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I believe " Successful CRM/CXM " is about competing in the relationship dimension. Not as an alternative to having a competitive product or reasonable price- but as a differentiator. If your competitors are doing the same thing you are (as they generally are), product and price won't give you a long-term, sustainable competitive advantage. But if you can get an edge based on how customers feel about your company, it's a much stickier--sustainable--relationship over the long haul.
Thank You for visiting my Blog , Hope you will find the articles useful.

Wishing you Most and More of Life,
Dinesh Chandrasekar DC*

Saturday, October 30, 2010

Art of CRM: Sun Tzu Way

Dears,
The Art of War, written by Chinese General Sun Tzu about 2500 years ago, has been flaunted as an excellent and timeless read for generals, statesmen, CEOs, market traders, athletes, salespeople, and even married couples. And now [queue-in the marching drum roll, please], I'll try to draw some parallels to CRM and Leadership.
One of my Favorite quotes “A losing general enters battle and then seeks victory. A wise general achieves victory and then enters battle.”--- Sun Tzu
The lesson of Sun Tzu applies not only to war, but to business. Often, an executive launches a product or service and then hopes that with enough time, sweat, money and luck, success will follow. A wiser approach is to develop a coherent plan to ensure success that can be understood and implemented by the team. A CRM system translates those seeds of an idea into assignments and tasks that guide a motivated team and bring in eager, happy customers.
Art of Leadership
Successful business people are--more often than not--great leaders, leading thinkers, and leading doers. Much like the attributes of a great general, it is smarter and nimbler leadership that prevails in the marketplace, that most complex of all battlefields.
The Art of War describes several criteria of leadership; let’s examine a few of them briefly:
First I want to tie in the purpose and strategic significance of the enterprise. Without creating the bonds and trust necessary between the leader and subordinates, it is all but impossible to consistently meet the strategic and tactical objectives of CRM.
Second, let's tie in the boldness and strategy of taking actions. This is three-pronged: First, great leaders time their moves with great care. This includes press releases, earnings forecasts, and product launches. Second, it is important not to display indecisiveness, which can lead to an erosion of trust and confidence. And third, a smaller force can beat a larger one by causing its rival to respond before thinking. Many forms of deception are perfectly ethical in warfare and business. So don't be afraid to provocate and agitate your competition when necessary.
Third, I'd like to reflect on disciple in the ranks, an important tenet in Art of War. Instilling proper discipline into an CRM organization is complex: It consists of setting and implementing rules, regulations, and the treatment of employees. Are the employees which made things happen getting the proper rewards? Or are they getting demoralized and leaving for greener pastures?
As I mentioned the marketplace is the most complex of all battlefields. And just like there is confusion on the battlefield, there rarely are "usual patterns" in the market. However, chaos offers continual openings to someone who can perceive the forming of a future order of things. By understanding all possibilities, one can respond without confusion to whatever emerges.
Art of preempting Competition
Would Sun Tzu advocate head-on competition? I think he'd instead agree with some of the innovative sales strategies that attempt to outsmart the competition before it figures out what's going on.
Sun Tzu puts much emphasis on preempting conflict, he says:
“And so one skilled at employing the military Subdues the other's military but does not do battle,Uproots the other's walled city but does not attack”
The company which wants to avoid head-on competition needs a powerful market strategy, just as a nation-state which wants to avoid conflict needs to maintain a powerful army. However, many modern-day companies ignore the "avoid strength, attack weakness" principle to the industry's detriment. By directly attacking the competition with means such as a head-on price war, they commoditize their own products. And as we know, commoditization is the killer of profit margins. Instead, a healthier approach may be to differentiate existing offerings, create new ones, or develop new markets or branding.
Later on, the General also says, "one advances without seeking glory, retreats without avoiding blame." So take a step back, and consider whether the machismo approach of going head-on is a better option then beating your competition to the customer's door in the first place. When a product launch [battle] is planned, for example, speed to market [battlefield], all the various cycle times, and logistics are essential.

Genghis Khan once said, "It is not sufficient that I succeed -- all others must fail."
Your P&C
DC*

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