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to manage customers around their transactions Third, back in 2004, customer strategy was a significant and important of corporate strategy Now, customer strategy is corporate strategy That said, the elements of strategy I would have proposed in 2004 are pretty much the same as I m about to provide to you here with a few additions this time around There are some caveats and assumptions that you have to operate under when it comes to customer strategy If the strategy doesn t benefit those executing it, you might as well chuck it This may sound like a duh moment, but in fact, the primary reason that CRM fails, according to studies done by pretty much every 800-pound or less gorilla analyst firm, is because of the failure to involve users from the beginning The most popular study, done by AMR Research as far back as 2004, claimed 47 percent of the failures are due to that lack of upfront involvement What that means is that when developing the strategy you have to consider personal values and concerns They have to be part of the planning you re doing Don t underestimate the importance of this I put it in italics because it is a centerpiece for your strategic framework Why Because human beings are self-interested This isn t a bad thing Self-interested doesn t mean selfish It simply means you have an agenda that you intend to fulfill to your satisfaction throughout your life and that extends to your work, too You matter There may be no I in team, but there is an I in I Which is a good thing Personal benefits to the stakeholders who will be responsible for execution of the strategy or those who will be impacted by the strategy have to be considered when developing the business objectives While ultimately you won t please everyone and will most likely lose even some highly valued employees to dissatisfaction, you can attempt to incorporate the idea that you are creating a community of self interest On a practical level that can include: Incentives to make improvement in customer experience worth it to other customer groups Changes in compensation for employees who focus on customer satisfaction Supplier premiums for beating the baseline guarantees of SLAs
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Partner rewards for customer satisfaction to be applied for benefits Tools for the customer to not only manage but create their own experiences But to include these things in your plans means to first be able to identify who those stakeholders are
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In retrospect, book burnings in the 15th century were a historic error In retrospect, the strategy used by Vice Admiral Zinovi Rozhestvensky at the naval battle of Tsushima during the Russo-Japanese War of 1904 05 was an error of historic proportion Choosing stakeholders solely from senior management is also a historic error, just of a lesser magnitude Stakeholders in a CRM strategy and program can be senior management, but may also encompass mid-level managers, senior staff, power users, some junior staff, business partners, suppliers, and customers After all, who has more of a stake in this than the customers But that said, choosing from all of these can be a bit unwieldy, and a stakeholders team of 5,000 is probably a bit much Kidding About the number, not the clumsiness Since other stakeholders are necessary for the success of CRM initiatives, it pays to be selective on who is recruited so that you can have a total group that can be effective, yet represents the important constituencies that exist Natural leaders One group to ferret out and solicit has little to do with formal titles bestowed by the management hierarchies, but instead is those natural leaders who exist at every company regardless of size You know them They are the people who are the mom or dad of the department always willing to listen to the troubles of their fellow employees They are the power users you ask to fix your computer because you don t want to deal with IT and they know enough to do it for the most part They are Jack on the TV show Lost Essentially, these are peers who, for one reason or another, have risen through the ranks and are trusted by their fellow employees Typically, while they hold no particular title within the company, they
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