An Interview With Bob Thompson

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Founder of CustomerThink

I was lucky enough to get an interview with Bob Thompson who founded CustomerThink.com (formerly CRMGuru.com). I'm still going through my evolution, so if I've missed opportunities to ask the right questions, I learn from the responses of experts like Bob.

CustomerThink is a very unique destination on the web for people interested in CRM, but especially for those seeking leading thought on customer-centric business practices.

Some might be surprised to see the discussion go well beyond technology.  I know that I was initially surprised (awhile ago now) to discover that Custom Relationship Management (CRM) was a term that's really been hi-jacked by the old Sales Force Automation (SFA) software vendors. OK, I don't have a problem applying the term to software designed to support a related process. But, I think it's important that the discovery many companies are going through about customer-centric business processes continues.

CustomerThink is leading the charge, targeting business leaders with thought provoking content written by some of the brightest minds in the CRM world.

So here we go, my interview with Bob Thompson

MB: You used to be an IT Strategy Consultant.  There are still many CRM
business partners, or VARs, out there that believe there is something
strategic about the software, or technology, they are selling. How did your
mindset evolve from the VAR way of thinking to what your business promotes now? Or maybe you always thought this way?

BT: IT is a tool that can be applied strategically or tactically. If you're dealing with business managers, as I did for much of my career at IBM, it's a bit easier to work on more strategic projects. But when I ran a VAR for 3 years, it was much tougher because the nature of the business was to sell to IT buyers.

There's value in both, but for me the more interesting problem was how to connect the value of IT to the business. I still spend a lot of time on that question today.

MB: Your website, CustomerThink, was instrumental in taking me from your
typical VAR way of thinking, to someone who feels the need to educate as
many people as possible on the real meaning, or opportunity, of Customer
Relationship Management.  How do you begin the conversation with someone who may still believe software, or technology in general, is the primary answer to competitive issues for their business (or the business' of their customers)?

BT: I think the market is a lot smarter these days than in the early rush to implement CRM technology. But, we still have a fascination with tools or anything that promises a "quick fix." Look at pharma or diet books, for example.

Experience is the best teacher. I've interviewed a lot of companies over the past 10 years, and I'd say most did not have a complete success on the first attempt. CustomerThink, along with many other firms, has run studies to show what links to success.

So, the mindset can change if people are willing to learn from their own experience, or the experience of others.

MB: Are there any initiatives at CustomerThink, or elsewhere, that are
designed to evolve CRM consultancies to point where they are helping
customers identify business issues first, before they identify the
functional tools that would be used to support the business solutions? I
guess what I'm asking is this: if a CRM business partner is not focused on
what the customer needs and instead pushes product they need to sell, who's reaching out to rattle their cages?

BT: No, we don't have any plans in that area. And I'm not sure who would find it worth their while to "rattle cages" of VARs. Until VARs see a reason to change (e.g. declining revenue or profit), they'll likely to stick with what is working, regardless of what others say they should do.

Hanging on the status quo is one of the "warning signs" we've found that indicate problems in a customer-centric journey. See my white paper called Five Warning Signs For Danger Ahead On Your Customer-Centric Journey

MB: I'm sure the CRM, marketing and workflow consultants that "get it" have no problem finding technology consultants that can meet the needs they've helped their customers specify in their strategic consulting engagements. I'm more concerned about the poor VARs out there that are starting to talk about customer-centric business strategies but don't know how to a) market for this sort consulting, b) fulfill this sort of consulting and/or c) find a consulting group who "gets it" to work with.  What would you recommend an evolving company like this do to get to the next level?

BT: I'm skeptical that a VAR primarily selling "boxes" can make this transition without bringing in outside experts. Retooling the business model and focusing on consulting is another challenge.

Box-oriented VARs that are adept at managing volume and gross margin don't have the systems in place to
manage service projects.

MB: I recently read your thoughts on social CRM, or at least Oracle's attempt at re-defining it.  I'm not so interested in social CRM per se, but I am interested in whether you think there is a technology that can possibly give a business a competitive advantage? My initial thought is that if everyone can buy it, the only differentiator is your willingness to plan your attack and execute it well. Are too many leaders delegating too much to bells and whistles promoted by software vendors?

BT: There was a time when motels advertised "Color TV" as a differentiator. Would you book a hotel for that reason now? Of course not. You expect a color TV and a whole lot more. Technology can provide a competitive advantage if it's implemented first and customers value the difference. Some of the early CRM pioneers achieved this with SFA projects, some homegrown. But, now SFA is a commodity.

A second approach is to win with better execution: fast, cheaper, higher-quality. CRM is a classic example these days where everyone can buy the tools, and the SaaS model has made implementation much easier, but the real success lies in the customer
strategy, metrics, people management, and process design. These are still fertile grounds for consultants.

MB:  I'm guessing that most of the visitors to my site are those poor souls
who have been given marching orders by the boss to find the best and
cheapest CRM software on the market.  I also get quite a few consultants for whatever reason.  What are the top 3 resources you would recommend to the employee who has to convince his or her boss that they might want to take a different approach? Are there some especially good articles at
CustomerThink, or elsewhere?  I already know reading all of them helps!

BT: We try to focus on business leaders and balance our content between strategy, practices and technology. Some of my major articles/papers that could make good starting points:

A Five-Year Vision for CRM: Seven Key Trends

The Next Generation of Customer Management? Customer Experience Management

Build a Customer-Centric CxO Team: CRM Resolutions for 2007

Find the "Ultimate" Loyalty Metric to Grow Your Business

Accelerate Your Customer-Centric Journey: Four Best Practices

CBM Trends for 2009: Think, Feel and Connect

For those seeking more business-oriented CRM content, other major sites that I like include www.1to1.com and www.mycustomer.com.

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