Are you struggling with where you can create a first mover market advantage in 2012? Before you choose, consider reading Booz & Co.’s newest “Global Innovation 1000″ report. It debunks the myth that there is a direct correlation between R&D spending and higher levels of innovation. These findings will help you determine where to invest your resources and grow.
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If you have been dragged into the land of commoditization, your job is to escape as quickly as you can. It is a dubious place to live with marginal value or spark.Things will not improve–unless you are willing to experiment with customer-centric marketing ideas to uncover category-killing innovations. With some determination, planning, and a bit of luck, you may just position yourself to become the next Apple in your industry. Let me illustrate why this is the ideal time to consider customer-centric marketing. Most of your competitors are still hoarding cash and focusing inward. Worse yet, they may be buying into the media naysayers, who are claiming that the U.S. is ostensibly in the midst of a “lost decade.” You can’t make this stuff up–I heard it on the BBC this week (I guess the BBC reporter forgot that Facebook, Google, Apple, Zappos are defining a new decade. But I digress). I recently interviewed two executives who live and breathe customer centric marketing strategies: Chris Golec, CEO of DemandBase and Jim Bampos, VP of Customer Quality at EMC Corporation. This roundtable recording will provide details. Here are our collective recommendations to help you engage your customers in your commodity “escape plan”: 1. Accept the fact that sometimes, your products and services cannot escape the commodity trap. The only remaining area where you can outpace competition are your relationships with customers, vendors, your employees, and your community. Zappos, now an amazon subsidiary, does this very well.Their culture is obsessed with delivering fun, weird, memorable customer experiences. Golec reported that DemandBase’s unique customer relationships and customer success program have enabled them to discover an unmet need, which resulted in a new product idea that now comprises nearly 90% of their total revenues. 2. Track how often you put your customer first while making strategic and marketing decisions. Customer-centric cultures share one thing in common: the entire company is oriented and incented around customer success, and a single customer metric shapes behavior. 3. Be mindful of end of quarter pressures to close business at any cost. They will undermine your customer-centric efforts and core competencies. Whether you are a startup or a publicly traded company, this can become a huge obstacle to long term success. Avoid succumbing to unique customization requests. Jim Bampos indicated that EMC mitigates this risk. “We take a holistic view of what is most important to the customer, then we tie it back to each business unit. The proof points are if the business units are using our customer metrics to drive business decisions.” While it is important to be responsive, it is even more critical to know your core strengths–or, to quote Jim Collins, your hedgehog. 4. While enrolling customers in key decisions, and gathering valuable feedback, monitor how your stakeholders going to take action on the data. Your customers want to know that their input is valued beyond the interview or advisory board discussion. EMC distributes mirror surveys to the entire organization to assess employee’s perception of how well EMC is managing the customer experience. 5. Get creative on metrics. If you are truly committed to building a customer centric culture and marketing plan, look beyond customer renewal rates. Golec indicates that time to value is a priceless measure: “We track the time from when we close the sale how long it takes before they have a measurable benefit from our technology. The minute that happens, we improve our relationship with that account.” Find a way to temper sales’ innate desire to drive a bigger sale and boil the ocean. 6. Focus your customer centric efforts on your ideal customers. Any program will fail if you administer programs across all customer segments and try to serve anyone with a pulse and a budget. 7. Let customers know you are building a customer-centric company. They may just have a new idea on how you can further strengthen the program. 8. Build social media incentive programs for your initiative. EMC is launching several new online forums where they will announce the agreed upon action steps generated from from their Voice of the Customer programs. Gatekeepers play an important role in managing expenses. That doesn’t mean you have to live in their world.These strategies will help you escape their commodity trap. Lisa Nirell helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Zappos, BMC Software, Adobe, Microsoft, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, FastCompany expert blogger, and author of the acclaimed “EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company.” Download your sample chapter and business energy booster survey at www.energizegrowth.com. [Image Source: respectalliance.com] This post originally appeared on fastcompany.com. copyright 2011, Lisa Nirell. All rights reserved.
I met Shane, a dubiously anointed “star salesperson,” on a client assignment in San Diego. He piloted the biggest customers. When I worked with the General Manager of this $40M software division—his boss—I noticed how Shane could turn the entire support and customer service organization into a tailspin with one email. I cringed when I witnessed how his knee-jerk reactions drove adrenaline levels to an all-time high. Things became so heated that the CEO ultimately reassigned him to another division. In fact, he committed an even greater sin: he promoted him to VP of Sales. Over the years, Shane’s General Manager was equally to blame. He fostered a customer-driven culture. And, as a B2B business leader, you may be unconsciously acting the same way. This behavior is guaranteed to stall your growth and burn out your best people. First, let’s draw a distinct line between customer-focused and customer-driven cultures. Think of customer-driven companies as those firms who will go the extra mile for every customer, no matter how large or small. They allocate their best resources to every account. And the founders probably invest at least half of their time with customers. Read on for a more exhaustive list. Conversely, customer-centric companies put customer needs (latent and overt) front and center when making important growth decisions—not all decisions. They treat clients in accordance with their values. But they are unwilling to sacrifice their relationships and principles to make one more sale. Contrary to common wisdom, every B2B firm is not in the customer service business. My auto mechanic is. And guess what? If they mess up my new Audi SUV, I will complain and find another one. Here are common traits of client-driven cultures. If more than three ring true for you, it may be time to re-visit your true purpose and ways of operating:
Imagine if my local airport – Washington National– were run this way. Any self-appointed “important person” would fight to control their own runway. The gates would admit passengers on a first come, first served basis. Air traffic control would be rendered useless. The inmates would indeed be running the asylum. Shane cannot be trusted roaming the airport terminal without adult supervision. Nor are your teams if you have given them carte blanche to rule the airways with customer driven behaviors. Act now before the controllers (your customers) go on strike. Lisa Nirell helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Zappos, BMC Software, Adobe, Microsoft, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, FastCompany expert blogger, and author of the acclaimed “EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company.” Download your sample chapter and business energy booster survey at www.energizegrowth.com. [Image: Flickr user Ed Yourdon] This post originally appeared on fastcompany.com. Copyright 2011, Lisa Nirell. All rights reserved. When you can attribute a 20% revenue gain to a customer centric culture or program, you get noticed. And that’s exactly what happened to several Voice of the Customer thought leaders during the annual Allegiance Engage Summit 2011 in Deer Valley, Utah. Jim Bampos, VP of Customer Quality at EMC Corporation, was one of the show stealers–and for good reason. Unlike many companies who talk a good game about putting customers first, EMC can prove it. EMC dances on the leading edge of the Voice of the Customer (VoC) movement. Click here to watch the 7 minute Jim Bampos EMC interview. VoC programs emerged from the market research milieu. This term describes the in-depth process of capturing a customer’s expectations, preferences and aversions. Specifically, VoC systems produce a detailed set of customer wants and needs and prioritizes them in terms of relative importance and satisfaction with current alternatives. Highly evolved VOC program leaders also analyze and act upon free form customer comments from multiple sources, including call centers, salespeople, Twitter, etc. VoC solution providers such as Allegiance, based in South Jordan, Utah, have flourished in response to the VoC movement. EMC became one of their early adopters out of necessity. Although EMC was enjoying double digit growth, it was facing intense competition. They needed to think differently about the customer experience. Says Bampos, “We really did not understand the full customer life cycle from the time that they were made aware of our solutions to the end of life of our products. The professional services organization was the first to launch a pilot VOC program to bridge the gaps between the customers and the internal support organization.” EMC’s VoC pilot program gained traction within two years. Since launching the VOC program, they have witnessed a 30 point Net Promoter Score improvement and over 20% revenue increase–representing hundreds of millions of top line revenue. Other competitive industries are following suit. During her Summit keynote presentation, Bonny Simi of JetBlue also shared details about their Voice of the Customer program. “Our mission is to bring humanity back to travel. How can you know how you are doing without asking your customers?” Simi, an accomplished business strategist, Olympian and airline captain, described their palpable two year VOC journey. Simi and her team juggle 50,000 survey responses per month and 1.6 million Twitter followers. Gathering and analyzing customer data is a small piece of the VoC puzzle. She spends a great deal of time demonstrating the value and ROI of their program, as well as gaining sponsors across departments and locations. Click here to watch the 5 minute Bonny Simi JetBlue interview. The right survey tools can help smooth out the VoC journey, but should not precede solid branding, a customer-obsessed culture, and strong executive sponsorship. Bruce Temkin, founder of Temkin Group in Boston Massachusetts, emphasizes that companies need to master four customer experience competencies in order to become truly customer-centric: purposeful leadership, compelling brand Values, employee engagement, and customer connectedness. Temkin posits that “It turns out that companies are only as strong as their weakest link. VoC Programs are often an important tool in building the Customer Connectedness competency. We recently had more than 200 large companies complete our competency assessment and only 3% ended up at the highest level of customer experience management maturity, what we call a Customer-Centric Organization.” After spending three days with over 300 VoC zealots, these statistics do not surprise me. The majority of companies attending the Engage Summit are still in the early stages of determining the ideal data collection and validation methods. VoC leaders still spend most of their time discussing the right listening posts, choosing the questions to ask, and debating ideal metrics to use. Clearly, most B2B companies have a long way to go towards becoming truly customer-centric. Allegiance is clever enough to create an annual event that attracts fervent customer evangelists–half of whom are not yet their customers–to accelerate industry adoption. If your company is considering a VoC program launch, beware of the rush to select a technology solution. First, invest the time in defining the purpose of your program. Executive support will take time. Tell people why you are embarking on the program, and how you will use the customer data once you have collected it. VoC programs typically provide these benefits:
VoC evangelists Bonny Simi and Jim Bampos have their work cut out for them. With only two years of VoC under their belts, the journey ahead will be met with some resistance. Let’s hope they focus their energies on the art of enchantment and influence, and leave the community building and tool making to market leaders such as Allegiance. Lisa Nirell is the “Chief Energy Officer” of EnergizeGrowth® LLC. She advises B2B companies who aspire to create sustainable companies by attracting great customers. Companies such as Microsoft, IBM, Wells Fargo Advisors, and dozens of mid-market companies have worked with Lisa to achieve sustainable competitive advantage. Visit www.energizegrowth.com and http://blog.energizegrowth.com to assess your company’s readiness to grow by downloading your complimentary Wealthy Company Scorecard.
I sat next to Joe on a flight home to San Diego, California, a few months before the September 11, 2001 attacks forever changed and heightened my global views. What struck me about Joe was his calm reserve and thoughtful presence. We enjoyed discussing world politics, his career as former Commander in Chief of the United States Central Command (CENTCOM), and the good life in Southern California. I asked Joe one question that elicited a response which will stay with me forever. When I asked him the secret to his decades of successful military service, he said, “I dedicate time every day to quietly reflect.” This week, Joe’s simple yet profound statement became even more relevant as responses to bin Laden’s death exploded across every media channel. Over the past 27 years, I have witnessed many forms of military exercises in the business world. They certainly d
It took me several days to reflect on this momentous week. My emotions vacillated from the levity of the Royal Wedding to the gravitas of the Abbottabad compound attack. After much turmoil and contemplative thought, I realized the opportunity ahead. Not just for me, but for all business owners and leaders. This attack represents, to some degree, closure. We have defeated a major competitor. The costs are far too great to enumerate, even though some self-anointed economists and experts will try convincing you otherwise. We have not obliterated the Taliban, but we have at least weakened their cause considerably. We are at a crossroads: As a nation, we can continue to fan the anti-terrorist flames, mindlessly expand our military complex, and feed the Homeland Security three headed dragon. Or we can channel our immense talent, resources, and passion towards education, innovation, and creating private sector jobs — the essence of what makes American business shine. Think back at your most recent competitive or company-wide victory. Ask yourself these questions:
Joe Hoar contributed the earlier half of his life to fighting the bad guys in faraway places such as Yemen, Somalia, and the Persian Gulf. Since his retirement in 1994, this spry 77 year old spends his time advising global companies and staying physically active. Joe reminds me that it is never too late to re-invent yourself and leverage your natural gifts. For the first time in ten years, I am hopeful that the era of mass fear and terrorist-driven paranoia is over. Let’s use this historical moment to re-direct our actions and resources towards purpose-driven growth planning, global understanding, and innovation. [Photo courtesy of wikipedia.org] [This post originally appeared in FastCompany.] Copyright 2011, Lisa Nirell. All rights reserved. Lisa Nirell is the Chief Energy Officer of EnergizeGrowth®. She helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Trend Micro, Adobe, BMC Software, Microsoft, IBM, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, business columnist and the author of “EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company.” To download your five complimentary educational bonuses and sample chapter, visit www.energizegrowth.com and register for EnergizeNews. |
  
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One of my close friends provides image consulting and communications training to corporations and professionals in career transition. She is regularly bombarded with calls from low level gatekeepers in Human Resources, Finance, Training, and other non-revenue producing functional areas.The gatekeepers’ job is to turn your company into a commodity. They are “tasked” with getting quotes from trainers, or to gather price quotes for their esteemed RFP process. Most make you feel about as warm and fuzzy as your consultation with an IRS auditor.
When your biggest customer calls with an emergency request, do you dial 911? Chances are you are setting off unintended fire alarms – and causing your profits to lose altitude.
Ask any decorated leader — military or business — what keeps them focused and energized. They will echo what retired U.S. General Joseph Hoar shared with me a decade ago: a daily commitment to quietly reflect and re-evaluate our course. As world citizens discuss and debate the proper way to respond to the successful capture and killing of Osama bin Laden, we face the same opportunity.
o not compare in magnitude to the events witnessed this week. But the principles and lessons in the battle for market share still apply. In the business world, these “exercises” come in two flavors:
