An E-book with a collection of the best posts on my blog from the past 3 years. Please check out wimrampen.com for more.

1. CO-CREATING
CUSTOMER
RELATIONSHIPS
Thoughts, Explorations & Concepts for Customer
Driven Marketing & Service Innovation
by Wim Rampen
1

2. Introduction
By Wim Rampen
I’ve been thinking about writing a book Chapter three is where the meat is. This is
several times. And this time I thought I’d about Social CRM and how I think about
do something about it. As it seemed Customer Relationship-building in the age of
sensible I started reading through the past Service and Co-Creation. If you’re looking for
three years of blog-posts that I’ve written. my persepective on technological
Having done so I decided I might as well developments you will be dissappointed as I
share the ones I like best with you in a discuss Social CRM on a conceptual and
digital booklet. company strategy level.
This booklet has four ‘Chapters’. The last chapter (four) contains two posts in
which I bring together my thinking from the past
The first chapter discusses Value. You can two years. The first one is on Service, the
read all about adding value, offering value, value second one on Marketing. Both are quite long
chains, value netwroks and even creating value. and have received lots of compliments,
It can well be one of the most used words in retweets, referrals and comments. They too
business publications, but only very few seem have been the basis for several presentations
to be worried about what it means, and how and key-notes that I have conducted over the
value can be a used on a conceptual level as to past year or so.
make it framework one can use in a business
environnment. Since ‘Value’ is also used a lot in I consider this booklet my personal resource, a
my blogposts, I thought I’d share with you how well of inspiration for writing my book and an
I think about the concept in the first Chapter. important way to to collect feedback from you
as to whether the idea of writing a book makes
Chapter two, a short one, contains two posts any sense ;)
on The Net Promoter Score (NPS). Two light
reads to express my love/hate affair with Enjoy reading & please let me know what you
metrics in general and NPS in specific. think at http://wimrampen.com
2

3. Chapter I. Value Defined...
or not actually...
By Wim Rampen
People who know me through my writing, One of the most important notions about value,
know that I’m very interested in to me, is that it can only be determined by its
understanding ‘value’. Make no mistake: beneficiary. I once used the example of
I’m not talking ‘valueS’. That’s the field of watching a football game with friends in a bar.
thinkers like Umair Haque and many Although, from an external perspective
others following his footsteps. Even everyone had exactly the same experience, we
Michael Porter, the value chain guru, has all know that everyone will tell a different story
come entered the debate with a plea for the following morning.
Shared Value(s).
And that is the case with all products and
No, I’m talking about the value Customers services we consume (or better: experience):
derive from the products and services we, the we all experience in a different way. Hence,
companies, provide. And if you know me really value is a very personal state of mind, a
well, you know I don’t think in terms of perception of what is expected or has been
‘extracting, getting or deriving value from’. I created.
think in terms of value as being co-created
between Customers, firms and potentially many This Chapter contains three posts, amongst the
other participants. More about that later in this most popular of my blog over the past years.
booklet. Thank in advance for reading.
“Value can only be
determined by its
beneficiary”
Steve Vargo and Robert Lusch - A Service Dominant Logic
3

4. To Be A Value (Call) Center is Not Your Choice
By Wim Rampen
Over the past years most companies have "Deployment of a Value Center strategy will only
recognized the contact center or customer have a chance to meet the desired result if one
services center as an important touch- can leave behind Cost Center methodologies
point between the company and its and metrics"
Customers.
Becoming a Value Center is not about choosing
[...] I very much welcome the interest of to upsell or cross-sell when you want it.
Marketing (and Sales) for the call center Becoming a Value Center is also not something
environment as much as I do the attention for one can decide to be by itself. Let the
improvement of the Customer Experience. Customer be the judge of how much value is
created through the Customer Services
The main strategy of call centers has been to Experience, let the customer decide if your Call
develop itself from a cost to a value center. Center is a Value Center!
From a terminology perspective this works for
me, but the practice, in my opinion, is mostly Call Centers are an important touch-point in the
focused on single value creation or value Customer Experience. It is also not the only
extraction. Let me explain my thoughts: point a Customer will touch in its lifetime. The
design , delivery and decision making aspects
The main elements of the cost to value-center within the Call Center change if a company
strategy have been focusing around generating thinks and manages the contacts as part of a
additional sales, through up- and/or cross- lifetime of Customer interactions. [...]
selling. [...] Some pro-active companies are
aiming to improve the customer experience Thus, to conclude, I believe the best way to go
with things like welcome calls or any other form is not with a cost-centered, not with a profit-
of courtesy calls (generating another sales- centered and not with a flawed value-centered
opportunity). approach. The best approach to Customer
Services Call Centers is the Customer-centered
I'm a firm believer in the great opportunities for approach.
value creation there are on the customer
services touch-point. I also see that, in lots of
cases, after a promising first starting year, Deployment of a Value
companies forget that value-creation is not only
about extracting as much value possible out of Center strategy will only
the Customer into the company. Hence have a chance to meet the
companies start increasing the sales-targets
and more importantly, they start increasing the desired result if one can
"sales-per-hour" target, which is just another
productivity metric not aimed at customer value
leave behind Cost Center
creation. Which leads me to the following methodologies and metrics
statement:
4

5. "A brand doesn't know what it is unless it knows
what its customer is. That's why smart
organizations focus on strengthening
relationships with actual customers, and not on
the independent creation of content and
attention."
Tom Asacker - A Clear Eye
Value is Always Co-Created
By Wim Rampen
One of the fundamental flaws in thinking can’t do that job without themselves.. Indeed,
about value is based on the persistent themselves:
logic that value is something you add, or
provide. I’ll try to explain why and how you Customers can only create value for
should think about value creation instead. themselves WITH themselves..
Value is not derived from your product, but If it weren’t for yourself, how would you be able
created with your product to make a phone call? How would you be able
It’s persistence is shown e.g. in the way we to make dinner? How would you be able to
think about value chains. It is vested thoroughly enjoy it with your friends? How would you be
in our minds that each step in the production able to use your satellite TV? How would you,
and delivery of goods or services is about well …. basically get anything done? I think you
adding value, whilst at best it is about adding get my drift here. And although it sounds
knowledge, features or capabilities. None of incredibly logical, this is not the logic most
these elements are creating value for the companies use when designing experiences or
Customer though before they are consumed or targeting new Customers.
used.
Ignoring the Customer’s role
As a consequence today’s marketers continue Most companies (their marketing departments
to focus on explaining to (potential) Customers in particular) are stuck in telling Customers what
what value they are providing or adding. Firms value for their money they get, based on the
seem not to understand that the other side of flawed thinking that the Customer derives value
the table is not deriving value FROM the from the product itself. Yet, they are completely
product. The other side is trying to get a job ignoring the Customer’s role in the process of
done and your product or service is a means to value creation.
that end, thus they are creating value WITH the
product. And – this is really important – they
5

6. Value is Always Co-Created
Continued...
By Wim Rampen
When they should be thinking how to further answer similar questions, yes. But dominantly in
enable the Customer’s value creating the context of selling goods or services (how
capabilities, they are thinking of how to capture can we make buying easier?). Too few ask
value from the Customer. Which in essence themselves these questions in relation to the
they ask in return prior to the value being Customer’s experience when consuming the
created. (yes, most purchases are actually pre- goods or services.
payments). Why?
What could be, if you would truly
Because value only comes to life when understand?
Customers are using the product or Imagine if you would understand what
service. “resources” Customers bring to the table to
create value, beyond the product or service you
Once you understand that the Customer has an provide? How powerful would that
important, even decisive, role in the process of understanding be? What if you would
value creation, and that value is only created in understand that better than your Customer’s
use, it is not a quantum leap to the next stage: alternative suppliers? What would happen if you
asking yourself what Customers need to do, in could support your Customers creating value in
order to be able to create the value they are a more easy, better or quicker way, not just
after. Asking yourself: What do they need to make them buy in a more easy, better or
know, understand, be able to? (and I’m not quicker way?
even touching upon the contextual and
emotional side of value creation here). Or taken Would that not provide you with the competitive
from the opposite angle: what is hindering advantage you want? Would that not create the
them? what don’t they have? what don’t they advocates you want? Would that not allow you
understand? what can’t they do? and how to capture higher margins over a longer
come? Customer lifetime?
Many in the area of marketing, Customer I think so..
experience or even Service design, try to
Most companies (their marketing departments in
particular) are stuck in telling Customers what
value for their money they get, based on the
flawed thinking that the Customer derives value
from the product itself. Yet, they are ignoring the
Customer’s role in the process of value creation.
6

7. Value Co-Creation Canvas
By Wim Rampen
I'm a big fan of Business Model Generation journey to result in a Customer's experience
and the Business Model Canvas. I find it that creates value for both companies and
rather useful in many situations to explain Customers.. co-creates as one should say.
the essence of CRM Strategy, Customer
Experience and the importance of the I played around with the canvas and came up
other building blocks to the blocks in the with my own Value Co-Creation Canvas.. It's far
upper-right part of the Business Model from finished or perfect, but I believe it's good
Canvas. enough to present to you and ask you for
feedback. I think it should be a self-explanatory
I also find it not to provide the depth sometimes canvas in the end, but am sure it isn't yet. So
needed to explain how Company's resources please ask all questions you might have. It will
and capabilities need to be aligned with help me improve it.
Customer's resources and the Customer's
7

8. Chapter II. Metrics, metrics, metrics..
and how I love/hate NPS
By Wim Rampen
When I started with my blog, over 3 years But that never stopped me from writing and
ago now, I was mostly concerned with thinking about it, resulting in the best read post
metrics and measurement frameworks. I on my blog to-date. And it continues to be read
even tried to rally up an international very well almost every week. It never
community of highly experienced people in dissappears from the top 5 best read post.
the field of Customer Experience
Management and measurement to co- On the next pages you will find two posts on
create a new measurement framework to NPS. Both resulted in heavy pro/con NPS
capture value co-creation. debates. To-date I have mixed feelings about
the concept. One thing is for sure: I’ll never buy
What I didn’t know then is a) building a into NPS being the one number you need to
community is tough work because hardly grow, like Reichheld c.s. suggested.
anyone acts by himself completely b) it is
impossible if the concept of value co-creation is But please, judge for yourself, if you haven’t
not widely understood. And thus the initiative already.
died.
THE QUESTION
How likely is it that you would recommend [your company] to a friend or
colleague?
HOW IT’S MEASURED
8

9. NPS & The Customer Experience
By Wim Rampen
Net Promoter Score, like Customer customer service and sustainable growth.
Satisfaction, is not a killer metric. Zappos.com is maybe The Brand Icon of how it
NPS has been presented as ‘The One Number should be done. This video (featuring
You Need to Grow’. [...] There has been, and Zappos.com CEO Tony Hsieh) provides some
still is, a fierce discussion on the validity of NPS insight in how they do it.
with regard to its [...] predictive capabilities. One
of the better publications, from my point of It is not measuring NPS that relates to the
view, is this one from MIT Sloan (PDF). For a success, it is the other way around
good overview of pro's and con's also take a The success of a clearly defined, and well
look here. executed strategy aimed at increasing positive
Word of Mouth through "wowing" Customer
Personally I do not take for granted any metric, Experiences, can be measured through NPS.
let alone a metric like NPS that has been The Key-differentiator is not the measurement,
marketed like it is the silver bullet for it is the strategy and the alignment of
businesses. The Customer Experience is not companies resources, culture and true
something one can take lightly nor are understanding of the Customer Experiences
Customers. They are both way more complex that matter, which result in high NPS scores.
than can be captured through measurement of
one question (and an open feedback-question) Let me try and explain through a quote from
that aims only to capture how many Customers Graham Hill: There is absolutely NO POINT in
would be willing to promote your company or measuring something if doing so doesn't allow
product. you to change the system through
management action. These are often different
Maybe provoked by the fierce way NPS measures to those typically measured by
advocates approach the discussion and defend management.
their positions, I developed an aversion to the
metric. I still believe that a more profound As the video shows, Zappos.com understands
measurement framework that focuses on their Customers and the Outcomes they desire.
measuring Customer (desired) Outcomes and Zappos.com knows how to leverage this
Value Co-creation, and not Customer knowledge and understanding. They are
semantics, is a more powerful toolbox. measuring far more elements of the Customer
Experience than NPS. Net Promoter Score for
Zappos.com and a Customer Experience Zappos.com is an outcome of management
that makes the difference action. I even think they are able to predict their
Nevertheless I also have to acknowledge that next months Net Promoter Score because they
there are some great examples of companies know what Experiences their Customers had.
that are successful and that have great Net
Promoter Scores.[...] One example of the Did NPS do that for them? I doubt it. It is their
application of NPS I found has caught my focused and well executed strategy in
attention: Zappos. Zappos is known for its combination with a balanced measurement
great customer centric culture, wowing framework.
9

10. Sorry NPS, I’m not buying it
By Wim Rampen
I know a lot has been said about Net
Promoter Score (NPS), and I'm not in this A comment by Rags Srinivasan to this
world to judge anyone who's working with post provides some good additional
it, or developing it into a Net Promoter insights:
System.
You make very valid points based only on
I do like to share my experiences with it experience but also looking at it from
though, hoping to attract other people who'd broader context.
like to share theirs, so we can all get a better
understanding of what drives Customer loyalty Since you already made some of the key
and how to manage for it. Unfortunately the points on customer satisfaction metric and
Net Promoter Score is not working for me right how NPS is all over the place, I will try to
now. And here's why make other points.
In my role at Delta Lloyd Groep I have the 1. By the very definition of the metric,
pleasure to work together with Zanna van der when you measure it for the first time for
Aa, who is working in my team as Program any business you are highly likely to find
manager of the Customer Experience Program negative value. Take a case where
we've launched this year. Zanna recently respondents all answer randomly and
received her PhD based on her research on avoid rating 0 or 10. The NPS score for
the role of the customer contact center in this business is going to be -55
relationship marketing. In short: she pretty (whether it is uniformly or normally
much knows her stuff and she's as curious as distributed may change this, but still a
I am to really understand what drives low negative number). On the other
Customer Loyalty ;) hand a simple average of the rating (like
customer sat) will show it is 5. A
How we measure negative number creates a sense of
As part of the program we are measuring really bad situation and helps to sell
Customer Satisfaction, Net Promoter Score add-on services to improve this score.
and Customer Effort Score. The first two we
are both measuring on the level of interactions 2. What is materially different between a 10
(e.g. after a service call, or claiming damages) point scale used by ACSI and this 11
and the level of our annual Customer point scale? Why 0 to 6 are detractors
Satisfaction survey on a large proportion of our when 5 is labeled on NPS survey
Customer base (including those not in question as neither likely nor unlikely.
interaction/transaction with us over the past
year). Customer Effort Score we are only 3. If we treat 7 and 8 as Passives, what
measuring on the level of interactions. Apart about those who did not even bother to
from these standard questions, we are asking respond to the survey? By its own logic
more questions in different forms, including an this scale should treat all non-
open answer box to obtain qualitative
10

11. Sorry NPS, I’m not buying it
Continued...
By Wim Rampen
feedback as well. Response rates are quite high
on the transactional surveys, and very
respondents as Passives. It cannot satisfactory on the annual one.
switch scales for its own
convenience. What we see
Customer Satisfaction ratings are quite stable
4. When you ask respondents a rating and have been increasing steadily over the past
question, regardless of whether it it years. The scores are also very similar throughout
about satisfaction or both methods. We seem to have a good
recommendation, the answers are understanding on what needle we need to move
not going to be that different. It is an to get improvement on Customer Satisfaction.
interval scale with continuous data. How different is this with Net Promoter Score.
But in order to brand and monetize it The score itself is all over the place. It seems to
they invented this complex Net math change from quarter to quarter going up and
that converts customer level data into down without any reason (and we have been
a useless company level net metric. looking for them).
5. Segmentation? The method and I'm 'bothered'
metric absolutely fail to ask any A recent event really makes me doubt the Net
question about segmentation and do Promoter Score question/methodology: Our own
not care how this metric differs measurement showed a score, whilst a survey
across segment. What is the use of held by the same research firm on exactly the
aggregate metric that ignores same sample, as part of an industry benchmark
segmentation? as little as two months later, produced a
difference of 20 points in the score. And
In essence we have an arbitrary irrelevant Customer Satisfaction scores in both surveys
metric that has captured the minds of showed the exact same result. On top of this
some there are even bigger differences between the
score in our own measurements and other so-
You can find some excellent insights called 'industry benchmarks'. Since for the latter
from Rags on his blog at we don't know the exact way the questions are
http://iterativepath.wordpress.com asked and in what order, we could not really be
bothered. But with current 'evidence' that's
exactly what we are..
Oh.. and the judge is still out on Customer Effort
Score (CES), but so far we don't see the higher
relationship with Customer loyalty, as promised..
So, what do you think? Back to Customer
Satisfaction as the primary metric?
11

12. Chapter III. Social CRM
Definitions, Concepts, Strategy & More
By Wim Rampen
Ever since I ‘set foot’ on Twitter I was Ever since we have been in contact irregularly,
introduced to the concept of Social CRM. but I know I can reach out to him when I need
I’ve had some amazing talks, discussions his help, his point of view or his support. Thank
and blog-exchanges and with many smart you Paul!
and leading people in the world of CRM
and Social Media, trying to figure out what And, that also goes for the bunch of people we
Social CRM could be(come). If you select refer to as the “Social CRM Accidental
the category Social CRM on my blog you Community”: Brian Vellmure, Mark Tamis,
will find many articles about the concept Mitch Lieberman, Prem Kumar, Esteban
and its development over time. Kolsky, Mike Boysen, Michael Krigsman,
Paul Sweeney and Laurence Buchanan. All
My musings on Social CRM are, volumewise, must follows.
probably worthy of a book, but I’m pretty sure
Paul Greenberg is beating me to it ;) And I can’t If you’re interested in Social CRM please read
even begin to walk in his shadow. some of my posts on the next pages. Before
you do, it does make sense to read Paul
Paul Greenberg is one of the very few people I Greenberg’s seminal post: “It’s time to put a
know that are really open minded and truly stake in the ground”.
enjoy helping and connecting people. I’m not
only glad I can count Paul Greemberg as a Enjoy, and son’t hesitate to contact me through
friend, I’m really grateful he introduced me to my blog, if you have any questions or views to
his world by inviting me to the world’s first share.
Social CRM Strategy for Business Seminar in
Washington DC, early 2010.
Yeah, though Po the Kung Fu Panda became the Dragon
Warrior by understanding that theres no secret ingredient in
his father's secret ingredient soup as also theres no secret
in the dragon scroll, he did have a great training in making
soup as well as kung fu. ;)
Methods, tools, techniques are necessary but insufficient
condition for success
Prem Kumar - Social CRM Evangalist
12

13. What a Social CRM Strategy is All About
By Wim Rampen
It has been a while since Paul Greenberg framework-statement I propose. First of all we
put the stake in the ground by writing need to understand how Social CRM changes
down the definition of Social CRM. For the way we answer those 3 questions?
further reading purposes I will repeat it
here: What has changed through Social CRM
that is significantly different from the pre-
“SCRM is a philosophy & a business scrm era?
strategy, supported by a technology Paul Greenberg makes a statement in his
platform, business rules, workflow, “staking”-post that relates to this last question,
processes & social characteristics, which I totally agree with:
designed to engage the customer in a
collaborative conversation in order to “What this means is that SCRM is an extension
provide mutually beneficial value in a of CRM, not a replacement for CRM. Its a
trusted & transparent business dramatic change in what it adds to the features,
environment. It’s the company’s response functions and characteristics of CRM but it is
to the customer’s ownership of the still based on the time honored principle that a
conversation.” business needs its customers and prefers them
profitable and that same business needs to run
On top of the definition I think there is a more itself effectively too.”
specified set of elements needed to define a
Social CRM strategic framework statement. A But there is a change! Another quote from Paul
statement that can provide some direction how Greenberg:
to design processes, services and experiences
in line with the SCRM philosophy and the latest “The lesson for business, in terms of Social
thinking on Customer Centricity and CRM. CRM is that we are now at a point that the
customers’ expectations are so great and their
Three Strategic questions: Who? - What? - demands so empowered that our SCRM
How? business strategy needs to be built around
I think of strategy in three simple questions: collaboration and customer engagement, not
Who are your Customers? What are their traditional operational customer management.”
needs? How will those needs be met?
Answering these questions will provide you with This is the fundamental change, that has been
a rough strategic statement that enables you to discussed and is still being discussed all over
communicate both internally and externally on the (virtual) globe.
what your Company is all about. At the end of
this post I will provide you with my view on the On top of this Graham Hill said the following in
Strategic Framework Statement for Social a comment to Paul Greenberg’s post:
CRM.
“Social CRM [...] extends CRM from being
Before I do I will take you through some steps I something predominantly inside-out, to
think are important for understanding the something that extends out into the
13

14. What a Social CRM Strategy is All About
Continued..
By Wim Rampen
conversations that customers are having to better understanding the concept of value
between themselves. If we want to engage co-creation and the way it differs from different
customers we need to really understand [...] the shades of “co-production” or “mass-
jobs customers are trying to do and the customization” (the differentiating element is
outcomes they are trying to achieve by doing `personalization of experiences - in use`).
them. This i s best practice in understanding
customer needs today [...] Once we understand A Social CRM Strategic Framework
what customers need, we can innovate around Statement
delivering exactly that [...]. And we can use If I now take the definition of Social CRM from
service-dominant logic to provide experience Paul Greenberg, the understanding of Service
platforms that allow customers to co-create Dominant Logic, Customer jobs and desired
value together with companies. Co-creating outcomes as explained by Graham Hill as well
value with customers is the modern definition of as the differentiating element from the value co-
customer-centricity.” creation definition, and I put them all together in
context by answering the who-what-how
This is not a light read and Graham Hill has questions, I get what I would like to define as
since written several posts that shed some the Social CRM strategic framework-statement
more light on the value co-creation concept. I as shown below on this page.
wrote a post on the definition of Value Co-
creation myself based on (among other) Obviously I like it and I will discuss in future
Graham Hill’s views (you can find links to his posts what I think the implications of this
post there) because I had a need myself to statement are for a more detailed strategy.
better grasp the concept of value co-creation
and furthermore because I felt the need to be Of course I am not a guru and I’m definitely not
able to explain it in as few words as possible to perfect in what I think and write. So it is now up
anyone who is newly introduced to the to you all to blow it to bits or otherwise let me
concept. know what you like or not about the statement.
And I would appreciate any views on the
I advise you to read the whole post as well as implications of the SCRM strategy framework
the comments on it. This has been one of the statement when it comes to building a detailed
most valuable posts for myself when it comes strategy.
Social CRM Strategy Framework Statement
A Social CRM strategy is about understanding who the Customer is through
listening to, engaging with and collaboration between Customers,
employees and partners. It is aimed at developing innovations, interactions
in networks of relationships that support customers in doing the jobs they
need to do. The means are a personalized design of the service experience
that empowers Customers, employees and partners to influence how well
they can meet their desired outcomes
14

15. Social CRM - What Relationships Should
You Care For, And Why?
By Wim Rampen
I think most Social CRM definitions share a values the outcome generated from the
company centered logic of building and/or experience of using your product or service, it
leveraging a relationship between the should not be difficult to understand that
Customer and the company. Customers value knowledge or information on
how to improve that outcome, over
I believe we need to let go of the company relationships (with the company). Even if the
centered relationship logic and put Customers' company is involved in providing this
relationships at the center of our thinking, when knowledge, it is not the interaction or
we are designing our answer to the Social relationship, but the actual knowledge or
Customer's ownership of the conversation. outcome of the interaction that is of value to
your Customer.
Most Customers don't want a relationship
with you. We all understand and experience ourselves
Your Customers value you mostly on the bases that the Customer does not depend on the
of their experiences when using your product or company for knowledge or information.
service. That's because they hired your product Customers turn to peers in their networks to
or service to do a job for them, that they desire obtain this information, or to rating sites,
to do. It's the outcome of the job your Customer support communities and what have
Customers want, not the relationship. you. And all this information is valued higher
than the information a company provides.
Your Customer's relationships, not yours..
Also from a company's perspective, a Tap into the knowledge-flow
relationship with your Customers is not what Hence, in the era of the Social Customer, you
you need most. You need most to understand may want to better understand how your
what job it is your Customers are trying to get Customers leverage ALL their relationships
done. Company's can do that without any (strong and weak ties) and other ways of
relationship with Customers at all. If the tapping into the knowledge-flows that matter to
relationship with Customers was required no them, to obtain the information they need to
start-up would be able to make it in this world. increase the value they create with the products
Fortunately they do. and services they use.
Where CRM focused on the Customer - Social CRM is not about managing the
company relationship, a Social CRM strategy relationships with your Customers, it is
will only succeed if it centers around ALL of (increasingly) about managing the knowledge-
your Customers' relationships. flows through the relationships of your
Customers. And yes, you as a company maybe
And here's why: part of this eco-system of your Customers'
Because a Customer does not value a relationships. But please, don't put yourself at
relationship with the company, but mostly the center of it..
15

16. The S in SCRM is not about Social Media
By Wim Rampen
Today I read a tweet by Ray Wang where demographics and/or lines of profitability,
he states that he lifetime value and share of wallet. If there is one
thing we (should) learn from emergent on-line
"doubts Social CRM (SCRM) will replace communities it is that people join these
CRM. They augment each other. S is just a communities to perform a certain job (to-be-
new but powerful channel. What do you done). This can be a social job, functional job or
think?" emotional jobs, mostly formed around a shared
interest. It is these jobs & interest that bond the
I fully agree that Social CRM will not people in a community. On-line (and off-line)
replace CRM. I have a different view communities are in fact the Customer's natural
though on the meaning of the S. Here's way of segmenting. I believe it is not difficult to
what I think the S in SCRM is about, and understand that capturing the understanding of
why: the jobs your Customers are trying to do and
the way they are trying to do it, is the Social
1. From 1-2-1 to M-2-M CRM way of Customer segmentation.
I wrote a post almost two months ago on what
relationships you should care for in Social CRM. Again, this doesn't mean that traditional ways
In this post I argue that I believe we need to of segmenting have become obsolete. For me it
completely let go of this company centered comes second though. Social CRM is not
relationship logic and put Customers’ replacing CRM, it is extending, or improving, it.
relationships at the center of our thinking.
Hence, in the era of the Social Customer, after3. A new entry in the front-office
understanding your Customers’ needs, you The third reason why the S in SCRM is more
may want to better understand how your than adding a channel is the new entry to the
Customers leverage ALL their relationships front-office. CRM has a clear focus on the
(strong and weak ties) to obtain the information
traditional front-office: Sales, Marketing and
they need to increase the value they get from Services. With the S added to CRM innovation
the products and services they use. made it into the front-office, in my humble
opinion. More and more we see companies co-
This does not mean that 1-to-1 conversations develop new products and services together
between Customer and company are no longer with Customers (and partners) in close
relevant. Nothing is less true, yet we need to collaboration. This can vary from inviting
think of Customers as part of networks, of Customers to present new ideas to a full
which we the company may be a part. And the process of co-development. It is clear to me
company is not at the center of it: the though that product development and
Customer is. innovation departments are having meaningful
dialog with Customers, which, to me, allows
2. Segmentation the Customer's way them for a seat in the front-office row of a
In traditional CRM companies segment Company.
Customers along the lines of socio- and
16

17. The S in SCRM is not about Social Media
Continued...
By Wim Rampen
4. Breaking down silo's knows how to leverage his voice and
Breaking down silo's has been on the agenda knowledge to his (and his peers') advantage.
for quite some time. Unfortunately, as a Also a Customer that does not want to be
consequence of the high focus on transactions treated as an opportunity for exchange at any
and transaction efficiency (by example: much of convenient moment, from a Company's point of
SFA is basically nothing more than monitoring view. But a Customer who wants to be treated
transactions, from lead-generation numbers, to with respect and wants to have options to
appointment numbers, to RFI's answered choose from. Moreover the Social Customer
numbers etc etc..), this has not happened. wants to have influence on how he creates
Specialization and task-oriented jobs have value from the products and services you
become the norm in business (no need to provide.
explain I think.. we can all relate, not?), whilst
sharing knowledge and collaboration are The S in SCRM is about catering for these
becoming increasingly important in the rapidly needs and adopting approaches that show
changing and complex systems that we are all respect for the way the Customer wants to be
part of these days. If we are ever going to turn treated (this last point in it's essence: no more
CRM from the inside out to the outside in, we unsolicited direct mail, e-mail and outbound-
need to break down the silo's. Before the S campaigns, in which unsolicited is very different
was added to CRM, companies could still get from not opting out!).
away with it. Increasing Customer
empowerment is turning this ship around, To conclude: to me adding the S to CRM is
through Customers complaining about the much more than just adding Social Media to
Customer experience in open innovation the other channels available for
communities, by marketing talking to Customer communications with Customers. Which is also
service if they can help them turn service into why I disagree with any definition of Social CRM
sales (as a consequence of the lack of that puts the channel at the center of it.
outbound sales) etc etc..
This is my interpretation of the S in SCRM. I'm
Much more water will flow through the Rhein, interested in learning yours. Please share them,
before the Silo's will be broken down. For me, it and your comments to mine, below.
is a "sine-qua-non" if you want to add the S to
CRM.
Capturing the understanding
5. Answering to the Social Customer
Last, but not least: According to Paul of the jobs your Customers
Greenberg this is the essence of Social CRM, are trying to do is the Social
and I agree. The Social Customer is not (only) a
person that engages through Social Media. The CRM way of Customer
Social Customer is any Customer these days. A segmentation.
Customer that is not becoming more vocal and
knowledgeable, but already is. A Customer who
17

18. The Only Thing Your Social CRM Strategy
Cannot Do Without
By Wim Rampen
There have been some interesting
discussions around what elements your Implementing social tools, and doing absolutely
Social CRM efforts can or cannot do nothing differently than before, would not make
without. It started with Bob Thompson it part of a Social CRM strategy. Just like
asking whether one can do Social CRM adding e-mail or chat to the channel-mix wasn't
without Social Media/Networks, or CRM truly game-changing. And increasing your
Systems. listening capabilities by adding Social Media
Monitoring, however important, is not game-
Another interesting thread can be found where changing the value creation capabilities of your
Prem Kumar asks whether Apple is using Customers either.
Social CRM. I recommend you read both
posts and the discussions in the comments. From 18 to 2 Use Cases?
Having said this, it is also clear to me what
These discussions made me think though what popular "use cases" under discussion would
would be the one thing your Social CRM not imply a Social CRM Strategy. This does not
Strategy cannot do without. THE sine-qua-non mean, by the way, that there's no value in these
of Social CRM. use cases. To me, they would be part of regular
CRM or CEM programs, like we have been
In my humble opinion the sine qua non of running them for quite some years now. They
Social CRM is: Empowering the Customer in are either about using or adding the Social
the process of creating value for the Customer. Media channel and tools or improving upon
practices that should have been part of being
This actually is also the missing element of my Customer Centric long before Social Media.
previous post: The “S” in SCRM is not about Again: still lots of value to capture for you and
Social Media. It is not only missing.. it's the key your company by implementing these use
element that is missing. cases.
Social CRM's value is that it opens up communications
between the company and the customer in a way that allows
the customer to sculpt his own experience with the company
- thus enhancing the value of the company's relationship with
him. [...] meeting the company's objectives on the one hand,
but on the customer's terms on the other.
- Paul Greenberg -
18

19. The Only Thing Your Social CRM Strategy
Cannot Do Without Continued...
By Wim Rampen
not only to share, but shape their experiences
I reviewed the 18 use cases of Social CRM with their peers (much like Nike + is doing), and
as published by Altimeter early March of this cases that allow your Customers to sell, share
year. I believe the following 2 use-cases or distribute their own ideas and products
described there, would fit as use cases for a through your platform (E-bay, Amazon,
Social CRM Strategy sincy they are about P&G Connect & Develop etc).
empowering the Customer in the process of
creating value for the Customer (themselves or These use cases require a higher level of
their peers, that is). They are about involving creativity and "guts" than just implementing
and empowering the Customer in the design social media or social tools to existing
and delivery of experiences: processes. They require you to re-invent the
process and, more importantly, to change the
# 11: Social Support and Service - Peer-2- way you perceive your own role and that of
Peer Unpaid Armies or Customer Support your Customer in that process.
Communities - Where smart organizations find
ways to harness the collective expertise Transferring the power
available within their networks of Customers Acknowledging that Customers own the
(and providing the platform for Customers to conversation is not enough. Having meaningful
exchange that expertise with their peers). conversations on online social networks with
your Customers is not enough either.
# 13: Social Innovation streamlines Complex
Ideation - Crowdsourced R&D - Where You need to design experiences and
companies find ways to harness the collective experience platforms that will allow the
expertise available within their networks of Customer to influence their experiences or that
Customers for ideation, product development will allow your Customer to support their
etc.. networks and peers in creating personalized
experiences.
All other use cases are smart things to do, but
mainly about doing smart things you (should) It is about actually transferring the power from
have been doing before. Social tools or the company to the Customer, and that is much
channels may help you to get these jobs done harder to do, than implementing social tools to
better than before, but they do not significantly do a better job at the things you (should) have
change the game of providing value for your been doing before. And, in my humble opinion,
Customers. it is the most appropriate answer to the Social
Customers' ownership of the conversation.
Use cases as such can be found all around by
the way. They are cases that involve the What do you think? Are you ready to transfer
Customer to customize the products before power to your Customers?
ordering or even build their own (Lego), cases
that bring Customers together in communities
of practice or social networks and allow them
19

20. 5 Things You Need To Know About (Social)
CRM (Definitions)
By Wim Rampen
I think trying to define something is a very good • (Social) CRM as a (cap)ability
exercise to understand what you are dealing • (Social) CRM as a technology
with or what you are trying to do it for. It also • (Social) CRM as a practice (or as practices)
helps to communicate internally. And regardless
of what many say, I don't think there are OR, as a combination of all or some of the
enough definitions of (Social) CRM, at least not above concepts, in a non-alphabetical order.
good ones.. But that is a personal opinion, not
relevant to today's post.</em> Most of the times you'll find that the writers
point of view is highly related to the concept of
If, for whatever reason, you have a need for a CRM he's trying to define. But it's not always
definition of (Social) CRM, please take into the case. It will not take you a long time to find
consideration the 5 things you need to know a CRM strategy definition from a PR/marcom
about (Social) CRM for you to make your own specialist. Again, no pun intended.
definition, described here:
3. In what context?
1. What's your point of view? (Social) CRM, regardless of your point of view
The concept of (Social) CRM has been defined or the concept you defined, is not similarly
and explained by many different people inside successful under all circumstances. E.g. it
and outside "the industry". Be it marketeers, matters if your industry is one with high
scholars, IT-consultants, vendors etc etc. they commoditized products versus industries with
all have their own point of view, they all take low commoditisation. CRM is more successful
with them their own backgrounds and biases. in highly commoditized industries, because
there it provides a way to differentiate oneself
Definitions only tells you so much about (Social) from competition.. yes.. CRM is what people
CRM itself. Definitions will tell you a whole lot mean they need when they say that Customer
more about the person who made the service must be a differentiator. They just don't
definition. And I do not mean that in a bad way. always realize it..
I do think it is important that you are aware
though, because it will help you understand the It also matters if you want to define (Social)
response from other stakeholders that read and CRM in the context of a recently failed CRM
comment on your definition, better.. project within your company, or that you are
just about to start your first. It thus is of vital
2. What's your concept of (Social) CRM? importance that you understand and articulate
Regardless of the definition you'll read or try to the context in which your definition is (to be)
tweak, it will be one that fits into the following 6 used.
(valid and viable!) concepts of CRM:
4. How does it effect performance?
• (Social) CRM as a process (or function) CRM is at its best when it is supportive of a
• (Social) CRM as a strategy business strategy of differentiation and/or cost-
• (Social) CRM as a philosophy (or mindset or leadership. Most people understand the
logic) differentiation part, because it highly relates to
20

21. 5 Things You Need to Know About (Social)
CRM (Definitions) Continued... (1)
By Wim Rampen
the "treating different customers differently" processes etc etc..). How else are you going to
paradigm it so strongly supports. (Although we understand which Customer does and which
still see many CRM system implementations doesn't value the relationship? How are you
with companies strongly holding onto going to understand what is of value to them,
standardized business processes for each and and let all your people know? How else are you
every Customer.) going to differentiate your service offering based
on such understanding?
Cost-leadership is basically the first one to think
of. Not so much in relation to higher And yes, the same seems to be valid for the
efficiencies, but to improved effectiveness. It is Social species as well. Most Customers are just
easy to understand that increasing a conversion connecting on-line with brands for the purpose
rate from 5 % to 10 % can be achieved through of getting a perk or discount. They are not there
creating the same total number of leads, but for the engagement.
with higher quality, or through creating better
targeting within a smaller number of leads. The Bottom line: never ever (!!) say you need to
latter is more likely the case in most DM/Cross- do (Social) CRM because your Customers
sell programs. Which is fine, because it saves want a relationship with you..
you from costs to reach out to these targets.
And, most important these days: it also saves Last, but not least, I just realized all of the
your Customers from being targeted (and trust above is valid for both Social CRM and CRM
me, they don't mind). (tradizionale if you want ;) definitions. Does this
mean that I'm ready to leave the Social part on
What I'm trying to say: don't link your CRM the table and get back to using good old CRM
definition to business performance directly, link (of which "social" is an integrated part..). I think
it to the high end strategies everyone supports it does.
and show it supports those strategies.
You? Let me know what you think!
5. How about your Customers goals?
This is an important reality check.. Research Adopting a Social CRM
shows as much as two thirds of your
Customers do not really want a relationship strategy is NOT about trying
with you. The even do not expect the benefits to get a spot inside
of such a relationship (or could have a low
expectation of such benefits?).. And the
Customer’s circles and at
worrying part is that it's mostly the young and the same time letting them
wealthy people who are not interested in these
relationships.
wait in the cold after
knocking on your touch-
But that doesn't mean you do not need to
develop (Social) CRM (capabilities/strategy/
points door!
21

22. Observations Why Social CRM Isn’t
By Wim Rampen
No, I won't claim Social CRM is dead, to creation with Customers, not just supportive
the contrary. It just isn’t growing up fast of transactions.
enough to really have a business impact.
Mono-channel focus
This is more likely due to the slow pace at The current logic of many companies is that
which companies are responding to changing investments should flow to mobile and social
market environments than it is due to the channels, because this is where, and how, the
advancement of technology... Customer “hangs out”.. They seem to be
forgetting that way too many Customers
There are a few observations I would like to continue to fail doing what they need to do at
share with you. Observations I see as hindering the “traditional“ touch-points like the Call
us in the advancement of service being Center or the company’s web-site.
practiced as the dominant logic, Social CRM as
the supporting strategy and Customer Adopting a Social CRM strategy is NOT about
engagement as it’s underlying tactic. trying to get a spot inside the Customer’s
circles and at the same time letting them wait in
It's company centric the cold after knocking on your touch-points
Companies continue to think mainly how social door!
technology in general and on-line social
Lack of accountability
networks can help them, not their Customers.
All talk on Google+ (and any other on-line social Social CRM or engagement initiatives are
currently supported by good-will mostly. All
network for that matter) seems to be focused
on how companies can use it to engage energy is directed to getting social working,
without a clear view on what types of value it
Customers, mine their conversations and to
become part of their circles (to sell them stuff). should generate for companies. Most are on
Companies continue to ignore that CRM the train, or almost ready to jump on it, few
should shift it’s focus from the Company - know where it’s heading. If we are not tying
Customer relationship to the Customer - Customer engagement tactics to Customer
Customer relationship. engagement value, your social initiatives will
not outlive the next crisis.
Influence, not value
Social Network analysis is targeted to Analyst paralysis
On top of all of the above, analyst firms, like
understand how influence flows through them.
But it’s not influence that creates value for Gartner, continue to publish quadrants and
posts that make no sense and by doing so
Customers. We would make a lot more
progress if we would direct all these resources confusing companies even more. (You should
read Paul Greenberg's post on this topic!
to understand how Customer’s value is
created in, and flows through, social He's spot on.)
networks. Because this will help us design and
align touch-points that facilitate value co-
22

23. Observations Why Social CRM Isn’t
Continued...
By Wim Rampen
Catching the wave
The root cause, if you ask me, is that many just the doldrums, if it hasn’t arrived there already.
consider this to be a wave that they need to And if you do not have a strategy to navigate
catch long enough to jump the next one.. To those, you should not expect to get out of there
me it looks like this wave is heading towards anytime soon!
If there is one person who influenced my thinking it is Graham Hill. I
highly recommend following him on Twitter and reading his posts over
at Customer Think. Below are the 15 trends Graham described in 2009
that are driving Social Business. That post is as valid as it was three
years ago. A must read.
A Manifesto for Social Business
No1. From Individual Customers… to Networks of Customers
No2. From Customer Needs, Wants & Expectations… to Customer Jobs-to-be-
Done
No3. From Company Value-in-Exchange… to Customer Value-in-Use
No4. From Delivering Value to Customers... to Co-Creating Value with Customers In
No5. From Marketing, Sales & Service Touchpoints… to the End-to-End Customer
Experience
No6. From One-Size-Fits-All Products… to a Long-Tail of Mass-Customised Solutions
No7. From Competing on Products, Price or Service… to Competing over Multi-
sided Platforms
No8. From Company Push… to Sensing and Responding in Real-Time to Customers
No9. From Technology, Processes & Culture… to Complementary Capabilities and
Micro-Foundations
No10. From Made by Companies for Customers... to Made By Customers for Each
Other
No11. From On-premise Applications… to On-demand Solutions from the Cloud
No12. From Stand-alone Companies… to an Ecosystem of Networked Partners
No13. From Hierarchical Command & Control… to Collaborative Hybrid Organisations
No14. From Customer Strategy… to a Portfolio of Emergent Customer Options
No15. From Customer Lifetime Value… to Customer Network Value
23

24. Chapter IV. Marketing With a Service Logic
And Service With a Marketing Mindset
By Wim Rampen
What I’ve tried most, over the past years of I therefor would like to conclude this booklet
blogging, is bringing together (Social) CRM, with two posts: The first is about Customer
Customer Experience Management, Customer Service and how Managers of Customer
Service, Marketing and as of late also Service Departments should break free from the
Innovation & Service Design. From my silo’d after sales support role. The second one
prespective all these disciplines are trying to is about how Marketing with a Service mindset
solve the same challenges, but are either requires new approaches and most of all 7 new
limiting themselves to a specific discipline, “jobs” for marketers to perform.
technology or methodology, or are trying to
compete with the others. Thank you in advance for taking the time to
read this far. I hope you enjoy the last two
And that’s too bad, because either of the articles, and look forward to your feedback on
disciplines has a lot to offer. I even think they all my blog at http://wimrampen.com
need each other.
There are two books I always recommend when I’m talking about Customer
Service. You should read them too.
24

25. Because It Is Time You Take Customer
Service Seriously
By Wim Rampen
Despite the economic crisis, the rise of the eliminating contacts that are of no value to
"Social Customer" and the popularity of both, by means of improved processes etc.
Customer engagement strategies through Furthermore reducing time and Customer effort
Social Media, I sometimes get the feeling as well as implementing self-service capabilities
that managers in Customer Services put in for high value contacts to Customers OR
a lot more effort to ensure the company company. Last, but not least, investing in those
does not get bad press, or negative "buzz" contacts regarded valuable to both Customers
in stead of providing a better then AND company.
expected Customer service experience.
The methodology basically prescribes you to:
We know companies do not always take
Customer service seriously. I think though many • Listen to "What (y)Our Customers Are
managers of Customer Services should start Saying" (WOCAS)
taking their discipline a lot more serious than • Improve your products and processes so that
they are doing today.. you do not get repeat contacts and many
complaints
Apart from the fact that it is useful to improve • Implement self-service with the utmost rigor
waiting & ticket-processing times, Customer's possible
self-service capabilities, complaints handling, • Use the remainder of contacts to do smart
first contact resolution, quality monitoring up- & cross-selling
scores and what have you.. I believe there is a • Segment your service (e.g. better service for
necessity for a more fundamental change in high value Customers)
both the mental model and governance
systems guiding current design and execution And if you do this well, you'll see that your
of Customer Services operations. Not only Customer services unit does not have to grow,
because great Customer service can be a or can even shrink in headcount (significantly!),
differentiator, but mostly because Customer whilst company revenue can double and
service needs a (mental) makeover for it to transaction volume can multiply with a factor
really become one. five (Amazon case).
The best service is no service Five perspectives
To date, the best proxy for good and effective Whilst I believe there is a lot of greatness to be
Customer Services (operations), has been set found in this methodology and/or approaches
by Bill Price, with his book (and proven like Lean/SixSigma, which have similar claims
methodology) "The Best Service is no Service". and approaches, I believe we need a more
You can see a good summary in this fundamental change in perspective to get out of
slideshare presentation. the "call center is the end of the line or the
organization's drain"-paradigm. And, of course,
Key to the methodology is that it very closely to finally start having a real and sustainable
looks at what contacts are of value to the impact on business results, not just sitting on
Customer and to the company, continuously the cost-side of the equation.
25

26. Because It Is Time You Take Customer
Service Seriously Continued... (1)
By Wim Rampen
I would like to explain so by elaborating on the the quality management systems put in place
"Five perspectives on Customer Services" we look at the transaction. 3 mistakes on a call,
need today. and you're out. Maybe, just maybe this
improves Customer Satisfaction on the call, but
1. The Value-perspective if this also relates to improved value to the
2. The Customer-perspective company as a whole, or the Customer in
3. The Experience-perspective specific, is only assumed, if at all. Besides that:
4. The Relationship perspective satisfactory results are good enough, most
5. The Network-perspective certainly if it's possible to reduce costs further
without reducing Customer Satisfaction.
Combining these perspectives and projecting
them onto Customer services operations shows This all may be a little better in the Best Service
we are far away from integrating the logic, the is No Service approach, but even there it is the
views and ideas that can be found in these contact and the transaction that is center to the
perspectives. All the more reasons to take a approach and the upper right corner of the
closer look. value to the Customer vs Value to the Firm
matrix shows "sales campaigns" as one of the
1. The Value perspective activities to fit in there. I would argue there is no
The most important shift in logic and customer value to the Customer in being sold to..
services governance we need to make is the
shift in our value logic. The entire governance Goods versus Service Dominant Logic
system is based on a value-logic that embraces To put it bluntly: the Customer Services
value to the company and aims at maximizing management system is designed with a
Customer value extraction. production-based logic from the pre-war
decades of the previous century. The founding
The current value logic has been perfected into fathers of Service Dominant Logic (Vargo &
such detail that almost every KPI the industry Lusch) name this old logic a "goods dominant
uses breathes value-to-the-company on each logic".
contact. Some examples:
It is time, contact center and customer services
• A call cannot take longer than 5 minutes operations management switch to a Service
• A call must be solved within the first contact Dominant mindset. A mindset that understands
in 80 % of all cases that the Customer can bring more to the table
• A service representative cannot have more than money alone, like knowledge, feedback
than zero fatal errors or 2 non-fatal errors in from her experiences, on all touch-points, not
her quality monitoring sheet. just the regular survey or after the "feedback"-
• Customer satisfaction on the call must be at button. A mindset that does not see service as
least a 6 (on a scale of 0 - 10) something offered after the sale, but as the
The "transaction" or "interaction" (=the call) is basis for value creation between company and
central to all we are doing. Contact Centers are Customer. And a mindset that values the role of
managed by the day, the week at most. even
26

27. Because It Is Time You Take Customer
Service Seriously Continued... (2)
By Wim Rampen
the employee, not just the value he/she is able any period, nor what the calls of the heavy
to extract from the Customer in exchange. users are about, compared to the light users.
To cut it short: any Customer Services
And whilst the "Best Service is No Service" department that has not already should get
approach is more than half way of this direction, started tomorrow on building a Customer
most Customer Services (operations) needs to centered view of their operations, not a
redefine what it means with "Value Center", for transaction based view.
the current understanding and application has
"goods-dominant-logic" written all over it. I guarantee you the "a-ha.. now I see what's
the issue" look on your face.
More guidelines as to what this means can be
found in the four remaining perspectives. 3. The Experience Perspective
Furthermore it is of vast importance to stop
2. The Customer Perspective seeing service as something just offered after
I did not only not put this one first to avoid the sales when something went wrong. From the
obvious trap, but more so because I wanted Customer's perspective everything you do is
you to understand first, from the previous service (or not, most of the time ;). The way
paragraph, that from my point of view most service is perceived is through the experiences
Customer Services operations are not about Customer have over all your touch-points. From
Customers. They are about transactions. the fine-print to the mail-delivery company
Throughout my career I have not seen one used, to the advertisements in a magazine (with
Manager Customer Services reporting a coupon for new Customers with a nice
Customers, not transactions. Not one of them discount..), to the invoice, the payment
could say, on a weekly bases even, how many arrangement, the collections calls etc etc..
Customers dialed in, and how many have been
helped to their satisfaction. And, more and more experiences from others
are part of the Customer's perspective of the
They can tell you how many calls they handled, service you provide, through ratings and
and what the average satisfaction score was, reviews shared by others, whether shared
but they cannot tell you how many Customers through (online) social networks or not.
are considered at risk for retention, because
they had a complaint. But this was not logged Understanding the Customer's journey
as a complaint, because the Customer did not throughout her lifetime should go beyond listing
use the complaint procedure (usually sending in Customer Services as the after sales touch-
a written letter.. ) point. The role of Customer Services should
also go beyond providing feedback and
Hardly any Customer Services manager will be (actionable) insights to the organizations as to
able to tell you how many unique Customers (incrementally) improve the Customer
call into the call center or visit a service site in Experience. Customer Services should expand
27

28. Because It Is Time You Take Customer
Service Seriously Continued... (3)
By Wim Rampen
their horizon by understanding the Customer's other legal actions, your Customer is already
journey and how their key-capabilities to help doing what has been advised by her peers or
Customers when things are not running "experts".
smoothly, could be put to use to improve the
Customer's experience when getting her job Where many companies are stars in describing
done. what situations are NOT covered by Customer
services, companies that see themselves as
4. The Relationship Perspective service providers to their Customers, arrange
The fourth perspective is the Relationship for their Customers to have access to networks
perspective. CRM traditionally consists of of Customers and/or experts, outside the
Marketing, Sales and Service. In the name of company firewall, to increase the likelihood that
CRM though, many companies have done their the best resolution is offered in the fastest
very best to exploit their relationships with possible way, with the least possible Customer
Customers at the lowest possible costs. And effort. Please take a look at this post by
when the relationships comes to a divorce, Laurence Buchanan about GifGaf to see the
companies even ask for alimony. CRM is not benefits of this Network perspective.
there to improve the Customer's nor the
employee experience, CRM is there to improve To conclude
the company's control. Best practices in Customer Services are hard to
come by, mostly because bad Customer
In stead of conversion-rates, revenue per hour service stories have better reach and because
or per contact, I believe the next generation there is more to gain for the story-teller. The
Customer Services will need to make a serious best methodology so far comes from the heart
effort to manage their Customer interactions and mind of Bill Price: The Best Service is No
with respect for the (individual) Customer's Service. I do think though Customer services in
lifetime value, network value AND referral value. general, and the Best Service is No Service, are
These long-term relationship-indicators should in need of a thorough iteration, based upon the
shed a different light on what is important to latest insights and developments.
manage on a contact, and which contacts are
of value to the company and/or the Customer. The five perspectives discussed above are not
new in a stand alone way of discussing. I
5. The Network Perspective wanted to bring them together as guiding
Last, but not least: in the name of CRM the 1 principles, with practical implications, for the
on 1 relationship between Customer and future directions of Customer Services
company is center. In the meantime, in management and governance. Directions that
Customerland, the Customer, increasingly go beyond operational excellence, process
armed with numerous social tools, cannot only efficiency and other tactics.
solve issues better herself, she can do so faster
than you can, and most of the time even better. Because it is time we take Customer
Where your legal department is still fighting over services seriously..
wording issues, to avoid future compliance or
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29. What Really Replaces Marketing (Madness)
By Wim Rampen
If there ever was a reason for me to write about framework that just made all pieces I had in my
the future of marketing it was in 2009. The mind come together.
theme though is as alive today as it was then.
Some argue little has changed, others state the Three Concepts Combined
new era has already arrived. And there is Nilofer The bottom line in my thinking is that, since
Merchant who suggests Marketing is Dead and Value is dominantly created in-use and is a
then comes up with 5 ways to replace it. result of co-creation between company and
Customer, marketing strategies should shift
All in itself these five ways are things I can relate their focus from creating momentum for value
to, but they don't make it as replacements for exchange (the sale) to creating momentum for
Marketing, in my humble opinion. interactions that support Customers in creating
value for themselves.
I recommend you read Ron Shevlin's post, a
response to Merchant's post, titled: The Death And since value is something that can only be
of Marketing (Madness). The subtitle of his defined by its beneficiary we need to
blog (A (Mostly) Humorous Look at Marketing in understand what outcomes Customers desire
the Age of Social Media) says it all. A very when they hire a company's resources to get
welcome critical and lighthearted voice in this their jobs done.
age of Marketing deadly replacements.
The Customer's journey towards that outcome
What Really Replaces Marketing is where opportunity for marketing lies to design
(Madness) service that support Customers, employees
Here's my take on What Really Replaces and partners to co-create more (or better?)
Marketing (Madness). I will do so following the value together.
story line of my recent Guest Lecture for the
Marketing faculty, headed by Peter Verhoef, of That may sound a bit posh (or a little more than
the University of Groningen (The Netherlands). a bit), but the combination of the three
The guest lecture was titled: Marketing concepts (Service Dominant Logic, Customer
Leadership in age of Service. Jobs-to-be-Done, Service Design) has been a
powerful one for me. Not only to explain the
I largely agree with Nilofer Merchant that outside world, but also to drive innovation in
Marketing needs to change its act. I have had Marketing in my current role.
that feeling for a long time, before 2009, when
working in Customer Services, seeing the Three Ways Marketing Needs to Change
debris of (direct) marketing campaigns, failed Marketing needs to change in three
brand promises and what have you. Early 2009 fundamental ways. First marketeers need to
I started reading into the works of Steve Vargo understand that they need to let go of a
and Robert Lusch named A Service (communication) campaign driven methodology.
Dominant Logic and I was introduced to the Marketeers need to turn into Service Designers
Customer-Jobs-to-be-Done innovation that are capable of designing end-to-end
framework. Both combined provided a thinking experiences. And they need not only design,
29

30. What Really Replaces Marketing (Madness)
Continued... (1)
By Wim Rampen
orchestrate and market the experience (or value
proposition in Service Dominant Logic This will involve both analytical approaches and
terminology), they also need to ensure the qualitative approaches (like Customer Journey
company's capability to deliver on the promise. Mapping) for understanding the voice of the
And this also means involving, and taking Customer. And these programs need to be
responsibility for, company partners in the value focused outside the building, not within the
network. walls of the firm (e.g. internal process mapping).
Secondly, marketeers need to start For their second job Marketers need to build
understanding that it really matters who you relationships in communities of individuals with
drive through the sales funnel. Goods-logic similar Jobs-to-be-done and desired
Marketeers don't care about the quality of the Outcomes.
lead, Service-Logic marketeers do, because
they truly care about how they make their Traditional ways of segmenting Customers by
Customers feel in the end, and because they their age or other demographic qualities have
know serving the right Customer is a lot easier become largely obsolete in the worlds
and vastly more profitable than serving just any individualistic melting pot of cultures, lifestyles
Customer. and routines. People bond with people that
think and act alike. People bond with different
Thirdly, the next generation of marketeers people for different outcomes. Think Nike Plus
should understand that there's more to value in and you know what I'm talking about.
a Customer than just their wallet. Obviously we
understand these days that a Customer's Their third job is to start supporting Customers
connections matter, if only because they can tell to create value, not doing stuff to create value
a whole lot more about the Customer, than she to the company.
will tell you herself. When seeing Customers as
co-creators a lot more opportunities open up, Stop trying to design a service that helps solve
like having them do work for you, because the your problem of liquidity. Solve your Customers
Customer ends up with a better outcome, or by problem and they will solve yours in return.
valuing their feedback as opportunities to Sounds like basics, but I stumble upon the self-
improve on the Service you provide. centered version still several times a month.
7 Marketer Jobs in the Age of Service Marketing's fourth job is to design for
To make it a little more concrete I wrote down 7 interactions that stimulate engagement in these
networks or communities (=your Customer
jobs Marketers need to get done, if they want
segment!).
to make it in the age of Service. Here they are:
Whereas most businesses seem to be focused
Marketing's first job is to understand
Customer's jobs & outcomes (or value creation on reducing (costly) interactions with their
process) and where in that process they fail to Customers, smart companies focus on
meet their desired outcome. increasing value co-creating interactions with
30

31. What Really Replaces Marketing (Madness)
Continued... (2)
By Wim Rampen
their Customers and between Customers. Think That's it. Marketing's new madness, according
GiffGaff and Best Buy as good examples of to me. Nothing really complex, but also easier
companies doing just that. Result? Keeping said than done. And not the only ones either.
costs low and making Customers happy. You still need to sell you know, so go on and
make nice commercials and create advertising.
More and more I think that the fifth job is one Just think different about what you are
of the most important ones: engaging advertising for..
employees and partners in supporting
Customers to co-create value. And I know it works and that this is a change I
can "sell" to the C-level. Jobs 1 to 7, I'm doing
You can name it internal branding or your HR- them a little better every day. You?
policy to motivate employees, it is of vital
importance that they understand what you are
There are numerous blogs, articles, papers
doing with your Customers and why, and what etc. I’ver read over the past years. I was
their role is in this journey. I find it helps a great about to summarize them here, until I
deal if you get the first job done right. This will found this excellent resource-list from
Service360. You can download it at their
provide you with tangible frameworks and
website.
memes that will make it easier to get people
involved and move towards a pro-active state of While you’re there, please also subscribe
mind, the one that Customers need :) to their blog. It’s excellent!
Your sixth job is to extract actionable insights
out of 360 degree feedback to foster
innovations and design new value propositions
that attract new Customers.
If you don't listen, you don't win. If you don't
improve, you will loose. If you don't innovate,
you'll die (oops.. I did it..)
Your seventh job is to redesign metrics that
capture the engagement value to firm and to
ensure that there is a high correlation to these
metrics and Customer's value created.
If you can't measure, you can't manage. Old
metrics focused on transactions and/or
interactions are there to stay. The new way is to
combine them with Customer value metrics and
not evaluate them in isolation, but as a system
(balanced scorecard still works for me..).
31

32. THAT’S IT .
(FOR NOW)
Please let me know what you think at
http://wimrampen.com
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