The Sadness Surrounding CRM
Monday July 16th 2007, 10:11 am
Filed under: Customer Feedback

As I reflect over the past three decades, the time I’ve tried various means to bring companies and customers closer together, I have more than a bit of sadness over what’s happened to all the noble purposed “movements” towards more customer-centric business that have come - and not gone, but evolved into the next “new thing.” We went from a generic form of “solution selling” plus “field marketing” in the 1970s; to “database marketing” and “micromarketing” and “relationship marketing” in the 1980’s; to “drip marketing,” “one-to-one” marketing” and “SFA” in the early nineties; to “CRM” and “Marketing Analytics” in the late 1990s, to “nurture marketing” and “CEM” and “customer-centricity” today. And there will be a “next new thing,” to be sure.

I just hope what’s happened to all the previous movements, and CRM most of all, doesn’t happen to the next.

And what terrible thing is that? Being highjacked by people and companies with near total disregard for “purpose” and near total additction to “profits.” Sounds pretty naive doesn’t it? Of course concepts will be commercialized. Just look at the business process side of our practice where Six Sigma, Lean and Balanced Scorecard have all been twisted beyond recognition into money-making opportunities. Further, I can’t really call people violating the very concepts they’re making money from “unscrupulous” or “greedy opportunists” without calling out folks everwhere working a trend to make money, which we all have to make.

But I can call them “their own worst enemy.” I can call them that because abuse of CRM principles in order to make a quick buck (or Euro, or …) - not just by software vendors, but by many consultants as well - almost killed the goose that laid the golden egg. And did leave it crippled. If these “strike while the concept is hot” folks had shown a bit of patience and not marketed and sold stuff they didn’t understand and couldn’t make work, the core concept of CRM would have taken much stronger and deeper root in business thinking, instead of falling into near disrepute. But these profiteers foolishly robbed themselves of what otherwise would have been a much larger opportunity.

I feel not the slightest pity for the perpetrators. They did it to themselves. But I do deeply regret that the CRM movement never reached its potential to unite companies and customers. Instead, we now have customers leading the charge for customer-centricity with companies stumbling along far behind. “Would have been…, could have been…” Really ticks me off, especially when I put on my customer hat.

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When Consumer Watchdogs "Bite" Consumers
Monday July 23rd 2007, 5:55 pm
Filed under: Customer Feedback

Supposed protectors of consumers share a special responsibility for, well, protecting consumers. And not just pubically, but in their out-of-sight direct dealings with consumers. Predatory business practices have no place in their environment. And while a few of my esteemed colleagues might refer to watchdogs taking a nip out of their protectees as “capitalism at work” - and objections to these practices as naive - I happen to think this stuff is outright smarmy. Further, I believe that these “bites” not only injure consumers but boomerang back on the perpetrators of these offenses as well, undercutting their credibility, and ultimately, subtracting from their loyal following.  

Let me give you an example. We recently enjoyed a visit from my indomitable mother, who’s 90, legally blind, still travels alone (with some help from any stranger around when she needs it) - and she can rip someone (or something) a new one with the best of ‘em. Which is exactly what she did to AARP on her visit. Oh, and for the unitiated and the younger set, AARP is therwise known as the American Association of Retired People, which is now expanding its market niche to include folks over the ripe old retirement threshold of 50.

So here’s her gripe. AARP lends affliliated direct marketers its member list; allows them to market in AARP’s name; and splits the take with these marketers - which is probably why I’ve never found AARP price competitive on anything. But what AARP doesn’t do is what caught her attention.

Curiously, this “watchdog” organization does not require marketing partners to sell only those products and services appropriate for individual members. Ironic for an organization supposedly committed to protecting its constituency from being taken advantage of because of age. To wit, how the hell likely is it that my dear old Mum needs a new AARP credit card? A lot less likely than the chance of a telemarketer copping a commission by selling the card to someone the same age who’s not retained his or her mental acuity. Oh, and how about car insurance? Ninety years old and legally blind? Well, perhaps AARP is too busy marketing its member lists to bother obtaining enough member information to help it steer the right products and services to the right people, if it cared. But whatever the case. Mom is making AARP pay.

As it happens, my mother is an incredible viral marketer. She volunteers at a nursing home. She works with not only patients but their families as well. She has lots of friends (who tend to be younger than she, because of her vitality). And, ‘xuse me Mom, she loves to diss anyone and anything that doesn’t measure up to her standards to anyone who cares, and even some who don’t. And now she’s dissing away. If AARP had ears (I”m afraid it only has a mouth), they’d be buzzing like crazy right now, and for a good long time to come. And a whole lot of folks who just might have considered using AARP’s travel, insurance and financial service products are now going to think twice. Gives a new meaning to “viral” marketing. Just deadly.

So the perpetrators do pay for their sins - at least sometimes. And as for AARP, guess we could change its purpose to “Protecting older people from being taken advantage of - except by AARP.”

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