Category: Demand chain (page 2 of 5)

Loyalty means nothing if customers don’t have their own ways of expressing it


@jobsworth and I were just pointed by @aainslie to a @ronmiller piece in @TechCrunch titled In The Age of Disruption, Customer Love Is More Important Than Ever.

The headline says it all, and it’s true. But, as with all pieces like this, it’s about what companies can (or should) do, rather than what customers can do.

Think about it. What if customers had their own methods of expressing loyalty? Not silo-provided gimmicks like Facebook’s “like” buttons, but standard tools or systems that every customer could use, as easily as they use their own wallets or phones.

Think about how much better it would be for the whole marketplace if we built loyalty tools and systems where loyalty actually resides: on the customer’s side. What customers express through these tools and systems would be far more genuine and meaningful than any of today’s silo’d and coercive “loyalty programs,” which inconvenience everybody and yield rewards worth less than the time wasted by everybody dealing with them.

If loyalty systems are left entirely up to the sellers of the world, we’ll have as many different systems as we have sellers. Which, of course, is what we already have, and it’s a royal mess.

As it happens, loyalty is one VRM development area where there is nothing going on, so far — or at least nothing that fits the description I just made.

So maybe it’s about time to get started. Looks like a greenfield to me.

Speaking of which, I’ll betcha there is stuff that already exists within CRM systems that could be ported over to the customer side, and then match up with seller-side CRM stuff. Be interesting to hear from CRM folks about that. Here’s the key thing, though: customer VRM loyalty tools need to work with all CRM systems. (Just like, say, browsers, email and other standard customer-side tools also do.


First we take Oz

Sydneydoc 017-018_combined_medAustralia’s privacy principles are among the few in the world that require organizations to give individuals personal information gathered about them.* This opens the path to proving that we can do more with our own data than anybody else can.

Estimating the size of the personal data management business is like figuring the size of the market for talking or driving. (Note: we can also do more with those than companies can.)

Starting us down this path is  Ben Grubb (@BenGrubb) of the Sydney Morning Herald. Ben requested personal data held by the Australian telco giant Telstra, and found himself in a big fightwhich he won. (Here’s the decision. Telstra is appealing, but they’re still gonna lose.)

Bravo to Ben — not just for whupping a giant, but for showing a path forward for individual empowerment in the marketplace. Thanks to Australia’s privacy principles, and Ben’s illustrative case, the yellow brick road to the VRM future is widest in Oz.

Here (and in New Zealand) we not only have lots of VRM developers (Flamingo, Fourth Party, Geddup, Meeco, MyWave, OneExus, Welcomer and others I’ll insulting by not listing yet), but legal easement toward proving that individuals can do the more with their own data than can the companies that follow us. And proving as well that individuals managing their own data will be good for those companies as well. The data they get will be richer, more accurate,  more contextual, and more useful.

This challenge is not new. It’s as old as our species. The biggest tech revolutions have always been inventions individuals could put to the best use:

  • Stone tools
  • Weaving
  • Smithing
  • Musical instruments
  • Hand-held hunting and fighting tools
  • Automobiles
  • PCs
  • The Internet (which is a node-to-node invention, not an advanced phone or cable company, even though we pay those things for access to it)
  • Mobile phones and tablets
  • Movable type (which would be nowhere without individual authors — and writing tools in the hands of those authors)

There should be symbiosis here. There are things big organizations do best, and things individuals do best. And much that both do best when they work together.

Look at cars, which are a VRM technology: we use them to get around the marketplace, and to help us do business with many companies. They give us ways to be both independent and engaging. But companies don’t drive them. We do. Companies provide parking lots, garages, drive-up windows and other conveniences for drivers. Symbiosis.

So, while Telstra is great at building and managing communication infrastructure and services, its customers will be great at doing useful stuff with the kind of data Ben requested, such as locations, calls and texts — especially after customers get easy-to-use tools and services that help them work as points of integration for their own data, and managers of what gets done with it. There are many VRM developers working toward that purpose, around the world, And many more that will come once they smell the opportunities.

These opportunities are only apparent when you look at the market through your own eyes as a sovereign human being. The same opportunities are mostly invisible when you look at the market from the eye at the top of the industrial pyramid.

Bonus links:

* My understanding is that privacy principles such as the OECD’s and Ontario’s provide guidance but not the full force of law, or means of enforcement. Australia’s differ because they have teeth. See the Determination on page 36 of the Privacy Commissioner’s investigation and decision. Canada’s also has teeth. See the list of orders issued in Ontario. If there are other examples of decisions like this one, anywhere in the world, please let us know.

The most important event, ever

IIW XXIIW_XX_logothe 20th IIW — comes at a critical inflection point in the history of VRM. If you’re looking for a point of leverage on the future of customer liberation, independence and empowerment, this is it. Wall Street-sized companies around the world are beginning to grok what Main Street ones have always known: customers aren’t just “targets” to be “acquired,” “managed,” “controlled” and “locked in.” In other words, Cluetrain was right when it said this, in 1999:

if you only have time for one clue this year, this is the one to get…

Now it is finally becoming clear that free customers are more valuable than captive ones: to themselves, to the companies they deal with, and to the marketplace.

But how, exactly? That’s what we’ll be working on at IIW, which runs from April 7 to 9 at the Computer History Museum, in the heart of Silicon Valley: the best venue ever created for a get-stuff-done unconference. Focusing our work is a VRM maturity framework that gives every company, analyst and journalist a list of VRM competencies, and every VRM developer a context in which to show which of those competencies they provide, and how far along they are along the maturity path. This will start paving the paths along which individuals, tool and service providers and corporate systems (e.g. CRM) can finally begin to fit their pieces together. It will also help legitimize VRM as a category. If you have a VRM or related company, now is the time to jump in and participate in the conversation. Literally. Here are some of the VRM topics and technology categories that we’ll be talking about, and placing in context in the VRM maturity framework:

Designing the VRM future at IIW

A veteran VRooMeriiwxx tells me a design fiction would be a fun challenge for VRM Day and IIW (which will run from April 6-9 at the Computer History Museum in Mountain View, CA).

He describes one as “basically a way of peeking into the near future by demonstrating an imaginary product that doesn’t exist, but could. For example, instead of talking about a possible VRM product, one instead would create a marketing brochure, screen mockups or a fake video advertisement for this imaginary product as a way to help others understand where the world is headed and possibly even further the underlying technologies or driving concepts.”

Coincidentally, the subject of VRM Day (and a focus for the three days that will follow at IIW) is a maturity model framework that will provide every VRM developer the same single sheet (or set of them) on which to show where they stand in developing VRM capabilities into their company, product, code base or whatever else they’re working on. Work has already started on it, and those doing the work will present a first draft of it on VRM Day.

You know the old saying, “all singing from the same song sheet”? The VRM maturity model framework is it. Think of it as a musical score that is starting to be written, for an orchestra will come together. When we’re done with this round, we’ll at least know what the score describes, and give the players of different instruments enough of a framework so they know where they, and everybody else, fits.

By the end of IIW, it should be ready to do several things:

  1. Provide analysts with a single framework for understanding all VRM developers and development, and the coherencies among them.
  2. Give VRM developers a way to see how their work complements and/or competes with other VRM work that’s going on — and guide future developments.
  3. Give each developer a document to use for their own internal and external purposes.
  4. Give CRM, CE. CX and other vendor-side systems a clear picture of what pieces in the VRM development community will connect with their systems, and how, so buyer-side and seller-side systems can finally connect and grow together.

While we do this, it might also be fun to work out a design fiction as a summary document or video. What would the complete VRM solution (which will surely be a collection of them) look like? How would we present it as a single thing?

All of this is food for thinking and re-thinking. Suggestions invited.

How do you maximize the help that companies and customers give each other?

I’m not talking just about what companies and customers learn from each other through the sales, service and surveys — the Three S’s. Nor am I talking only about improving the “customer experience,” (a topic that has been buzzing upward over the last few years). I’m talking about how companies and customers help each other out. I mean really help. Constantly.

One way, of course, is by talking to each other. There are exemplars of this. Among big companies, Apple leads the way, gathering intelligence though its responsive call center and the Genius bars at its retail stores. Among small companies, my favorite example is Ting, a U.S. mobile phone carrier.  According to Consumer Reports, Ting is tops in customer satisfaction, while Sprint is dead last. Here’s what’s interesting about that: Ting runs on the Sprint network. Meaning the actual performance of the network is the same for both. This gives us a kind of a controlled study: one network, two vastly different levels of customer satisfaction. Here are two reasons for that difference:

  1. Ting’s offerings are simple. They have rates, not plans. You only pay for what you use. That’s it. And usage is low in cost. Sprint, Verizon and AT&T, on the other hand, all comprise a confusopoly. They offer complex, confusing and changing plans, on purpose. In confusopolies, the cognitive overhead for both companies and customers is high. So are marketing, operational and administrative overheads. That’s why they are all more expensive than Ting, and unloved as well — even as, no doubt, they have CRM systems that pay close attention to the customer service performance of their website and call center.
  2. Ting actually talks to customers. They are fanatical about person-to-person service, which means both sides learn from each other. Directly. Ting’s products and services are constantly improved by intelligence coming directly from customers. And customers can sense it. Directly.

Now, what about the times when you and the company are not talking to each other? For example, when you just want something to work, or to work better?. Or when you think of a way a product or a service can be improved somehow, but don’t want to go through the hassle of trying to get in touch with the company?

I answer that in the next post.

How music lovers can fix the broken music business and stop screwing artists

In Taylor Swift, Spotify and the Musical Food Chain Myth, musician Doria Roberts (@DoriaRoberts) details a problem that we’ve been hearing about for the duration:  artists have been getting screwed by the music industry, which now includes streaming services such as Spotify, paying tiny fractions of a penny for every tune everybody hears through them. She writes,

…not only have physical CD sales been down, but also the digital money I used to get from legal downloads all but disappeared. Instead of getting weekly payments ranging between $200-$750 from my distributor, I started getting an average $11.36, once a month from all streaming services combined. Yes, $11.36/month is what I get from all of them. That is not a sustainable business model for a truly independent artist.

And it will get worse as streams gradually become the main source for music. Signs and portents in that direction:

Doria also offers some answers:


As a consumer and a fan, you are at the top of this food chain, not the bottom. You are not subject to the whims of popular culture; you are the arbiter of it. If you want to see less “fluff” in the music industry, if you want to see your artists remain authentic, creative and prolific beings and, if you want them to come back to your hometowns:

1. Start buying our music again. Digital, hard copy, doesn’t matter, just pay for it. If you can pay $4 for a coffee, you can pay $9.99 for something meaningful that you’ll enjoy forever.

2. Stop using streaming services that only pay us $.0006 per listen if you don’t already own our music either via a legal download or a hard copy. Educate yourself. If you think the profits that oil companies make are obscene, I urge you to do some digging about what some of these streaming companies are really about. [Editor’s note: Spotify claims to have paid Taylor Swift over $2 million dollars in streaming royalties. Her label says that’s not even close to the truth.]

3. And, this is important: Set your DVRs on your favorite show nights and go to our concerts. If I had a dime for every time a person told me they weren’t able to make my show because it was the finals of DWTS or The Voice, I wouldn’t be writing this post. I’d be sitting in a bungalow in Costa Rica sipping something fruity and delicious.

Simple solutions sometimes require difficult choices. Oh, and this goes for independent movies, books, indie/feminist bookstores, small venues and small businesses, too. Just know this: you have the power to change the cultural landscape around you. Use that power wisely.

In reply below, I wrote,

All the course-reversing suggestions are good, but also assume that the only possible choices are the ones we have now. This has never been the case. We can invent new choices — new solutions for this already-old problem.

I believe the best solutions are those that make it very easy for consumers to pay whatever they want for whatever they like (and not just music).

One outline for this is EmanciPay, at ProjectVRM: . My own idea for an expression of EmanciPay is a user-side system set up to automatically pay (or pledge to pay) a penny per listen to any song heard anywhere, including one’s own music collection. That’s a high multiple of whatever coercive rates are being extracted on the supply side of the marketplace today — and in the whole future, which will suck.

Way back in ’98, when the DMCA birthed the ancestor of today streamed music royalty regime, it framed coercive rates with this context: “in the absence of a willing buyer and a willing seller.”

So let’s quit working only the seller-side of the marketplace. Let’s equip the willing buyer.

If anybody wants to work on the code for that, contact me (I’m not hard to find). We’ll get a posse together and go do it. Given the sum of existing code in the world already, it shouldn’t be too hard.

If we really are at the top of the food chain, we need better ways to pay for what we eat. If we don’t come up with those, all we will have are government-regulated ways to screw both the artists and the media. (Ask Spotify and Pandora how much they’re profiting in the current system.)

What we have today with streaming is guided by language like this (from the last link above):

…rates for the statutory licenses for webcasting and for ephemeral recordings must be the rates that most clearly represent the rates that would have been negotiated in the marketplace between a willing buyer and a willing seller. —

The boldface is mine. Here’s my point: Regulators and their captors in the record industry have believed from the start that listeners to streams cannot be willing buyers.

I want to prove them wrong.

The time wasn’t right when we started writing about this back in the late ’00s.  But now it is. Let’s do something about it.


Learning from bad @TWC #CX

Here in New York City, Time Warner Cable is down. (I’m getting on over my mobile phone’s T-Mobile data connection.)

According to DownDetector, TWC is also down in a lot of places:

Screen Shot 2014-08-27 at 7.44.38 AM

This is a developing story, in the midst of which I can take the opportunity to have a meaningful encounter with CX — Customer eXperience. Let’s make lemonade.

My cable modem shows the connection is live, but just blinking steadily in its attempt to pass data back and forth with TWC itself. Earlier ping tests (when the connection was merely bad) went somewhere, but latencies were all high. Now they go nowhere.

Calls to Time Warner Cable get me a message: “All circuits are busy now. Please try again later. Message NY-224-55.”

A visit to @TWC_Help finds the last two postings are on 15 and 22 August. TWC’s many other social channels on Twitter are useless promotional vehicles. A Twitter search for TWC shows lots of problems in lots of places, right now. So this is a developing story.
No doubt the story in the mainstream media will go along the lines of these two:
The big angle will be around the planned merger of  TWC and Comcast — two well-hated ogres.
But we’re here to help, not complain. What can we do with VRM here? Not just for TWC, but for every company in TWC’s position? Specifically,
  1. What code do we have already? and 
  2. What development paths are VRooMers on that can lead toward better CX?

[Later…] Nice follow from @Comradity.

Market intelligence that flows both ways

This post is about creating a whole new customer-company relationship system, based in what Jon Udell and Phil Windley call The Internet of My Things. This system opens up a boundless frontier of market intelligence that flows both ways: from companies to customers, and from customers to companies. It obsoletes customer service as we know it today, and brings the best of truly personal (rather than “personalized”) customer service into the Internet Age. The examples I use are of products that have problems; but this post is not about those products or the companies that made them — although I would love for those companies to participate in the paradigm shift that is about to take place.

A couple years ago I bought a pair of moccasins at a shopping mall kiosk in Massachusetts. The brand was LAMO and the name was Mens Moc: Here’s one:

I like them a lot. They’re very comfortable and warm on winter mornings. In fact I still wear them, even though they are falling apart. Here is how they look now: You can see that the leather, laces and stitching are all fine. So is the wool lining. The problem is the sole. It has dried up and cracked into pieces. Every time I wear it, chunks fall off. In fact, I first thought about writing this when a piece of a heel with a LAMO logo on it looked up at me from under my desk. But I’m wearing them now, and I’ll probably keep wearing them after the soles come off completely. I would like to help LAMO learn from my experience. As of today, here are the four main choices for that:

  1. Do nothing (that’s the default)
  2. Send them an email
  3. Go on some website and talk about it. (A perfect Leighton cartoon in the March 17 New Yorker shows a couple registering at a hotel while the person behind the counter says, “If there’s anything we can do to make your stay more pleasant, just rant about it on the Internet.” So that’s a less used but common default.)
  4. Get “social” by tweeting to @LAMOfootwear or whatever they’ve got on Facebook. (I avoid Facebook and haven’t checked.) For wisdom on “social” relations between brands and (presumed) fans, see Bob Hoffman‘s recent talk.

But we can improve on that, by giving these moccasins their own little virtual cloud, where LAMO and I can share intelligence about whatever we like — starting (on my side) with reports on my own experience. Phil Windley calls these clouds picos, for persistent compute objects. They have their own operating system (CloudOS), and don’t need intelligence on board. Just scan a QR code, and you’ll get to the pico. Here’s the code on one of my LAMO moccasins:

Go ahead and scan the code with your phone. Or take the short cut and click on it. You’ll get to a page that says it’s my moccasin.

But if I scan it, I can see whatever notes I’ve taken. Or whatever LAMO has put in there, with my permission. Also whatever programming has been done on it. Such as this logic: IF this is scanned, THEN send LAMO a note that Doc has a new entry in our common journal. Likewise, LAMO can send me a note saying that there is new information in the same journal. Maybe that information is a note telling me that the company has changed sole manufacturers, and that the newest Mens Mocs will be far more durable. Or maybe they’ll send a discount on a new pair. The correct answer for what goes in the common journal (a term I just made up — we’re in tabula rasa-ville here) is: whatever.

And that’s the key to the future of customer service, customer relationship management (CRM), call centersloyalty programs, continuous improvement and other business ideals. Go to those links (all to Wikipedia), and you’ll find most of them have “issues.” The reason they have issues is simple: the customer is not involved with any of them. They are industries talking to themselves. This is an old problem and it can only be fixed on the customer’s side. Before the Internet, solving things from the customer’s side — by making the customer the point of integration for their own data, and the decider about what gets done with that data — was impossible. After the Internet, it’s very possible, if we get our heads out of business as usual and put them back in our own lives. This will be good for business as well.

For example, last summer I had meetings with two call center companies, and reviewed this scenario:

  1. A customer scans the QR code on her cable modem
  2. This triggers a message to the call center saying “this customer has scanned the QR code on her cable modem”
  3. The call center checks to see if there is an outage in the customer’s area, and — if there is — how soon it will be fixed
  4. The call center sends a message back saying there’s an outage and that it will be fixed within X hours

In both cases they said “We want that!” Because they really do want to be fully useful. And — get this — they are programmable. Unfortunately, in too many cases they are programmed to avoid customers, or to treat them as templates rather than as individual human beings who might actually be able to provide useful information. This is old-fashioned mass-marketing thinking at work, and it sucks for everybody. It’s especially bad at delivering (literal) on-the-ground market intelligence from customers to companies.

Call centers would rather be sources of real solutions rather than just customer avoidance machines for companies and anger sinks for unhappy customers. The solution I’m talking about here takes care of that. And much more.

Now let’s go back to shoes.

I’m not a hugely brand-loyal kind of guy. I use Canon cameras because I liked the 5D‘s user interface more than the competing Nikon, and Canon’s lens prices were lower. Not because Canon photos were better. (I still prefer Nikon color, low-light performance and hand grip.) I use Apple computers because they’re easy to get fixed and I can drop into a Unix command line when I need to. I drive a Volkswagen Passat because I got mine at a good price from a friend moving out of the country. And I buy Rockport shoes because, on the whole, they’re pretty good.

Used to be they were great. That was in the ’70s and early ’80s when Saul and Bruce Katz, the founders, were still in charge. That legacy is still there, under Reebok ownership; but it’s clear that the company is much more on the mass marketing operation than it was back in the early days. Still, in my experience, they’re better than the competition. That’s why I buy their shoes. Rockports are the only shoes I’ve ever loved. And I’ve had many.

Here is a photo I just took of wear-and-tear on two pairs of Rockport casual shoes I often wear:

Shots 1 and 2 are shoes I bought in June 2012, and are no longer sold, near as I can tell. (Wish they were.) Shots 3 and 4 are Off The Coast 2 Eye, which I bought in late 2013, but didn’t start wearing a lot until early this year. I bought both at the Rockport store in Burlington Mall, near Boston. I like that store too.

The first pair has developed a hole in the heel and eyelet grommets for the laces around the side of the shoe. The hole isn’t a big deal, except that it lets in water. The loose eyelets are only a bother when I cross my feet sitting down: they bite into the other ankle. The separating outer sole of the second pair is a bigger concern, because these shoes are still essentially new, and look new except for this one flaw. A design issue is the leather laces, which need to be double-knotted to keep from coming undone, and even the double-knots come undone as well. That’s a quibble, but perhaps useful for Rockport to know.

I’d like to share these experiences privately with Rockport, and for that process to be easy. Same with my experiences with LAMO moccasins.

It could be private if Rockport and LAMO footwear came with QR codes for every pair’s pico — it’s own cloud. Customers would buy the cloud along with the shoe. And then they would have their own shared journal and message space, as well as a programmable system for creating and improving the whole customer-company relationship. They could also get social about their dialogs in their own ways, rather than only in today’s Facebook and Twitter, which are the least private and personal places imaginable.

This kind of intelligence exchange can only become a standard way for companies and customers to learn from each other if the code for picos is open source. If Rockport or LAMO try to “own the customer” by locking him or her into a closed company-controlled system — the current default for customer service — the Internet of Things will be the Compuserve + AOL + Prodigy of things. Those “online services” were as close as we could get to the Internet before the Internet itself — an open source system at its base — came along. Even sending emails from one of those services to the other was nearly impossible. Customers were captive inside silos.

One big thing that made the Internet succeed was substitutability of services. Cars, banks, and countless other product categories you can name are large and vital because open and well understood standards and practices at their base have made substitutability possible. Phil Windley says we can’t have a true Internet of Things without it, and I agree.

Far as I know, the only code ready to begin scaffolding picos is Phil’s CloudOS and KRL. But for these — or anything like them — to catch on, we’re going to need a lot more developers thinking outside the silos that comprise the entirety of Internet of Things work going on now. This post is an appeal to those developers.

By the way, Phil believes that cars are the best vertical to start out with. I think he’s right. But shoes are in front of me right now, so I’m using them as an example. And the example works for everything. Literally.

For real customer engagement, “social” is inadequate

In Social’s Value Measured in Engagement Over Sales, eMarketer provided this revealing graphic:

There are trends here too:

…consumer engagement and brand lift were the No. 1 goals of social media marketing, each cited by 67% of respondents. This was up significantly from 2011, when those goals were cited by about 50% each.

Last year, using social media marketing to garner positive sentiment was the leading goal, whereas this year it dropped to No. 4.

They add,

Marketers may be finding that it is less important that their posts get a warm reception from social users and more important that they keep consumers posting, “liking” and sharing social content.

That’s what marketers may think; but what about the parts of the company that make, sell and service the company’s goods? Let’s return again to an Oracle graphic of the “customer journey” that has been helping us focus lately:

Oracle Twist

Here’s what this illustrates about engagement:

  1. We’re not always buying stuff. We’re using it. When we have good ideas to feed back to companies, or when we want help with a company’s products or services, we shouldn’t have to go through “social” marketing. There, are, and should, be better means for that.
  2. Substantive engagement is not “posting, ‘liking’ and sharing social content”. It’s making direct connections with the parts of companies that want to help and learn from customers directly.
  3. Owning is what we do with the stuff we buy. Think about it. You’re owning 100% of the time, and buying far less, even if you’re a shopaholic. Yet the respect this fact gets from social marketing — and from marketing in general — is sub-minimal, even in our networked age.

Meanwhile spending on marketing budgets is going up, while other budgets are going down. Most of the increase is going to digital strategies, Gartner says (more here), and approximately none of that, outside “social”, is for direct engagement with the human beings who buy goods and services.

There is a reason for this, which I visit in The Intention Economy:

Back in the early ‘90s, when I was making a good living as a marketing consultant, I asked my wife—a successful businesswoman and a retailing veteran—why it was that heads of corporate Sales & Marketing departments were always from Sales people and not from Marketing people. Her answer: “Simple: Sales is real. Marketing is bullshit.”

When I asked her to explain that, she said this wasn’t marketing’s fault. The problem was the role marketing was forced to play. “See, sales touches the customer; but marketing can’t, because that’s sales’ job. So marketing has to be ‘strategic.’” She put air-quotes around “strategic.” She acknowledged that this was an over-simplification, and not fair to all the good people in marketing (such as myself) who really were trying to do right by customers. But her remark spoke to the need to distinguish between what’s real and what’s not, and to dig deeper into why the latter has become such an enormous part of the way we do business.

And now we have CMOs, Chief Marketing Officers, a title that barely existed two decades ago, graced with bigger budgets and increased political power within companies. And yet they still don’t touch the customer. Instead they want to follow the customer around with tracking beacons and to better personalize the “shopping experience” or whatever, and troll for “likes” on Facebook. In less delicate terms, the bullshit is out of control, with bigger budgets and fancier rationalizations than ever.

Want to see how far this goes? Check out the IBM/Aberdeeen “Big Datastillery”:

Look closely at this thing to see where you fit in. You’ll need to scroll down to the conveyor belt at the bottom. See those colored beakers, being filled with “customer interaction optimization” and “marketing optimization,” and then rolling off to oblivion after farting out “campaign metrics”? That’s you.

Your campaign metrics gas gets fed into the big hopper at the top from one pipe among many others. In rough order of decreasing size those are:

  • CRM
  • Social media
  • Clickstream data
  • Transactional data
  • Marketing history
  • SEO data
  • PPC (pay per click)
  • Email metrics
  • Campaign metrics
  • Ad impressions
  • Customer sentiment

None of this involves actual interactions with human beings except perhaps through social media. And even there, one CRM executive recently told me, marketing zealotry is “poisoning the well.”

We can’t fix this and shouldn’t try. It’s marketing’s house. Let them work on it. (Credit where due: according to the top graphic above, 56% of them want to use social media to “improve customer support/service”.)

What we can do is expand the owning experience to include helpful and productive interactions with companies that make, sell and service what we own, and what we use. Here’s one example.

Meanwhile, I’d love to hear stories from non-marketing people inside companies about what it’s like to try engaging, in durable and substantive ways, with customers who are at the same time getting treated like the beakers in the graphic above.

Bonus link from @bobosphere.

Turning the customer journey into a virtuous cycle

Traditional CRM typically looks at customers this way:CRM cycleIt’s a cycle. One of the reasons we started ProjectVRM is that actual customers are hard to find in the CRM business. We are “leads” for Sales and Marketing, and  “cases” for Support. At the Orders stage we are destinations to which products and invoices are delivered. That’s it.

Oracle CRM, however, has a nice twist on this (and thanks to @nitinbadjatia of Oracle for sharing it*):

Oracle Twist

Here we see the “customer journey” as a path that loops between buying and owning. The blue part — OWN, on the right — is literally the customer’s own space. As the text on the OWN loop shows, the company’s job in that space is to support and serve. As we see here…

… the place where that happens is typically the call center.

Now let’s look at how this journey looks in our lives, in terms of how much of the time we own stuff and how much of the time we shop for it. The real ratio is closer to this:


And that’s not an exaggeration, since we own everything 100% of the time and shop only a small % of the time.

Now let’s pause to consider the curb weight of “solutions” in the world of interactivity between company and customer today. In the BUY loop of the customer journey, we have:

  1. All of advertising, which Magna Global expects to pass $.5 trillion this year
  2. All of CRM, which Gartner pegs at $18b)
  3. All the rest of marketing, which has too many segments for me to bother looking up

So, in the OWN loop we have a $0 trillion greenfield. This is where VRM started, with personal data lockers, stores, vaults, services and (just in the last few months) clouds.

Now look around your home. What you see is mostly stuff you own. Meaning you’ve bought it already. How about basing your relationships with companies on those things, rather than over on the BUY side of the loop, where you are forced to stand under a Niagara of advertising and sales-pitching, by companies and agencies trying to “target” and “acquire” you. From marketing’s traditional point of view (the headwaters of that Niagara), the OWN loop is where they can “manage” you, “control” you, “own” you and “lock” you in. To see one way this works, check your wallets, purses, glove compartments and kitchen junk drawers for “loyalty” cards that have little if anything to do with genuine loyalty.

But what if the OWN loop actually belonged to the customer, and not to the CRM system? What if you had VRM going there, working together with CRM, at any number of touch points, including the call center?

This is more than a simple dream. One of the coolest things to happen in the VRM development world is this insight, based on actual technology: everything you own can have its own cloud, and each can live inside your personal cloud. Your stuff doesn’t need to have embedded smarts. You can put your things’ smarts inside clouds of their own. Manufacturers can also include clouds along with everything they sell. Inside that cloud can go all the touchpoint contact data required for a genuine relationship, plus useful extras such as service manuals and shortcuts to product updates.

This means the product itself becomes the platform for relationship between the customer and everybody on the sell side, from manufacturer to distributor to retailer to service company. As I explained in this HBR post, that platform — the product’s cloud — is the level table where all those parties sit, at the grace of the customer. Because it’s the customer’s space.

One tablecloth for that platform is the TalkTag. It’s a simple QR code, like the one on the right. The pioneering company here is Kynetx, through its SquareTag service. It’s a simple way to give anything you have a cloud of its own. Scanning a TalkTag is one way to visit a thing’s cloud, which is also a programmable space. If your thing is lost, you can program it to provide contact information through somebody’s smartphone when they scan it. (Which I have done, and it works.)

You can also program it to, say, notify the call center when you scan it. For example, I want the TalkTag I just put on my cable modem to notify Time Warner Cable when I scan it. If Time Warner Cable’s CRM system is listening (which should be easy enough to make happen), it can send back a message to my phone, telling me there is an outage in my neighborhood. Or, in the event that there isn’t an outage, the “I’ve been scanned” message from me to Time Warner Cable can jump past stages in the company’s IVR (Interactive Voice Response) system and get me straight to the right person or automated response. That might be, “You need to download new firmware,” or “We have three new service tiers you might want to know about,” or “We see you haven’t paid your bill.”

I have shared this kind of scenario with two call center companies recently, and they liked it a lot. In fact they like the whole idea of VRM systems on the customers’ side that can lighten the burdens of relationship (and open opportunities) for both sides.

The customer journey — his or her experiences of owning and buying — will include more than just interacting with call centers. We use the things we own in countless ways that might be useful to share with others, including the companies that make and sell stuff — and not just through “social” systems like Facebook and Twitter, over which we have little or no control.

We should also be able to integrate data from products that don’t relate but should. In the Quantified Self world, for example, there is a standing need to synthesize data from many devices and databases. This need  cannot be solved by asking Nike, Fitbit, Withings, RunKeeper and the rest of them to all make their data un-silo’d and combine-able. And doing it in “social media,” whose only business is advertising at us, won’t work either. We need means of our own.

In the VRM world we’ve been saying the user needs to be the point of integration for his or her own data since Joe Andrieu first expressed that insight in 2007. Now, with personal clouds, in 2013, it’s starting to look possible. In fact the personal cloud, and the whole OWN loop, can also be a platform for intentcasting toward the BUY side.

The OWN side is also where all the privacy technology also sits, chiefly because it is distributed. It is here also that we hold the terms, preferences and policies we express when dealing with companies sitting across the tables set between us.

An interesting case that lies between buying and owning is relationships with service organizations, such as utilities. What we own here is own side of an ongoing relationship. Equipment of our own may be in there, or may not be. Either way, the use of a service — in our homes, cars and pockets — is what we at least control, even if we don’t own it.

So clearly we need a common platform for personal clouds, and for the things we put in them. That platform needs to be small, lightweight, distributed and open source. Right now I see one candidate for that: CloudOS, which is the brainbaby of Phil Windley. (Here’s a search for CloudOS and Windley. Lots of stuff there.) If you’ve got some other hacks, point them out in the comments below.

If we look at the customer experience from the company’s side again, this graphic from Joe Pine and Jim Gilmore does a nice job of framing the possibilities:

Across the table set in a personal cloud, customers can feed back good intelligence to every one of the loops in that graphic. And, because that data arrives directly and voluntarily, it has far higher quality than inferential data gathered by marketing’s many surveillance methods.

It also re-frames relationship and loyalty, as real things rather than as words marketing recites inside its own echo chambers. It will reduce marketing’s urge to manipulate, and advertising’s urge to personalize in the absence of conscious and voluntary signals welcoming it. The customer journey will thus turn into a virtuous cycle rather than the arduous one it is today.

It can also create a demand chain that can work in tandem with the supply chain, providing far better feedback at every stage. I could go on, but I want to get this up before the latest in the series of Important Calls that punctuate my life. (And they are all Good Things, trust me.)

Bonus link.

* In the comments below the post that follows this one, Ray Wang points to Esteban Kolsky as the original author of this graphic. As I say in my comment below Ray’s, I did hear that from Nitin Badjatia (of Oracle and formerly of Right Now), but I didn’t remember it when I wrote both posts in a hurry. Again, it is the verbs — BUY and OWN — that make the image especially useful for VRM, because they are the customer’s. I don’t yet know if those verbs are Esteban’s or Right Now/Oracle’s. Let me know and I’ll give credit where due.


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