mktg@msft

Customers Schmustomers

Curt Rosengren, my "are you passionate about your job enough" conscience sent me a link to a fascinating article written by the Gallop Management Journal (First Break All The Rules, Now Discover Your Strengths, Follow This Path) called Roadblocks to Customer Engagement (Part I). It continues the conversation on the topic I was writing about on Monday, Keep Talking.

"Marketers are rediscovering that strong customer relationships are essential if companies want to avoid the downward spiral into commodity status that comes from competing on price alone. Throughout the halls of corporate America, banners proclaim programs such as "Putting Customers First," being more "Customer-Centric," or "Becoming a Customer-Focused Organization." These initiatives may be part of a culture change or a back-to-the-basics effort. However, according to the American Customer Satisfaction Index, published by the Institute of Social Research, only a handful of such programs succeed on a sustained basis.

Why? On the surface, these programs may appear well-designed. Companies measure their customers’ perceptions and satisfaction levels, compensate employees on improving satisfaction scores, and then teach employees the best approach to interact with customers.

But even if these steps are well-executed, "customer-centered" efforts often encounter serious obstacles. For a company to truly put customers first, it must focus all its processes, systems, infrastructure, policies, and practices on that goal. The problem is, too many organizations are structured in ways that hinder achieving world-class levels of customer engagement."

They go on to give reasons why these efforts often fail, including obvious ones like people focusing on the rewards rather than the outcome (scamming the system) or competing for valued outcomes at the expense of the rest of the organization (or even the whole initiative). My favorite failure is that companies expect behavior that isn't natural for the people they've hired. Can someone hired for their competitive tenacity, their cut-throat "win-at-all-costs" action-orientation, or their "logical prowess and smarts" be expected to be open to customer feedback, to solving customer issues, or adopting a true "customer focus?" Some ya. Many, no.

I was in a meeting yesterday with our division executives, and as we were explaining our efforts to build partner communications tools, our VP stated very clearly (to my delight) that we were to be very careful not to focus too heavily on the "technology" of our tools, rather focus on understanding and meeting our partner needs, even if it meant doing things manually. Of course I nodded my head in violent agreement, but it was great to hear it from the highest-ranking executives I deal with in my job.

Some of the comments left after my last posting were exactly right (one email from Ballmer doesn't mean the ship's turned around), but there are many, many daily examples of individuals doing the right things. And hopefully--in response to the Gallup article--for the right reason.

Listening to Kids

Blake Burris points to a great post in Newsweek called Listening to the Kids.

"ABOUT THREE YEARS ago (Microsoft) began employing anthropologists, as well as teams of young engineers and recent college graduates, to observe teens around the world in their natural habitats, from Seattle shopping malls to London schools to Seoul street corners. The goal: to see how they used technology in their daily lives, and then to turn that information into new products—not just for kids but for the rest of us, too. What they found has not only influenced the development of existing products, it has also led to the creation of new software: the forthcoming threedegrees, which facilitates everything from online practical jokes to virtual sales meetings. “Kids drive technology today,” says Microsoft anthropologist Anne Cohen Kiel. “By meeting their needs, we meet everyone’s needs.”

My Marketing "Community of Practice"

Just had breakfast with Denise Klarquist from Cheskin. We had a great discussion about blogging (though just a small amount of time spent on that!), and consumer research. Since I'm in town to do some focus groups (see the pictures in my Photo Album), it's topical.

Without going into too many details about exactly what we're doing it or how, we talked about how consumer research is making a difference at companies like Microsoft. I was fascinated to hear about some of the work other parts of our business are approaching customer research.

We talked a bit about how blogs are evolving in the business world. Cheskin is doing a good job getting blogs published, but Denise admits there are still a lot of questions from those outside--and inside--their company.

I reminded her of one of the business benefits of blogging. I read a lot of blogs (and very few email newsletters, by the way), and I'm drawn towards things I care about as a marketer. One of them is research. I'm fascinated by anything that has to do with consumer research, and getting to know consumer behavior better. It's why I read Dina Mehta, Denise Klarquist, Rick Bruner, and some of the Jupiter Research blogs. If you know of others, let me know!

I'm getting to know these guys, and I'm coming to trust them. I was anxious to meet Denise since I was coming to San Francisco. And the more I get to know her, her company, and her work, the more I'm prone to take my business to her. In fact, I hadn't heard of Cheskin two months ago when we were selecting a firm to work with (the research we're doing now is with a competing company), but I would certainly have at least sent an RFP to Cheskin if we were choosing a firm today. (Remember, too, I hadn't heard of a blog five months ago!)

The main reason I blog is to build my own "community of practice" around marketing, management, leadership, and "fast" thinking. Blogs help me do that, and I'll send my business (or Microsoft's business) to people I know and trust (starting with members of my community).

Consumer Focus Groups

Fascinating stuff tonight. I won't go in to too many details, but I find it's so interesting to be "behind the glass" listeining to "real" customers.

I was talking with some co-workers who are with me here, and we decided that a lot of the value of the focus groups isn't getting the research report (although that's good), it's hearing the passion in the voices our customers, seeing their expressions, hearing their descriptions of what they think of our products, our marketing, our partners.

There were a few times when we were hearing the pain these guys experience that I wanted to go in and give someone a big hug, and tell them we're listening. As it is, they didn't know it was Microsoft doing the research, but we heard plenty of comments about our products and our channel partners.

I know after tonight's group my team here won't look at our customers quite the same. They're more human. More jaded, yet more vulnerable, and in some ways more trusting. And certainly more real.

If you have a small firm (or small group in a big company), or even if you own your own company, find a way to hear (really audibly hear) the voice of your customer. You can hire great facilitators like the guys from B/R/S Research, or any number of reputable companies. Or you can get together your own group from your own mailing lists and contacts. It only takes a handful (6 or 8), and as long as you can keep the conversation flowing, ask lots of open-ended questions, and get at what uour customers are thinking and feeling, you can do your own. And you'd be surprised at what you'll find out.