This week’s episode of CxO Talk, with my co-host Vala Afshar, features top CRM analyst, Paul Greenberg, as our guest. Paul is widely known as the “godfather of CRM” and is a contributor to ZDNet.
Here are important topics from the discussion:
On Microsoft Dynamics CRM:
- Microsoft held its annual Convergence conference in New Orleans last week
- Last year, Microsoft focused on their new user experience and placing a bet on Windows 8
- Convergence 2013 emphasized the product and executing with customers, showing that Microsoft is delivering on promises made last year
- Corporate Vice President for Dynamics CRM, Bob Stutz, whom Paul calls a “legend” in building CRM technology, has ripped apart the entire set of Dynamics CRM applications to improve the technical architecture and fill holes in the product.
- An example of filling out the product includes the acquisition of NetBreeze, a sentiment and social analytics platform, which Microsoft will embed as a layer in the CRM platform
- Microsoft also discussed the Marketing Pilot acquisition, which addresses the marketing components of CRM. Paul calls Marketing Pilot a “very good” set of applications but too dense for marketers; he suggests that Microsoft integrate Marketing Pilot fully into the product suite.
- Paul adds that Microsoft has “caught up” with salesforce, Oracle, SAP and now has “about six months to really rev it up”
- We also discussed Microsoft Dynamics new, and strong, focus on customer stories. Paul said “that part was fantastic” and added Convergence had “one of the best customer panels I have ever heard,” because it was focused on outcomes rather than technology
On salesforce.com:
- Vala and I attended a salesforce event in Boston, which CEO Marc Benioff called a “focus group;” the event appeared to be a test of the company’s new marketing messages in advance of Dreamforce
- The primary message positions salesforce as a “customer company,” which I find unclear and vague. Despite my view, Vala was decidedly impressed with what salesforce is doing.
- Vala notes that salesforce presented demos on devices, demonstrating the company’s commitment to mobile and smartphones
On CRM and enterprise software:
- Paul notes that salesforce, Microsoft, SAP, and Oracle should all do a better job demonstrating how they put the customer first as a partner, rather than just the object of a sale
- I follow with a point that software vendor objectives and customer needs diverge in important ways. Although SaaS vendors say that a subscription model creates complete alignment between customer and vendor, I am not completely convinced.
- Paul responds: “If a customer likes you they will continue to do business with you, otherwise they won’t.”
- I said that Paul’s comment sounds like CRM means love; Paul answered that the purpose of CRM is to know something about customers so you can either take action or maintain compliance.
On Net Promoter score:
- Both Paul and Vala believe it’s time to reconsider the Net Promoter score (NPS) as a useful metric of customer experience. Net Promoter asks this question: “Would you recommend this company to someone you know?” Paul remarks that NPS is “based on intent not advocacy or action,” which makes it “not useless just not useful.”
- Paul suggests replacing Net Promoter with a four questions, advocated by professor V. Kumar, that reflect customer lifetime value and customer referral value:
- Would you recommend this company to someone you know?
- Did you recommend this company to someone you know?
- Did they become a customer?
- Were they a profitable customer?
On customer love and professional sports:
- Microsoft featured professional basketball team, Oklahoma City Thunder, at Convergence 2013. Both Paul and I were impressed by the degree to which the team works hard to keep fans engaged and happy. We gave a special call out to Scott Loft, the team’s Vice President of Ticket Sales, Retention and Data Base Operations. Basically, Scott is VP of everything.
- We also discussed customer attitudes at the Philadelphia Flyers, New York Yankees, Boston Celtics, and New England Patriots. Not to mention the genetic makeup of New York baseball fans.
- I noted that the DNA of a true customer-focused company is lack of ego, which means putting customer needs first
On the science of hugging:
- The components of a successful hug are: 1. don’t be afraid to close; 2. throw your arms around the other person, and; 3. then squeeze.
- The key point to successful hugging, according to Paul is “close and go strong without fear”
- My final advice to software vendors regarding customer service: use a full blown bear hug and don’t forget to close
Also read:
CxO Talk
Marketing and IT tensions: ‘CxO Talk’ debuts today
CxO Talk episode 1: Guy Kawasaki on influence for APEs
CxO Talk episode two: Big data, analytics, and HR technology
Disclosure: Microsoft Dynamics is a strategy, positioning, and messaging client.
(Cross-posted @ ZDNet | Beyond IT Failure Blog)
