Customer Reviews

The Customer Revolution

5 star:		(7)
4 star:		(2)
3 star:		(3)
2 star:		(2)
1 star:		(4)

 

 

Patricia Seybold and her co-authors, Ronni T. Marshak and Jeffrey M. Lewis, have taken the familiar concept of establishing customer relationships as the basis of a company's success and updated the notion into the current day and its new technology, the Internet. The book is soundly based on lasting principles about successful customer focus, and details what that means now in many interesting and detailed examples. The book is strengthened by critiques of the weaknesses of some of the most successful companies, such as Charles Schwab and Grainger.

Here are the principles:

(1) Customers are in control. This point is made with the example of Napster, and the way this enabled people to change the way they acquired and used recorded music. Customers are going to reshape businesses by their behavior, and you had better be ready to respond. The recording companies were not, and great economic harm ensued as well as a slow down in the development of new acts.

(2) Customer relationships count. The book points out that your economic value as a firm is related to how many customers you can attract and keep, and profitably supply. The authors argue that this will become a formal part of security analyst reports in the future. That would be progress over the way they value companies now!

(3) Customer experience matters. This section focuses on how people feel emotionally about how they are being treated, and contains an interesting example of the on-line financial institution, Egg.

The book then shifts into eight areas to focus on that supplement the list from their last book, which I have paraphrased:

(1) Memorable, compelling, and desirable brand personalities

(2) Smooth, continuous customer experience across channels and points of contact

(3) Genuine caring about customers and the outcomes they experience

(4) Measure how you are doing in what matters to customers

(5) Improve your operational excellence

(6) Make careful use of customers' time

(7) Integrate customer preferences and information into the company and its interactions

(8) Create products, services, and processes that can be quickly transformed as customers shift their focus.

The book addresses how all of this can be better managed, and proposes a "flight plan" approach managed by a "Customer Flight Deck" that keeps the enterprise focused on what is most important. Essentially, the Customer Flight Deck is the customer focus part of a Balanced Scorecard. In fact, you would do well to read this book in conjunction with The Strategy-Focused Organization for the most benefit. The book has several Customer Flight Decks written out about the key examples employed by the authors. I thought these were well done and helpful for applying the authors' concepts and advice.

The book is rich in quotes that help focus your attention. Here are a few of my favorites:

" . . . [R]unning a business in today's Internet-enabled era is like trying to fly a plane [while] . . . replacing the engine."

"Customers have taken control of our companies' destinies."

" . . . [C]ustomers now have access to information that lets them make informed decisions [for the first time]."

I found it easy to relate to this book because so many of the examples are familiar to me both as a customer and as a student of business. The advice to be sparing of customer time and provide coordinated contacts is going to be hard for most companies to follow, but they need to start down that path. I am constantly struck by how much time I have to waste to buy from companies, and how the one hand has no clue about how to help me with something that the other hand knows.

When this era is finally history, I suspect that companies will be divided into two categories: Those who used information to make customers' lives easier and more pleasant, and those who created technology (like endless voice mail chains) that drove customers crazy. Hopefully, the latter will soon be dead as a dodo. In which category will your company be?

I suggest that you ask yourself constantly, "What have I done to make life better and easier for my customers today?"

If you think about customer relationships as being like what a good hostess or host does, you should do well . . . as long as you implement your ideas.

As a teacher and counsellor in business management and having assisted over 2,000 businesses in my lifetime, either through diagnostic assessment, financial analysis and/or business plan development, I highly recommend this book. When it comes to your customer, this book is what might be referred to as the "Businessman's Bible."

Without a customer, you do not have a business - the customer is the backbone of your business. The customer is paramount! Simply put in layman's terms, it is not a matter of what you want to sell to the customer that is important. It is what the customer wants to buy and how you satisfy that customer's needs that is critical to your company's success. The customer is doing you a favour by coming to you, the business owner, with money in hand ready to purchase your product/service.

It is irrelevant whether you are selling over the internet, in a retail facility, from your home or door-to-door, the same basic business principles of customer service apply. This book takes some recognized standard concepts and expands on these to keep up with modern technology. The author has presented a wealth of knowledge on building long-lasting, positive customer realtionships in today's modern world. "The Customer Revolution" is a must-read book for anyone in business today.

When was the following proclaimed?

“We hold these truths to be self-evident”…that all people have a right to “life, liberty and the pursuit of happiness.”

America and its schools have promoted this democratic principle for centuries. Right?

But did this “obvious” truth help our country resolve the complex social conditions that galvanized the civil rights movement in the 1960’s? Of course not. We’re still working on the race issue—despite the fact that so many American “leaders” say they get it.

Or what about “the obvious” truth that “people are our most important asset?” We’ve heard that one from business leaders for decades. But how many management teams have truly executed that vision consistently, with integrated HR policies and practices in their organization, especially during downturns? Not many.

My point is this. Just because something is obvious doesn’t mean that it’s real or that you can easily execute it. And that’s where Martin’s assessment falls short. In his criticism of “The Customer Revolution,” Martin say’s it’s obvious that “customers are, and always have been, the lifeblood of any company…If you are a successful business you already know the significance of customers.”

But talk to some of those successful businesses, some of which are discussed in this book, and it will be quite obvious to you that managing the quality of your customer relationships is a complex, imperfect and at times painful undertaking, especially when you have multiple organizations and product lines. It’s not as obvious as you think, Martin.

For example, I just installed Symantic’s industry-leading pcAnywhere, so I could download files from my office onto my laptop while spending time on Cape Cod.

When it’s not crashing, it runs like a snail. My 4-year-old daughter is more effective at helping me cope with my frustration than the support I’ve received from Symantic’s customer service department, which I find pathetic. Gone is my summer dream of simple file sharing on the Cape! So, do you think I’m going to do business with this “successful” company again? As Martin would say, “Duh?”

As for other businesses, perhaps less successful, capturing the “hearts and minds” of customers for the long haul is even more arduous. Many businesses today operate without any well-thought-out strategy for selecting and developing leaders throughout their organization--leaders who truly understand the requirements for managing customer relationships. Nor have they implemented the right business practices, IT strategy or infrastructure to succeed.

And that’s why “The Customer Revolution” is relevant for anyone who wants a more sophisticated understanding of the multiple issues you face when building a “customer-centric” business. This book adds value in two key ways:

1) First, it defines the extent to which power relationships have shifted in favor of customers over suppliers. Martin is right to say that the Internet has streamlined existing B2B relationships and saved costs. But he’s totally wrong to dismiss how the Internet has help intelligent customers challenge and disrupt standard business practices in such areas as pricing structures, distribution channels, and the way companies design and deliver their products and services to customers.

2) Second, and most important, this book offers a glimpse into what a customer-centric business looks like—the strategies and best practices that business leaders have learned from their successes and failures—in an environment where customers have greater control. The book addresses such questions as:

- How do you build your business based on customer scenarios?

- What does it really take to get into your customer’s head at every stage of your relationship?

- How do you build a brand—not just around products—but around the way you want customers to feel when they interact with them?

- If the quality of your customer relationships determines the value of your company, how then do you measure and monitor that value over time?

- What leadership competencies do you need to manage your company by and for customer value?

- How well are you building your customer franchise?

This book makes a significant contribution to the ongoing discussion about what it takes to build deep customer relationships for long-term survival and growth. For people interested in that topic, it’s worth the read. Hopefully, it will motivate some folks in business to wake up and smell the coffee before it’s too late. And that’s not “restating the obvious.”

Patricia Seybold and her co-authors, Ronni T. Marshak and Jeffrey M. Lewis, have taken the familiar concept of establishing customer relationships as the basis of a company's success and updated the notion into the current day and its new technology, the Internet. The book is soundly based on lasting principles about successful customer focus, and details what that means now in many interesting and detailed examples. The book is strengthened by critiques of the weaknesses of some of the most successful companies, such as Charles Schwab and Grainger.

Here are the principles:

(1) Customers are in control. This point is made with the example of Napster, and the way this enabled people to change the way they acquired and used recorded music. Customers are going to reshape businesses by their behavior, and you had better be ready to respond. The recording companies were not, and great economic harm ensued as well as a slow down in the development of new acts.

(2) Customer relationships count. The book points out that your economic value as a firm is related to how many customers you can attract and keep, and profitably supply. The authors argue that this will become a formal part of security analyst reports in the future. That would be progress over the way they value companies now!

(3) Customer experience matters. This section focuses on how people feel emotionally about how they are being treated, and contains an interesting example of the on-line financial institution, Egg.

The book then shifts into eight areas to focus on that supplement the list from their last book, which I have paraphrased:

(1) Memorable, compelling, and desirable brand personalities

(2) Smooth, continuous customer experience across channels and points of contact

(3) Genuine caring about customers and the outcomes they experience

(4) Measure how you are doing in what matters to customers

(5) Improve your operational excellence

(6) Make careful use of customers' time

(7) Integrate customer preferences and information into the company and its interactions

(8) Create products, services, and processes that can be quickly transformed as customers shift their focus.

The book addresses how all of this can be better managed, and proposes a "flight plan" approach managed by a "Customer Flight Deck" that keeps the enterprise focused on what is most important. Essentially, the Customer Flight Deck is the customer focus part of a Balanced Scorecard. In fact, you would do well to read this book in conjunction with The Strategy-Focused Organization for the most benefit. The book has several Customer Flight Decks written out about the key examples employed by the authors. I thought these were well done and helpful for applying the authors' concepts and advice.

The book is rich in quotes that help focus your attention. Here are a few of my favorites:

" . . . [R]unning a business in today's Internet-enabled era is like trying to fly a plane [while] . . . replacing the engine."

"Customers have taken control of our companies' destinies."

" . . . [C]ustomers now have access to information that lets them make informed decisions [for the first time]."

I found it easy to relate to this book because so many of the examples are familiar to me both as a customer and as a student of business. The advice to be sparing of customer time and provide coordinated contacts is going to be hard for most companies to follow, but they need to start down that path. I am constantly struck by how much time I have to waste to buy from companies, and how the one hand has no clue about how to help me with something that the other hand knows.

When this era is finally history, I suspect that companies will be divided into two categories: Those who used information to make customers' lives easier and more pleasant, and those who created technology (like endless voice mail chains) that drove customers crazy. Hopefully, the latter will soon be dead as a dodo. In which category will your company be?

I suggest that you ask yourself constantly, "What have I done to make life better and easier for my customers today?"

If you think about customer relationships as being like what a good hostess or host does, you should do well . . . as long as you implement your ideas.

I worked for one of the companies analyzed (and praised) in her book. She spent a few days with us, and we presented our Web strategies, which were not very strong at the time. She presented material from her Customers.com book (which I enjoyed more than this book). And then she pointed out many problems with our Web strategies (many of which we knew...but being a large company, we were having difficulty changing). Imagine my surprise when I listened to this book and heard her praise our company. She should be in PR...she made us sound a lot better than we were!

Underwhelming restatement of the obvious.

When was the following proclaimed?

"Customers have taken control of our companies' destinies. Customers are transforming our industries."

a. A Marketing 101 class at any University in 1960.

b. This book.

Answer: all of the above.

Duh? It's amazing how consultants repackage the obvious, wrap in a few Internet buzzwords, and "reinvent" the business world. Then they become scaremongers to further sell their consulting services/books: "The seismic impact of this customer revolution is being registered by the world's stock markets. ... Fasten your seatbelts! The turbulence you've been experiencing in the stock market isn't over yet. ... What's more, your company is probably at risk. ...You're no longer in control of your company's destiny. ...Companies that don't "get it" will be out of business soon. ...Like most revolutions, this can't be stopped." Bunk: The world-wide demand for light bulbs has not increased because G.E. has a great Web strategy. Juniper Networks is breathing down Cisco's neck even though Cisco is one of the most retold Internet success stories. The Internet is indeed a powerful new tool, but's it's impact, especially in today's economy, is on the streamlining of existing B2B relationships for new efficiencies and cost savings. Customers are, and always have been, the lifeblood of any company. And the only obvious "customer revolution" was the catastrophic crash of the e-tailers, the dot.bombs, who were supposed to empower customers, who in turn would smash the traditional brick and mortar companies.-- Customers have revolted against the customer revolution hype. Even in the B2B space where e-marketplaces were to push customer empowerment to untold heights are lacking one thing -- customers [they prefer to trade with their established business partners and use the Internet simply to gain efficiencies].

If you are into consultant hype, or need a consultant to tell you what you already know, read this book. If you are a successful business you already know the significance of "customers." Customers have always driven the strategies of "successful" companies. The crash of the dot.coms reveals how the Internet doesn't reinvent sound business practice, including the role of delighting customers, listening to customers, and optimizing the lifetime value of your customers. The dot.coms went rushing about telling everyone to throw out all they know, and yelling and screaming that all should adopt the new rules of the new economy. Revolution, revolution, revolution!

With this book, here we go again.

One lesson from this book is that traditional[huge budget] marketing, promotion, advertising, and publicity campaings will no doubt make this book a best seller across the land. Caveat emptor.

He's engineered recording sessions for Paul McCartney and John Lee Hooker. In the mid-1970's he opened one of the world's first digital recording studios. A little later he purchased the legendary Bay-area recording studio, The Plant. Meet Arne Frager, rock entrepreneur, who has managed the mixing boards for dozens of recording artists and enjoyed the rock-solid, decades-long expansion of the music industry.

But last year all that changed. "The whole music recording business is off 50 percent," Mr. Frager said in July, 2000. "The big record labels are so paralyzed by this MP3/napster/Gnutella/Freenet distribution of digital music, they're not signing any new acts!"

Welcome to the customer revolution, a chaotic, bottom-up transformation of the marketplace. While the revolution may be invisible, its battle cry sounds the death knell of the familiar top-down business model in which suppliers feed buyers a stock of consumable items.

In the new regime, customers order products and services directly from producers capable of delivering mass-customization. Furthermore, consumers and providers can by- pass the cost-heavy distribution stream -- a move destined to shake up everyone from car dealers to insurance brokers.

Patricia Seybold's new book, The Customer Revolution, is intended to guide entrepreneurs into this new era of global, user-driven trade. She begins by examining the remarkable transformation of the music business, then analyzes the forces that are re-making almost every enterprise.

Timbuk2 Designs offers a fascinating study of mass customization that is at the heart of Ms. Seybold's thesis. You can log on to the company web site and custom-design a shoulder bag, checking the price for each feature you add. Once you complete the on-line payment, the bag is manufactured and shipped within hours.

Other illustrations of customer-driven enterprises flesh out the author's premise. For example, log on to to sample some of the 30,000+ commercial-free internet radio stations. After a few minutes, you'll be wondering how commercial radio broadcasters will adapt to the challenge presented by this unlimited, consumer-selected stream of digital radio.

Yet despite such compelling subject matter, Ms. Seybold's Customer Revolution fails to achieve its mission. While her goal is clear, her strategy and tactics begin to falter after the opening chapters.

First, it's evident that too many authors had a hand in the book's composition. The internal narratives about innovation that bolster the opening pages are abandoned and replaced by half-baked accounting models and re-cycled management theory.

Next, the authors become so committed to their customer-centric analysis, they invent a new, customer-based accounting model. "Customer capital" and "customer momentum" are intended to measure "lifetime customer value." But after several pages of explanation, Ms. Seybold and company confess that their new math doesn't quite add up: "As soon as we discover one or more simple formulas that work reliably ... we'll alert you on our Web site." Don't hold your breath waiting for your accountant to embrace this new paradigm while the authors re-jig their tabulations.

Another innovation is their "flight deck" method of assessing corporate performance. Comprised of four modules (navigation, performance, operations, environment) the flight deck analysis is derived from air pilot critical-path management. The technique is applied to several enterprises and each company is reduced to a predictable cookie-cutter deconstruction.

Finally -- and most lamentably -- the authors become cheerleaders for their own theories. For example, the success of on-line broker Charles Schwab is attributed to their "strong foundation of core customer-centric values." There's no hint that Schwab's success was tied to the biggest stock bubble in history. Instead, we are told (cue the violins), "Every employee cares deeply about how well each Schwab customer is doing." Now that Schwab has laid off 13% of its employees and profit has been cut by two-thirds, readers may wonder if the Schwab story still rings true.

Ultimately, The Customer Revolution loses the battle for market intelligence to its own reductive -- and sometimes incomplete -- analysis, an analysis that fails to illuminate the forces driving the events the authors describe so competently. The result is a book that attempts to breach the revolutionary barricades, but instead, falls backward and is impaled upon its own sword.

D.F. (Don) Bailey
The Customer Revolution

Yes, a MUST Read. Sure, it seems redundant to remind individuals - especially business owners - that customers drive business. However, this book reminded me that I am also a customer and that I control some aspects of others' business. Customer service seems to be a lost art. Many reviewers summarize the book, so allow me share a story instead.

I recently wrote a complaint letter to a furniture store - to complain about their lack of customer service. This store advertises, on several in-store banners, that customer service is at the top of their list. When I received a phone call from the corporate operations manager, he immediately asked me what I did for a living and if I dealt with customers. He wanted to appeal to my business sense about the importance of customer service. I told him that business sense has nothing to do with it. I am the customer, it doesn't matter what I do for a living. I told him that he should be applying business "common sense" toward customer service when dealing with me - the customer. However, he could not focus on the fact that I was a customer. Instead he just kept talking about how I should "know what it is like dealing with customers". He never saw me as a customer, but as another businessman. He tried to circumvent the customer relationship by attempting to build a business relationship. He failed to know or understand the three basic principles mentioned in the book: 1) Customers are in control, 2) Customer relationships count, and 3) Customer experience matters. Now if this book is so obvious, redundant, a waste of time, or a waste of money, then why didn't the corporate operations manager from this furniture store "get it"? Why are there so many people that still do not get it?

We are human and, at times, we get so busy working "IN" the business that we sometimes forget just how important customer service can be to the overall business. This book serves as a great reminder.

The book includes a framework for customer metrics - Customer Flight Deck. The authors provide a thorough overview and several examples through their case studies. By measuring active customers, retention, experience, and spending, these metrics will help you monitor the navigation, performance, operations, and environment of your company. I found the case studies, with examples of how other companies used the Customer Flight Deck, very enlightening. The Customer Flight Deck will fit nicely in the customer portion of the Balanced Scorecard.

On a final note, although the book was written in 2001 it is still very relevant. As mentioned in all the reviews, the authors drive home the point - the customer is in control. In fact, all of these reviews are a great example of the customer being in control. Look at the access and control we, as reviewers, have on Amazon.com.

Summary:

Customers are in control. Today most of the customers want both ¡§low prices and good services¡¨. How can a company survive and thrive in such customer economy? Transformed to customer-centric company is a must. This book teaches us how a company can successfully transform to customer-oriented company. Structurally, this can be divided into three parts and each part will have several well-know company as an examples:

Firstly, Seybold analysis how customer control business in terms of convenience, control and transparency.

Secondly, Seybold introduce the concept of ¡§customer franchise¡¨ (which means Total lifetime value of the current and expected future customers discounted back to the present) and explain how vital this concept is.

Thirdly, Seybold recommends building customer relationship is the basic element. In order to create, maintain and sustain a long-lasting customer relationship, seven factors are introduced, including, 1) Time, 2)Matters to customer 3) Brand personality, 4) Focus on customer¡¦s DNA, 5) Deliver a seamless experience, 6) Morph and 7) Execution.

Comment:

Advantages:

1. Insightful

For students who do not have much practical experiences, this book really give me a lot of insights. For example, I understand the trend of future market will tend to customer-oriented. Also, I understand it will put all company in a difficult position if company cannot put themselves in customer shoes.

2. Can apply in different situation

Also, the concept introduced by this book is useful and can be applied in different industries, companies and countries. For example: customer franchise and the seven critical factors.

3. Practical case studies

In addition, all these concepts will be supported by practical case studies which analysis by author from inside-out. For example, author will explain the background of a company first, then explain what does that company do in order to survive and thrive in this customer economy together with their actual result, at last, author will evaluate the disadvantages and advantages of that company policies and strategies.

Disadvantages:

1. Provide linkage and relationship

In my opinion, there still have room to improve. First of all, from the student point of view, the structure of this book can be more simple and clear. It is better to provide more relationship between each chapter. Sometimes, it is hard for me to follow the concepts since

2. The concepts of ¡§Customer Flight Deck¡¨

Also, the concept of ¡§Customer Flight Deck¡¨ is rather ambiguous. It is better to explain it in a more simple and practical way. Besides, author fails to provide strong evidence and reason why a company should take action to implement ¡§Customer Flight Deck¡¨. It is better to explain more and provide more supported details why that company can be improved by a recommended ¡§Customer Flight Deck¡¨.

This is a practical approach to changing customers and how best to respond. In my opinion, it builds on Fred. Newell's book "Loyalty.com" What I found most useful about this book was the practical examples - relevant case studies like Egg, HP and best of all Tesco (page 250). For another book with good case examples of customer relationships, check out Cram's book "Customers that Count".

Another good point, Seybold puts up an interesting form of measuring customer relationships in chapter 8, called the "Customer Flight Deck". Structurally, the book has three principles: 1. Customers are in control, 2. Customer Relationships count. 3. Customer Experience matters. Then she lists eight tenets of a customer.com company - for the most original take a look at step six, valuing customer's time. Recommended.