(Abstract of a presentation made by Eric Gaynor Butterfield in the "CRM Conference": Buenos Aires, 1998) www.theodinstitute.org
In reality we would like much more to talk about One-to-one Marketing than CRM, and therefore we would have preferred that the title was "The Strategy and One-To-One Marketing". But it is difficult to fight against "fashions".
At The Organization Development Institute International, Latinamerica we feel much more comfortable when we focus on people, and even more so, when we focus on individuals. After all, many of the best and biggest transformations that have taken place in the world have had to do with the individual actions of people.
In the process of attracting, retaining, recovering, enlarging and continuing the relationship with the Client through relationship as the "key word" of CRM, it is privileged to go beyond what we call the first cycle of the income generation process: that of contact. Which means significant progress. As we have seen previously, mass marketing has completed its cycle and its own time has come for diminishing returns, and from there the concept of One-to-One marketing is incorporated.
However, we believe that the simple fact of having focused on the Client and emphasizing two main cycles such as:
Contact; and relate
They represent a significant step towards mass marketing. Database marketing finds its sustenance in the first cycle: Contact, which has given rise to the fact that many consulting companies develop and provide telemarketing services, in the form of an internal provision within the formal structure or as outsourcing to others outside the organization. And here is where - thanks to some methodological developments by software developers - companies see an opportunity to go beyond simple "contact" and move towards "relationship" with the Customer.
This is how different relationship software appears and the name of CRM is strengthened, even above the One-To-One Marketing concept. If we have software that goes beyond contacting and allows us to interact with the Client, then we already have “the solution”.
At The OD Institute International we do not know how ALL companies are doing, but we DO know how the companies we have worked with are doing. We have found evidence that shows that these two phases are necessary, but they do NOT represent a sufficient condition to achieve the organizational objectives. And these evidences have been exposed in companies that are really competitive in the market, that is, that do not operate merely as monopolistic or oligopolistic companies. They have been really competitive companies, which in hard times accompanied in their thinking the saying that goes: "If the going gets tough… only the tough get going." We are witness to many large monopolistic or oligopolistic corporations that, under somewhat difficult situations, have left the country and closed their companies.
Our findings show that truly competitive organizations go beyond relationship with the Client, and especially, have NOT tried to obtain their Loyalty through the “one portion of the wallet” approach, as some consulting companies point out. and CRM training. These companies have extended the cycle that begins with: 1. contacting, and 2. relating to two other more cycles:
- Intimate, and Trust
And an interesting finding that characterizes the cycle of trust lies in the fact that the conception of the organization that completes the four cycles is far from taking into account "a portion of the wallet" of the Client and rather focuses on a Vocation of Genuine service. It is unfortunate that very little has been written on the subject on the subject, especially by practitioners, consultants and business trainers.
The wonder of One-To-One Marketing is based on the direct relationship of one person (who provides a service) to another person (who needs that service). Look at the detail: I am mentioning "another person (who needs such a service)" and I am not saying "another person (who needs ONE service)".
Now, once we have made certain distinctions, we are going to refocus the title, and the question - which is a dilemma - that comes to mind is: “The strategy at the service of CRM… or CRM at the service of the strategy."
Having exposed some ideas of CRM and its relationship with One-To-One Marketing, and the difference between obtaining the "loyalty" of the Client through "a portion of the wallet" with respect to serving them with a Service Vocation, we have to share Now some of our experiences regarding this classic debate between Strategy and - in this case - a methodology: CRM.
Since so much has been said and written about strategy - and also your "inferior" tactical partner, and most of you are familiar with these concepts, we must make an attempt to summarize our experiences in advisory processes and services. And a main observation that we want to share with you is that in the implementation processes of new methodologies and technologies we often over - emphasize the "strategy". As the leading businessman in the industrial sector summed us up: “Consultants often tell me what the strategy is and what I should do, but I have noticed that they themselves do not know HOW to do it."Definitely the strategy is extremely important but"… I do not think that Napoleon would have reached the level of conquest he obtained if it were not for the caliber of each of his warriors… "according to a leading businessman in a textile company. What happens, as a director of a bank told us, is that "… trainers and consultants find it much easier to refer to a strategy than to take into account every minute detail that has to do with the multitude of processes that they must be effectively integrated… through a multitude of people, in turn serving a multitude of people. ”is that "… trainers and consultants find it much easier to refer to a strategy than to take into account every minute detail that has to do with the multitude of processes that must be effectively integrated… through a multitude of people, to a in turn render a service to a multitude of people. ”is that "… trainers and consultants find it much easier to refer to a strategy than to take into account every minute detail that has to do with the multitude of processes that must be effectively integrated… through a multitude of people, to a in turn render a service to a multitude of people. ”
Therefore, it is our duty to share with you that focusing on strategy and its accompanying partner - creativity - can be very, very good, but it is not enough. We have a multitude of examples of individuals, groups and organizations that are creative in sight… but never innovate. They never seem to close the cycle of creating, innovating, prototyping, and mass production. An experience that we have lived many times has to do with consultations from different companies, AFTER they have gone through the services of large, prestigious international training and consulting companies, with excellent professionals as members of their work team.
And we have also lived in our own flesh when we were initial participants implementing technological and methodological tools, where - to demonstrate progress - we have always had (thanks to the careful observation of the Client and his kindness to share it with us) that we have to strive hard to “go down to land ”what we had written regarding our strategy that, during the process of change, was being INTERPRETED differently by the different organizational participants at the different hierarchical levels.
We have only one modest suggestion to make. No matter how much time they spend on the strategy… when the time comes, you have to show results so that the best thing is to go ashore and DO. Recall the extraordinary phrase of the inventor number 1 in the entire history of humanity: "99% is perspiration and 1% is inspiration." There is little left for me to add, but I don't want to stop sharing with you a said product of what we have learned in various consultancy interventions in private companies: “Actions without a strategy are a nightmare… and strategies without actions are a dream. Fortunately we know that we learn and we also progress, both through nightmares and dreams, therefore: Make your own “Mix”. Thanks for sharing.
