The Quality Revolution was meant to be customer focused, instead became process centric and one of record keeping. Nonetheless, Total Customer Value Management can learn from the Quality movement. There is much to learn.
Are We Blowing in the Wind?
I look at esteemed customer think tanks, such as Customer Think, Customer Value Foundation, and CVCI and well know customer thought leaders. We all preach the customer mantra. We all talk about better ways to improve the customer experience and increase Customer Value.
We all bemoan not enough is being done. We suggest, we preach, we cajole.
Why is the Customer thing we preach not really happening?
First let us accept certain facts
- CEOs are smart people. Smarter than average
- They do not need a consultant to tell them what their priorities ought to be. They think they are giving the customer the right priority
a. Also is it true that CXOs are busier then middle managers and front line people? Or is it a priority issue?
- They believe they are doing enough for the customer
- They are successful at what they do (if it aint broke, why fix it?)
- They believe they are responsible to the shareholder and shareholder returns are important. If CEOs are being forced to react to short term profits, then the customer may not get the right priority
- They believe in delegating and the customer priority is delegated
- We have a quality program and the customer is taken care of
- We measure customer scores, and we are doing well
- Not be a CEO god, have more customer interaction, get more customer information from outside the company
- Build a Customer Strategy. Assign Customer tasks to all departments, measure their progress and show the customer priority in the business
- Break silos
- Give the customer a higher priority. Should the customer be priority one? Ensure customer data such as Customer Value added is reported along with quarterly financial results
- He should measure Customer Value which tells him where his company is better or worse than competition and why customers buy or do not buy from them
- Help build a customer centric mind set/ attitudes. Bonuses driven also from customer results
- Put into action a Customers Bill of Rights and a Circle of Promises to uphold the rights
What we must do to be more Customeric to the CEO (or what the CEO might want to see)
- Tell me what I will get in profits for increased investment in time and money on the customer. How much will my market share increase by. Will I become more efficient?
- Will I reduce customer churn and increase loyalty. Is there a good measure other than NPS and Customer Value Added
- How will this help my employees? Will I get happier employees and lower employee churn?
- Will it make my team/processes more customer centric?
- Can I really get to zero complaints?
- Will I get an early warning system about my competition and marketplace?
- Will it get me better pricing and de-commoditise my products?
- Will it get me to be ahead of competition on new offerings?
A similar thing happened when the quality revolution started. Most CEOs were aware of quality, but did nothing to make it a strategy. A few leader like CEOs embraced the quality thought process, and improved quality of the products and across the company and its services. They found there were fewer complaints, and that customers preferred them. Moreover, costs went down, and profits went up.
Those that did not clamber on the the quality bandwagon were laggards, and were falling behind. They had to catch up.
Leaders today have a choice of being ahead of, similar to or behind competition.
Your comments are welcome!
Gautam Mahajan, President - Customer Value Foundation
M: +91 9810060368
Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.
Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person's role in Creating Customer Value and getting shareholder wealth and Value.
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