Welcome!

CRM Authors: Xenia von Wedel, Ian Khan, PR.com Newswire, Steve Mordue

Related Topics: CRM, Cognitive Computing , Agile Computing

CRM: Blog Feed Post

A Tale of Three Companies

and the future of business

CRM on Ulitzer

Amazon sells shoes. So does Zappos. Another company – where I have many friends, as I previously did significant consulting work for them – markets something entirely different. All, however, are particularly instructive about the future of business.

The company I won’t name is involved in financial services. They have decided to terminate their entire marketing effort, and focus on explaining their products to prospective investors. The CEO said, “Our greatest value proposition to investors and financial intermediaries is the institutional approach that’s at the core of (our) global business.”

Therefore, the company – according to its press release – stated that its “distribution network, meanwhile, will be revamped to provide more technical expertise, with traditional wholesalers being replaced by investment-oriented consultants.”

There is a glaring problem with that kind of thinking. There is neither a shortage of funds available for institutions to select from, nor a deficiency of advice provided. Anyone keeping up with what is really happening in this – or just about any other field – would understand that what is being sought is a higher level of something discussed in a previous post – “Relationship Alpha.”

“Alpha” is return on investment, and the managers at the vast majority of institutions are keenly aware of what products provide superior stability and growth. What they seek, more than ever before, is a return on the relationship – the opportunity to realize a return that transcends transaction. No product has a monopoly on performance; therefore, what a company brings in addition to its financial return is the pathway to creating distinction.

Which, unfortunately, is what this company seems to be sprinting away from – determining that a seat at the back on a ship in the sea of sameness will work for them quite adequately. Of course, it never does. This kind of thinking will, inevitably, cause organizational demise.

On the other front, take a look at Amazon. It sells shoes, as does Zappos. Because of their volume, they probably have a better shipping deal already in place than Zappos. Amazon has a higher level of technical infrastructure and expertise than Zappos. So why in the world did Amazon spend about $800,000,000 to purchase the online shoe retailer?

Because Zappos has an online customer experience second to none. And, brilliantly, Amazon knows that it’s worth almost a billion to get it.

It’s difficult to imagine a company with a closer relationship with its customers than Zappos – and with more visionary leadership. (I’m proud to follow them on Twitter – and prouder they follow me back!) Amazon knows that if they want to move to a higher level in terms of corporate culture and client connectivity, it’s well worth the enormous investment they just made to acquire it.

The fundamental reason is because ALL business – in EVERY industry – is moving toward the supremacy of the customer experience.

And, that does not mean we tell the client more about our product!

It means we create such a compelling experience for them that their loyalty becomes assured.

The best companies will spend their resources – both monetary and organizationally – to acquire and develop it.

The less than stellar ones…from Circuit City and Chrysler to Bear Stearns and Lehman Brothers…all have something in common…the woefully shallow belief that their products are more important than the people who invest their hard-earned money to purchase them.

Read the original blog entry...

More Stories By Scott McKain

Scott McKain is a business leader, bestselling author, and Hall of Fame professional speaker.
Scott's latest book, "The Collapse of Distinction: Stand Out and Move Up While Your Competition Fails" reached the #1 spot on Amazon.com list of Customer Service Bestsellers! He is the author of two #1 additional business bestsellers (Amazon.com & 800-CEO-READ): "What Customers REALLY Want" (currently available in trade paperback) and "ALL Business is Show Business."
He is the Co-founder and Principal of The Value Added Institute, a think-tank that examines the role of the customer experience in creating significant advances in the level of client loyalty, and has appeared on multiple occasions as a commentator and analyst on FOX News Channel. His platform presentations have run the gamut from the White House lawn with the President in the audience carried live on CNN and NBC's "Today" show...to a remote outpost near the Amazon...all 50 states, seven Canadian provinces...and from Singapore to Sweden...Mexico to Morocco.
An inductee into the Professional Speakers Hall of Fame, he is also a member of "Speakers Roundtable" -- an elite, invitation-only group of twenty of the world's top business speakers.

IoT & Smart Cities Stories
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and Bi...
The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get tailored market studies; and more.
Tapping into blockchain revolution early enough translates into a substantial business competitiveness advantage. Codete comprehensively develops custom, blockchain-based business solutions, founded on the most advanced cryptographic innovations, and striking a balance point between complexity of the technologies used in quickly-changing stack building, business impact, and cost-effectiveness. Codete researches and provides business consultancy in the field of single most thrilling innovative te...
CloudEXPO has been the M&A capital for Cloud companies for more than a decade with memorable acquisition news stories which came out of CloudEXPO expo floor. DevOpsSUMMIT New York faculty member Greg Bledsoe shared his views on IBM's Red Hat acquisition live from NASDAQ floor. Acquisition news was announced during CloudEXPO New York which took place November 12-13, 2019 in New York City.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
Intel is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world's second largest and second highest valued semiconductor chip maker based on revenue after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactu...
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...