re-inventing crm for the customer-centric organization mike boysen, effective crm...
TRANSCRIPT
The CRM Industry’s Unique Position
• All businesses need customers
• CRM has a “C” in it• Every part of the business is
involved in serving customers• 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 Reduces Costs…• Better Customer Service…• Better Customer Satisfaction…• Better Customer Retention…• More Loyal Customers…• More Repeat Business…• More New Customers…• 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
• Successful innovation requires measurable certainty.
• What we need to know are all of our customers desired outcomes
• 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
2000 - 2005
Organizations spent >$300 billion
The CRM Industry is clearly still growing
2008 - 2012
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!
2004
2012
What a Difference a Few Years MakesSource: 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 moreto get the job, or jobs done
better than alternatives
…or more related jobs done…
Define thejob-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-centric Customer-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 thejob-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 thejob-to-be-done
Discover the segment
Get the whole job done
Get the whole job done
• Define the job from the customer’s perspective
• The entire job; not just part of it
• People will only pay more for significant improvement
• “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 disproportionateshare of the profits
7x the price5% market share
20% profit share
5x the price21% market share
72% profit share
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-centric Customer-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 LevittLegendary Marketer
What job(s) are your customers trying to get done with CRM
software?
For more information on how to innovate around CRM, contact…
Mike BoysenPrincipal, Effective [email protected]
@mikeboysen (Twitter)www.mikeboysen.com (blog)