Liz Erk

Creative Leadership: Q&A with Paul White

As part of our ongoing company Q&A series, I sat down with the brilliantly (and hilariously) insightful Paul White, who previously served as the CEO for Sword Ciboodle Americas, taking the company forward by leaps and bounds, and is now serving as Worldwide CMO based in the UK. This was a great opportunity to get a “wider lens” view of the company, market at-large and general perspective on CRM-related topics:

Liz Erk: When it comes to working with customers in terms of sales, marketing and service (CRM), what are the similarities and differences between the US and UK?

Paul White: I’d say there seems to be a tremendous synergy between mature companies no matter where they’re based, as in the more mature they are, the more they’re enabling customers to communicate with them the way the customers choose. So the companies we tend to work with are looking to solve the same problems and progress the same way in both the UK and US. So we seem to be attracting companies that truly understand they need to move beyond, for example, just the web.

We are seeing a lot of dynamic self-service options and the continual addition of “layers” that enable companies to demonstrate they’re truly paying attention and responding to their customers. So I have to say, from our vantage point, we aren’t seeing many differences because the companies who choose to work with us just plain get it. They are looking to get away from silo-style customer service, which you see many companies are still quite guilty of all over the world.

Liz: What role does Social Media play with respect to CRM? For instance, is it too overwhelming and vast? Have people lost focus on the contact center?

Paul: Social media is currently viewed as “too overwhelming and vast,” but that’s because it seems to be the channel people turn to when they’re frustrated and don’t seem to be progressing through other channels. So it plays a huge role in relation to the contact center because it needs to be the step consumers can take and not only hopefully resolve what they’re looking for, but it also needs to be where customer service agents are acknowledging social media use. It does seem that many companies still aren’t taking social CRM very seriously just yet, and they absolutely need to.

The popularity wave of social CRM is going to continue and grow. Some people say that the “social CRM bubble” will eventually pop, but I disagree. I think that’s just wishful thinking on those individuals’ parts because they can’t really control that channel. Peer to peer is empowering consumers and companies need to embrace it, and be sensitive to it.

If a utility contact center receives a call from a customer who has Tweeted about them, or shared something with the company via its own Twitter channel, for example, consumers are expecting agents to be aware of that. Even more so, if a customer posts on a company forum and the company agent doesn’t know they have done so, customers should be annoyed and they’d be justified. And you’ll especially find that social media early adopters freely let the world know about their feelings, too!

Liz: You and Winston the Bulldog were on hand to share holiday greetings and predict some positive activities for 2011. We’re over six months into the year, what took place as expected and what were a few surprises? What are your expectations over the next six months for Sword Ciboodle?

Paul: First off, Winston and I feel it’s been a FANTASTIC first six months of the year! We’ve closed a lot of great new business and so far we are on target with our ambitious growth plans. In fact, we’ve closed more new clients in these last six months than we have in the previous three years, which shows a few things: the market is picking up, we’ve solidified some excellent partnerships that were spot-on, such as global partnerships with CSC and IBM, all helping us bring even more to our customers.

One thing that we’ve been campaigning and discussing with the analyst community is that BPM is going hand in hand with customer service. In the last six months we have been proven right with the buzz we’re seeing amongst press, blogs and research reports.

Another huge impact on our company moving further in the right direction has been the hiring of industry experts and leaders like Mitch Lieberman and another individual we will be sharing with the world very shortly…

So for what’s to come… well, quite a bit! We are looking at possible acquisitions to add to our portfolio to further broaden our superior offerings, plus we are continuing to adjust how we brand ourselves, hence part of our reason for partnering with The Jaxson Group!

Liz: There are tons of CRM-centric terms being tossed around the industry. What are a few you see as hype and a few you see as legitimate? For example, in a MyCustomer.com interview you mentioned “customer service renaissance.” Is that something you feel resonates with the UK market or can that term catch on in the U.S.?

Paul: Ahhh, the things I come up with! I really was trying to make a point that from the consumer standpoint, a company needs to design the art of communication and service based on the way they do business. The customer service renaissance is really about the idea of a Leonardo DaVinci sculpting the right CRM experience. So maybe that concept will catch on… What do you think? Is there a book idea in here somewhere?? Hmm…

Liz: Exactly two years ago Ginger Conlon of 1to1 wrote a post about CRM buzzwords. Her list included “the big idea, buzz, critical mass, customer-centric, integrated solution, it is what it is, low-hanging fruit, make it pop, organic growth, outside-the-box, paradigm shift, ROI, and synergy.” Fast forward to 2011, what new terms would you add to this list?

Paul: You know, I’d say “customer effort” is a bit beaten. I hear that all the time. “Social CRM” seems to be another, but I wonder how defined that one will have to be before it is really tagged as a buzzword. I’d say the day Mitch Lieberman declares it an over-used term is the day that will be true.

Of course, cross-culturally I am thoroughly amused by different terms I hear that are either foreign to one region or translate poorly to another. “Chin-wagging” is one I chuckle at. Then there are some I see raised eyebrow reactions from like “pop off.”

Liz’s Added Thoughts: I just have to jump in with a side comment, Paul and I got a good laugh when we shared some common, poorly used terms we’ve both heard. From the female perspective, I told Paul about one I find horribly offensive which is “open the kimono”. He then shared a meeting he sat on where someone tried to use that term and got it entirely wrong, stating “we need to open the kimode.” (Paul said he made sure to let the individual know how ridiculous he sounded)

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I think I could have kept going with Paul beyond the hour discussion we had for putting this together. I am looking forward to my next chat with him, especially towards the Fall when we’ll have completed a few more milestones and events that we’ll want him to weigh in on. In the meantime, many thanks to Paul. You are the “bees knees!”

Liz Erk

Another Company’s Customer Service Gaffe is a Competitor’s Gain

In probably one of the more puzzling, damaging “customer relations/ PR” moves I’ve seen in my career, NetFlix decided to jack its prices up:

Instead of paying the current $9.99-per-month fee for unlimited streaming and unlimited DVD rentals, customers will need to pay $15.98 a month for a single DVD out a time, paying almost 60 percent more for the same service. The company said the fee includes $7.99 for unlimited streaming and $7.99 for its new bare-bones plan. Those who want two DVDs at a time will need to pay $19.98 per month.

This prompted almost *instant* customer backlash, with subscribers taking to the social media highway, practically shouting their outrage and banding together to revolt. Consumers were voicing anger via both the company’s blog and Facebook page, but then this spread even further to other outlets. Just look at the explosion of comments in that CNET post alone!

Three days later the inevitable happened: Struggling-competitor Blockbuster has swooped in to offer “greener pastures” to the largely-furious NetFlix subscriber-base:

Blockbuster, which is owned by Dish Network Corp., said yesterday that it will offer a 30-day free trial to people who can prove they are Netflix customers by showing an e-mail or the tear-off from their Netflix mailer. After 30 days, they can pay $10 a month to rent one DVD or Blu-ray disc at a time or $15 a month for two discs at a time. That is the same as what Netflix charges for DVD and Blu-ray rentals.

So, what have we learned so far? Well, for one thing, social media is a VERY strong consumer “mouthpiece” that is NOT going away. Some industries are more effected by “social media backlash” than others and, as evidenced by the events over the last few days, the entertainment services industry is one that is strongly impacted because not only are consumers complaining, they’re taking action that can hurt NetFlix’s bottom line by cancelling subscriptions and “running into the arms” of their nearest competitors.

We’ll be watching to see how this plays out. In particular I’m very interested to hear what NetFlix will say/ do in response to the “fallout,” if anything at all.

Mitch Lieberman

Turning the Tables, Q&A with Jaxson Group

Part of being a transparent business means sharing thoughts, ideas and strategies about who we are as an organization, and an extended organization. With this in mind, I thought turning the tables on our own PR team would be fun. I decided to forward along some “who are you and what are you thinking”questions to Liz and Anne of Jaxson Group. If you do not consider your PR team as part of your greater integrated marketing efforts, then you might want to revisit what PR means to you.

Question: What is Public Relations (PR), and why do companies invest in it?

Anne Coyle: In most general terms, public relations refers to the planning and communications an organization undertakes on behalf of its brand, executive team, products and services to reach a number of audiences. These can include investors, customers, partners, journalists, analysts and market influencers as well as employees, competitors, fans and a host of others. Public relations is often used interchangeably with media relations, because that channel is easy to measure and understandable to the greatest number of people. However, there is a public relations element anytime a person can say “I saw you guys in Forbes,” “You should see the comments about you on this blog,” or “Smartest Analyst Ever said you guys are great.”

Companies invest in public relations to share corporate strengths, points of differentiation and news, to a number of audiences. Public relations can be used to launch products and services, enter new markets, reach influencers, gain capitol, increase a customer base and publicize corporate programs- essentially PR plays an important role in a company’s integrated marketing efforts. Organizations also use public relations to present a coherent, singular communications channel regarding all news and developments, which can include earnings, response to an issue, changes in an executive structure or changes in a market strategy.

Question: Is PR the same thing it was 10 years ago? If no, how has it changed? If no, has everything changed, or just some aspects?

Liz Erk & Anne: Given the changes in media and marketing over the past three years, writing a general definition about PR was tough. Defining exactly what PR is now is almost impossible, given the constantly shifting landscape of how people communicate and the challenge of capturing and keeping attention. So we’d have to say PR is the same as it was 10 years ago in terms of the fundamentals of WHY people engage PR- at the end of the day it’s all in an effort to help drive awareness. But the process of HOW you conduct PR has not only changed, it’s actually different for each company, depending on specific goals, agendas, market, etc.

If a company is receiving a “one size fits all approach” from its PR team (ie- stand alone press releases and blanket-mailing them to media & analysts), they really should evaluate what value they’re getting- particularly because with the advent of social media, PR has become closely tied with customer service and become another channel in which people communicate with businesses. For example, how often do you see consumers sharing feedback and experiences with a particular business, followed by the PR department issuing a response? The answer is: quite a bit, and in instances like that it’s a tremendous litmus test as to whether or not a company truly understood its customers’ feelings.

Question: Do you think people understand the objectives of PR?

Liz: I believe people understand the basic function of what PR is intended for, but I think people are more surprised when they realize how many areas are impacted by PR. For example, one piece of news communicated via blog can go viral and attract buzz across Twitter, Facebook, other blogs, and mainstream press. News can take on a life of its’ own when the right ingredients are involved. Reputation management is a major part of PR, so it’s not only important to share news, it’s critical to pay attention and sometimes respond to topics that are being talked about “out there.”

Also, enhancing relationships between companies and their customers is a huge part of PR. Joint communications and sharing best-practices demonstrates pride and strength between both parties, unifying everyone involved and putting them into more dynamic leadership positions.

Question: What is Crisis Management, from a PR perspective? Is it the same as it was 10 years ago? Do most companies have a crisis plan these days?

Liz: Crisis management can mean different things to different people, ranging from figuring out how to respond to a negative company perception to addressing a tough situation on-the-fly. It’s different than 10 years ago for sure because back then you had more time to assess a situation and formulate a response. The quickest area you had to be mindful of was news websites posting an article. Nowadays news travels like wildfire with the advent of Twitter, blogs, Facebook and other instant communication vehicles, and then add that to rapid search channels like Google that index topics almost immediately.

For example, in January of 2009 credit card payment processor Heartland tried to quietly announce what was one of the largest data breaches in U.S. history on the morning of President Obama’s inauguration. Despite the country’s focus on the presidential activities, bloggers reported on the news just as fast as it was released. The news spread pretty quickly and once the inauguration was over, Heartland received a very bright spotlight, not just for the breach, but for the timing. 10 years ago Heartland might have gotten through that without question, but not with the instant communication channels that have really taken hold since around 2004.

Question: What is the relationship between PR and CRM, or Social CRM?

Liz: PR & CRM/ Social CRM go hand in hand (in hand) because it all boils down to effective communication. CRM is a direct vehicle to customers, while PR is a channel customers pay close attention to when it comes to brands that have their attention. Social CRM is right up there with Social PR- instant and very personal. You cannot afford to ignore either one, particularly because they’re not “one way streets.” They come with many twists and turns with multiple voices that want to be heard and responded to.

Question: (Directed to Rachel Tait, Marketing Manager Americas) Why is Jaxson group different?

Simply put – their passion.  Jaxson group have a hunger for success that other agencies lacked, and from the outset it was obvious that they loved what they do and are highly motivated to deliver real results to their clients.  While many agencies may say what they think you want to hear, I truly believe that Liz and Anne form an extension of the Sword Ciboodle virtual team – and I am confident they will represent Ciboodle, and what it is to be a Ciboodler, in the best possible light.  They got me excited about PR again, and what results Ciboodle can potentially achieve in the media.  I’m looking forward to seeing what we can achieve together.

My POV: You probably saw our post about Nicor National’s selection of Sword Ciboodle to support the revamping of their CRM process and system. We, as an integrated team are completely confident in The Jaxson Group. The ideas and initiative are a welcome change! In the Nicor release, it was important to us to add a little extra insight that isn’t found in a typical press release by way of a blog post Q&A with Nicor National’s Barbara Porter. Because really, the team want to move beyond writing and issuing the boring “same old same old” – Cheers from Ciboodle land!