The Importance of Iteration in B2B Customer Centricity

GUEST BLOG FROM PETER WHITELAW, AUSTRALIAN BUSINESS CONSULTANT AND CO-AUTHOR OF CUSTOMER AT THE HEART
 

Wash, Rinse, Repeat

If you conduct a customer survey only once, you capture a single ‘snapshot’ in time. That snapshot will usually give you valuable information including customer concerns that deserve remedial actions.

BUT you:

1. Will never know if those remedial actions actually resolved the customer’s concerns (unless you ask)
2. Won’t know what’s trending – are customers more loyal or less loyal? Are more of them actively considering defecting to your competitors?
3. Might never improve your customer relationships

Customer centricity requires continual contact with the customer. Hence the importance of iteration. Wash, rinse, repeat.
 

Customer Centricity and Agile

There are many similarities between an iterative approach in customer centricity surveys and the Agile project management methodology.

“Agile is an iterative approach to project management and software development that helps teams deliver value to their customers faster and with fewer headaches. Instead of betting everything on a ‘big bang’ launch, an agile team delivers work in small, but consumable, increments.” (Atlassian 2020)

The Importance of Iteration

The Agile Manifesto, developed in 2001, includes these key principles:

• Focus on people over process
• Embed customers and their feedback in order to continuously improve
• Deconstruct work into small segments and organize effort into short chunks (typically called sprints) in order to get quick feedback and make nimble (agile!) course corrections
• Dedicate people to teams and focus on one project at a time
• Experiment and learn continuously
• Ensure transparency of the work and continuity of the team

(Derived from a Forbes article of 6th October 2019)
 

The Importance of Iteration in Customer Centricity

Iteration means adopting a cyclical approach to seeking customer feedback. You need to repeating at least once every year. And remember that first principle I mentioned. Focus on people over process. Get the buy-in from the account teams as they have to own the customer programme. If they don’t, it will be seen as ‘just another Head Office initiative’ and will fail.

Plan Assess Action Action
 

Benefits of Iteration in Customer Centricity

• Identifies trends and locates intransigent problems (that the customer perceives)
• Enables account managers to interact with customers in a non-selling mode, building trust
• Is seen to be consistently seeking customer feedback with the objective of continuous improvement
 

Consequences of Not Iterating in Customer Centricity

• Customers perceive that you no longer care about their opinions and that their past participation was a waste of time
• Your organisation imperceptibly drifts away from its strategy of achieving customer centricity
• Staff may feel they are no longer accountable for the quality of customer relationships
 
 

Peter Whitelaw is an Australian consultant providing customer relationship assessments, customer centricity guidance and change management services. He has a background in engineering, sales and general management with Hewlett Packard, Tektronix and Optus Communications. For 11 years he was CEO of project and change management training and consulting company Rational Management, training thousands of managers across the world. In recent years he has been lead consultant on several change management and customer centricity projects for both commercial and government organisations.
 
 

John O’Connor interviewed on “Down To Business” with Bobby Kerr

Last Saturday, our CEO John O’Connor was interviewed on Newstalk’s Down To Business weekend radio programme about his new book Customer At The Heart. If you missed the show, here’s that conversation between Bobby and John again.

Quite a few topics were covered in the short interview with Bobby Kerr. The one that I enjoyed most was the concept of “sacking the customer” – being honest about when you can’t service particular clients and choosing instead to concentrate on customers where you know you can excel.

Feel free to get in touch with us if you want to hear more about Deep-Insight’s work in helping CEOs create customer-centric organisations. And if you want to find out more about dealing with clients that are Opponents and Stalkers, just click here for another blog on the topic.

Craig Johnson
Customer Relationship Advisor, Deep-Insight

Purchase on Amazon

Customer At The Heart

Bobby Kerr: A lot of words have been said and written about putting the customer first but many businesses and business leaders struggle to move away from product and technology-based models to ones that are truly customer-centric. So how hard can it actually be? John O’Connor is the CEO of Cork-based company Deep-Insight and he is the co-author of Customer At The Heart: how B2B leaders build successful customer-centric organisations. John, you’re very welcome to the programme. Tell me a little about your background and what inspired you to write this customer-centric book.

John O’Connor: First of all, you need to be a big mad to write a business book. I was saying earlier that we’re not going to knock Margaret Atwood off the top of the Amazon charts even though the book is available on Amazon. So why did we write the book? One question has been rattling around in my mind for the last 15 years that I’ve been running Deep-Insight. At Deep-Insight, we gather feedback for Business-to-Business (B2B) customers with the objective of getting our clients to use that feedback to build deeper client relationships. Sometimes we tell our clients “You’ve got a fantastic set of customers who love you to death.” Other times it’s a case of: “They hate your service and want to move away from you”. In that second case, it seems phenomenally difficult for our clients to move the dial and really improve their customer scores. Or if they can improve, it takes them a long, long time. So the question we had in our minds was: “Why does it take so long, and what is it that you have to do to transform an organisation to be truly customer-centric?”

Bobby: I once worked with a guy who used to tell me that a customer was somebody that allows you to make a profit. That was his definition of a customer. If you have a customer that doesn’t allow you to make a profit – because they are high-maintenance, they take up time, you have to manage them and you find that you can’t make a profit – how do you deal with that situation?

How to ‘Sack A Customer’

John: So here’s a little trick. You’ll find that in any portfolio of customers, probably a third are ‘Ambassadors’ for you and another 40 or 50 percent are good ‘Rational’ customers. Then a small percentage are what we call ‘Ambivalents’, ‘Stalkers’ or ‘Opponents’. What you should do is take your Opponents by the hand and walk them down to your competitor’s office and say “There you go…”

Bobby: “…here’s the guy you’ve been looking for…”

John: Yes. Basically you should not be afraid of sacking customers that you can’t service properly.

Bobby: So it’s almost like putting your hands up and saying “You know what, you’d be better off going elsewhere” and hoping that they will go elsewhere and cost your competitor money?

John: It is. But if you have those hard conversations… honest conversations… with the customer, either you will turn that relationship around or they’ll move off and allow you to spend time with the clients that you can really do some good for.

Getting your clients to design your products

Bobby: It’s interesting what you say, John. You know, we look at customers almost on a product basis. In other words: I make this product, I sell it to the customer, I’m finished with him now I want to find the next customer. Once the sale is made, that’s the end of the journey. But it’s only really the beginning. Is that right?

John: Yes, but but it’s also the wrong starting point for the journey. If you have a product-centric mindset, you are basically building something that you hope somebody is going to buy. A much better way is working with your customers to try to craft the next generation of products or the next set of widgets that you’re going to manufacture. Because once they are manufactured, the client has already bought them. After all, they’ve actually help you to design them in the first place. And very few companies have figured out how to do that properly.

Customer-Centred Leaders

Bobby: And when you talk about leadership, what are the customer-centred leadership traits that you would see in an organisation.

John: First of all I would say but if you haven’t got good leadership in an organisation, you’re never going to transform the company to being customer centric. The companies that have done very well are ones where you have a really, really passionate leader who does put the customer at the heart of everything. The second thing is that they intuitively understand that by doing the right thing for the customer, the profits will follow. The third thing is they are also very good at executing a plan or a strategy to put the customer at the heart of everything. Now they can be ‘Big Picture’ people but they know how to put together a team that will get things done, and will be relentless about making sure that it happens.

Bobby: When you look at the challenges of big organisations like utility companies, banks… you know: those organisations that everybody loves to hate where they provide a service based automated telephone answering machines… How can those organisations become customer-centric in a real way?

John: Well the focus of our book was business-to-business organisations. We were very lucky and got to talk to people like Gavin Patterson, the CEO of BT but it was very much on the B2B side of things. We talked to David Thodey in Australia who was CEO of Telstra, their biggest telecommunications company. We talked to people in eBay, HP and Atos but the focus was really more on B2B. Regardless of the industry, you can be either very customer-centric or not at all. And if you’re not at all customer-centric, that’s a pretty difficult place to be.

Culture change

Bobby: When you talk about culture in a company, the culture can sometimes turn sour. How can you use the customer to enact change in the company’s culture?

John: Well, one of the other traits of being a good customer-centric leader is that you never let a good crisis go to waste. A lot of good leaders will use the customer as a platform to try to change the culture of the organisation. They’re constantly talk about the last customer visit that they had, the last product that they developed in conjunction with that customer. By continually doing that and by getting the customer into every discussion, people in organisations will start to follow the direction of their leaders.

Bobby: And finally, John, is it true that if you can get the customer to be your ambassador – in other words, the customer is talking about your business being the best business known to man – that’s the most powerful advocate that you can have? It trumps any advertising or any marketing that any company could do?

John: Absolutely. We called those ‘Ambassadors’ and as I said, about a third of your customers should be ‘Ambassadors.’ Even if another 40% are ‘Rationals’ who don’t believe you are truly “unique” but they are good customers all the same, those Ambassadors and Rationals are the clients that will deliver your sales for the rest of this year and into the following years.

Bobby: Well it’s a fascinating subject. John O’Connor is the CEO of Cork-based company Deep-Insight and the co-author of that new book on customer centric organisations. Thanks very much for joining us, John.