Re-inventing CRM For the Customer-centric Organization Mike Boysen, Effective CRM

The CRM Industry’s Unique Position All businesses need customers All businesses need customers CRM has a “C” in it CRM has a “C” in it Every part of the business is involved in serving customers Every part of the business is involved in serving customers Opportunities abound beyond sales, marketing & service Opportunities abound beyond sales, marketing & service

“The second is that automation applied to an inefficient operation will magnify the inefficiency. ” “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. ” Rule 1. Rule 2. Technology Does Not Drive Outcomes

Where is it written that CRM disruptors will look like this…?

…when Google thinks it can “beat” the entertainment industry with a “stick”

CRM is viewed as software It’s delivered as a tool & marketed on features The tools are designed to fit within functional areas – not end-to-end business processes The Customer needs seem to have been forgotten

When CRM product development is iterated around an existing product… “Innovation” looks like the same product LAN Web

We ask… What can we build?

Not… What do our customers need?

CRM is seen as a technology to “hire”, and is relegated to the status of commodity by the IT function Getting the best price is the best practice

CRM software has become… …table stakes …a commodity

Why Are We Told We Need CRM? It provides a 360 degree view of the customer… It provides a 360 degree view of the customer… It Reduces Costs… It Reduces Costs… Better Customer Service… Better Customer Service… Better Customer Satisfaction… Better Customer Satisfaction… Better Customer Retention… Better Customer Retention… More Loyal Customers… More Loyal Customers… More Repeat Business… More Repeat Business… More New Customers… More New Customers… More Profits… More Profits…

Yet So Many Questions Remain CRM is said to solve these problems…

How can I grow my business year after year? How can I maximize profitability? What Questions are Companies Struggling to Answer?

What we know today are “needs” in terms of our current features What we know today are “needs” in terms of our current features Successful innovation requires measurable certainty. Successful innovation requires measurable certainty. What we need to know are all of our customers desired outcomes What we need to know are all of our customers desired outcomes Certainty requires a systematic & complete understanding of customer needs Certainty requires a systematic & complete understanding of customer needs

We’re only addressing part of our customers’ job… …and only a handful of “needs”

The CRM Market Today

The CRM Industry is BOOMING!

Organizations spent $220 billion implementing CRM solutions Source: A Strategic Framework for Customer Relationship Management – A. Payne, P. Frow

Organizations spent >$300 billion The CRM Industry is clearly still growing

of companies fail to meet the expected return on their CRM investment “ Source: Customer Relationship Management Implementation Gaps – Zablah, Bellenger, Johnston “75% Meanwhile … of companies are able to sustain a real, inflation adjusted growth rate of more than 6%” Source: Stall Points – Corporate Strategy Board “5% reach a point where growth simply stalls, to rates at or below the rate of growth of GNP” Source: Stall Points – Corporate Strategy Board “95% Source: Stall Points – Corporate Strategy Board and The Innovator’s Solution – C. Christensen

Here’s the scary part… Of the companies whose growth stalls, only 4% are able to successfully reignite their growth to even 1% above GNP growth. The equity markets brutally punish these companies.

If Facebook can stall So can CRM Vendors

CRM Customers Don’t Want CRM Software… They Want to Grow (profitably) While they struggle to articulate this…

So Do Vendors!

What a Difference a Few Years Makes Source: Google Trends

Fail Fast is not an option. (this is not amateur hour)

People want to get the whole job done… …on a single platform And they will pay more to get the job, or jobs done better than alternatives …or more related jobs done…

Define the job-to-be-done Get the whole job done Discover the segment A 3 Phased Approach

Define the job-to-be-done What job are companies hiring your product for? Adjust the temperature?

That’s what the product does, but… Define the job-to-be-done What job are people trying to get done?

Product-centricCustomer-centric What job are people hiring my product for? What job is the customer trying to get done? Define the job-to-be-done

Adjust the temperature? Define the job-to-be-done Achieve personal comfort? Or is it…

Grow a crop? Plow a field?

Define the job-to-be-done Discover the segment Get the whole job done

Segment the market Determine all your customers’ needs, not just the ones they articulate Measure your customer needs Target underserved opportunities (needs), not ideas

Stop looking in the usual places for the next big idea….

Define the job-to-be-done Discover the segment Get the whole job done

Define the job from the customer’s perspective Define the job from the customer’s perspective The entire job; not just part of it The entire job; not just part of it People will only pay more for significant improvement People will only pay more for significant improvement “If” they are underserved “If” they are underserved

Products rarely get the whole job done We need to get more of the job done On a single platform Achieve Personal Comfort

Win a disproportionate share of the profits 7x the price 5% market share 20% profit share 5x the price 21% market share 72% profit share

Domains of CRM Innovation Removing the artifical barrier between front & back office Removing the artifical barrier between front & back office Understanding the entire job of CRM Understanding the entire job of CRM Design for the job to be done, not one size fits all (a la carte, same cafeteria) Design for the job to be done, not one size fits all (a la carte, same cafeteria) Continuously monitor the shift in what customers value Continuously monitor the shift in what customers value Build stronger internal CRM capabilities and productize them, or purchase emerging productized services in specific domains of capability Build stronger internal CRM capabilities and productize them, or purchase emerging productized services in specific domains of capability Understand that you have been disrupted and no matter what you do, you will be disrupted again. Make sure you are disrupting yourself going forward Understand that you have been disrupted and no matter what you do, you will be disrupted again. Make sure you are disrupting yourself going forward

CRM Sales Rep CRM Sales Manager Sales Support Consumers of CRM Sales, Mktg, Service Managers Sales, Mktg, Service Managers Beneficiary of CRM Related Job Executors Related Job Executors Beneficiary to CRM Customer Product or Service D BC A A.Consumer of CRM Customer’s Product of Service B.Jobs Related to the consumption of CRM Customer’s Product or Service C.Beneficiaries of the consumption of CRM Customer’s Product or Service D.Overseer/Manager of the consumption of CRM Customer’s Product or Service Consulting & Support Marketing, Product Mgmt.

What New Kinds of Information Does CRM Technology Need to Help You Collect and Act Upon? How will that new knowledge change the way you execute your capabilities over time to develop a strong brand?

Define the job-to-be-done What job are companies hiring your product for? Sell More Widgets?

Product-centricCustomer-centric What job are people hiring my CRM product for? What job is the customer trying to get done? Define the job-to-be-done

Sell more Widgets? Define the job-to-be-done Achieve sustained growth? Or is it…

Acquire new Customer? Complete Call Report?

Products rarely get the whole job done We need to get more of the job done On a single platform Achieve Sustained Growth

What Job Are You Really Trying to Get Done? People don’t want to buy a quarter-inch drill. They want a quarter- inch hole!” Ted Levitt Legendary Marketer What job(s) are your customers trying to get done with CRM software?

If You Remember Anything Today, Remember This… Any Questions? OO + NT = EOO

For more information on how to innovate around CRM, contact… Mike Boysen Principal, Effective CRM (Twitter) (blog)