Pamela Larrick Explains How to Shape the Customer Experience Across Touch Points
Defying the Limits: What are the differences between enterprise relationship management and customer relationship management?
PL: Enterprise relationship management, I believe, constituted the preliminary phase in many businesses continuing evolution toward realizing they have to actively manage their relationships - whether these relationships are with customers or vendors. In effect, it was the first attempt at uprooting the silos of information that existed throughout companies and linking the information together.
ERM needed to happen before CRM could begin to take hold. CRM takes all of the organizational efficiencies of ERM and then says, We must do better by the customer.
Reorganizing your business around satisfying your customer is true CRM. However, not being ready throughout the entire organization (which is a big task) should not hold up optimization of communications to boost sales per marketing dollar.
DTL:How important is customer knowledge and data gathering to CRM?
PL: Customer knowledge and data gathering are cornerstones to effective CRM. In fact, not having them would be like experiencing a hug without a squeeze. Going through the motions just doesnt work.
The simple fact is that customer knowledge drives how well a company can address the customers needs and desires. The more knowledge you have about the customer, the better the relationship you can develop for that customer - in products offered, information provided, channels used, and rewards or incentives included.
Clearly, data-gathering goes hand in hand with the ability to acquire customer knowledge. Key to this effort is that the data-gathering needs to be consistent and standardized across all channels and all segments. But most importantly, it must be viewed as helpful and reasonable by the customer. Since we have a limited time with the customers attention, its critical to figure out what is most important for us to know. For one global pet food company, we have worked with our client to develop the most important seven questions that must be asked in order to gather knowledge that will be actionable, impactful, and measurable.
DTL:How can companies avoid having their direct marketing campaigns viewed as spam?
PL: First, companies should adhere to a strict permission-based policy that is continually assessed. Second, the message has to be relevant; it needs to address something that the company has learned about the customer. Third, multiple product or service offerings for a customer must be actively managed by the company so that the customer is not barraged with additional repetitive offerings. When you combine all of these elements correctly, the customer will perceive your communications as adding value or empowerment.
DTL: How does MRM Partners work with companies to shape the customer experience across touch points?
PL: At MRM Partners, weve developed a proprietary Customer Experience Audit that enables us to evaluate our clients competitive performance across the entire customer experience - covering all phases of acquisition, retention, and growth. MRM Partners team members conduct the audit using a customized questionnaire based on the unique requirements of each client, their industry, and competitive set. The current customer experience is then scored (based on a weighted average against dynamics), a gap analysis is performed, and a corrective action plan is designed.
Examples of customer experience dynamics include:
- How effectively the brand is conveyed;
- How well messaging is articulated (targeting, integration, ease of use);
- Responsiveness at each touch point;
- Strength and clarity of the call to action;
- Relevance to individual segments;
- Frequency (sufficient to achieve goals); and
- Differentiation(originality/breakthrough.
Along with developing a corrective action plan, we delve into the related segmentation knowing that today, share of customer is as critical as share of market. The results of the audit help us identify actionable segments - segments that are distinguished from traditional demographic segmentation analysis by three factors. They are:
- Findable (using self-identification as well as internal and external sources);
- Valuable (as determined by the magnitude of the segment and/or the potential revenue it represents); and
- Moveable (can change or shift their brand-related behavior).
Our final step involves linking in creative and building what we call the authentic voice. This helps us communicate in a way that is consistent with the brand and credible with the actionable segments - both rationally and emotionally.
Our objective at the end of the process is shaping the total customer experience - touch points, segments, and creative/messaging - to help our clients win the customers heart, mind, and wallet.
DTL: CRM technology has evolved rapidly in the past few years. Where do you think we will be five years from now?
PL: Right now much of the CRM technology in companies is still under-leveraged. Why? Because in many cases, CRM technology was about technology - not about building trusted commerce, not aligned with the corporations business strategy, not connected to marketing and sales, and not linked to organizational issues.
In five years time, we fully expect that CRM technology will be optimized in real time. With the increasing shift of consumers to multichannel engagement with companies, companies will have no other option. In order to get there, companies will need smart teams that can operate and drive the technology in an increasingly complex communications mix. This is where I see MRM Partners serving clients, with an integrated, cross-discipline resource - comprising strategy, creative, data, analytics, technology management, and communications planning and sequencing - focused on the delivery of satisfied customers and sales, both short- and long-te
