by Michael Maoz | November 25, 2013 | Comments Off
The beauty of the new-age publishing process is that every word, thought and recommendation that we write for our clients on Gartner.com can be anonomously rated. Generally you hope for better than three stars – four or five are ideal, as it implies that you got their attention and they thought it was better than average. One Star is about as rare as hens’ teeth – it means you either offended someone, up-ended their holiest beliefs, or got them in trouble. And that is what I found when I looked at my newest research on the limits of Cloud Computing for complex customer service environments. Someone dropped in a “One Star.” (If you are clients, you can find the document here and judge for yourself: http://gtnr.it/IbU2rb [The Top Three Impacts of Cloud Computing for CRM Customer Service and Support]). We all learn the most from when someone finds a piece of research challenging – understanding the root issue yields great insights into what is a client’s reality. So…. Cloud for the Complex Customer Engagement Center in businesss-to-consumer…. what did I write?
For those of you who can’t access the research, here is the net of what I am saying: I have looked around the globe for a large, virtual multinational / global contact center supporting customers in a business-to-consumer setup such as global banking, telecommunications, hotel, airline, utilities, or BPO for consumer support, and come up empty-handed. I have asked businesses, I have asked outsourcers, consultancies, software vendors and fellow analysts. Everyone comes up with a reason why they believe it will eventually happen, and then point to global business-to-business, or local business to consumer outside of the complex, or works-in-progress. It is Eco’s The Island of the Day Before.
The other point I’ve made is that the hidden costs of SaaS for complex service and support are under-estimated: consistent mobile support, telephony integration, real-time integration with legacy systems, disaster recovery, customization, data cleansing, data privacy (outside of the US), consistency with social media channels (facebook, twitter, forums, communities…), training, analytics: these are routinely pushed aside as inconsequential.
Here is the challenge: it would be terrific to be found out incorrect – failing fast and often and keeping a sense of humility is what allows for change and progress. If I’ve gotten it wrong: let us know!!!
Category: Applications Business Intelligence CIO Cloud Contact Center CRM Customer Centric Web Innovation and Customer Experience IT Governance Leadership SaaS and Cloud Computing Social Software Strategic Planning Twitter Tags:
by Michael Maoz | November 19, 2013 | 2 Comments
A few weeks ago, out in San Francisco, I attended a technology conference that had the zip and appeal of the Skoda Garda that my brother drove back in High School. Today I am back in San Francisco speaking at Dreamforce 2013 (and if you are at the event, it is Wednesday morning, 9:00am 0 10:00am at the Palace Hotel, Grand Ballroom – come join 850 of your cohorts to explore Customer Engagement and the Future of Customer Service http://bit.ly/HWROeV ). There are over 100,000 attendees, and whilst I don’t smell the wind through the trees at Woodstock ’69, there is a lot of the Yasgur’s farm vibe for the New Cloud age about the Moscone Convention Center.
Mad Money’ Jim Cramer interviewed Salesforce.com CEO, Marc Benioff, out in the courtyard (http://cnb.cx/17FBHJn ), and later Marc spent 15 minutes demonstrating the ServiceCloud, which is emerging as a $1 Billion revenue stream for the company. The themes of the new business are all here: Cloud computing, mobile applications, connected devices and connected people.
It is exciting for me, as my research has been on the engaged customer, employee, partner and products in what I have been calling a Customer Engagement Hub. It won’t all be about Cloud. My amazing colleague, Andy Kyte, points out persuasively that the five pillars of delivering capabilities remain:
- Buy and Configure
- Buy and Customize
This makes a CIO’s job ever more complicated. And they are here in abundance this week. Whereas in previous years the overwhelming mass of attendees were in Sales, and then five years ago began a shift to Customer Service, now the spectrum of Marketing, Sales, and Customer Support are here, along with the technologists – the latter providing the adult supervision. Why? Because though innovation flows from the bottom to the top, decision making and prioritization flow from the top down. Never has the role of CIO been more critical, and their attendance here this week is validation of that. For more, see my colleague Tina Nunno’s fantastic work on the CIO. (You can even downloaded her new book to your eReader http://amzn.to/I2FWJ3 !)
The world of CRM applications is searching for its common platform, and for businesses selling and marketing and servicing other companies, Salesforce.com is the leader – upwind and downwind. In the business-to-consumer world where operations are much more complicated, disbursed, and real time, solutions remain partial.
What is emerging is a picture of connected devices, especially mobile. Mobile becomes your social interface, the way you manage devices, a set of business services, and much more.
Devices themselves begin to require the same level of connection and orchestration, and software/hardware providers like ThingWork, Digi, Axeda, Jasper Wireless and FitBit are telling us about our health, the health of our businesses and equipment, and even manipulating objects to tune them for best use.
Gartner has been leading on Cloud, Social, the Connected Enterprise and Social, and it is great validation that the largest CRM event in history is exploring these themes.
If you are at Dreamforce, what do you think of this Customer Idea Bazaar?
Category: Analytics for Social CRM Applications Business Intelligence CIO Cloud CRM Innovation and Customer Experience Leadership SaaS and Cloud Computing Sales Force Automation Social CRM Social Networking Social Software Strategic Planning Twitter Tags:
by Michael Maoz | November 12, 2013 | 2 Comments
Though CIOs may be expected to support internal Business Intelligence initiatives, the idea that we must also treat our customers with respect by supplying them with key data points is overlooked. There is a certain BI paternalism that says, “we know what is best for you,’ that leaves customers in the dark.
It is nearing that time of year when I am required to re-enroll in my current health care plan, or select another. For those of you living in countries differently enlightened about health care, here in the United States the citizens of the country do not support universal health care. (As a sidebar, the notion goes something like this: it would be too expensive for the Federal government and would be a drain on the population. Yet per capita spending on health care in the US is about 75% higher than almost all other Western countries, and the US dedicates a higher percentage of GDP to healthcare than anyone. And for all that life expectancy in the US does not even make the Top 25 in the world.)
What would a customer investing a not-insignificant amount of money in a health care plan want to know in order to make an informed decision about next year? What did I get from my health plan last year and over the past several years? What is the benefit for dollar spent? How did the version of the plan that I chose for 2013 compare to the three other versions of the plan that I might have chosen? How often were my claims accepted? What percentage of each claim was covered, and which were not? What were the reasons? How has my consumption of benefits changed year over year? How do I compare to my cohort group? How do I compare to other demographic segments? Do I have more claims, or more types of claims, or higher bills, or higher deductibles than I require? Which physicians in my location are ‘in-network’ who also have the highest Patient-Rating?
Basically, whether we are talking about health insurance or taxes, or power consumption or rental cars or hotel stays or bank fees, consumers receive extremely limited data about the performance of their products and services and how they might better invest, purchase, or consume. What is fairly standard for wealth management sites is almost completely missing in other industries: a true statement that honestly reflects the benefits of a relationship with the company/enterprise/government that you are trusting to provide you goods and services.
The result of BI living in an internal bubble, primarily accessible to business managers and C-Suite, is that customers rarely feel confident that the products and services that they consume served them well. Instead they rely on memory, and memory is skewed to recall the negative.
Let’s do ourselves all a favor: push the boundaries of business intelligence tools beyond the enterprise and into the hands of the customer. They just might trust us more.
What do you think? Too much risk for too little reward?
Category: Business Intelligence CIO CRM Innovation and Customer Experience Leadership Social Networking Strategic Planning Tags:
by Michael Maoz | November 1, 2013 | 3 Comments
Choosing a hotel for business travel for me means seeking a Gartner Preferred Hotel. Not based on chain, but on price. Sometimes you might go for a ‘non-preferred’ and run the risk of receiving the dreaded internal message with the label “Out of Compliance.” Why not always just comply? Well you might know there is free parking and wifi, or you will be walking distance to the client, or the place has breakfast and light food for dinner that actually brings the true cost into line or make it lower. And that is what I did at the Long Wharf in Boston this week: stayed at my personal preferred hotel chain. This one I like because they have always upgraded me to the concierge floor, which I enjoy only because it is high up and quiet, and it saves me time.
But a funny thing: I recently accepted the hotel’s offer of taking an affinity Visa credit card. I like the opportunity to move up to Gold Status, and over this year stayed at one of their hotels 16 times and have almost 45 nights. Rolling into Boston Monday night I checked in, but this time the desk receptionist said no free move to Concierge. No access to the lounge. When I asked the frosty but efficient person behind the counter why this time was I not offered Concierge level, unlike prior times, her answer was: “Well I have no way of verifying that.” AKA: you may be lying to me. Yikes. She added,“You can upgrade for $150 to a suite.”
I didn’t want a suite. There is a World Series baseball game on, and the lower floor, off of the atrium, above the bar, where my room was located, I knew would be loud. I wanted quiet, and I also wanted what I had received during all of the previous stays. So: suddenly the price isn’t justifiable.
First off: the world did not end, and all is well. But let’s decompose the experience:
The irony is that if they had data on me available in real time, they would see that I have four more reservations at their chain over the next 45 days, and then I will be Gold status and eligible for a free upgrade.
They could have seen that I stayed on the Concierge level the past six stays.
And they would have seen that I have stayed at this location every year for six years.
And they would know, and see visually, that across the chain I have been a loyal customer for 16 years. And that I only recently accepted the affinity card.
And that my company has a relationship with them.
Know if I am an influencer in social media
And they could have had a business rule that looked at inventory, looked at my current trajectory of status, compared to the past decisions, and either given me the upgrade or nicely said that this time they were not able to offer it. But not: “I can’t verify what you are telling me.”
Big Data doesn’t need to be that complicated. In fact it is quite simple. A bit of customer history, a bit of analytics, a couple of business rules, and presto – consistent service.
Red Sox won the next night.
What do I write on the feedback survey? “You had a nice run, and you are nice folks, but the folks at the Hyatt two doors down are also very nice.” Will they know or care or try to win me back? They would if I mentioned their name negatively on Twitter or in a forum, like the New York area cable company that sent four engineers to a customer’s house to install wireless after he posted a series of negative Tweets. The problem? They left the rest of the apartment building’s tenants without WIFI, and now they have 10X the negative posts/Tweets! As for me, I never post negative comments. Life is too short and never sweat the small stuff. Old school, and a dying breed. Does this hotel know which of those types I am? Or are they rolling the dice?
What is the curated experience all about? How important is it? And does consistency matter? A major issue today is that suddenly the customer comes armed with so much more information than ever before. All of my stays were on my iPhone, and selecting hotel A or hotel B is just a touch of an index finger, and the price comparisons and ratings are there on the screen, with a map to guide me down the street.
Easy, fair, consistent, meeting expectations: get those four correct and we win. Get them wrong and we lose.
Category: CIO CRM Gamification Innovation and Customer Experience Leadership Social CRM Social Networking Strategic Planning Tags:
by Michael Maoz | October 22, 2013 | 1 Comment
While the West Coast High Tech mavens are schvitzing about the incompetence of the outsourcers who tried and failed to build a workable website for HealthCare.gov, none of these same pundits would really have wanted the job or the transparency they are now putting down. Maybe the US Government’s two major software developers are Schmendriks, or maybe they are highly competent but were put into an untenable position. No one yet knows. What we know is that 40+ million individuals who do not have insurance but are expected to get it are receiving a message: “The System is down at the moment. We’re working to resolve the issue as soon as possible. Please try again later.”
There should be an expiration date on “Please try again later.” Better would be: “Please try again in five minutes.” Or: “We have no idea when you should try again, but leave a contact number and we will notify you.” One might also consider saying, “We are sorry.”
Maybe I am a perenial optimist, but eventually we will learn why the Canadian company and the US company that are at the heart of the $400m – $700m development project were not able to stress-test the system, and the US government will solve the problem, and new processes will be put in place, and all will be well. Because most folks have the memory- retention of gnats when it comes to history, few recall the concession by US Senator from New York, Charles Schumer in 2009 that the Air Traffic Control System in the United States was “in shambles.” Literally billions of dollars have been spent on the problem, tens of millions of lines of code written and tested, yet over 15 years the system has creaked to semi-modernization, with occassional glitches that stop flight. And with air traffic we are talking about life and death – not delays in filing for health care. Some stuff is just really hard, and even great minds and great wills fail.
So forgive my leniency. Yes, governments should be better at this stuff. But this ‘of the people’ and ‘by the people’ stuff makes things messy, and yes there is a lot of bureaucracy. And when governments do rush forward and make quick decisions, citizens also are unhappy. But here is what we can expect: transparency into what is up. There are brilliant people everywhere who could help crowdsource a better process going forward. The same West Coast startups and established software leaders who are crowing about their Cloud solutions could show where THEY support 45 million consumers with complex back-end integrations in real time, in the Cloud. Oh: except that they can’t. No amount of genius on RDF 3X or page-ranking, or API calls, or graph partitioning or Dremel or in-line memory compare to what HealthCare.gov is facing. This is not to suggest ‘put up or shut up.’ It is however, a time to show the cards on how it should be done based on real evidence. Not “Well HR Block data flows to the IRS so it’s possible” kind of illogic – but true cases of like-for-like.
Away with the useless criticism; in with the clear eyed and unbiased assistance. Other suppliers can say that they would have done a better job. I hear that from Fantasy Football people every Monday. And may those with the stones find that their houses are not made of glass.
Let’s wait and learn what there is to learn about leadership failures, software testing, procurement by those who do not know how to measure the thing they need to procure, and how projects are managed and reported on. I’m on an Amtrak train heading up the Eastern corridor at 1/3 speed because of poor engineering design. Plus ça change, plus c’est la même chose. We move forward, regardless.
Category: Applications CIO Cloud IT Governance Leadership SaaS and Cloud Computing Strategic Planning Tags:
by Michael Maoz | October 10, 2013 | Comments Off
It was not too long into the delivery of my Customer Engagement Center Magic Quadrant session that someone asked the obvious: where are the choices for a global Customer Service organization for a stable, high volume center?
Cleansing breath. Exhale: there is no choice.
Amazing as it seems, with the decimation of the independent vendors over the years, Clarify, Scopus, Vantive/PeopleSoft, Epiphany, Siebel, Onyx, Chordiant, RightNow, etc., businesses are left with limited options. Retail banks, large hotels, cable providers, telecoms, airlines, health insurance support centers overall, and especially with a global presence, are forced to choose between maintaining shaky systems or maintaining shaky systems, and none of it in the Cloud and none of it in a SaaS model.
What is up with that? Consider: does your company report “The State of the Customer Experience” in the Annual Report? For 99% of companies, the answer is ‘No.’ And where is the recent money spent? Social, Digital Business, Marketing, Mobile, Self Service. In the traditional call center, contact center, or emerging customer engagement center, the money is going on migrating processes to self service, followed by analytics tools, followed by building social communities for peer-to-peer support.
Why do the software vendors not capitalize on the market need? After all, there is a $5b – $10b opportunity out there for modernization. Though the bank robber Willie Sutton likely did not say (in response to the question of “why do you rob banks?”) “Because that is where the money is…,” the line fits: the easier money is in Cloud, SaaS, mobile, analytics and social. These are more disruptive forces demanding more immediate action.
Yet ignoring the refresh of the consumer-facing contact center slows the adoption of the customer engagement center. The ability to use humans to engage customers on social networks, directly on their mobile devices, or directly via their other personal devices (cars, televisions, refrigerators!) to advise, upsell, or redress current or emerging issues becomes klugey (Aber nicht eine kluge Idee!).
What is a large consumer support organization to do? Likely what you have been doing: keep the wheels on the bus, the same old bus, but refit the driver’s cockpit and the passenger seats. Just as many airplanes are refurbished with modern components even as the insides are modernized, so too the emerging customer engagement center – not the most elegant, but in the original architectural meaning of Pace Layering.
Thanks to the hundreds of people who came to my sessions this week! Wow! More on that later, but it has been a fantastic time meeting you all, and to the 40 of you who managed to arrange 1-1 meetings with me!! Companies from around the Western Hemishpere – and truly wonderful and inspiring professionals.
By the way, am I the only one who feels a tug of sadness when seeing websites that say:
Due to the lapse in federal government funding, this website is not available.
We sincerely regret this inconvenience.
For information about available government services, visit USA.gov.
I think this should be a core part of the US Citizens Test. I for one can’t wait for the US Government to be back fully functioning.
Category: Analytics for Social CRM Applications CIO Cloud Contact Center CRM Customer Centric Web Innovation and Customer Experience Leadership SaaS and Cloud Computing Social CRM Social Networking Social Software Strategic Planning symposium Tags:
by Michael Maoz | October 3, 2013 | 1 Comment
One of the most profound short term needs in government is for a modern knowledge management system. Why start with Jimmy Kimmel? Those of you familiar with the US comedian know that he occassionally sends out folks to interview the average person on the street about issues facing their lives. In this case it was about the US Government’s Affordable Care Act. To save anyone embarrassment further on, the Affordable Care Act supports Health Insurance Marketplaces where Americans who are uninsured can purchase insurance. And yes, the website crashed on the opening day, but that is another, unrelated matter. What you need to know is that the Affordable Care Act is also known as ObamaCare.
As I am profoundly apolitical, the only point here is that Kimmel had the question posed, “Which do you prefer, the Affordable Care Act, or ObamaCare?” Now you know, wherever you are, that they are the same thing. But here is the answer that was typically given:
When asked about ObamaCare, the answer was, “I think there’s a lot of holes in it, and I think it needs to be revamped,” “The Affordable Care Act is better,” ….
When asked about the Affordable Care Act, the answer was: “Yes, I favor it over ObamaCare.
The issue of Knowledge is of tremendous concern, frustration, and waste. Consider a tiny effect of the US Government Shutdown: US National Park Rangers are unaware of exactly what they can or cannot, may or should do or say to citizens or visitors who want to enter National Parks. They are forced to rely on information phoned in and messaged from person to person, and the result is massive misinformation, disinformation, and lack of information. These amazing and friendly government workers (and if you have ever interacted with them, you know too that they are just incredible and dedicated) end up sounding unintelligent, causing frustration all around.
There is no need for these knowledge gaps. Modern knowledge management systems understand syntax, they understand context, they get semantics, they are great at deep and contextual search of a broad array of information sources.
So what is lacking? So far governments have not embarked on an audit of the true cost of poor knowledge management. It undoubtedly stretches into the many billions of dollars in wasted time spent by citizens and government employees.
Who in government will step up and decide to serve the people? What will make the change happen?
You are always a great source of good examples: let me know what you have seen that works and I’ll pass it on!!!
Category: Applications CIO Cloud CRM Innovation and Customer Experience Leadership SaaS and Cloud Computing Social CRM Social Networking Strategic Planning Tags:
by Michael Maoz | October 2, 2013 | Comments Off
Flying through Dulles yesterday was pleasant for the most part, navigating the delightfully and senselessly convoluted terminal ramps and staircases with plenty of time, thanks to the shutdown of the US Government. Security lines were light, but still I thought I would use TSA Pre to get through even faster. The TSA person put her magic flashlight over my Global Entry card and said, “I’m sorry sir, you are not approved. Please go to the regular line.” On I go into the standard line, polite as ever. When I reach my turn I ask the TSA agent: “Could you tell me why my Global Entry card does not gain me TSA Pre?” I’d used it many times before. Then I learn that one must notify each airline individually. Asking the question was simple, but first I had to hear about how GES is not TSA and the FAA doesn’t tell any airline to accept or not accept Global Entry. And were you not paying attention at the GES when they explained this? Ummm, why yes, but no, they do not explain this.
I asked the naive question, “Isn’t Global Entry a part of TSA?” It was as though I’d said her child was ugly. “Sir, GES is a part of US CBP! CBP is not connected to TSA!!” Heaven forbid!, I thought: they have partnered on Pre, which is under Homeland Security. Had the government designed the human body, the toe bone would not be connected to the foot bone, and the foot bone would not be connected to the ankle bone, and the ankle bone would not be connected to the leg bone. (Oh mercy how they scare!). It all made sense, it was just the attitude that the customer is stupid and it is no ones job to make their life better.
If you think inter-departmental cooperation is any better or worse than inter-State cooperation, just try to manage something as simple as a traffic violation received in one State, like New York, as a resident of another State, like New Jersey. Six phone numbers that do not work, placed on Hold for 60 minutes, then told that NY does not know what NJ process is, NJ does not know what NY process is, and neither’s website understands your scenario either. No human, no software, no process.
So: maybe a shutdown is not such a bad thing. When Calvin Coolidge died in 1933, the witty Dorothy Parker is said to have commented about the famously quiet President’s passing, “How can they tell?” With a US government shutdown, some citizens might feel the same about the change in service level. A cessation of frustration, complexity and wasted time.
The really exciting and positive news is this: just think of how much better customer service will get! President Barack Obama issued Executive Order 13571, “Streamlining Service Delivery and improving Customer Service,” on April 27, 2011 – http://1.usa.gov/mrsjBI . It is a terrically exciting time to be a part of the future of customer service delivery in Government. All that is needed is a bit of concerted leadership to provide the vision and the incentives. Just wait – in seven years just about all government interactions with citizens will reflect thought, citizen-first, and a focus on making things better!
What do you think? It is not all clear skies, but there are so many bright and willing people in government agencies – they just need a small nudge.
Category: CIO CRM Innovation and Customer Experience Leadership Social CRM Strategic Planning Tags:
by Michael Maoz | September 22, 2013 | 2 Comments
Introducing a new concept and a new term to describe it can be slow going. My office has an entire bookshelf unit built from recovered barnboard and encyclopedias: why let go? A buddy’s plumbing business still receives faxes. My mom still has a VCR. So when we introduced the concept of the Customer Engagement Center to describe the next generation of Contact Center, we knew it would take some time.
If you are a Gartner client you can read some of the explanations of what we are thinking in more depth here: http://gtnr.it/1f9hKmz. The essence of the discussion is this: maybe the customer is not reaching out to you – they haven’t made ‘contact.’ Perhaps they are on a mobile device and based on their location you want to give them an alert or an update. Perhaps they are on social media commenting about you and you want to interact with them. Maybe you don’t want just a transactional notion of customer but a relationship-focus: you want a higher level of trust and more engagement to achieve that.
We call the synthesis of social media engagement, intelligent device data, and CRM interaction software the customer engagement center. It is both a process change and a technology change, and it is transforming the contact center, disrupting the established software offerings for contact center software, and opening up new market opportunities.
Who would not want to promote the term and the concept? Well, anyone who is focused on what was cutting edge 15 years ago. They didn’t like VoIP, and they don’t like the Cloud. Or they don’t have the capacity to change, or, if they are a software vendor, they don’t have the capacity to build or buy the necessary components.
To better engage customers, better analytics are required in the hands of agents. Better integration of channels is essential. Better knowledge management tools. Better collaboration tools. Better social media engagement capabilities. New types of hiring. In short, new ways of thinking and doing. In the middle of the 1800s, a French philosopher named Karr wrote that the more things change, the more that they remain the same (Plus ça change, plus c’est la même chose…). And that can be said here: it has always been hard to embrace real change, as so many people have a vested interest in the status quo. But with the enormous access that customers have to alternative sources of information, and alternative choices for products and services, you are faced with engaging them where and when and how they believe you ought to engage them, or off they go.
So: what do you think? We mentioned the Customer Engagement Center two months ago and you’ve had a bit of time to chew on it: does it make sense? I’ll be waiting for that chime, “You’ve got mail!”
Category: Applications CIO Cloud CRM Innovation and Customer Experience Leadership Social CRM Social Networking Social Software Strategic Planning Tags:
by Michael Maoz | September 12, 2013 | 3 Comments
I am taking an online course with an Indian professor on Web Intelligence that has my head spinning. MapReduce and Hashing Algorithms and Linear Probing are intuitively obvious, but the math generates an intense respect for my Lower Sixth Form teacher’s failed attempt to coax me to focus on collision resolution. But what it has done is generate the question: why have 99.5% of businesses capitulated in improving customer engagement, at the point of interaction, through the use of advanced analytics? That is: they aren’t doing it.
The answer is, and is not, simple. The simple answer is that there are at least five competing projects going on in the CRM space right now: the move to the Cloud, grasping the implications of the social customer, advancing digital marketing, providing mobile applications, and delivering better business intelligence capabilities to business analysts.
The ‘not simple’ part of the equation is that most organizations are seeking to pitch carbon out the window and replace it with silicon. That is a cheeky way of saying ditch humans and deliver everything through self service and automation. That headlong effort at cost-efficiency flies directly in the face of efforts to deliver a better customer experience. Determining exactly when a human-to-human interaction is the necessary and proper route is not easy. It requires equations, and it requires collaboration internally and externally to determine best process. Not everything that can be automated should be automated, but the mapping of customer value at each point of engagement requires powerful tools. Utilizing those tools at the point of customer engagement requires a long term commitment that is beyond the capacity of most organizations.
My wonderful colleagues Joanne Correia, Yanna Dharmasthira and Chris Pang recently delivered their CRM Market assessment on Gartner.com. If you are a Gartner client you can see this at http://gtnr.it/1aDdvxK. Their job in teasing apart vendor revenue numbers is akin to prying open a quahog with your bare fingers. (there is a better way: http://www.wikihow.com/Open-a-Clam). The net is that the CRM market, which is now 15 years old, is a US$8 billion market, and still growing at 12%. Very respectable, and Customer Service and Support is the largest single component of the market. It would be hard to grasp this last fact given the low emphasis on Customer Service and Support processes and technologies. Digital Marketing is the ascendant darling as far as enterprise focus.
We recently asked 465 of our global clients what their top business goal was, and they answered, “An enhanced customer experience.” Being pedantic, I sliced the $8B spend down to “Customer Facing Real Time Decisioning” and found that the yearly spend by corporations was about three Euros. OK, that is hyperbole. (BTW: did you know that the Euro symbol is an Epsilon and an E – for Europe?).
Just go to any customer service organization and look at the tools available on the website, or in the hands of agents who might want or need to determine the next best action to take, or to determine most likely customer intent – and you will find practically nothing. Great but small software companies such as Pontis (http://www.pontis.com/) and KXEN (http://www.kxen.com/) and a hundred others are offering products to achieve this ability. The vast majority of businesses have not crossed the chasm. Why not?
So what is the impediment to excellence? It’s what might be called, “it’s all about us.” Where ‘us’ is the struggle to keep the lights on, keep up with the short-term but overwhelming projects to maintain status-quo, to keep up with the hype, to refresh capabilities, to reduce headcount, to reinvent marketing. It is to enhance our standing internally and advance our jobs.
The real value in IT projects that drive revenue and profit is in discerning customer need, the best enterprise response, and using advanced analytics to deliver a superior customer engagement. That takes brains, commitment, collaboration, and time to develop. All of the things (except brains – we are all Lake Wobegon Above Average.) that are in short supply in businesses.
When do we get beyond ‘it’s all about us?’ When the CEO says so. When she/he mumbles ‘customer excellence’ but lops off heads when profit margins fall, it can’t happen. When the social/digital media wonks are pontificating, it can’t happen. When the CEO says “We exist to serve customers.” – then it happens. You can see this in great companies like Amazon, Fedex, Sephora, and Carrefour. There is a longitudinal view of improvement to the customer experience that transcends quarters and departments.
Do you see it differently? Where is your company in the customer-centric journey? And why is it so hard?
Category: Analytics for Social CRM Applications CIO Cloud CRM Customer Centric Web eCommerce Innovation and Customer Experience Leadership SaaS and Cloud Computing Social Software Strategic Planning Tags: