customers. Wouldn't that be something?
 
Gary Lemke, Publisher
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6/5/07 - Only 203 Shopping Days Left
OK, I admit the Christmas holiday season is still more than a half a year off, but now is prime time for planning purposes. If your business typically experiences a seasonal bulge at the end of the year, you know the decisions you make now can make or break the business.
 
Some businesses report 40% or more of their revenues during the Christmas holiday season suggesting that performance during that brief period will have a major impact on annual profitability. While you may be tempted to turn your attention towards summer fun, this is a good time to make your Christmas list of CRM things you need to do now to make the holiday season your best ever.
 
If your responsibilities are service oriented, your biggest fear of the holidays might be finding enough people to answer the phones. If you are on the sales side, you might be anxious about how to manage the increased volume of purchases. If you are on the fulfillment side, inventory and supply chain concerns might keep you from fulfilling customer expectations. What's on your CRM Christmas list?
 
Gary Lemke, Publisher
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6/18/07 - What's Working, What's Not Working
If you have read this column over the last year, you know how I feel about benchmarking. So, when I ask you to participate in a study I’m about to tell you about you may wonder if I've flipped my position. Let me be clear, I have not. So, what is the study? CRMAdvocate is planning a series of high level utilization studies regarding CRM applications. The first in the series looks at marketing automation.
 
You may refer to marketing automation with fancy names like campaign management, marketing resource management, enterprise marketing management or something else. You may know these solutions as Unica, Aprimo, E.piphany (Infor), Siebel (Oracle), SAS, DoubleClick or so other vendor. Nomenclature aside, will you take a two minutes to share in this marketing automation utilization study? For your time, we will provide (free of charge, of course), a copy of the research findings.
 
All answers are confidential and only aggregate figures will be reported. If you have any questions or comments about the study, please contact me. I'd like to hear what you think.
 
Gary Lemke, Publisher
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6/19/07 - Marketing Automation Nomenclature
Yesterday, I reached out to CRMAdvocate readers to participate in a marketing automation utilization study. To reach out to the right people, I shared various terms to describe the market segment including campaign management, Marketing Resource Management (MRM), and Enterprise Marketing Management (ERM).
 
I further went on to say one might know these solutions as Unica, Aprimo, E.piphany (Infor), Siebel (Oracle), SAS, or DoubleClick. I found it interesting that at least half of the early responses came from users that didn’t utilize the vendors I listed. We definitely want to hear from all organizations regardless of vendor, but I wanted to specifically reach out to people that have made commitments to these vendors because the analysts tell us these are the market leaders. It's only a few questions and should only take two minutes - take the survey.
 
Besides questions about market segment nomenclature, I also received questions on the value of MRM and EMM solutions as well as questions on how to justify these solutions to the board (CEO, CIO, CFO). If you have recently had to justify your MRM/EMM solution recommendation to management, tell me what worked and didn't work.
 
Gary Lemke, Publisher
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6/20/07 - Dressing Up the Message
I just read an article that the often admired and often ridiculed desktop application we know as PowerPoint turns 20 years old. Happy Birthday. It is safe to say that most of us have been audience members to some "knock your socks off" presentations. On the opposite side of the coin, many of us groin as we recall one or more horrible uses of the presentation software.
 
The milestone made me think about an anecdote I heard more than a decade ago. The story goes that two groups of college students were asked to write a paper. Half were given pen and paper and the other half were given a PC. On average, the content produced by hand far exceeded the quality produced with the help of a PC. The conclusion: people spend more of their energy on the presentation of information at the expense of the quality of the information. In essence, they are distracted by the technology.
 
How does technology distract us from delivering the best information possible to our customers? Do we spend too much time making self-service look good at the expense of working better? Do we worry about how our IVRs sound versus how efficiently they dispatch information? What do you think?
 
Gary Lemke, Publisher
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6/21/07 - As Good As It Gets
This morning, my daughter and I raced to the computer to check her latest SAT scores to see if she had indeed made improvement from last semester. I am extremely proud of her test results from last time but she has an inner drive to do better. I wonder where she got that!
 
Anyway, her test scores did not move upward as much as she had hoped. I knew she would be a bit disappointed and simply assumed that she would come to the conclusion that she had reached her plateau and the scores accurately reflected her aptitude. I was a bit surprised when she asked, "When is the next test date” because her scores are most likely good enough to meet or exceed the minimums for her colleges of interested. The next question was, "Can we hire a tutor to get me to my goal?" I love that determination.
 
Discerning whether or not this is the plateau made me think of performance measures associated with the customer experience. How does your organization react when your customer satisfaction, retention or loyalty scores stay level? Is there a general acceptance that you have reached the pinnacle or does the plateau spark a new round of discussion on what has to be broken and rebuilt in order to take CRM to the next level? Perhaps this is a battle of complacency versus a desire for excellence. Do you ever see that battle in your business?
 
Gary Lemke, Publisher
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6/22/07 - Managing Incentives
Some people say sales force automation (SFA) solutions are a dime a dozen. I imagine many SFA solution providers would disagree with that statement offering a list of differentiating features and functions. To be sure, some elements of sales force automation have reached commodity status. For instance, core contact management capabilities are well established in almost all solutions but incentive management is not as mature.
 
Today, we still see many very large organizations trying to manage incentives with spreadsheets or other tools. Incentive plans are excellent for focusing resources on particular business goals but they do come with a certain amount of overhead. The key is to pay the right people, the right amount, at the right time. Beyond meeting business objectives, good incentive management is often about retaining your most productive sales producers.
 
Is incentive management an asset or a liability at your company? Think about who is involved in managing, reviewing, and approving incentive plans. Think about how much time individual sales reps and sales managers spend determining incentive pay outs. Think about the types of systems and processes used to calculate compensation. Is there a disconnect between how people view the incentive structure and the way it is managed? If so, maybe incentive management needs to move up in your list of CRM priorities.
 
Gary Lemke, Publisher
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6/28/07 - A Single View
Help me out. I'm struggling with what the "single view" strategy should really mean. Of course I get the idea that a large corporation with multiple business units needs present a single view to the customer. For instance, a bank that offers general banking services, investments, loans, etc. can own a larger share of the customer's wallet if they provide a seamless experience creating value in the one-stop shopping experience.
 
But I don’t believe it is good medicine for every situation. We've been talking about best practices in the citizen experience for the public sector this week and one of the recommendations from the Accenture report is "to create integrated business and system infrastructures." The point is driven home with a quote from the Canadian government’s CIO. He's quoted as saying, "By defining approaches to act more as a single enterprise, the view is that we will be more efficient, more effective, and obviously spend our taxpayer dollars better, and ultimately improve services."
 
For me there are limits and that is where I struggle to understand how to apply limits. For example, my federal tax concerns seem totally independent of the process of getting a license plate for my care from the state government. Where do I draw the line between having one connection to a generalist versus multiple connections to specialists? Also, I’m concerned that sometimes a “single view” strategy is nothing more than a consolidation effort driven by hopes of saving money more than improving the customer experience. How do you define those "single view" strategies in your business?
 
Gary Lemke, Publisher
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6/29/07 - Single View versus Data Overload
Yesterday, I talked about whether or not a single view of the customers was always the best strategy. One particular response seemed to capture the essence of what many think about with regard to the single view and the strategies surrounding the goal. Consider:
 
"From a contact center perspective, the notion of a single view is driven by the need to empower the agent to have all possible data at their fingertips to service the customer and achieve first call resolution. The disconnect is that gathering and displaying ALL possible data about a customer does nothing to assist the agent during the 'moment of truth', when they are trying to meet performance measures . . . they just have to hunt and peck more folders, tabs and tables looking for what they need. An Intelligent View of the customer is what agents need - a representation of data and processes that maps to the customers intent, whether it is a billing inquiry, hardware service call, change of address or checking on the status of an order."
 
Do you think in terms of "intelligent views" when developing your customer strategies?
 
Gary Lemke, Publisher
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7/2/07 - iPhone Service
We’ve seen a lot of buzz in anticipation and launch of the new iPhone from Apple. Similar to standing in line for concert tickets, many camped outside the Apple stores waiting to buy the first batch of phones. What do these lines represent? Pop culture, brand loyalty, or something else?
 
Regardless of what it represents, the launch is a highly visible instance of customer service worth review. Early reports suggest that some people have had problems activating their phone service through AT&T. According to one report, about 2% of iPhone purchasers experienced problems.
 
My guess is the first wave of purchasers will look past the glitch and it will have little lingering impact assuming the kinks are worked out. However, the situation points out a few service items of note. First, it highlights how things outside your control (a partner's cellular network, in this case) can have an impact on your brand. It also points to the importance of first impressions. Do you have an iPhone experience you'd like to share?
 
Gary Lemke, Publisher
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7/16/07 - CRM Essentials
Today, I want to invite you to take a few moments to listen to our current webcast on Eight CRM Essentials. It is an on demand webcast so you can listen whenever is most convenient to you.
 
Why should you listen? There are a couple reasons why I think this is worth your time. First, the eight essentials are a great checklist of items to consider when acquiring a CRM solution or taking your current application to the next level. Second, much of the webcast tells the story of why Harris Interactive is using software as a service and how that is working for them. You will learn some great hard-fought truths from the front line battle to improve sales productivity.
 
The webcast is sponsored by Salesforce.com. However, you will find the webcast is informational in nature, strategic in approach and void of a vendor sales pitch. This webcast may be the best 45 minutes you spend this week. (Listen now)
 
Gary Lemke, Publisher
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7/17/07 - More CRM Essentials
Yesterday, I shared a few reasons why you should listen to our new webcast, Eight CRM Essentials. One key reason is to learn what Harris Interactive has done to improve CRM. But the webcast is much more than simply another case study.
 
I failed to mention this webcast highlights proven essentials distilled by over 30,000 global companies of all sizes. We are fortunate enough to have CRM Success Expert Wendy Close share her hard earned knowledge from working with a wide range of companies that have been through the CRM experience.
 
So if you are looking to improve your CRM strategy, I guarantee you will learn something new that you can leverage in your business. And, I also forgot to mention that viewers will be able to download a complimentary copy of “Executive Guide: 8 CRM Essentials." After you listen, let me know which CRM Essential surprised you the most.
 
Gary Lemke, Publisher
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7/18/07 - Free CRM
Feedback to our current on demand webcast has been strong. Positive response may be due to the discussion of 8 CRM essentials or the free executive paper discussing said essentials.
 
One of the eight "essentials" is fast time-to-value. In other words, seeing results and ROI in a hurry. So if you have historically struggled to find fast time-to-value, you might be interested in the free 30-day trial of CRM offer available to all listeners of the webcast.
 
I encourage you to get a cup of coffee, and take 45 minutes to learn more about 8 CRM essentials, download the executive summary, and sign up for the free 30-day trial. Enjoy!
 
Gary Lemke, Publisher
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7/19/07 - Loyalty via Low Price?
"Charge nothing and you'll get a lot of customers." This Yiddish proverb seems to be a philosophy embraced by many businesses today. Last week, we talked about the generally poor state of customer service in the airline industry which seems to be driven, in part, by very combative pricing strategies. But the airline industry does not stand alone.
 
I recently read an article from 1to1 Media entitled, "Customers Choose Bargains Over Breaches." In the article, renowned experts Peppers and Rogers discussed that even though retailer TJX exposed 45 million credit card numbers, the error did not affect their bottom. Customers did not defect. Some believe TJX (TJ Maxx, Marshall's, HomeGoods, etc.) kept customers in the fold because "who cares when that blouse is 60 percent off?"
 
How much inconvenience, pain, and risk will customers overlook for a good deal? When does price trump and not trump a good customer experience? The answer may depend on the product/service as well as the pain threshold of particular customer segments. How does your business balance the price/service level question?
 
Gary Lemke, Publisher
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7/20/07 - How Are We Doing?
Every so often it's good for us to take a step back to listen to what you think of CRMAdvocate. This time we are not going to ask you to spend your valuable time completing a lengthy survey with too many questions and too little chance of winning a prize.
 
Instead, I have one question for you: "How likely are you to recommend CRMAdvocate Today to friends or colleagues?" I encourage you to let us know what you think.
 
OK, to come completely clean, we've included two additional optional questions so we can better understand your rating. Thank you for taking a moment to tell us what you think of this email newsletter.
 
Gary Lemke, Publisher
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7/23/07 - How Are We Doing?
Note: The Friday edition of CRMAdvocate arrived garbled for some readers so I want to make sure you have a chance to respond to this survey.
 
Every so often it's good for us to take a step back to listen to what you think of CRMAdvocate. I have one question for you: "How likely are you to recommend CRMAdvocate Today to friends or colleagues?" I encourage you to let us know what you think.
 
OK, to come completely clean, we've included two additional optional questions so we can better understand your rating. Thank you for taking a moment to tell us what you think of this email newsletter.
 
Gary Lemke, Publisher
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7/24/07 - How Do You Stay Sharp?
Delivering high value customer service depends on quite a few things coming together at just the right time in just the right way. When the customer experience involves a human element one of those things is a sharp mind in order to make assessments, problem solve, take action, etc. So how do you stay sharp?
 
One small thing I do every day is The Official SAT Question of the Day (™) offered free of charge at collegeboard.com. Delivered via email, I am able to test my skills in math or language on a daily basis. I've been doing it for years and find it a great way to start the day with a little brain stretching.
 
My daily routine also gives me the ability to encourage my kids to do the same in hopes that it might become routine for them too. It's got to be better than cramming for the SAT test or, for that matter, the next customer service experience. What do you do to stay sharp? Please share.
 
Gary Lemke, Publisher
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8/13/07 - Share for the Good of the Industry
I thought I would start the week by reaching into the mailbag to answer a question I get every so often. I realize that for every email I get, many more that have the same question but have not taken the time to write. If you have been reading this column for any length of time, I encourage your thoughts, contributions and questions. One person wrote:
 
"I read your column each day and find it interesting and sometimes, provocative. I enjoy them and even took the time to comment on one last week and you quoted my statement. Just a thought -- it would be nice if you would credit the comments, you know, a little recognition for the contributor. No ego or anything, just a little recognition. Other than that, you're doing a great job."
 
Thank you for the positive feedback. So why don't I give attribution to contributors? There are a couple reasons. First, some people prefer anonymity or are guided by company policy not to be quoted without approval. Second, I want to encourage people to contribute for the "love of the game" rather than for notoriety. I realize some desire credit for their remarks and it might encourage more response to some questions but I want to keep the focus on the contribution. My hope is people are willing to share their thoughts for the good of the many rather than for a bit of public exposure. I hope you understand.
 
Gary Lemke, Publisher
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8/17/07 - For the Good of the Industry
When I addressed the question about why I don't attribute contributed thoughts in the column, I wondered how most would respond. I was pleasantly surprised that most people agree with the policy.
 
One reader wrote, "Great answer to the giving contribution question! Things are so hyped and unnecessarily entertaining these days, it’s almost as if the 'love of the game' was a mythical place in yesteryear. Way to try and keep some balance. Keep doing what you do."
 
I respect and appreciate that some would like to see their name in lights. I further acknowledge that the desire for attribution does not mean anyone is less committed to the overall good of the industry. However, it can become a slippery slope. It may start small with an insignificant move but it has the possibility of snowballing into something bigger. Better to never start down the path. At least that is what I think.
 
Gary Lemke, Publisher
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9/11/07 - Where Were You?
I admit that I find it difficult to talk about CRM on a day like today. Along with the rest of the world, I watched the events of what we now refer to as 911 unfold. Like many of you, events like this make me think about where I was and what I was doing.
 
I remember hearing a report that something, perhaps a small plane, had hit a world trade center tower. While in transit to a downtown meeting, the report was updated to include a second plane strike. At that point, suspicion told me something bigger was up. After the meeting my suspicions were confirmed. The world I had known before my meeting had forever been transformed. Mixed in the events and emotions of the day was the difficult task of saying "goodbye" to a dear high school friend who had lost her battle to cancer a few days earlier.
 
This morning, my daughter left on my desk a rubber bracelets similar to the type made famous by Lance Armstrong. This one is green and has "Make a Difference" imprinted on it. Perhaps you are like me in recalling where you were six years ago. I challenge you to also look six years into the future about how you will make a difference.
 
Gary Lemke, Publisher
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9/12/07 - A Good and Sweet Year
For me, when I think of a new year, I think January first. I think of the revelry and the resolutions. While I am aware of the Jewish holiday of Rosh Hashanah, I know little of the history, traditions, or greetings. Yesterday, I received an email with a Hebrew greeting that I would like to share with you today in advance of Rosh Hashanah.
 
Shana Tova Umetukah. I'm told that is a greeting of "A Good and Sweet Year." The greeting is further brought to life with meals that often include apples and honey to symbolize a sweet new year. For many, recognizing a new year means looking not only to the future but to the past - what you have done and what you could have done better.
 
As it relates to your CRM strategies I hope you have a good and sweet year. Take the lessons of the past to make each and every future customer experience good and sweet. Shana Tova Umetukah.
 
Gary Lemke, Publisher
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9/13/07 - Common and Ordinary
I read a coffee cup this morning with the following saying written on the side: “Coffee may be common, but it should never be ordinary." The slogan from a coffee vendor seems to be an effort to offer differentiation from other coffee choices on the market today. In the world of coffee we certainly seem to have that, don't we?
 
Price points for a cup of coffee versus CUP OF COFFEE is measured in multiples, not percentages. Many are willing to pay extremely significant premiums for that favored cup of Joe. The reasons are many and vary from coffee drinker to coffee drinker. Regardless of the reason, differentiation does exist. Part of it is product. I believe part of it is the experience too.
 
So if a commodity like coffee can differentiate by leaps and bounds, why do you think your product and service cannot command a "monster" premium? Trust me, it can. But it is up to you to figure it out. Do you have a differentiation story? Do share.
 
Gary Lemke, Publisher
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9/14/07 - What's New in CRM
The Gartner CRM conference starts next week in Hollywood, Florida. I have always enjoyed this event because it is a great chance to catch up with colleagues, meet new people, and to simply get a feel for what is going on in the world of CRM.
 
Due to other commitments, I will not be attending this time. So I want to ask you a favor. If you are going to the Gartner conference next week, take notes for me. Listen carefully to find at least one piece of advice or information that can help take your CRM strategy to the next level. Tell me what the analysts are saying. Listen to the vendors and see if they are adjusting to new ways companies want to manage customer relationships.
 
There are two hard parts to this homework assignment. First, you have to figure out what is important enough to take with you among the "other stuff.” Second, you have to write me to tell me what you learned. I promise to share your observations with our readers. Enjoy the conference and safe travels.
 
Gary Lemke, Publisher
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9/17/07 - What's New in CRM - Part II
In the last edition of this column, I asked you to share your observations and acquired knowledge if you are attending the Gartner CRM Conference in Hollywood, FL this week. I have regularly attended this conference but my schedule did not permit me to attend this fall.
 
There is another big conference this week on the other side of the country. Salesforce is currently hosting their Dreamforce conference in San Francisco and from the deluge of press releases we have already received this morning, there is quite a bit going on.
 
Therefore, if you are attending the Dreamforce conference, I want to give you the same homework assignment I gave the Gartner CRM conference attendees. Take a moment to write in with your observations of the conference - what you learned, what surprised you, something you can add to your CRM strategy. Anything and everything is fair game.
 
Gary Lemke, Publisher
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9/18/07 - Lighten Up
Sometimes I take myself too seriously. Perhaps, I even take my vocation too seriously. Hopefully, I'm not too serious all the time. Hey, I like to have as much fun as the next guy. Sometimes, maybe more but that is a different story for a different time.
 
Today, I want to share with you a fun resource from the Cartoonist Group called Customer Service Cartoons. If you are looking for a bit of humor related to CRM, I guarantee you will find something that tickles your fancy. You may even see some of your company attributes in some of the cartoons.
 
Take a moment and lighten up. Enjoy the cartoons.
 
Gary Lemke, Publisher
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9/19/07 - Faith and Hope
Consider the following two thoughts that could be top of mind for your customers right now. First, "I have hope my vendor will take care of me." Second, "I have faith my vendor will take care of me." The sentences are exactly the same except for the use of the words "faith" and "hope."
 
Although these sentences are separated by a single word, they couldn't be further apart. When someone thinks or utters the words “hope”, there is an underlying concern about what they should expect. There is a lack of confidence. Perhaps it is based on a history of experiences or it could be a first encounter. However, the word "faith" gives one a different set of feelings. For some, it might be the feeling of a heavy blanket on a cold night - the feeling that the more I wrap myself in that blanket, the warmer I will feel. Faith also seems to imply a high level of confidence.
 
Faith used in this way makes me think of a term we like to throw around in the world of CRM. That word is loyalty. How many loyalty points would there need to be on a loyalty card to trump the words “faith” coming from the lips of a customer? Think about that the next time you measure customer loyalty.
 
Gary Lemke, Publisher
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9/20/07 - From the Gartner Conference
Last week, I asked readers to send observations from the Gartner CRM Conference. Today, I'll share some input from Paul Greenberg as blogged on myCRMcareer.com. In part, he writes about the growth of Web 2.0 and CRM offering:
 
I don't think consumer technologies will dominate as much as the peer-to-peer activities. Scott Nelson, head of the Gartner CRM practice said it this way: "This is going to be one of the biggest areas CRM has seen. Investigate it now. If you as an individual have not played with mySpace, Facebook, Flickr and other sites of the same ilk, you need to understand the way consumers are interacting with these organizations." One mistake with this comment is that it's missing the fact that we aren't dealing with a business initiative here - i.e. consumers interacting with their organizations. This is a social initiative and its individuals interacting with their peers. This is a social customer who is social first and a customer second.
 
There is a bunch of stuff packed into that last paragraph for you to ponder. At a higher level, one question to start with is how you view your social customers. Does viewing your customers as social customers change your ideas about what they expect from you? Are they social first and customers second? Why or why not?
 
Gary Lemke, Publisher
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9/24/07 - What Happened at Dreamforce?
Attending a conference can be a whirlwind of activity - meetings, presentations, new people, market buzz, etc. Often the days roll into the evenings with after hour activities. Of course, work related obligations don't disappear which may mean late nights and early mornings. It can be exciting.
 
But it can be tiring too. Maybe that is the reason I haven't heard from Dreamforce attendees. Are you simply too worn out to write to me to share your impressions? Hopefully, you were able to recharge your batteries this past weekend and reflect on your experience. If so, I would love to hear from you.
 
Please take a moment to tell me what you thought of Salesforce's conference last week. I'll summarize your impressions with others and give people a glimpse into what they missed.
 
Gary Lemke, Publisher
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10/5/07 - Is Customer Retention Keeping You up at Night?
Yesterday, our discussion about cost justifying CRM turned to the topic of customer retention. I ended the column promising that I would make you an offer. Here it is.
 
If customer retention is keeping you up at night, let's talk. If customer retention is something you are ready to address, let's talk. Specifically, I will make myself available for a 30 minute phone conversation to discuss your customer retention situation. That amount of time won't solve your problems but I may be able to offer you a few suggestions to get started.
 
There are more of you than me. So this offer is limited to a handful of people. But why not you? It doesn't matter if you are part of a large or small organization. Contact me and let's set aside 30 minutes for a cup of coffee and a frank discussion.
 
Gary Lemke, Publisher
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10/8/07 - No Strings Attached
In my last column, I made an offer inviting all readers (that includes you), to spend 30 minutes with me on the phone if you would like to talk about your customer retention situation. I received some questions worth addressing today.
 
My offer to discuss your customer retention situation comes from the heart. I am passionate about customer retention and furthermore believe, for most businesses, it should be the primary growth engine. I feel most organizations talk retention but few "walk" retention like they should. My offer to discuss customer retention is not a gimmick to sell you something. I simply enjoy hearing about your customer retention challenges. In return, I think I can offer a suggestion or idea too. Perhaps something I share with you will help you get started on the road to better customer retention.
 
But there is only one of me. I still have a few spots left but once I book up my available time in October, I will have to respectfully decline. At least in the short term. If you want in, contact me to set up your 30 minute investment in a better customer retention strategy.
 
Gary Lemke, Publisher
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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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10/17/07 - 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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10/29/07 - 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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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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11/12/07 - 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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11/13/07 - 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?
 
There 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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11/14/07 - 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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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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