Posts Tagged ‘Customer Relationships’
Saturday Morning Reads: (Re)Organizing for the Customer
Without a doubt, this downturned economy has been a struggle for most organizations. Layoffs, reorganizations and new executives seem to be the crutch du jour (perhaps ‘du ans’ is more fitting) to fix downward spiraling revenues. Add to that a layer of new(ish) customer communications and feedback via social media channels and you have yet another complexity to deal with. In the past customer feedback was contained to customer service or a customer satisfaction survey designed to hedge qualitative and quantitative feedback to guarantee an internal pat on the back. With unfettered social feedback, the organization emperor’s kimono is being opened and the proverbial band-aid is being ripped off.
Structured in a top-down hierarchical manner, organizations have positioned their products and services to take center stage. This familiar “command and control” structure is typically the wellspring of alienation between customer and company and often the cause of reduced revenue generation. The challenge of reorganizing is avoid playing musical chairs so that the last person sitting is not the new person reinventing the standard and comfortable hierarchal structure.
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Tags: Customer Relationships, Customer-Centric, Jay Galbraith, Marketing, Organization Design, product marketing, Ranjay Gulati, Reorganization, Service Marketing, social business | 
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Get to Know Your Customers—It’s as Simple as a Digital Handshake
It’s 2011, do you know where your social media strategy is?
As a marketer who has been in the social media game for a while now, I understand why companies struggle with social media. There is much misunderstanding between the concept and the tools—and the benefits of either. There is confusion as to why social media tools can’t be used just like e-mail, direct mail and advertising. There are also power struggles internally for who should own social media and who has control over what is for public consumption.
What’s a Marketer To Do?
That’s the question author and social media expert Paul Chaney discusses in his latest book, “The Digital Handshake: Seven Proven Strategies to Grow Your Business Using Social Media.” (Paul’s first book is “Realty Blogging: Build Your Brand and Out-Smart Your Competition.”)
The answer? Start a conversation. However, the smart thing to do before diving into any conversation is to understand the new rules of communication, why they matter, and the five trends turning the business world upside down.
- Consumer Skepticism
- Fragmented Media
- Loss of Control
- Niche Marketing
- Customers are in Control
Trust me. Your customers will thank you for taking the time to understand these tectonic shifts.
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We Don’t Ask ‘Why’ Enough
When is the last time you asked your boss, management, executive team or co-workers ‘why?’ But more importantly, why is asking ‘why’ in a business setting akin to being somewhat insubordinate?
Recently I wrote about why integrated marketing communications is failing in the business world and why social media won’t be the salvation most organizations are seeking. Why? Because there is much internal work still to be done in order to harness the value and full potential that social media offers in order to become fully customer-centric.
And often when I speak about becoming customer-centric I get two responses: ‘How can we do it?’ (Usually from those who respect and have relationships with their customers already.) or ‘It will never happen.’ (Usually from those who have their eye squarely on revenue generation.) My response? It is possible to be customer-centric and make money. That should be enough to satisfy both groups, hopefully.
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Getting Management Buy-In For Integrated Marketing & Communications
There are a lot of marketers out there that understand that integrated marketing and communications (IMC) is a preferred way to do business because it is an outside-in approach. If an organization isn’t integrated, what are the best approaches to getting management buy-in? Anna Barcelos and I wanted to share nine key ways to provide management with the value of IMC.
Sales-Oriented Vs. Market-Oriented – Which Are You?
It’s often been said that the mindset of “If we build it, they will come” is not viable for long term business. To understand why, let’s look at the difference between a sales-oriented and market-oriented organization.
Sales-oriented organizations have a heavy reliance on promotional tactics to sell whatever products/services the organization has selected to produce. Sales teams, not marketers lead the pack and have the burden of performance (i.e. revenue generation).
In the short-run, markets can be created with aggressive campaigns and sales work; however, the lifetime value of a customer is minimal. The organization mindset is focused on ‘the next big thing,’ hungry and aggressive sales teams, and sales beating up marketing for not dishing up qualified leads or customers ready to spend.
Market-oriented organizations identify what markets need/want first and tailor their operations to deliver products/services that meet those demands as efficiently as possible. Within a market-oriented organization, marketing takes the lead not sales.
Because the market-oriented company has its complete focus on the customer, the end result is often brand loyalty, sales, and strong customer lifetime values.
Getting Management Buy-In
If you are in a sales-oriented organization, how then can you get management to understand the benefits of customer-focused integrated marketing and communications? Here are five areas to focus on:
- Execute long-term customer acquisition programs across channels instead of short-term lead generation to feed the sales funnel. While the former may take a little longer, the end results produce longer term customers with much higher life-time values. Demonstrate this with metrics and show management. They are always interested in seeing results tied to revenue generation.
- Emphasize that a customer for life is a much more cost-effective model versus solely focusing on new customer acquisition.
- Communicate the benefits of how integrated marketing communications delivers a consistent message to both existing and prospective customers.
- Involve key players from “silos” within the organization in planning process. If you can’t beat them— join them. Realistically, sales-oriented organizations will always have silos due to individual department goals/quotas. If sales and marketing work together, both are vested in acquiring/retaining customers.
- Build incentives around existing and new business initiatives to not only motivate sales, but customer service and marketing as well.
You would think that a market-oriented organization would have a leg-up on getting management buy-in, but a lot of times there are still silos and separate budgets in place that affect true IMC. But by demonstrating the value of IMC, chances are you’ll have an easier time convincing management of its inherent benefits. Here are four ways to show value:
- Do an A/B test of an integrated campaign versus a non-integrated campaign (suggested by Valeria Maltoni, Conversation Agent) Testing is a risk-free, quick way to prove the value of IMC. Large companies shy away from radically changing their current marketing efforts. Testing gets them interested without any disruption in day to day. If tests delivers expected ROI, then scale.
- Leverage/collect behavioral data and analytics for follow up IMC campaigns with existing customers and build profiles on potential untapped new markets. It’s astonishing how companies have amazing databases that they are not exploiting as much as they could.
- Survey/talk to customers for the best insight on what works with them and what doesn’t. (“How can we be better?” “ Where do you want to find information?”) Management is always interested in seeing results of these efforts!
- Maintain communication across all departments. Market-oriented organizations are more customer-centric than sales-oriented organizations. Goals are aligned across the organization from top to bottom. Everyone plays a part in the customer experience. IMC works well within these organizations, but communication is key.
Whether an organization is sales- or market-focused, and the latter may be more beneficial, the reality is that unless upper management encourages a customer-centric culture, self-contained silos and status quo will continue to be the norm. The benefits of outside-in planning that IMC offers will bring you closer to the customer and social media has really helped put that into perspective. The voice of the customer is louder than ever, which is forcing traditional organizations to rethink their marketing communications strategies and encouraging customer-centric organizations to develop deeper relationships with their customers. Both take time, but small efforts across an entire organization will deliver what’s most important—a happy, loyal customer.
Share your expertise with us! Have you encouraged management to implement IMC? Have you broken down or bridged silos in your organization? What worked best? What didn’t work? What would you add here?
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The Harte of Marketing by Beth Harte is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Based on a work at www.theharteofmarketing.com. [If you have a question about what you can use from this blog, click on the above Creative Commons link to learn more.]
