The People Side of Customer Centricity

I’m on a mission to help marketing catch up with the realities of today, and one of the areas I believe still requires some attention is the way businesses focus on their customers.  Or in modern day jargon, how far they are “customer centric”.  Sure, by now we know that focusing on the customer can help you grow sales, build loyalty and even get customers to recommend you to others.  There are even a growing number of people that deploy the Net Promoter Score or similar metrics as a tool to achieve just that.     

But while these numbers and theories can point you in the right direction, they do not change the way your company operates.  That needs to be done by the people in the business.  And marketers need to make sure they want to play ball too.  They need to make people in the business understand why it’s important to focus on the customer.  They need to be prepared to walk the customer talk.  Truly listen to the customer.  Change their habits and behaviours.  Even re-organise the business if that’s needed.

Management Centre Europe specialises in getting people to develop a customer-centric mindset (disclosure: MCE is a long standing Futurelab customer), and from working with them on a number of customer projects, I’ve learned that this bit of getting people to act is a completely different ball game.  In fact, at MCE they found that only companies that place equal value on the mindset of their people, stand a fighting chance.

But when it comes to the internal – people – aspects of customer-centricity, most marketers are no where to be found (nor – to be fair – are most other departments).  Still, for those who would like to take up the gauntlet of really making something happen in their business, I propose six attention areas which have been proven in other places, and they could work for you.

Attention area 1: Show them the money

No matter which way you look at it, businesses are about money.  Shareholders want returns.  Staff wants to be paid.  So marketers should start every conversation about customer centricity by talking about money, and the measurable profits the business can make by making customers “happy”.  Talking about the bonuses that can be earned by growing customer delight helps too.  After all, only if the leaders of the business and their staff clearly see what’s in it for them and for the company, will they consider changing their behaviour.

Attention area 2: Involve everyone

Customer centricity is not about graphs and PowerPoint presentations.  It is about having your people experience what customers are looking for.  Showing them why customer focus matters.  How their job, no matter how customer-remote, can have an impact.  That is why marketers must involve everyone in the business in the customer research conversations taking place.  And rather than prescribe the right behaviour, encourage them to formulate for themselves what being customer-centric means in their job.  You cannot script human behaviour anyway.

Attention area 3: Adapt the KPI’s

Getting the people in the business to understand the importance of customer centricity and what it means to their job is a start.  But if the KPI’s they face tell a different story, the initial enthusiasm will quickly disappear.  Efficiency measures can eliminate staff time to deal with the customer.  Cost controls can create bad profits.  Project priority sheets can lead people astray.  As a third – crucial - step marketers need to work with other stakeholders to review every KPI of the business.  Does it encourage people to do what is right?  Or does it get in the way?  Is it customer-centric, or is it customer-toxic?  After all, only when every KPI is aligned, will the people be able to put their intentions into practice.

Attention area 4: Back it with leadership support

Once people are willing to do what is right for the customer and have formulated a vision of how this applies to them, they need to be empowered to act.  This is where marketers need to encourage the leadership of the business to come into play.  They need to allocate resources to the right places, encourage the right behaviours and forgive well-intended mistakes.  They need to set the example by actively talking to customers, and doing what is right.  And when processes, habits or politics get in the way, they need to be decisive and clear that the customer centricity drive is not up for debate. 

Attention area 5: Break the silos

But even empowered employees can only achieve so much.  After all, customer feedback typically doesn’t fit the processes and silos of the business.  That is why – even though they should advocate it -  customer centricity should not become the responsibility of the marketing or any other department.  Instead, cross-functional teams should be created and resourced to understand what being customer centric means across departments.  And subsequently align individual parts of the organisation so they "deliver what is right for the customer and for the business."

Attention area 6: Focus on mindset and completion

Any customer feedback system is a rear view mirror for your business.  It can tell you how well the business has done and trigger improvement projects, but it cannot predict the future. Every new situation will be different.  Marketers need to help all employees and subcontractors instinctively select the right actions.  For this they should rely on the customer facts, but above all on a mindset in which they know what matters most, and are free to do this.

So what do you think.  Am I crazy?

The Eight Truths of Real Innovators

There's lot's of talk about innovations these days, yet when you look at the stats, 90% of innovation projects never make it.  That's why I thought having a go at  coming up with "eight truths for real innovators".  There's probably more and you may not agree with all, yet as usual, I'm happy to learn.

Truth #1: Stop equating innovation to R&D.

While white coats are important, there's more to innovation than product & technology.  That is why real innovators track every area that could give them a competitive edge and actively seek out areas their competitors have missed.

They introduce metrics to innovate against the customer experience, the processes, the business model of the company.  They question every aspect of the organization, not just its product's performance.

Truth #2: Pay people to fail.

Most companies base their performance bonuses and promotions on being "successful.”  This means that if you've got a mortgage, kids and half a brain you're not going to stick your neck out on things that may go wrong.

Yet it is exactly the risky projects that lead to competitive breakthroughs and require the smartest people in the company.  Real innovators understand this and figure out ways to reward people even if they fail.

Truth #3: Treat everyone as an innovator.

In most companies, less than 10% of the workforce is involved in innovation.   Real innovators understand this untapped potential and set up systems to capture the thoughts, ideas, dreams and opportunities generated by the other 90%.  They look at every concept and reward the individual who came up with it.  They train every employee in the art of innovation.  They give people time and space to develop pet projects and take them seriously.

Truth #4: Kill bad ideas quickly.

Structural innovation is about finding nuggets of gold in a pile of rubbish.  Yet in organizations people sometimes fall in love with the rubbish they created themselves.  This can waste valuable resources and divert the company's attention.

Real innovators understand this and establish processes to kill bad ideas quickly, without disparaging the people who came up with them.  (Their next idea may be a good one.)

Truth #5: Launch first, worry about the shortcomings later.

Traditionalists want to get every aspect of an innovation absolutely right.  The speed of today's economy however requires an "fast to market" attitude.  Real innovators understand that the best school for product improvement is the market itself.  That is why they work with pilot customers to fine-tune products and learn on the job, rather than making elaborate assumptions.

Truth #6: Don't believe what your customers tell you, dig deeper.

People are notorious for saying one thing to market researchers and then doing something else.  Real needs lie beyond superficial market surveys and live in the realm of emotion.  Customers are human, which means they have dreams, fears and frustrations waiting to be answered.

Real innovators dig for these deeper level thoughts and embrace them in the way they develop, introduce, package, sell and deliver their value proposition.

Truth #7: Don't try radical innovation, buy it.

Just like our body starts fighting any virus that may threaten it's existence, organisations annihilate any innovation which may undermine the status quo (just imagine the hypothetical scenario of a telco researcher trying to convince his bosses to introduce free VOIP before Skype existed).  That is why real innovators don't pursue "radical" innovations themselves.  They just buy them when a dominant design appears to emerge.

Truth #8: Mix elements that shouldn’t be mixed.

Real innovators ask scientists to work in stores and involve the receptionist in product evaluation.  They bring in artists, scientists, writers, philosophers and anthropologists, even if these people have no idea what the business is about.

Leonardo da Vinci built some of the most impressive fortifications of the Renaissance.  Real innovators understand the art of being the Duke that had the foresight of giving a “painter” a military commission.

If you have any truths I've missed, don't hesitate to comment!

Uncomfortable Truths (Part Two)

Writing the second part of this post was hard. Not because I didn't know what I wanted to say, but because the need to summarize it into a readable blogpost meant leaving out important nuances...

Still, I've tried to highlight how marketing as a function can help organizations overcome the challenges described last week. And for the impatient ones wanting to impress their CEO still this quarter, I've also added a number of "quick fixes" ;-)

So while you won't find silver bullets, here are a few remedies to the "uncomfortable truths."

Truth #1: Most people in your organization haven't got a clue what you're on about.
Delivering on your brand's promise starts with making sure that the people in your organization understand what it is and how it affects their job.

Still, many marketing departments allocate insufficient time and budget to working with HR on making this happen. As a result, internal communication programs seldom get beyond employee newsletters, intranets and the occasional motivational speech.

Ask yourself this question: would you try and convince the consumer in the street of your strategy with the proverbial powerpoint presentation and an email? Well, as it stands that consumer may actually be working for your company, so maybe there is a lesson to be learned.

To stand a chance in the market, marketers should allocate a significant portion of their time and budget to support HR in putting together a communication and capability development plan that truly affects the organization. Only then, things will start moving.

Quick win: do a survey to check in how far the people in your organization actually understand your strategy and think it's a good idea. Turn it into a KPI and track it. Never point fingers when the figures turn out pretty dim, yet involve everyone who can influence the numbers into a supporter of your cause.

Truth #2: Many leaders in the organization behave against the best interest of the company.
But, as I said before, can you blame them? When facing their boards, most CEOs I ever met are prepared to go for the long run, yet simply don't get decent marketing ammunition to actually pull it off.

Marketing departments need to back up their leaders with 'hard number' based business cases. This means getting serious about customer (life-time) value and measuring the impact of different business initiatives. It means integrating with sales and using decent scenario planning and market prediction methods rather than hazy market research. It means talking the language of money rather than that of "propensity to buy."

Boards are greedy and will support a plan that makes them more money in the long run. Yet to be able to sell such a plan (and its quarterly sequels) leaders need ammunition. The marketing department needs to provide this.

Quick win: start building your credibility by connecting your various marketing initiatives to your sales line. If you're in B2C this will typically allow you to cut your budget by 20% or more without affecting sales. If you're in B2B, it will either increase your closing rate or give your sales people more leads. Win brownie points with this initiative and propose to use the money freed up to do "more of the same" working on a larger scale customer value project.

Truth #3: The people in the organization are often paid to do something else than what the strategy says.
Don't worry, I'm not going to propose that you need to go and challenge the pay grades in your organization (even though someone should). Yet what you can do is translate the promise of your company or brand into desired behavior at the "moments of truth" and then work with HR to devise non-financial reward and recognition systems to support each of them. These can be "employee of the month" programs, a mention in the company newsletter or simply a personal thank you. People respond to recognition and if you reward them for "getting it right" this can be a first step in offsetting salary inconsistencies with the strategy.

Quick win: Rather than trying to take on the whole company, start with identifying for each department in the organization the "one thing" that would definitely need to go right to deliver on the promise to the customers. Partner with HR and then promote the hell out of this one thing + back it up with non-financial incentives which are visibly spread throughout the organization. Once you have established the principle of recognition, the following steps will be more easy.

Truth #4: Quite a few people in your organization are at a loss when it comes to the customer.
While many struggle with the concept of "customer insight," I typically find that whenever you hit upon a real one, it tends to be simple and straightforward. As marketing needs to uncover these insights, it's also its role to spread it to every person the company.

After all, understanding how the organization responds to very specific customer types and needs means that your people are able to come up with the right answers and solutions without the need for extensive processes, manuals or control mechanisms. This accellerates the appropriate service reaction and in turn increases customer satisfaction.

Quick win: Rather than taking on the whole company, pick the group which is currently most remote from the customer (e.g. R&D or engineering). Expose them to the insights you have uncovered and have them work through the implications for their job. Make them understand the customer. Then let them loose on the company again. It will work.

Final Thought
As I said, trying to cover all of this in one blogpost was probably chewing off too much. Still, the main message I wanted to give is that many of the disconnects in organizations can be resolved if marketing and HR work together on communicating and incentivizing people to act according to the strategy (staff and leaders alike).

And while you may say that this is also the job of other departments, marketing needs to take the lead. After all, it's not just marketing's job to "come up" with a value or brand proposition, but also to make sure it gets acted upon. This means addressing the above through communication programs, market insights, decision support systems and strong analysis.

And the good news is that these are all things marketing is good at. Right ? ;-)

In most companies I know the distance between the marketing and HR department is less than 10 minutes. Perhaps it's time for a walk …

The 10 Truths of 'Real' Guerrilla Marketers

If you look up the definition “Guerrilla Marketing, is an unconventional way of performing promotional activities on a very low budget”.  While this is accurate, I’m not buying it.
   
The great guerilleros like Che or Mao had something more going for them than being “unconventional and cheap”.  Their battles became legend because they were thinking beyond next quarter.That’s why in this post I’m going in search of that “something more”.  As usual, I’m not claiming wisdom, so if you find omissions or flaws in my mini Sun Tzu on the Art of Guerilla Marketing, don’t hesitate to hit me.
   
And if all this macho talk of warfare is getting a bit too masculine for your taste, just remember that Ms. Wang Cong’er (aka. Mulan only without the happy ending) was one of the fiercest guerilleros of them all.
   
Here we go …

# 1 Set out to Change the World
In the spirit of Guy Kawasaki: Don’t launch a business unless you’re prepared to change the world.  No one ever freed a nation with features and benefits.  People will only get excited about your initiatives if you clearly articulate how your proposition will liberate your customers in a way none of your competitors can.  That is the true cause and banner of your guerrilla.  And if you can’t come up with it, don’t bother with the rest of this list.

# 2 It’s not about the battle, it’s about the war
If successfully waged, guerrilla causes “death by a thousand bee-stings”.  Yet all too often, marketing initiatives that claim to be guerrilla in nature, are planned without regard for the 999 stings to come.  This leaves successful campaigns without follow-up or even budget.  While in war there may be merit in merely irritating your enemy, in business it’s simply a waste of money.

# 3 Power to the People
No guerrilla or revolution can succeed without popular support.  Guerilla campaigns are a great opportunity to involve your most loyal customers and staff.  Consider community marketing, CGM and co-creation programmes to get them in the loop.  Not to make money, yet to help achieve the change you described in point 1. People love to improve the world.  Invite them to your cause and treat them well.

# 4 Deploy Mercenaries Wisely
While agencies can be great allies in having extra resources to deploy, they also know that there will be a time that you will abandon them (come one, be honest).  That is why they will serve offer you the same loyalty of any mercenary; as long as the money’s good.  The moment a budgetary glitch reduces budgets or margins, they will leave you to your own devices.  That is why you should involve agencies whenever you need the extra firepower, yet avoid relying on them for the long run.  That, you can only do on your own staff and customers (as long as you treat them well).

# 5 Think Small, but Spectacular
Guerilla campaigns are high on brainpower and low on budget.  They use creativity, speed and adaptability to capitalise on high-profile opportunities.  Foster this attitude by combining tight budgets with high to impossible expectations from your marketing team or agency.  And when they get lost in opportunities, focus their attention on the one thing that will really blow the market’s mind.
 
# 6 Keep Them Guessing
Guerilla campaigns always capitalise on the element of surprise.  Not once, yet over and over again.  If you have something that works, change it before your competitors can respond.  If you focus on one geographic region in one month, move somewhere completely different (or not).  If you can create a rhythm of surprise, yet stay true to your cause, your competitors won’t see your next move coming, while your popular support keeps growing.

# 7 Get the Gold and Get Out
Guerilla campaigns are executed with laser precision.  This means they get clear, quantifiable business objectives.  Once these are achieved, you get out.  Prolonging your initiative only leads to wasted resources plus gives your competition time to react.  Similarly, if it looks like a new tactic you try isn’t working, get out fast.  Don’t let your pride get in the way and run to fight another day.

# 8 Lead the Charge
Every cause needs a leader who’s drive cannot be captured in a PowerPoint presentation.  Love it or hate it, but this leader is you.  And if you don’t have the time to be with your troops when they need you, find someone who cares enough about your cause to do it in your place.  Leaders are where the action is, and in your case that’s among your community, customers and staff.

# 9 Don’t forget propaganda
These days it’s probably called word-of-mouth (WOM), yet in the old days whenever the Partizans in Italy blew up another stronghold, the country knew about it in an instant.  If one of your guerrilla marketing campaigns hits a home-run, get yourself a megaphone and shout it off the roofs.  You have taken another step to change the world.  And don’t take the credit yourself, but celebrate your heroes (customers, staff and other) for they will be your biggest source of WOM.

# 10 Don’t get killed by friendly fire
Guerrilla campaigns are by definition unorthodox, daring, visible, accountable and prone to failure.  This means that if you’re in a large organisation, people can get nervous about them. Prepare the ground by selling your bosses on your cause and the path you intend to walk.  Demonstrate the benefits of involving your customer community and focusing your staff on “one goal”.  And if it looks like you really won’t get any air cover, don’t go it alone.  Dead soldiers can’t win wars.

Happy fighting! 

US 18-34 Year Olds are Rapidly Changing Their News Consumptions Patterns

If you ever needed any more convincing that the nature of media-consumption is changing, have a look at the research findings of Abandoning the News by the Carnegie Corporation (note: the juicy bits start from Slide 15 onwards).

In short, the age group 18-34 is rapidly, and it would seem irrevocably from the traditional sources of news.  In stead, the segment is rapidly switching to the internet and - surprisingly to some - local news.

Internet portals like Yahoo, MSN have emerged in the survey as the most frequently cited daily news sourced, with 44% of the group using these portals at least once a day for news, ahead of local TV (37%) and all other media.

Young people, the report concludes, don't want to rely on the morning paper on their doorstep or the dinnertime newscast for up-to-date information; in fact, they - as well as others, want their news on demand, when it works for them.  

While posing valid questions for the media trade, this also means marketeers should - rapidly - start thinking about new ways to do mediabuying as it looks like some predictions from the dot-com age are starting to become reality.