re-inventing crm

Re-inventing CRMFor the Customer-centric

Organization

Mike Boysen, Effective [email protected]

mailto:[email protected]

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…


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?


Adjust the temperature?


Achieve personal comfort?

Or is it…

Grow a crop?Plow a field?

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 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?


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?


Sell more Widgets?


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)

mailto:[email protected]

http://www.mikeboysen.com/

re-inventing crm

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