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How Marketing could torpedo the Digital Transformation of CRM

by Michael Maoz  |  January 28, 2014  |  2 Comments

Every winter for the past 12 I have begun researching the ideas that will go into my presentations for our Spring CRM-focused conferences. This year we have the Gartner Customer360 Summit, 19-21 May in Orlando and the Gartner Customer Strategies & Technologies Summit London 28/29 April in London. I love these events because they are intimate gatherings – 600 or so participants instead of 100,000 – and highly focused on how we as businesses, governments, schools, or non-profits can better engage customers. We look at the technologies and the processes and ask: where is greatness happening, and why does it happen there and not in other places? It helps others find a way forward.

All of the theoretical claptrap is fine, but uncovering the ‘why’ of what goes right when it does or what inhibits organizations from greater success is the ultimate goal of my talks. There are always going to be fabulous technologies and business applications, but like the best surgical equipment, it is only as good as the best surgeon. Usually I begin my research by reviewing the client calls that I have taken. There are clues to how the CIO and IT staff, or CMO or VP of Customer Experience think. After that I look at the cutting edge startup companies, and the best business consulting practices, and what is happening at the university labs. I also read gobs of what my amazing colleagues write – I am never finished being awed by my cohorts here at Gartner and their insights.

This time around I am struck by the vast chasm between the CMO and the marketing department, on the one side, and the VP of Customer Care/Service/Support on the other. The CMO has the funds, the power, and most of the glitter surrounding digital marketing, digital transformation and a dozen other very hot and in demand enterprise projects. The VP of Customer Care, etc., is fairly limited, with little access to innovative tools and budget. Lacking a direct budget of their own, they depend on an enlightened CIO, VP of Operations, or visionary CEO to help cut through the clutter and break through departmental silos.

If you don’t see this deep divide, search the latest slideware or podcasts or seminars on marketing. I recently spent two days reading the latest and greatest (external!) research on the future of marketing, and, behold, customer service and customer support and care rarely (and often never) show up in even the most thorough presentation on ‘the future of marketing.’

The two organizations have never had an equilibrium of power. Customer Support is always boxed into a corner as a ‘cost center.’ Remarkably, the most enormous cost center could be seen as Marketing, as sales does the selling, while marketing does the ‘make aware/spark engagement/make offers,’ without strict P&L accountability. Sales is accountable. Customer Service is a line item expense.

There are many remarkable companies where the CIO has emerged as the bridge-builder joining the largely disconnected marketing domain to the under-powered Customer Care / Customer Experience domain. Some have even merged them, but they are still a rarity. In honour of the passing of the US national treasure Pete Seeger, I will use his song, “Waist Deep in the Big Muddy” where he deals with exactly this issue of responding to changing times. The song tells of the army leader who drowns, having been unable to listen to the voices and advice from his underlings in the field. The ‘big fool’ was….

Stuck in the old quicksand.
I guess he didn’t know that the water was deeper
Then the place he’d once before been.
Another stream had joined the Big Muddy
About a half mile from where we’d gone.
We were lucky to escape from the Big Muddy
When the big fool said to push on.

It is time for all of us to change direction, to forge links between Marketing and Customer Service, and for the CIO to assert his/her authority and wisdom to see that the streams are merging and that it is time to move on.

Thanks for sharing your examples of success with me! They are great to read.

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Category: business-intelligence  cio  crm  gartner-customer-360-summit  innovation-and-customer-experience  it-governance  leadership  strategic-planning  

Michael Maoz
VP Distinguished Analyst
13 years at Gartner
26 years IT industry

Michael Maoz is a research vice president and distinguished analyst in Gartner Research. His research focuses on CRM and customer-centric Web strategies. Mr. Maoz is the research leader for both the customer service and support strategies area and customer-centric Web… Read Full Bio

Thoughts on How Marketing could torpedo the Digital Transformation of CRM

  1. Steve Casey says:

    Thought-provoking post, Michael. And as a long-time marketer, it’s funny to hear a little budget and power envy from the CS side of the house. I think a lot of my peeps will tell you their perspective is that marketing is frequently viewed as a nice-to-do by the C-suite, whereas ops like customer service are viewed as must-dos – so when budget-cutting time (inevitably) arrives, marketing programs and personnel are often at the top of the list. Also, I’m surprised you didn’t turn up more data/evidence of social media bringing marketing and customer service together. I was at a social-for-customer-service conference last fall, and one of the consistent themes I heard from speakers (from both marketing and CS functions) was that “customer service is the new marketing.” Of course, putting out customer service fires on social media before they burn down your brand is typically a key marketing objective, but it was also interesting to hear that as more of the routine customer service interactions move from scripted conversations in the call center to free-form dialogue on social channels, the smartest companies are adding people with communications or marketing backgrounds to their customer service teams. So maybe there’s hope yet that we can avoid the torpedoes, and marketing and customer service can “walk hand in hand some day,” to borrow from another of the great Pete Seeger’s songs (We Shall Overcome).

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