Turn Customer Feedback & Complaints into Market Leadership, Dominance, Max Profitability

March 24, 2017 Leave a comment

Turn Customer Insights & Complaints into Market Leadership, Dominance, Max Profitability

Research has shown that customers are willing to donate their time (approx. 5-10 hours per week) to become a company and brand partner to help your company grow and become more successful

Key Customer Questions to Grow Your Market Share, Profitability

If you don’t ask your customers for insights, they will share them with someone else in the form of negative feedback, complaining, etc. which will erode your perception in the marketplace

Golden Questions to Win New Customer, Expand Your Business with New Products & Services

Customers are your best source for insights to help grow and improve your business – if you don’t ask, then you are ignoring valuable feedback that your competitors potentially could exploit to your detriment

Customer Complaints Can Be Turned Into Gold with the Right Approach

Treat Customer Complaints not as annoyances but rather as gifts to the company and brand(s)

Transform Customer Complaints into Company Expansion Plans and Customers into Brand Advocates

A carefully constructed customer-partner system will simultaneously cultivate great customer business expansion ideas as well as customer advocates and partners (Research has shown that, by enabling customers to provide continuous feedback and insights, customer longer-term loyalty has correspondingly increased)

Filed under CRM, Customer Profitability, customer service Tagged with brand perception, continuous customer improvement, continuous improvement, CRM Blog, Customer Advisory Groups, customer advocate, customer ambassador, customer analytics, customer approach, customer benchmarking, customer benefit, customer brainstorming, customer brand partner, customer brand partners, customer brand perception, customer commitment, Customer Complaints, customer continuous feedback, customer crowd sourcing, customer detriment, customer disdain, customer feedback, Customer focus groups, customer generated ideas, customer goals, customer golden insights, customer golden opportunities, customer golden questions, customer ideas, customer improvement opportunities, customer improvement programs, customer information, customer innovative, customer innovators, customer insights, customer insights sharing groups, customer loyalty groups, customer loyalty increase, customer market share, customer needs, customer negative feedback, customer partner program, customer partner system, customer partners, customer perception, customer pet peeves, customer pilots, customer point of view, customer points of light, customer preferences, customer product previews, Customer Profitability, customer questionnaire, customer remediation, customer service pilots, customer SLAs, Customer Strategy Blog, customer surveys, customer transformation, Customers first, frequent customers, ignoring customer feedback, ignoring customer trends, long-term loyalty, loyal customers, Market Dominance, market erosion, Market Leadership, market trends, Maximized Profitability, Most Valuable Customers, mystery shoppers, new customer products, new customer services, trend spotter, voice of customer

Blow Away Your Competition by Replacing Your Old CRM Program with the New Customer Relevant Relationship Management (CRRM) Model – Part 2: The Necessary Components.

March 18, 2012 4 Comments

1) Introduction:

In my previous blog, I covered what the new Customer Relevant Relationship Model (CRRM) is and the benefits of adopting this new model. In this blog, I will cover the components of the new CRRM model and what you need to put in place to make this new model a reality.

Ever wonder why companies like ESPN, Apple, Google, Zynga, Amazon, and Marriott dominate their respective markets? The reason is that they are ‘Customer First’ organizations and are passionate about listening to, understanding and then delighting their customers based on leveraging true customer insights. They treat their customers as business partners vs. commodities and include them in many critical decision making processes. They get this new CRRM model. Why/how ? – Read the rest of this blog to find out…

The differences between the old CRM model and how these companies are embracing the newer CRRM model are depicted in the following chart:

The Old CRM Model vs. New CRRM Model – Customers as Business Partners

2) Customers are fed up with old Dictatorial Management Style & Want to be Empowered as Business Partners

Customers and stakeholders today are longing for a company to partner with them and include them in the corporate decision making process. These same constituencies are sick and tired of political, corporate, and other organizations making unilateral decisions for them that are really not in-line with their needs, wants, etc. The backlash from this unwanted dictatorial management style of some companies can be seen in the Bank of America fee customer rebellion, the customer backlash from Netflix deciding to split their company without first consulting with their customers and HPs initial decision to exit the computer market.

3) Components of the New CRRM Model:

In order to progress your organization from the old CRM model to the new CRRM model, a few key essentials must be put in place and are as follows:

A. New CRRM Model that includes the 360° Cultivation of Customer & Market Insights. This model enables a 360° view of all customer and market insights including customer feedback, preferences, likes, dislikes, social sentiment, competitor activity, etc. This new model takes your insights to an entirely new level whereby you are now enabled to delight customers, stakeholders and stockholders by having insights that are light-years ahead of insights provided by a traditional CRM model.

B. Customer First Culture driven by management that is passionate about their customers including a set of customer first principles and guidelines developed by company leaders

C. Customer Ratings & Feedback Structure that will identify areas where you will collect customer 360° feedback from customer and stakeholder interactions

D. Customer Feedback & Preferences Cultivation Process and corresponding infrastructure in order to allow your customers to continually rate how well you are serving them

E. Customer Health Scorecard that provides real-time insights on how well the customers, stakeholders and stockholders perceives you as serving them as well as insights into a Continuous Customer Improvement Process (CCIP) that enables you to continually improve your customer perceptions, satisfaction, brand loyalty, etc.

These components can apply to large enterprises as well as Small to Medium Businesses (SMBs).

The following graphics are all sample components from the list above (A-D) that need to be put in place to enable this new CRRM Model.

New CRRM Model – 360° Cultivation of Customer & Market Insights

3A) The above chart “New CRRM Model – 360 Cultivation of Customer & Market Insights” demonstrates the new insights model that must be put in place to deliver world-class stakeholder and customer programs.

These enhanced insights will enable you to deliver products and services that delight your customers, stakeholders and stockholders as well as enable you to leapfrog the competition in terms of market share if they continue to rely on their antiquated CRM data and analytics insights only model.

For Small to Medium sized Businesses (SMBs), some of the insights do not apply, but the following charts (3B-3E) most certainly apply and can be tracked via simple Microsoft Excel spreadsheets.

CRRM Customer First Policies & Organizational Principles

3B) The above chart “CRRM Organizational Guiding Principles” demonstrates the principles that must be in-place to be customer first culture. This culture is driven by management that is passionate about their customers and governs the company around a set of customer first policies.

Sample Enterprise CRRM Customer Rating & Feedback Structure

3C) The above chart “Enterprise CRRM Customer Rating & Feedback Structure” illustrates a sample structure (will vary for each type of business) whereby customer feedback and preferences will be cultivated in order to develop 360° insights into customer needs, wants, likes, etc.

Enterprise CRRM Customer Feedback & Preferences Cultivation Process

3D) The above chart “CRRM Customer Ratings & Feedback Cultivation Process” illustrates a how customer feedback and preferences will be cultivated in order to develop 360° insights into customer needs, wants, likes, etc.

Sample Enterprise CRRM Customer Scorecard Ratings Visualization

3E) The above chart “Enterprise CRRM Customer Scorecard Ratings Visualization” illustrates a how customer feedback and preferences ratings will be visually represented in a scorecard.

Sample Enterprise CRRM Customer Scorecard Metrics

3E-2) The above chart “Enterprise CRRM Customer Scorecard” illustrates a how customer feedback and preferences ratings will be rolled up into an analytical scorecard that provides insights into customer trends, customer feedback, customer issues, core customer strengths and weaknesses, etc.

This scorecard can also be used to manage a Continuous Customer Improvement Process (CCIP) that continually drives improvements to customer perceptions, ratings, satisfaction, etc.

Sample Scorecard for “Shopping Experience”

The above depicts how analytics and metrics would be maintained for a business who had a retail or wholesale shopping function.

Sample Shopping Experience Scorecard – #2

Robust Scorecard Analytics and Metrics should support Customer Trend Identification and Root Cause Analysis for Customer Issues.

Sample Branding & Public Relations Scorecard

Sample Public Relations Scorecard Above gives you insights into how well your company and brands are perceived by customers, stakeholders, stockholders, etc.

Sample Customer Service Scorecard

Sample Customer Scorecard Above from Customer Service tells how well you are serving your customers.

Sample Marketing Scorecard

Sample Marketing Scorecard Above Gives you insights into how well your Marketing Efforts are resonating with your customers.

Sample Product Management Scorecard

The Sample Product Management Scorecard above gives you insights into how well perceived your products and services are with customers and prospects.

4) Company & Customer Benefits of Adopting the CRRM Model:

By treating customers as business partners (vs. commodities) and including them in the corporate decision making process, as well as allowing them to rate how well you are serving them from an array of customer facing areas, companies can reap huge rewards including the following:

1. Better insights into the types of products and services customers want & need

2. Fiercely loyal customers who feel part of the corporate team

3. Customers who are most likely to spend more, be retained longer and purchase at premium prices with higher profit margins

4. Customers who are very likely to be brand advocates and refer others to your company, brands, and services.

5. Customers who feel connected to the company and empowered to improve company operations

The following are actual customer comments from those who have participated in a customer feedback program to help shape products & services:

“I feel like xyz company cares about me since they ask my opinion”

“Finally a company that listens to us”

“It is so refreshing to have a company ask you your opinions on products and services vs. ramming something down our throats that we don’t like”

“Wow – this is fun. I enjoy providing my opinion”

“As silly as this might sound, xyz company is the only company that ever asked me what I wanted”

“In my opinion, xyz company is much more progressive than their competitors by seeking consumer opinions, what matters to them, etc.

5) Conclusion:

More dynamic companies like Goodle, Zynga, Amazon, etc. are inviting customers to become part of the corporate decision making process and empowering them to provide feedback, insights and rate company operations in order to drive continous customer improvements. Companies who adopt this new CRRM model whereby company management is democratized by including stakeholders and customers into the decision making process will reap the rewards of ever higher customer acquisition, retention and spend – leading to ever higher profits and share price.

Filed under CRM, Social Media Tagged with Alain Monié, Amazon, Amy C. McPherson, Andrew R. Jassy, Ann Mather, Apple, Arne M. Sorenson, Arthur D. Levinson, balanced customer scorecard, Bank of America, Barry Cottle, benefits of listening to customers, best practice customer listening programs, best practice customer management, best practice customer measurement, best practice customer policies, best practice customer scorecards, Blake G. Krikorian, Bob Mansfield, branding ratings, branding scorecard, Bruce Sewell, Cadir Lee, Colleen McCreary, consumer data warehouse, CRM programs, crowd sourcing, customer advocacy, customer advocacy councils, customer advocates, customer analytics, customer annoyances, customer attrition, customer balanced customer scorecard, customer beliefs, customer betterment, customer councils, customer culture, customer dashboard, customer data, customer data mining, customer data warehouse, customer defection, customer driven design, customer ethics, customer feedback, Customer focus groups, customer friendly organizations, customer friendly policies, customer guiding principles, customer idea sourcing, customer improvement process, customer intelligence program, customer listening program, customer management, customer management dashboard, customer measurement, customer measures, customer metrics, customer mindset, customer mindshare, customer monitoring, customer mood, customer motto, customer orientation, customer oriented culture, customer oriented policies, customer partners, customer passion, customer passionate, customer perception, customer policies, customer principles, customer procedures, customer pushback, customer ratings, customer relationship building, customer relationship enhancement, customer relationship improvement, customer satisfaction, customer satisfaction enhancement, customer satisfaction improvement, customer satisfaction ratings, customer scorecard, customer scorecard benefits, customer scorecard example, customer scorecard template, customer sentiment, customer service, customer service dashboard, customer service evaluation, customer service feedback, customer service governance, customer service improvement, customer service scorecard, customer tone, Customers first, Dave Ko, Dave Wehner, David C. Drummond, David J. Grissen, Diane B. Greene, Diego Piacentini, Eddy Cue, Edwin D. "Ed" Fuller, Eric E. Schmidt, ESPN, George Bodenheimer, Google, H. Brian Valentine, Hewlett Packard, intelligent customer service, J.W. Marriott, Jamie S. Gorelick, Jeff Karp, Jeff Williams, Jeffrey A. Wilke, Jeffrey M. Blackburn, Jeffrey P. Bezos, John L. Hennessy, John Schappert, John Seely Brown, John Skipper, Jonathan Ive, Jonathan Rubinstein, Jr, K. Ram Shriram, L. John Doerr, L. Michelle Wilson, Larry Page, Larry Page CEO, Marc A. Onetto, Mark Pincus, Market Intelligence, marketing balanced scorecard, marketing feedback, marketing ratings, marketing scorecard, Marriott, Marriott Courtyard, Marriott International, Marriott Vacation Club, Mike Verdu, Netflix, Nikesh Arora, Patricia Q. Stonesifer, Patrick Pichette, Paul S. Otellini, Peter Oppenheimer, Philip W. Schiller, pro customer policies, product defect warnings, product defects, product issues, product management feedback, product management ratings, product management scorecard, public relations feedback, public relations ratings, public relations scorecard, Reggie Davis, Robert A. Iger, Scott Forstall, Sebastian J. Gunningham, Sergey Brin, shareholder satisfaction, Shelley L. Reynolds, shopping experience feedback, shopping experience ratings, shopping experience scorecard, smart customer service, Social Intelligence, Social Listening, Social Listening Programs, SRM Programs, stakeholder management, Steve Chiang, Steven Jeffes, Steven Kessel, stockholder satisfaction, Thomas J. Szkutak, Thomas O. Ryder, Tim Cook, Tom A. Alberg, William B. (Bing) Gordon, Zynga

Blow Away Your Competition by Replacing Your Old CRM Program with the New Customer Relevant Relationship Management (CRRM) Model

January 29, 2012 8 Comments

Blow Away Your Competition by Replacing Your Old CRM **Program with a more effective Customer Relevant Relationship Management (CRRM) Model**

1) Introduction

Do you have a robust CRM program in-place, but you feel you are still missing the mark in terms of delivering what your customers really want & need?
Is your organization at risk of making market decisions that can cause a backlash and mass defection by your customers like the Bank of America $5 fee decision or the Netflix business split decision?
Do you have volumes of consumer data and analytics, but sales are declining or flat and customers are churning at an increasing rate?
Do you feel you could improve the quantity and quality of your customer insights including ascertaining critical consumer needs, preferences, likes/dislikes, interests, preferred communication channel for you to contact them, preferred timing and frequency for you to communicate with them, etc?

If you can say “Yes” to any of these questions, the rest of this post is a MUST READ for you and it is time to consider this more effective CRRM Model to replace your outdated CRM Model.

2) CRM vs. CRRM Model Overview

The following diagram depicts the major differences between the old CRM Model and the new CRRM Model including the problems associated with the old CRM model and benefits of the newer CRRM model.

Old CRM Model vs. Customer Relevant Relationship Management (CRRM)

Old CRM Model (left above):

Relies on historical data and analytics to determine what customers need, want, etc. by the analysis of sales history, types of products purchased, categories of products purchased, views on websites, stores visited, etc.
Customer activity information is a proxy to what customers really want and need. Example, you will seldom learn that a customer hates an in-store or web experience through this proxy for what they are wanting, feeling, needing, disliking, etc.
Companies are unlikely to gain insights into the impact that any future company decisions will have on customer loyalty, retention, acquisition.

New CRRM Model (right above):

Takes a more direct approach with customers and utilizes a systemic querying method to ascertain exactly what customer want/need/prefer/etc.
Embraces customer councils, customer forums, customer voting to drive future content, interactions, product/service offerings, etc.
Activity solicits ratings from customers on many aspects (marketing materials, web experience, in-store experience, product usability, quality of customer service, etc.) regarding the health of the overall customer relationship and continually asks “How well are we managing our relationship”

3) Example of CRM Model Gaps

To illustrate how companies are struggling to really determine the real needs of their customers, I took selected comments from interactions with senior CRM executives from major US Corporations based on consulting engagements, job interviews, speaking to them in passing, etc. The following charts are their actual verbatim comments as well as my read on their CRM gap that prevents them from developing world-class relationships with their customers.

Traditional CRM Programs:

Organizational culture, operations, and go-to-market strategy does not put the customer and real customer insights into the center of CRM operations
Relies on data, analytics, and customer history to drive on-going customer interactions.
Puts the organization at extreme risk of missing the boat from a customer’s perspective – real needs, wants, concerns, preferences, experiences, etc.
Companies that rely on this model are at-risk of customer defections, decreased customer spend/loyalty, etc.

New CRRM Model – with Customers In The Center of Customer Operations

New CRRM Program:

The organizational culture, operations, and go-to-market strategy puts the customer and real customer insights into the center of CRM operations rather than rely on the proxies of what customers want, i.e. data, analytics, and customer history.
The customer becomes the actual judge, ‘rater’ of whether you are delivering quality, value and a good relationship to them.
The customer is put in charge of CRM operations and enables a bi-directional and on-going dialog with the customer whereby they tell you their real needs, wants, concerns, preferences, experiences, etc.
Companies that rely on this model are more likely to develop products, services, offers, communications that delight the customer and whereby they are more loyal, greater brand advocates, and likely to refer your company to their friends as a company who listens, cares and empowers their customers.

6) Companies That ‘Get ‘CRRM

The following are samples of companies that, in my opinion, get the CRRM model and details how/why each of them get this new go-to-market customer model.

Companies That ‘Get’ CRRM – 1 of 2

Companies That Get CRRM – 2 of 2

Phrases That Describe Companies who ‘Get’ the New CRRM Model

We don’t hide behind data and analytics to drive our customer & CRM operations, but rather we ask our customers what they want.
We are eager to ask our most disgruntled customers how we can improve our relationship with them and to determine who to improve our go-to-market strategy
Before we make any major market-facing decisions, we ask a cross-segment of our customers what they think about each of our proposed decisions and then ask them how to improve upon how these changes are implemented so we ensure a continued delighted customer base.

The bottom line of this post is that, if your company relies less on historical data and analytics to determine what customer want and actually builds methods, processes, and systems to put the customer in charge of rating CRM operations in order to provide you with ongoing and valuable real insights (needs, wants, likes dislikes, preferences, concerns, etc.), the customers will feel more valued and connected with your brands. The benefit of adopting this new CRRM model will be more loyal, empowered and delighted customers who will be brand advocates and brand referrers that will increase shareholder and company value.

As I have now built this new CRRM model for several major US brands, my next blog post will be on ‘how to’ develop this capability at the enterprise level.

Filed under CRM Tagged with Alex Lintner, Amtrak, Amtrak CEO, Amtrak Customer service, Amy C. McPherson, Anne B. Ireland, Arne M. Sorenson, AVID MODJTABAI, Bank of America, Bill Campbell, Brad Smith, Brian Boardman, Caroline Donahue, Carrie L. Tolstedt, CDW, CeCe Morken, Chairman of the Board, Christina M. Corley, Communispace, Computer Discount Warehouse, consumer analytics, consumer backlash, consumer councils, consumer data, consumer data mining, consumer data warehouse, consumer feedback, Consumer focus groups, consumer information, consumer insight mining, consumer insights, Consumer Intelligence, consumer loyalty, consumer needs, consumer preferences, consumer sentiment, Consumer trends, CRM, CRM Excellence, CRM model, CRM Operating model, CRM Operations, CRM process, customer acquisition, customer analytics, customer backlash, customer brand advocate, customer brand referrer, customer churn, customer concerns, customer councils, customer data, customer data mining, customer data warehouse, customer defection, customer dissatisfaction, customer driven design, customer driven operations, customer driven requirements, Customer Experience, customer feedback, Customer focus groups, customer hate, customer hates, customer information, customer insight mining, customer insights, customer insights group, customer intelligence, customer ire, Customer Loyalty, customer management, customer needs, customer oriented, customer oriented culture, customer preferences, customer products group, Customer Relationship Management, customer satisfaction, customer service excellence, customer service feedback, customer strategy, customer strategy development, Customer Trends, customers are always right, Customers first, customers suck, Dan Maurer, DAVID A. HOYT, David J. Grissen, DAVID M. CARROLL, Dennis G. Berger, Douglas E. Eckrote, Eric Dunn, Executive Vice President, Facebook, Federal Emergency Management Administration, FEMA, frustrated customer, Ginny T. Lee, Godiva, Godiva Chocolate, Intuit, Intuit CEO, Intuit Software, J.W. Marriott, JAMES M. STROTHER, Jill Ward, John A. Edwardson, John G. Stumpf, Jonathan J. Stevens, Jr, KEVIN A. RHEIN, Kiran Patel, Laura Fennell, Macys, Macys Corporate Marketing, Macys Marketing, Maria M. Sullivan, market insights, Market Intelligence, Marriott, Matthew A. Troka, Michael J. Loughlin, Mr. Don Gould, Mr. Gene Dunkin, Mr. James A. Goldman, Mr. Michael Simon, Mr. Richard M. Paschal, Neal J. Campbell, Netflix, Nora Denzel, PATRICIA R. CALLAHAN, Per-Kristian (Kris) Halvorsen, poor customer service, product councils, R. Neil Williams, RICHARD D. LEVY, Sasan Goodarzi, Scott Cook, Sears Holdings, Senior VIce President, Sherry Whiteley, Social Listening, Social Listening Programs, Social Sentiment, Steve Malik, Steven Jeffes, Tayloe Stansbury, Terry Lundgren, Thomas E. Richards, Timothy J. Sloan, Volvo, Volvo North America, Wells Fargo, Wells Fargo CEO

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Turn Customer Feedback & Complaints into Market Leadership, Dominance, Max Profitability

Research has shown that customers are willing to donate their time (approx. 5-10 hours per week) to become a company and brand partner to help your company grow and become more successful

If you don’t ask your customers for insights, they will share them with someone else in the form of negative feedback, complaining, etc. which will erode your perception in the marketplace

Customers are your best source for insights to help grow and improve your business – if you don’t ask, then you are ignoring valuable feedback that your competitors potentially could exploit to your detriment

Treat Customer Complaints not as annoyances but rather as gifts to the company and brand(s)

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Blow Away Your Competition by Replacing Your Old CRM Program with the New Customer Relevant Relationship Management (CRRM) Model – Part 2: The Necessary Components.

1) Introduction:

2) Customers are fed up with old Dictatorial Management Style & Want to be Empowered as Business Partners

3) Components of the New CRRM Model:

B. Customer First Culture driven by management that is passionate about their customers including a set of customer first principles and guidelines developed by company leaders

C. Customer Ratings & Feedback Structure that will identify areas where you will collect customer 360° feedback from customer and stakeholder interactions

D. Customer Feedback & Preferences Cultivation Process and corresponding infrastructure in order to allow your customers to continually rate how well you are serving them

4) Company & Customer Benefits of Adopting the CRRM Model:

5) Conclusion:

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Blow Away Your Competition by Replacing Your Old CRM Program with the New Customer Relevant Relationship Management (CRRM) Model

Blow Away Your Competition by Replacing Your Old CRM Program with a more effective Customer Relevant Relationship Management (CRRM) Model

1) Introduction

2) CRM vs. CRRM Model Overview

3) Example of CRM Model Gaps

6) Companies That ‘Get ‘CRRM

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Like this:

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Blow Away Your Competition by Replacing Your Old CRM **Program with a more effective Customer Relevant Relationship Management (CRRM) Model**