Customer Centric Corporate Restructuring
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April 1, 2000 *3,500 subscribers* Volume 2, Issue 4
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READER COMMENTS

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Question of the Month

The topic for March focuses on Customer-Centric Corporate Restructuring

Selected Answers of the Month

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We are working on becoming more customer-centric. And we see that most of our clients, primarily business-to-business marketers, are heading in the same direction. We believe that the Internet has so leveled the playing field that keeping a customer happy is the only way to keep a business going, let alone growing. We see how the Web is slowly but steadily reducing the number of "middle men" receiving percentages for their roles as distributors. This is a very good thing, because success now depends on really listening to what our customers need -- and really delivering it. This bodes well for future business relationships because they are bound to become more meaningful and useful as a result.

One wouldn't think that an ad agency would need to work much at being customer satisfaction oriented. We are a service business and thus utterly dependent on the goodwill and respect of customers. However, we get very caught up in promoting what we think we do best and/or what seems the most profitable activity of a given moment and/or what is clearly "hot" in terms of demand.

So, we are now in the process of articulating our values as a business. And number one is giving our clients the best possible service, content and design work we are capable of producing. This means that a client must be satisfied -- whatever it takes. We find this means spending more time educating them about what we do and how we do it, refining our methods of delivering services, and adapting them to each client's particular working style. Instead of taking for granted that we have value, we are at work every day demonstrating our usefulness. It's different and I think it makes us a better business.

(M.I., York, Pennsylvania, USA)

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Everyone seems to be talking the talk, but those who walk the walk will win. It is impossible to overstate the importance right now of restructuring a business around meeting customer needs and expectations. This change can be difficult, mind you, even with the best of intentions, because business processes are well-entrenched and people's habits and thinking can be difficult to change. It's possible that many managers and executives  believe this is just another fad that will pass--not so. It is part of a deeper trend, not just because of the Internet. The Internet is a catalyst for this process, which was occurring anyway.
(L.L., Silicon Valley, California, USA)

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As products become more commodity-like, customers are choosing to buy from vendors who have excellent customer service and ease of doing business. All employees need to be informed about the customers buying habits, business processes, and industry standards. Employees need to think of customers as partners having the same goals and objectives, and not as outsiders who demand a service that is different from the standard services offered.

To reshape culture, companies have put an emphasis on the need to adapt and integrate the Internet, or they will lose clients to competitors.

I do not know the % of Global companies with e-commerce plans in place, but many of them will be picking up momentum this year now that the Y2K scare is over. What are they doing? Hiring consultants! Pushing IT to build an information system that will support a flow of data to all employees, supply reporting tools, strengthen electronic transfer of data. Transition management team is helping employees throughout the company to think like an account rep.

(M.K., Silicon Valley, California, USA)

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Many companies are touting their way of doing e-business as the best way they know of serving their customers best. As far as I have seen, however, many businesses stick something together without any input from their clients on how they wish to be served.  The results are negligible to negative.

The best way to serve your clients better, e-wise or otherwise, is to simply talk to them.  Get input via webforms or mailer and then develop a client strategy.  Guessing wastes time for you and frustrates clients.

The biggest restructuring I see in Global 2000 companies is all sales oriented.  Sure, some are using webforms now for "complaints" or questions, but the vast majority only see the net as a way to handle sales transactions, not as a way to use client service to increase sales.

It seems that everyone is doing something on the net, not just the Global 2000 players.  We as a company are going to put more of an informational swing on net activities.  Sales are always important, but when you give your client the extra information they need to make that important decision, they will come back.

(Cliff Skene, CEO Marketing, Pharos Business Integration Inc.)

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VALUES are the key to long-term success.  If a company does not reflect anything about the customer or employee, they don't last. Companies that last do not react to the current fad of the time; they stick to VALUES and work them.

I think companies do a poor job reshaping their culture and infrastructure because they are in a hurry, again missing the boat on VALUES. They do not pay attention to the critical detail. It seems we are all willing to accept less than an acceptable level of quality. Companies are just focusing on getting something out there on the Internet.

The customer is number one...they are the ones interested in helping you better your model. It is like reinvesting in what they purchase. So it is critical we are customer focused, obsessed. To reshape culture, companies (99.9%) are pushing their employees to be "web enabled".  Still need better change management...why change?
(C.S., Silicon Valley, California, USA)

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Organizations that fail to change run the risk of customers finding satisfaction elsewhere.  To "walk" to another supplier of product or service requires only the simple click of a mouse.  Those organizations that are concerned with whether to change or the cost to change are misguided.  The question is: Can they afford not to change?  The change must reflect a real commitment to customer-centric service not just platitudes or appearances.  The consumer is far too astute to be tricked and ever willing to find what they need.

One can see that successful companies are turning away from the manufacturer/supplier-centric model and emphasizing the new customer-centric model.  Whether making or distributing products or services, organizations must recognize the impact of the internet and appreciate the need for adding value in every step along the supply chain. Furthermore, "friction" to selling must be reduced at every step, and the customer-centric model is at the core of what should be driving these changes.

Mark Walsh, president and CEO, Verticalnet.com says "less than 10% (of companies) will have really pledged their business model to the net." Intuitively, one would think that percentage should be closed to 100%. Actually, it is probably closer to 10% than 100%.

Mark Rhoney, President, ec.UPS.com has god insights into methods of integrating the net into business models.  He suggests: "outsourcing" functions or processes, developing "dynamic pricing models", and "leveraging company brands and deep pockets" to redesign their infrastructures to name a few.  A good example of the last of these in found in the March 2000 Issue (Vol 9, ISS 2, Page 14-15) of KMWorld (www.kmworld.com).  Williams-Sonoma provides a perfect example of successfully leveraging company brands and building on an already strong infrastructure to make the transition to e-commerce transparent and effective.

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The need for immediate change is critical, but it is principally the new young companies that are accepting the reality.  Here in Taiwan and Hong Kong, the old established companies are not responding and will only change when they are in trouble.  There are great opportunities for others to capture existing company business by stepping in over their heads. 

Companies that have made moves to adapt and integrate the Internet are paying lip service and creating a Web Page, or maybe starting to buy via the Web, however, they are not transitioning to the new paradigm.  They do not get it! The percentage of companies are adapting and integrating the Internet into their businesses appears to be very small here in Asia!

(David Hemmings, Global Stallion Ltd, Taipei, TAIWAN)

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I feel that a company should have a strong foundation/policy of customer satisfaction. I also think that a company should be careful not to go overboard on customer services (free ones) because I'm not sure how loyal customers are to anyone anymore. I think as long as a company remembers this statement, they can't go wrong: "It's not the complaint, it's how the complaint is handled!"

(P.J., Kanata, Ontario, CANADA)

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Companies will be forced by economics to use the Internet to keep competitive.  So they will need to hire or retrain staff that they already have to do the job. The move to the Internet will come from the marketing and IT departments; company top executives will take ownership themselves because they are the ones that will make the decisions to pay for the changes. The types of initiatives companies are taking now involve contracting out new e-commerce web development for their companies.

(P.E., Burnaby British Columbia, CANADA)

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Whether businesses, governments and agencies are pursuing B2B solutions, or B2C solutions through the Internet, the fundamental reality today is that your business is only as good as your ability to communicate.

If you have not established a standard for, and practice of, excellent two-way symmetrical communication throughout the organization, it will be mirrored in your messages on the Internet, and in your relationships with your customers (audiences).  Customers are very savvy - they know when they are being talked at and quickly pick up on any discord or hype.   Conversely, businesses that believe in actively communicating, listening and responding to all their internal and external audiences are faring much better because the transparency is real. 

Unfortunately we get caught up in the process, the sale, the tools, the systems, the products, the technology and overlook a basic tenet - things don't deliver services - people do; things don't develop meaningful relationships - people do.   This applies in all media.

(Jackie Mignault, Business Analyst, City of Victoria, British Columbia, CANADA)

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Customer satisfaction is a very important factor to how successful your online business is going to be.  If you don't treat your clients well and make their online experience a good one. It's very easy to post your experience on any number of websites.  This can have a dramatic effect on future business and how people see your site and what kind of pre-conceived notions they may have based on negative comments they may have read.  The worst feedback you can get from a customer that had a bad experience is no feedback at all--to you anyway.  Take care of the customer and the business will follow.

What I've seen from a personal level is that businesses that move onto the Internet don't know what they are doing in a lot of cases but know they need to expand the business online.  People are moving fast to get things done with less people and don't always do things right. In talking with different companies it seems they are looking to other sites for ideas, going to seminars and trying to hire people that have online experience.  The Internet is a lot faster that the old ways of doing business and I think some companies are struggling to get that message across to employees.

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I believe it is vital to make sure that my company's website is customer friendly and "globalized". We are an international telecom company owned by France Telecom, and our website is only in English! The home page should pop up in the language of the country that is originating the session. Being that we are not a consumer-oriented company - but a B2B company, selling telecommunications networking services over the Internet may not be a real option for us, but it would be great if customers could be immediately connected to sales professionals in  their local areas. Information regarding specific product availability in the customer's country would be a very important addition to our website.

The primary emphasis of companies using the Internet to reshape their culture is having available information that is pertinent to employees who need to serve customers professionally and quickly. The ability to find information quickly - and information that is updated on a regular basis - is essential. Also, I see other telecom companies emphasizing telecommuting because it saves them from having to lease expensive office space. Telecommuting technologies and services is what we sell anyway, so we need to put our money where our mouth is.

Most of the global 2000 are integrating the Internet into their business - they have to in order to stay competitive. Many are selling retail online, others do B2B, others are updating their websites to make them more user-friendly for their employees. I know I am "put off" when a retail company has no products to buy online,or if a company has a poorly designed website.

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