The New Net Order

When you think of the Internet, what comes to mind? Bankrupt dot coms? Plummeting IPO’s? A volatile NASDAQ market? Think of how drastically different that perception was than say, a year ago, or even six months ago. At that time it meant “doing business differently,” “empowering the customer” and “the dawn of a new economy.”

Has the Net really changed that much? Perhaps not, but certainly our perceptions of how our customers actually use it has. Over the last couple of years corporations have had to take a hard look at how they operate, how they serve their customers and how they make money. The Internet and all of its hype has forced our own revelations about how we serve our customers and I think it has been through this, and the process we have had to use to get here, that we have finally arrived at what I like to call the “new, new economy.”

I believe that corporations have come to three significant realizations through this process over the last couple of years:

1. An “Internet” Business Can’t Survive
What about AOL, Amazon.com, Yahoo!—the companies that can actually make money via the Web? These companies have changed how they do business by becoming multi-faceted customer service operations (you can phone Amazon.com, speak to a sales consultant and fax your order if you’d like). Most dot coms, however, are in grave danger as they struggle to offer customer service that expands beyond the Web. Phone, fax, mail order and, yes, even an actual store, are ways that the dot com economy are dealing with the grim reality: the Web alone is not the only customer relationship medium. And that’s the bottom line isn’t it? Gone are the days of looking at what you manufacture and then trying to market your product. Today, all companies must seek to “own their audience” and do whatever it takes to meet the specific needs of their customers. For the dot com companies, this probably means service both on and off the Web. “Clicks and bricks” is the new reality.

2. Customer Relationships Drive the Business
So, this leads us to the next realization. If we don’t care
about what we sell but care about who we sell it to, how does this affect our current business strategy? For most companies it means absolute chaos! We aren’t structured to operate this way. We have silos, business units, productmanagers, channel marketers. Sound familiar? Share of Wallet (SOW) is a new reality for business today and maximizing customer relationships have become a major strategic issue in many Canadian corporations. How are you going to build customer relationships when you have no idea who your customers even are? Do you have a database of end users? Do you understand their needs on a one-to-one basis? Does the medium exist to allow them to communicate to you?

3. E-business is Just Another Word for Business
Some day we will laugh and remember the days of “e-this” and “e-that.” We are continually bombarded with messages about e-business and, although most of these messages are valid, we need to begin to focus less on the “e” and more on the “business.” The fact is that the Internet, and other members of the e-business family (intranets, extranets, e-marketplaces, etc.) are fast becoming a way of life and just a part of what it means to be in business today. E-business is business and vice versa. I’ve seen the best e-business strategies completely flop because they haven’t had the sound business strategy and integration with the rest of the organization necessary to succeed. If your e-business strategy isn’t linked to your business vision, your customer service philosophy, your sales channel, your marketing plan—your CEO—then you’re probably in trouble. Most dot com failures aren’t an indication that e-business doesn’t work but that bad e-business doesn’t work. Kind of like business, right?

So, what does all this mean? How can you make these realizations work for your business? Some of the ideas I share with the corporations I work with are:

1. Restructure the Marketing Department
Sounds severe but it can make a significant impact on your company. Lose titles like “Product Manager” and “Brand Manager” and introduce titles like “Manager of Families with Children” or “SOHO (Small Office Home Office) Manager.” Focusing on your customer segments, not your product divisions, will allow the structure of your company to reflect your dedication to customer relationships.

2. Allow Teams to Manage E-business
If your IT or Marketing department is driving e-business, it is probably headed for disaster. Are the Director of Marketing and CIO even talking? Does the CEO even know what’s going on? A small cross-divisional team that includes IT, Sales, Marketing, Operations and VP level involvement is necessary for the success of an e-business strategy that will make a true contribution to the business.

3. Get Your Database Up to Speed
CRM, or Customer Relationship Management, is the buzzword these days. Simply, it means developing a database of your customers and using it exclusively to understand and manage the interaction between your brand and the brand user. Develop a CRM solution that the entire company can use and ensure it is integrated with your Internet site and sales processes.

4. Measure Your Marketing Communications
Gone are the days of “I know that half of my advertising is working, I just don’t know which half.” Demand ROI on your marketing campaigns because it is possible to understand advertising effectiveness when CRM solutions exist. Forget about the mass advertising strategy and ensure that every creative execution is driving a reaction and a relationship with your customer.

5. Encourage Feedback
I am stunned by the number of corporations who have weak customer feedback mechanisms. Can your customers provide feedback by phone, fax, mail and e-mail? If the answer is no, make it happen! Ensure that your company encourages feedback, makes it easy for customers to do so and acts on the data. Your actions speak louder than words.

Jeff Roach is a marketer, consultant, speaker and writer and is a partner in the JWA Group. Jeff helps North American corporations generate Business Results through sales and marketing communications solutions. He can be reached at jeff.roach@jwagroup.com.