Why Customer Efforts Fail - Signs to Look for and Avoid
If you have tried repeatedly to get a focus on customers, customer loyalty and customer profitability inside your organization with less than stellar results, you’re far from alone.
Most companies jump in without evaluating how the organization works together, whether the CEO is truly committed and if the patience exists for the long road ahead. These are the key issues that usually get in the way of making progress. See if you recognize any of them in your organization.
CEO’s aren’t clear about where they want to take the company for customers.
When the CEO says ‘go focus on the customer,’ every one takes it
differently. People want to salute the flag - they just don’t
know exactly what that means. The shot gets fired into the air
and a proliferation of tactics, vendor proposals and actions get
going. But they often don’t aggregate up to something meaningful
for customers.
CEOs with customer passion have a ‘gut’ about how they want to
show up to customers. It’s woven into how they give directives
and inspire people and lead them directionally on where to take
the company. When proposals are made, they have an inner compass
which forces proposals to examine customer impact and whether
factions of the organization are working together on a solution.
They challenge how new ideas contribute to the realization of an
end state for customers which they have thought deeply about.
Their clarity is palpable and understandable and they have found
a way to communicate it to the organization – and the
organization ‘gets’ it.
The ‘commitment’ doesn’t frame and modify actions for leaders and the organization.
What we have now is a frenzied awareness of a problem that often
leads to an even more frenzied approach to a “solution.” These
are the questions I always want to know from CEO’s who say
they’re committed to the customer mission.
a. Are you clear in your mind about what you want to accomplish?
b. Do you understand the sweeping scope of the work?
c. Will you develop the new skills required for the company to
thrive with customers?
d. Are you willing to commit company time and resources to make
this happen?
e. As the CEO, do you sign up to be a true partner?
f. Will you insist on corporate patience?
g. Are you ready to push hard for strategic customer metrics?
h. Do you have the guts to drive reliability in company
operations?
i. Do you have the focus to define the differentiated value you
want to deliver to customers?
The ‘customer’ still isn’t elevated as the major asset of the corporation.
Organic customer growth drives long-term profitability. So why
isn’t it as important to CEOs as quarterly sales goals?
Understanding the state of customer relationships and even
something as simple as customer counts still pale in comparison
to quarterly sales goals in the rate at which they are
understood, managed and held up as a success factor of the
business. No one knows the goal-line for customers. Most CEOs
haven’t told their company what it is.
Customer issues still aren’t making it as a priority in the
company or to the boardroom level. According to a November 2004
Harvard Business Review article entitled Bringing Customers into
the Boardroom, customer management issues being kicked upstairs
are on the decline. Among the large U.S. companies surveyed for
that article, over a third of them said that their boards spent
less than ten percent of their time on customer-related or
marketing issues.
The metrics and motivation don’t line up with the commitment.
CEOs say they’re committed to customers but don’t make any
modifications for how success is defined and what people are
compensated and rewarded for. Or if modifications are made, it’s
at such a high level such as attaching bonus to customer
satisfaction survey score increases – that people don’t really
know how to change their behavior. The metrics aren’t attached
down to relevant operational changes. There are even times that
satisfaction score goals can be negotiated out of relevance if a
high sales performer doesn’t make the grade on customer
satisfaction but hit the ball out of park bringing in new
business. Tilt. The company takes a queue from where people are
rewarded and what the company really cares about and will act
accordingly.
There is inconsistency for driving accountability.
Companies who do this right spend the time to lay out what the
new metrics are down to the operational level. And they
establish meaningful forums and methods to hold people
accountable. The ‘customer stuff’ is not wedged into an
over-crowded meeting agenda and potentially pushed completely
off when time falls short. The work is done to clearly identify
how the different sections of the customer experience are
accountable by individual areas and through collaboration. And
accountability is clearly attached to each.
It’s not natural for the company to work together.
It’s still not natural to work horizontally across the silos.
Each faction of the company continues to establish their own
plans, budgets and goals. The challenge of this work is that it
cuts across the entire organization and orchestrating that new
behavior isn’t often factored in. This won’t happen naturally
and the CEO must be a major player in a) identifying that this
new skill is necessary, b) finding someone to bring the pieces
together to work on common efforts, and c) reinforce through
accountability, metrics and motivation that these are the
necessary behaviors in the new customer-focused world.
Fleeting corporate patience exists to drive sustainable change.
This work is not for the mild-hearted or quarterly inclined.
Becoming a ‘customer’ company is a multi-year endeavor. CEOs
can't bail in the first year because the results don't come as
simply and cleanly as seeing response rates on a marketing
campaign, tracking sales goals, or the number of page views on
your Web site. The CEO must have the belief and commitment that
this is the right course. The company must hear that the company
ticker on proclaiming something a success or failure has a much
longer timeline here. When things seem to waver (and they will),
people will need to hear that the corporate patience exists to
stay the course.
We have been programmed to worry about lack of results in
increments of quarters, and so people will be anxious unless
timelines and expectations for results are reset. If the CEO
doesn't personally commit to corporate patience, people will see
right through it. They'll abandon efforts when their performance
rating is at risk for staying focused on the "customer stuff"
that's not yielding results quickly enough for the impatient
corporate machine.
There is a lack of understanding and commitment to the scale of work required.
Relegating this work as a marketing project or customer service
goal is not enough. For the customer work to take-hold it must
be seen for what it is and understood for the challenge that it
will be to the ‘normal’ workings of the corporate machine. The
CEO needs to be realistic about what accomplishments are
requested and support it accordingly. I’ve been in more
situations than I care to remember where the ‘commitment’ was
there but not much more. People will see right through this and
the corporate ‘nay-Sayers’ will be quick to point out that this
is yet one more empty promise about customers. CEOs on a
realistic path for this work recognize its scale and understand
that many people may need to be assembled to bring about the
level of wholesale change required.
About the Author
Jeanne Bliss is the founder of
CustomerBLISS
consulting and coaching company helping corporations connect
their efforts to yield improved customer growth. She is a
world-wide speaker on the subject. Jeanne spent twenty-five
years at Lands’ End, Microsoft, Allstate, Coldwell Banker, and
Mazda corporations as the leader for driving customer focus and
customer growth.
Jeanne's book; Chief Customer Officer: Getting Past Lip Service
to Passionate Action is now on sale!
Buy from Amazon.com ($) |
Buy from Amazon.co.uk (£)


