StrateScapes - Pull Together


		Excerpted from StrateScapes - Volume 5, Number 1

The companies making CRM work are the ones getting every employee to

pull together

You’ve read the glass-is-half-empty figure playing in the media: Half of all CRM implementations fail. But look closely at that 50 percent, and you’ll find that their failure lies in one very telling self-fulfilling prophecy: neglecting to win companywide buy-in. And buy-in, it seems, comes from a healthy mix of motivation, education, tools and training.

Making the case for illuminating the masses, a recent report by the American Society for Training and Development found that companies who invest the most in employee education enjoy higher net sales per employee, higher gross profits per employee and a higher ratio in market-to-book values. Yet survey respondents in a recent Peppers & Rogers Group (PRG) survey say they’re committing just 2 percent of their CRM investment to training.

Still, a host of companies that view education and training as an investment, not an expenditure, have hit pay dirt for their efforts. The practices that make those companies CRM movers and shakers are tactics every company should spend time studying.

Tap the Ivory Tower
Experts say you’ve got to make your company’s switch to a customer-centric business model an event backed by a high-level executive.

To kick off its customer loyalty program, The Bon-Ton department store created a splashy presentation for its annual store manager meeting. The presentation was fully supported by the CFO and CEO. The Bon-Ton even created a mascot to help put a face on the program.

Load Up the Bandwagon
After the tone has been set, assemble a change-management team: an enthusiastic group of leaders handpicked from every department in the company. The team’s mission is to identify how each department will be affected by the new initiatives, create action plans for implementing those initiatives, and communicate the message to others in their individual departments. This process will also help the team identify some ways to get “quick wins” — small victories that will help prove to skeptics that the new business strategy really does have legs.

The cross-departmental, cross-functional approach was instrumental in auto manufacturer Mazda’s implementation efforts. “Looking at the CRM initiatives in tandem was critical,” explains Bill McAdam, co-chair of Mazda’s CRM Action Team. “Otherwise the departments would have gone in separate directions.” The approach also helped Mazda employees see CRM as a company-driven initiative, not just the next big idea from the marketing department.

Open the Feedback Loop
As each department representative delivers the message to the masses, they should:

Reiterate key points from the kickoff event

Recount team discussions

Lay out the proposed implementation plan

Invite feedback

These steps give employees a measure of control and ownership — and help their CRM team leader tailor the company’s CRM plan to meet departmental goals. Another bonus: “Including staff in the planning,” says Ken Saunders, PRG senior consultant, “has the added benefit of modeling behaviors you want employees to use in the future in your new customer-focused organization.”

Spell Out Expectations
Paint employees a picture of exactly what’s expected of them. Questions they’ll need answered: How is each division, department and employee affected? What new skills will they need to learn? What will their daily tasks look like? What are they doing today that will support this new vision? How will their efforts be measured? What will change, both initially and as the program takes shape? What are the things that won’t change?

Once you’ve answered key questions, commit it all to paper in a CRM manual or training guide. This fosters a common understanding and a cohesive mission. The guide should also include contact information for CRM team leaders, as well as milestones for the project.

Ideally, this guide should be customized not only by department, but also by job function. When Arkansas-based department store Dillard’s launched its customer-loyalty initiative, it created training materials versioned for each constituent: store associates, store managers, merchants and call-center representatives.

Answer the BIG Question
With the CO-types on board, the change-management team assembled, and an implementation agenda set, you’re ready to turn everyone else into believers. And the best way to do that, say the experts, is by answering What’s in it for me?... and being prepared to answer that question over and over and over again.

When Alex Martin, proprietor of Brennan’s restaurant in Houston, wanted his employees to start collecting information on patrons, he boiled the WIIFM down to the basics: The more information we have on a customer’s dining preferences, the better that customer’s experience will be. The better the experience, the happier and more likely they are to return — and ask for the same waiter. The waitstaff immediately understood that gathering customer information would not only get them better tips, but also bring in more (tipping) customers.

Rev Up the Rivalry
While Brennan’s employees were motivated by dollars, others are inspired by competition. Canadian Imperial Bank of Commerce (CIBC) employees undergo four weeks of customer-centric training followed by a 90-day coaching period — a program that CIBC directors believe creates some of the industry’s best customer service reps (CSRs).

To foster a little friendly rivalry, CIBC posts a score-card that rates CSRs on productivity, service quality, sales, and risk. The scorecard gives employees a way to track their progress, and also helps strugglers find coworkers they can turn to for help.

Tread carefully if you choose to tie cash incentives to performance, caution the experts. Although hard-line incentives are effective in many cases, they tend to be dangerous when employees’ only motivation is money. The goal is to get employees to commit to the ideals so that customer-centric actions become second nature.

Tend the Flame
An all-too-common mistake in CRM implementation is generating a lot of fanfare about the rollout, then stopping abruptly as people settle into their redefined roles. Training, motivation and communication should continue long after the initial rollout. Along with ongoing on-site training, Swissôtel Hotels & Resorts sends frequent e-mails to remind employees of its mission to epitomize “The gold standard in customer service, customer satisfaction and repeat business.”

Likewise, each time Dillard’s updates its loyalty program, it plans to alert store managers via intranet that changes are forthcoming, then broadcast a companywide satellite training program. Training materials accompany broadcasts so store associates and managers have updated reference materials.

To keep its program in the limelight, technical-services firm Butler International publishes its customer- and employee-satisfaction data in its annual report. CEO Edward Kopko believes that putting this data right alongside the financials underscores the company’s commitment to being the number-one customer-rated company in the industry — and keeps enthusiasm high because employees can see their efforts paying off.

“Communication is key,” explains PRG’s Ken Saunders. There’s no right or wrong way to educate, train and motivate your employees about your new initiative. What’s important is that you make it a priority and keep the lines of communication open.

Companies that invest in CRM education enjoy higher net sales and gross profits per employee.

Publishing results keeps enthusiasm high because employees can see their effortspaying off.

STRATESCAPES and STRATESCAPES SUPPLEMENTS are published by Customer Communications Group, Inc., a full-service agency specializing in relationship marketing and customer communications. Our comprehensive, turnkey services include data analysis, customer segmentation, strategic consulting, account management, creative execution, print production and multimedia solutions.