Skip to main content

Marketing owns the Customer! Does it?


A Customer
Customer
The customer, the elusive entity that every business is about – or at least should be about.
The customer gets targeted, marketed to, sold to, serviced, analysed, shall have a positive customer experience, and sometimes even is made happy.
The ‘customer’ as an entity is owned by the marketing department, err, the service department, oops, sales … or is it IT? After all IT is likely to run the CRM system. If it is not a cloud system, that is.
In reality it is different in every company and probably rightfully so.
On the other hand every department has their own requirements and the ‘owner’ of an entity is likely the one who decides upon the relative priorities of these requirements. And the fulfillment of requirements regularly decides upon the effectiveness and efficiency a business unit can operate with.
Now the marketing department is heavily invested in collecting all data that a customer leaves behind in order to understand behaviours and be able to entice known and unknown customers into buying (in the case of a B2C business) or solidifying the lead to an extent that it can be handed over to the sales department (in case of a B2B business). They are interested in lots of attributes, segmentation, slicing and dicing towards various dimensions. Born were Data Management Platforms, and Customer Data Platforms, and overall a very thriving industry of Marketing Technology.
The sales department now is interested in opportunity management, CPQ (configure, price, quote), relationship with the buyers and their potential influencers, closing the deal as efficiently as possible. Born is a world of sales support software.
The service departments are mainly dealing with customers post sales, or when there are questions/issues coming up in the course of the buying journey, trying to resolve them as efficient as possible. This helped the creation of more classes of enterprise software.
These times it is easy to purchase and deploy them, with the help of the cloud and decentralized budgets.
All these types of software regularly have their own data store and, of course, different data models. And, as they are often implemented locally, they are also not integrated, with all the negative consequences this has.
As the ‘customer’ is one important piece of the enterprise data model an important consequence is that suddenly there is different customer information at different places. There is no single ‘truth’ anymore, not even different views on the same data, just different data with little chance of consolidation that is left.
But, in the context of their own jobs (to be done) the individual departments get closer to their optimal process.
Just that this optimal process is not likely to be close to a global optimum, which would be defined around the customer’s job to be done.

The Solution?

Given all this: Who should own the customer and the customer data? Someone needs to.
I would argue that it should not be a single business unit. They have their local objectives (which are not always directly inferred from global objectives) and tend to prioritise their own goals over other business units’ goals; and they surely do not have the skills necessary for proper data modeling.
I would also argue that it is neither a group. This normally leads to no one feeling accountable and thus will not yield results.
In conclusion this leaves a department that delivers a service to the other business units. As we are talking technology here the logical candidate is IT.
The precondition for this to work is that the CIO sees him-/herself as an enabler to the business, and conversely also is expected to be in this role.
Dilbert and Mordac; Source: Scott Adams
Dilbert and Mordac; Source: Scott Adams
A CIO these digital ages needs to be on the forefront of the business transformation that any digital transformation is.  And the enterprise data model as part of an enterprise architecture is part of this.
Am I dogmatic about this? No, as long as the enterprise architecture is part of a cross-business strategic unit – and has a cross-business governance body to ensure proper direction.
And it needs to stay nimble. This I am dogmatic about, because, in an adaptation of an SAP slogan: IT and business must run at the speed of the customer.
A tall order.

Comments

Last Year's Top 5 Popular Posts

SAP CRM and SAP Jam - News from CRM evolution

During CRM Evolution 2017 I had the chance of talking with Volker Hildebrand and Anthony Leaper from SAP. Volker is SAP’s Global Vice President SAP Hybris and Anthony is Senior Vice President and Sales GM - Enterprise Social Software at SAP. Topics that we covered were things CRM and collaboration, how and where SAP’s solutions are moving and, of course, the impact that the recent reshuffling in the executive board has. Starting with the latter, there is common agreement, that if at all it is positive as likely to streamline reporting lines and hence decision processes. First things first – after all I am a CRM guy. Having the distinct impression that the SAP Hybris set of solutions is going a good way I was most interested in learning from Volker about how there is going to be a CRM for S4/HANA. SAP’s new generation ERP system is growing at a good clip, and according to the Q1/2017 earnings call, now has 5,800 customers with 400 new customers in the last quarter alone. Many...

How to play the long game Zoho style

The news On February 7 and 8 2024, Zoho held its annual ZohoDay conference, along with a pre-conference get together and an optional visit to SpacX’s not-too-far-away Starbase. Our guide, who went by Chief, and is probably best described as a SpaceX-paparazzi was full of facts and anecdotes, which made the visit very interesting although we couldn’t enter Starbase itself. The event was jam-packed with 125 analysts, 17 customer speakers, and of course Zoho staff for us analysts to talk to. This was a chance we took up eagerly. This time, the event took place in MacAllen, TX, instead of Austin, TX. The reason behind this is once more Zoho’s ruralization strategy, transnational localism.  Which gives also one of the main themes of the event. It was more about understanding Zoho than about individual products, although Zoho disclosed some roadmaps. More about understanding Zoho in a second.  The second main theme was customer success and testimonials. Instead of bombarding us with...

Reflecting on 2023 with gratitude - What caught your interest

A very happy, healthy and prosperous new year to all of you. This is also the time to review my blog and to have a look what your favourite posts of 2023 have been. With 23 posts, I admittedly have been somewhat lazy in 2023. Looking at the top ten read posts in 2023, there is a clear clustering about a few topics, none of them really surprising. There is a genuine interest in CX, ChatGPT, and vendors.  Again, this is not a surprise.  Still, there are a few surprises in the list! So, without further adoo, let’s hear the drumroll for your top five favourite posts on my blog – in ascending order. After all, some suspense cannot harm. The fifth place gets claimed by my review of ZohoDay 2022 – “ Don’t mess with Zoho – A Zohoday 2022 recap ”. Yes, you read that right. This is a 2022 post. The fourth place got claimed by another article on Zoho, almost one year younger: Zoho, how a technology company reimagines business software . It is a reflection on the Zoholics 2023 conference ...

Salesforce stock tanks after earnings report - a snap analysis

The news On May 29, 2024, Salesforce reported its results for the first quarter of the fiscal year 2025. Highlights are a total quarterly revenue of $9.133bn US, resembling a year-over-year growth of 11 percent a current remaining performance obligation of $26.4bn US a remaining performance obligation of $53.9B US an operating margin of 18.7 percent. diluted earnings per share of $1.56 The company reported a revenue guidance of $9.2bn - $9.25bn US for the next quarter and a full year guidance of $37.7bn - $38.0bn US, resembling growth rates of 7 – 8 percent and 8 – 9 percent, respectively. With these numbers, Salesforce ended up at the lower end of last quarter’s guidance on the revenue growth side while exceeding the earnings per share projection and slightly lowered the guidance for the fiscal year 2025. The result: The company’s share price dropped from $272 to bottom out at $212. The bigger picture Salesforce is the big gorilla in the CRM and CX industry. The company has surpassed ...

Zoho - A True Unicorn

End of January Zoho held its 2020 Zoho Days, an analyst summit, which I was happy to attend, along with more than 60 colleagues, as the only analyst from Germany, as it seems. Sadly, it took me quite a while to complete this – Zoho deserves a faster commentare. But hey, let’s look forward and get rolling. Zoho is a privately owned enterprise software company that has quietly evolved from a small software company in 1996 to an ambitious global player that serves the SMB- and enterprise CRM market with cloud applications. The company has a set of 45+ business apps with more than 50 million users, 10 data centres and counting, and is available in 180 countries. The company is profitable and maintained a CAGR of more than 30 percent over the past five years. But why quietly? Because Zoho managed its growth pretty unusually (almost) fully organically with only very minor acquisitions. Crunchbase lists one. Following this unique approach, which defies the tradit...