Keeping Your Eyes Wide Open CRM

CRM is not just implementing expensive software, although a quick Google search of CRM will bring up a whole host of expensive CRM platforms ranging from Salesforce.com to Oracle to Alterian etc. I have worked previously with an organisation who spent close to £1m on a software solution, but then realised they didn't have the marketers needed to get the best from the platform.

This is a typical example of CRM project coming out of an IT Strategy rather than a Customer Strategy. Many companies fall into this trap and implement CRM 'technologies' to aid in their quest for a 'single customer view', but Gartner suggests that over 55% of these projects fail

So what is CRM?

Ultimately it is about getting close to the customer and gaining engagement at all the possible touchpoints where a consumer comes across the brand. These touchpoints happen during the various phases of the Purchase Lifecycle from Awareness, through to Consideration, Purchase, Ownership and Repurchase.

Engagement is really about having the right conversation...and the right conversation is all about the right Content at the Right Time, delivered by the most appropriate vehicle. Now of course good software allows you hold all this content and can be used to deliver it via the right channel at a time when the consumer is the most receptive, but it needs a Customer Strategy behind it to be most effective.

Strategy is a combination of Logic and Interpretation. Computers can follow rules, but only people can interpret value, based on sound judgement and experience. The data might tell me that refining the segmentation and using the most responsive creative has somehow reduced my ROI, but gut instinct will tell me that something else has played a part in this spurious outcome, whether that be timing or something else happening in the market.

CRM isn't run by the MI department but by the Marketing Department. The MI will tell you that you shouldn't contact lapsed customers, because well...they're lapsed. Marketing judgment presents the notion that there might be a reason as to why they are lapsed..maybe that particular segment don't buy your product as regularly as others so it might be worth pursuing them in a different way.

CRM software gives the impression that Lights Out Marketing ( everything is automated and doesn't need anyone about) is the Nirvana we all seek. 

But personally, I think its better to get into CRM with  my eyes wide open and the lights full on

Loyalty

Let me start with the question ' Do Loyalty schemes bring in customers?'

Want the simple answer?. Well, the simple answer is yes, but probably not on their own. In markets where there is little to choose from in terms of product differentiation and where there are no dominant brands whose name on their own makes things taste better, loyalty schemes can sometimes influence the customer's choice. And when we remember the conventional wisdom that it is far cheaper to keep an existing customer than to secure new ones, loyalty is even more important.

Driving loyalty is seen as the main way of retaining an organisation's valuable customers. This does not mean treating them well to the detriment of the remaining customers but actually means - treating all customers better - but treating the most valuable customers even better!!

But in the loyalty crazy environment of today, the ease with which customers switch from scheme to scheme is highlighted by the number of loyalty cards available and the variety held by individuals. Research shows that the big supermarkets have a loyalty card swipe attached to over 80% of sales. So despite some of the cynicism that revolves around what really can be redeemed from a consumers point of view, we do make use of these schemes. But a 1% discount can easily be matched or beaten by a competitor. I do not use my local Tesco because of my Clubcard, but because its the closest supermarket. Loyalty doesn't register when the petrol light on my dashboard lights up. 

So how do we really keep customers loyal?

Well, what does being loyal customer  mean? Is it being a regular customer? Or is that just as a result of habit? Is it one who gives us a large part of their weekly spend? In the latter, what happens if they become aware of the competition, or more importantly if the competition become aware of them?! Surely a loyal customer is one who stays with us despite the attentions of the competition or at least tells us that they are considering moving. Now we are talking of a scenario where we have relationship with that customer.

So what is a relationship?

One thing that it is not, is a one way bombardment of direct mail, telephone calls, emails, special offers on unrelated products or services. How we define the relationship and subsequently manage it can be based on how we establish and nurture relationships in our own personal lives. Relationships have a set of ground rules:

- There would seem to be the need for some empathy between the parties. An appreciation and understanding of each others needs.

- An understanding that what you show each other is what is inside, there are no secret agendas or requirements. To aid this, a certain amount of transparency is required. You want to speak to them, they need to be able to speak to you

- An acceptance of how the relationship may evolve. People change their minds, or their needs change. Real choices are made in relationships every day

- Relationships are made all the better if there are pleasant surprises or unexpected rewards every now and again.

 - Some old fashioned good manners are required.

Remember always that in relationship marketing it should be what you can do FOR the customer as opposed to the shorter term view of what you can do TO the customer!

Many organisations rely on the fact that they have a Relationship Marketing Manager or similarly described individual to ensure that all this happens. This does seem like a strange title as most people in an organisation have more contact with the customer than this individual! What we have recognised is that from the customer's perspective every contact they have with the organisation forms part of the relationship they have with it. This implies that customers and staff need to be involved in defining what the relationship means to them. Relationship marketing is not an add on, therefore, but is core to the communication strategy of an organisation.

This relationship does not have to rely on giveaways. The next credit card will give away more freebies......but will it match your interest rate offer? The loyalty bit of a relationship has a number of key factors influencing it. They are a distillation of the good old marketing mix ( Product, Price, People, Processes, Place, Promotion and Service) given to us at 'Marketing School'.

We define them simply as the quality of the

- service provided
- product offered
- dialogue shared

This is simply a recognition that quality, customer service and marketing activities need to be brought together. Relationship marketing and customer loyalty cannot be treated as separate entities. They form part of of the same ladder which gets individuals from Prospect to Advocate.

Sending me vouchers though email is good. Recognising me when I make my dinner reservation is better. Remembering my favourite drink when I sit down is brilliant!

So remember, although Bruce Forsyth was right in saying that ''Points make Prizes'' - it's more important to remember the philosophy of Bananarama, ''It ain't what you do, it's the way that you do it. It ain't what you say, it's the way that you say it''

CRM to Social CRM Infographic

Courtesy of Salesforce.com

Next Best Actions For Dummies

Courtesy of Pegasystems

The CRM Anthem, Courtesy of Rick Astley

Has it really been 25 years?

Ooh ooh

We're no strangers to love
You know the rules and so do I
A full commitment's what I'm thinking of
You wouldn't get this from any other guy
I just wanna tell you how I'm feeling
Gotta make you understand

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you

We've known each other for so long
Your heart's been aching but
You're too shy to say it
Inside we both know what's been going on
We know the game and we're gonna play it
And if you ask me how I'm feeling
Don't tell me you're too blind to see

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you

(Ooh, give you up)
(Ooh, give you up)
(Ooh)
Never gonna give, never gonna give
(Give you up)
(Ooh)
Never gonna give, never gonna give
(Give you up)

We've know each other for so long
Your heart's been aching but
You're too shy to say it
Inside we both know what's been going on
We know the game and we're gonna play it

I just wanna tell you how I'm feeling
Gotta make you understand

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you


(From: http://www.elyrics.net/read/r/rick-astley-lyrics/never-gonna-give-you-up-lyrics.html)

Customer Experience - The New Conversation

Every customer experience or touchpoint is an Ask, Listen and Learn Opportunity

The Wikipedia entry defines customer experience as
'the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy. It can also be used to mean an individual experience over one transaction; the distinction is usually clear in context.'


And to be honest I'm not going to argue with that. That seems to cover all the aspects of actually communicating with the company, the buying experience, using the product, service across all channels both off and on line.


Where I slightly disagree with the article is that it seems to suggest that Customer Experience (CX), seems to be at odds with Customer Relationship Management (CRM) which is defined as


'a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.Measuring and valuing customer relationships is critical to implementing this strategy'


Phew! Quite a mouthful


This contrasts with the definition I have been using recently with my clients. that CRM is


'CRM is a business philosophy to strengthen the connection between the brand and the consumer. The relationship has to be mutually beneficial and consumers shape how they want to engage.


This to me is closer to the truth. In particular the area around being 'mutually beneficial'. And combining this with the definition of CX we start to get back to basics. This is all about Marketing.


In the Good? Bad ? old days we used to look at Marketing as being all about the 4 P's ( I know sometimes it's 6 or 7)

The 4 P's of Marketing

These consist of the following:

• Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. and we want to sell it

• Price – The price is the amount a customer pays for the product and we are willing to sell at.

• Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. 

• Place - refers to providing the product at a place which is convenient for consumers to access. 

The 4 P's are still with us, it's just that they are a little more complicated in today's interactive, socially charged, real time world.

• Product - Is now more often than not more than the tangible product itself but the whole customer experience around it

• Price – The price is less of a constant than it used to be. With consumers today being able to in most cases get it cheaper elsewhere what differentiates a brand is the customer experience

• Promotion -It's not longer just brand to consumer messaging but also consumer to consumer and even manufacturer to consumer

• Place - Well that can now mean anytime anyplace anytime anyhow

CRM and Customer Experience run hand in hand with each other to deliver the 4 P's today

Ask Listen Learn 

Whats important to us as Marketers hoping to influence the 4 P's ( we do want to do that don't we?), is that actually every customer touch-point and experience is an opportunity to Ask, Listen and Learn, with a view to improving the customer experience


Of course I don't mean actually ask, but everything we present to a customer - email, price, shelf layout - is actually a question ' do you like what you see?'


Which obviously means that every reaction from the customer should be listened too and observed, with a view to learning what works and what doesn't.


It really isn't more complicated than understanding that interaction, engagement..or conversation

Customer Experience -The New Conversation

Every customer experience or touchpoint is an Ask, Listen and Learn Opportunity

The Wikipedia entry defines customer experience as
'the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy. It can also be used to mean an individual experience over one transaction; the distinction is usually clear in context.'


And to be honest I'm not going to argue with that. That seems to cover all the aspects of actually communicating with the company, the buying experience, using the product, service across all channels both off and on line.


Where I slightly disagree with the article is that it seems to suggest that Customer Experience (CX), seems to be at odds with Customer Relationship Management (CRM) which is defined as


'a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.Measuring and valuing customer relationships is critical to implementing this strategy'


Phew! Quite a mouthful.


This contrasts with the definition I have been using recently with my clients. that CRM is


'CRM is a business philosophy to strengthen the connection between the brand and the consumer. The relationship has to be mutually beneficial and consumers shape how they want to engage.


This to me is closer to the truth. In particular the area around being 'mutually beneficial'. And combining this with the definition of CX we start to get back to basics. This is all about Marketing.


In the Good? Bad ? old days we used to look at Marketing as being all about the 4 P's ( I know sometimes it's 6 or 7)


Price Promotion Product Place


These consist of the following:

• Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. and we want to sell it

• Price – The price is the amount a customer pays for the product and we are willing to sell at.

• Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. 

• Place - refers to providing the product at a place which is convenient for consumers to access. 

The 4 P's are still with us, it's just that they are a little more complicated in today's interactive, socially charged, real time world.

• Product - Is now more often than not more than the tangible product itself but the whole customer experience around it

• Price – The price is less of a constant than it used to be. With consumers today being able to in most cases get it cheaper elsewhere what differentiates a brand is the customer experience

• Promotion -It's not longer just brand to consumer messaging but also consumer to consumer and even manufacturer to consumer

• Place - Well that can now mean anytime anyplace anytime anyhow

CRM and Customer Experience run hand in hand with each other to deliver the 4 P's today


Whats important to us as Marketers hoping to influence the 4 P's ( we do want to do that don't we), is that actually every customer touch-point and experience is an opportunity to Ask, Listen and Learn, with a view to improving the customer experience


Of course I don't mean actually ask, but everything we present to a customer - email, price, shelf layout - is actually a question ' do you like what you see?'


Which obviously means that every reaction from the customer should be listened too and observed, with a view to learning what works and what doesn't.


It really isn't more complicated than understanding that conversation

Note to self : Make Life Easier and Better for Customers

Making Life is easier and better for customers is what good CRM is all about.

Sometimes easier and better also means entertaining..



Thank you DollarShaveClub

And sometimes it just means making my life a little healthier as Graze do

Customer-Centricity: The Logical Decision

With the on going move towards marketing automation there is a risk that we always take the next best action or offer based purely on what we know about the customer from data collected historically. 

Of course to a certain extent that's all we have to play with. So the next best action when the customer calls into the call centre is to try and up grade the phone they have. The next best action for the another customer is to send them an email with an offer for the umbrella that goes with their recently acquired garden table.

But what if the first customer has called in to cancel their contract? Or the second customer has actually already sent an email complaining that they have 3 screws missing from the table and so aren't in a position to assemble it just yet. In these instances what are the chances that your offer will be accepted? Although not zero, I would say pretty minimal.

Being customer centric not only means offering the customer what they might want ( it's ok to do that honestly- I'd rather be sold the HDMI lead before I get home and realise I need to buy one!) but it actually needs to understand the context in which the offer is being made.

Context not only relates to a customer mind set but also takes into account physically where the customer is and how they are receiving the offer. You are a Nespresso drinker and you are wandering past a boutique . A logical message to your mobile Nespresso app would be to send you an invite to try the new blend? Not if it's 7-45am when yes, I am in need of a coffee but  the boutique doesn't open until 9am!

Data and context are important if you think that CRM is everywhere, as I do. And of course being customer centric means putting the customer first based on their needs and not your short term profits.

So, do I offer

 a product with a margin of £10 with an 80% chance of purchase
OR
 a product with a margin of £20 with a 50% chance of purchase?

Today's report to the CEO might dictate the second option? But surely the long term play with the customer in mind is the first option, if only because the customer is more likely to be happy with the product they chose and so will positively review the product. But also they are becoming accustomed to you offering them the right product. Saying 'yes' to your brand becomes an easier thing for them to do going forward.

Remember the wise words of Mr Spock  - Live LONG and PROSPER, and then THINK LONG and PROSPER

( This post kindly inspired by this morning's Idio Content Marketing Breakfast  - definitely an event to put your name down for)

Bricks and Mortar and Customer Centricity

The rumours persist -  'Amazon to open physical stores'

This story has been running since the end of last year and the debate rages as to whether the stores might be a Costco approach, pile it high and sell it cheap, or whether it might be a boutique offering that promotes primarily its Kindle range of e-readers

Whatever the outcome, or indeed even if the rumours are true, it does suggest that the role of bricks and mortar will not vanish for a quite a while yet.

Who would have thought 10 years ago that Apple would have a part to play on the high street? Have you been in an Apple store recently. Even when they are not introducing a new version of the iPad etc, the stores are always full of customers.

Why?

It's because they understand their customer.

Not all customers are truly IT savvy and feel immediately comfortable in switching from a PC to a Mac so they want to touch and feel the product and get some face to face advice.

Not all customers once they've bought the kit are happy to wade through on line tutorials on how to get the most out of the iCloud, so are ok with sitting in one of the free workshops which as Apple say

' are taught by people passionate and knowledgeable about Apple products and eager to share their knowledge with you. You’ll have a great time, learn new skills and pick up loads of tips '

Not all customers can solve their technical problems, so why not step up to the Genius Bar? 

Even the way that sales can be processed via hand held devices so there is no real till point is all about making the customer experience second to none. and you haven't opened the box yet!!

They didn't set about by setting a a target for store turnover. They started out by setting a vision of an environment that would make their customers lives better and easier. That's what being customer centric means, and in Apple's case making the store cool enough to hang out at.

We often think that customer centricity is all about data. And to a large extent data helps us understand our customers but being customer centric is thinking about customer needs and wants. 

Yes it is about an amazing in store experience but it is of course also about understanding that customer journeys are not straight forward and don't always start at 'A' and finish at 'B'.

It's about understanding that at different points in that journey their needs will vary. As I write this I came across a nice post from Hubspot on How to Design a Persona Centric Website Experience . And although web specific this section seems very relevant

Segment by Demographics: Start developing personas by researching your existing customer base to identify the most common buyers for your products and services. You may have several different types of buyers, so give each one a detailed description, including name, job title or role, industry or company info, and demographic info.

Identify Their Needs: What are the biggest problems they are trying to solve? What do they need most? What information are they typically searching for? What trends are influencing their business or personal success?

Develop Behavior-Based Profiles: What do they do online? Are they active on Twitter, Facebook, or other social networks? What kind of search terms do they use? What kind of information do they tend to consume online? Which of your products do they spend the most time researching? How do they use those products?

In the words of Kristin Zhivago one of the presenters at the Fusion Marketing Experience, 

“Marketers spend the bulk of their time on internal politics and learning new tools – out of necessity. But all this knowledge is worthless without a personal, in-depth understanding of what customers are really looking for and how they want to go about buying it,”

This is certainly something Best Buy considered when they set up their interactive screens in stores for customers who wanted to touch and feel the equipment but also wanted information and reviews on the product.


If a product needs 'test driving, whether that's a new computer, a car..or a new fragrance, stores still have the upper hand. The trick is to make the experience so amazing,  that the customers buys there and then..and not from an online retailer later on in the day.


But if they do, it's from the brands own e-commerce offering.

It's Official - I Love Space NK apothecary

I didn't dislike Space NK to start with, but over the last 48 hours they have gone above and beyond my expectations after my gripe on Tuesday.

After that post was spotted by their CRM team I received an email apologising for me not getting my Birthday Gift as part of the their N.dulge Rewards Scheme. They then rang me to check my contact details and to explain what had possibly gone wrong and promised that my gift would be with me today, Thursday.

At that point I was happy. Not only was the issue going to be rectified, but someone had read my blog!

So imagine how much more happier I was when this morning rather than a Gift Voucher arriving for me to redeem in store, the ensemble pictured below arrived Special Delivery.

You sent it Special Delivery..Nice..The Handwritten Note...Great... The Goodies.. Fantastic!

Thank you Space NK

The result? A very happy customer, who

- has already been back to the site to look at some treats for the family birthdays coming up
- will show off to his wife about how her favourite store in Harrogate is looking after me
- is blogging about it
- has followed them on both Twitter  ( @iamgfc) and Facebook

The original post talked about how 40% of consumers give their loyalty because their issue is resolved in a way that exceeds expectations.

Count me in that segment ( as well as the segment that smells nice today)

Tall Latte - That's Not My Name

Excuse the blatant abuse of The Ting Tings' song title, but it did ring a bell when I received an email from Starbucks this morning.

From Wednesday 14th March, Starbucks Cafes will use your name in store as a way of making the experience much more personal.




The actual transcript is as follows


Have you noticed how everything seems a little impersonal nowadays?


We've all become user names, reference numbers and IP addresses.


That's why at Starbucks we've decided to do things differently.


From now on we won't refer to you as a latte, or a mocha, but instead as your folks intended, by your name.


Okay, we know it's only a little thing but hey, why don't we buy you a coffee on the morning of the 14th of March, and you can introduce yourself. 


We're Starbucks. 
Nice to meet you.


It is only a little thing but it does go back to the old days of customer service when the local shop keeper knew his customers by name and not by an id or loyalty card number. And of course knowing someone's name is a great asset when starting up a conversation

Admittedly Starbucks don't make my favourite espresso, but in terms of of how they are getting to grips with today's consumer ( iPhone payments, intelligent use of data with their Starbucks Rewards card and Crowdourcing through My Starbucks Idea ) they certainly get top marks for effort.

I for one will be in store 14th March for my free Tall Latte.

Let's hope there aren't too many Gianfrancos in the queue!

Integrating Social and Email

Interesting video conducted by my friend Jim Ducharme from Get Response with Sundeep Kapur of Email Yogi at the Marketing Sherpa Email Summit . 


Yogi answers this question: “What is the optimal way to integrate and connect the activity of your social and email marketing efforts?”


In particular Sundeep talks about using Social to get more customers, cut costs and improve email marketing results.

Emerce Connect Interview

I recently presented at Emerce Connect  in Amsterdam and was asked a few questions about CRM

 

Darth Vader : The Hero of the Story

We are often told that the days of TV Campaigns are over.

Politely I would say 'balderdash' to that. TV Campaigns still have a place in the marketing mix, especially where they create an opportunity to create a conversation. Creating shareable content is one form of conversation. Last I looked, this commercial had been viewed over 44 million times on YouTube alone. This is a great example of creating a conversation piece that spans the Paid- Owned-Earned opportunities.

Why does this commercial work? Because it's a story where really the centerpiece of the story is the little boy in the Darth Vader suit..although you could argue that the hero of the story is the dad with the remote. The car is just an enabler.

I'm a CRM type through and through, but with fantastic creative like this I'm all for keeping these conversation pieces alive.

May the Force be with you

Content Marketing Manifesto

by the lovely guys @idioplatform...who also do a fine breakfast

idio Content Marketing Breakfast

I recently had the pleasure of listening to Deborah Womack from Possible Worldwide at one of idio's Marketing Breakfasts and also the chance to present there .

This is a compilation idio have pulled together of some of the audience comments

You Can Lead a Horse to Water....

I'll playback pretty much the conversation I had this morning when I answered my mobile phone to someone from T-Mobile

Me : Hello

T-Mobile :  Hi, this is xx from T-Mobile, how are you?

Me : I'm thanks you?

T-Mobile : I'm well thank you for asking. I'm ringing to let you know about some offers you are eligible for as a T-Mobile customer

Me : Err..I cancelled my T-Mobile contract about 2 weeks ago, in fact my final bill just arrived this morning

T-Mobile : Oh yes I can see that here. Can I ask why you left T-Mobile?

I assumed that was a rhetorical question

A Bird in the Hand...

The Retail environment in the UK is a very competitive one, and no more so than the competition between the Supermarkets.

The main players are very keen to show that they are no more expensive than the competition. They do this is in different ways

ASDA for example have their Price Guarantee

' If the total cost of the comparable items in your shopping isn't 10% cheaper than the above competitors, we'll give you the difference'

What they ask you to do is to either go to the website or the actual ASDA Price Guarantee site no sooner than 6am the day after your shop and enter your receipt details.


Sainsbury's on the other hand, have their Brand Watch as part of their Live Well For Less standing.


They even have a nice little video to watch




And having shopped in one of their supermarkets the other day I received this at the till

Now setting aside which is the best deal for the consumer, I can't help think that Sainsbury's mechanic is better than ASDA's.

And this is purely because there and then, the consumer is given some re-assurance that they have got the best deal. They don't have to remember to hit the web the next day , with the receipt and do some work.( Perhaps that's the point, ASDA don't want them to do that)

The Sainsbury's version doesn't use a fancy widget, doesn't have a website. All it does is make use of the data they have collected about the competition and presented that to the consumer with respect to the shopping they have just done.

Simple everywhereCRM that tries to make the customer experience easier.

I'm All for Making it Simple.....

But..... that doesn't make me simple..

Thanks GQ