Build the team of today and tomorrow

 

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What do you do during the week you’re not attending your company’s user conference?

Catch up on reading?

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Exercise?

Ali

Hang with the dog?

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Yes, yes, and yes.

I wasn’t in attendance at this week’s Oracle’s Modern Marketing Experience (MME) conference in Las Vegas (long story) but I was still busy researching, writing, and having conversations with people like any other week. I also made the time to watch the live-stream of the MME keynote sessions from 3124 kilometers (or 1941 miles) away. This post will not be a summary of the event so change the channel if that’s what you expected. Instead, I want to pull out a couple of threads from those keynotes and weave them into a theme I’ve been discussing in recent posts.

Still with me? Okay, let’s see how this goes.

First, Steve Krause, Group VP of Product Management for Oracle Marketing Cloud (OMC), shared how the company is introducing artificial intelligence (AI) into the OMC platform. It’s exciting news but hardly surprising. Oracle is not alone in pursuing AI as a tool to augment its solutions and to improve the experience it delivers to customers. AI is seeing an industry explosion of investment and in growth in the sheer number of ideas for its application. In commercial business alone AI is taking on greater relevance because it is seen as an accelerant for future growth as is explained in this report  by Accenture. The flip-side of AI’s promise of more intelligent and responsive products is that it will improve internal efficiency too. Transformation in multiple dimensions that benefits customers and employees. How? By offering up exponential opportunities to innovate through the leveraging of new ideas that result from AI. It can be difficult to imagine the unknown but simply put, that’s what we have with AI in the business world. We’re seeing it in its infancy and the unknown of artificial intelligence will become known and in the process create new roles and new paths to solutions that we haven’t yet imagined. And through all that will be a requirement for the right kind of attitude (people) on the team.

That idea of having the right people on the team is something my boss, Catherine Blackmore, picked up on in her inspirational talk (I think she called it, What is your superman?) on day 3 of the conference.  She was speaking directly to marketers in the audience but her role as Global VP of Customer Success, and as one of the most prominent Customer Success thought leaders around, means she was also speaking to her own team and the Customer Success industry at large.

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“Build the team of today and tomorrow”. Build the team with people who embrace openness, innovation, partnering, and collaboration. Her talk and those characteristics she called out are interestingly supported by research for two specific generational groups.

Nielsen Norman Group researched the topic of millennials as digital natives. In the report you will see uncanny resemblance of the characteristics they list of millennials and the attributes that Catherine called out in her talk. Also, this was interesting too… “Many Millennials were in grade school or college when Google first rose to popularity, and it was a critical influence in setting the level of simplicity and directness that Millennials have come to expect from interfaces. They don’t care if (for example) your enterprise application has significantly more complex features to consider. When interfaces fail to live up to those unrealistic standards of simplicity, Millennials rarely blame themselves — unlike older users. Millennials are quick to criticize the interface, its organization, or its designers.” 

That is the indigenous (i.e. naturally occurring) behavior/attitude of a digital native.

And it calls to mind something I said in a recent interview with the online magazine, Chaos and Rocket Fuel. In the interview I said, “Here’s something to think about: if you ask a young millennial what the word “digital” means, more often than not you will be met with a blank stare. All they know is digital. So much so that they don’t even call it that.”

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While the millennial cohort has largely been absorbed into the workforce and is applying its own unconscious biases just as every generation has done before them, the next generation (Gen Z) is the one that will truly wipe things clean making business look and behave completely differently than it does today. Sorry Boomers, we’re almost through.

An article by Pew Research called, digital natives are born global citizens, elaborates on the characteristics of Generation Z. It’s the generation that follows Millennials and was born (approx) around the year 2000. They aren’t ready for the workforce just yet but soon they will be. If you really want to go deep on this topic, download the PDF from that Pew site and discover some interesting bits of information. It may disturb some preconceived notions you have of young people the world over. One stat that jumped out for me is this one:

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It jumped out not because it surprised me that young people are tight with technology. Everyone can see that. Why it jumped out is because of the faith they have that technology is so consequential to the hopefulness of their future. It’s sweet and it should cause us (older generations) to pause in contemplation. Young people are not misguided to believe that technology can be a force of good. Let’s make sure we deliver on our part of the bargain. Let’s be open, let’s embrace change, let’s innovate, and let’s do it together.

 

 

 

 

Can math help clarify the CS mission?

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Customer Success professionals need to start thinking of their mission in a similar way that professionals in Sales and Marketing see theirs. On the Marketing side, they see their mission as finding, nurturing, and qualifying interested parties and moving them further along towards a decision to commit to a financial contract with the marketer’s employer. Straight-forward. On the Sales side, they see their mission as helping those interested parties make that decision to sign the contract thereby securing new revenue for their employers. While the processes and tasks executed by these organizations can be complex and fraught with bumps, their missions are simple.

What is the mission of Customer Success? Is it as clear-cut as those other missions? What is it primarily about?

  1. Renewing customers?
    • Goal = keeping customer numbers up to improve the vendor’s balance sheet
  2. Expanding the business with customers?
    • Goal = growing revenue to improve the vendor’s balance sheet
  3. Helping customers adopt more of the product’s capabilities but motivated by how it benefits the vendor?
    • Goal = helping customer utilize more of the solution so that they feel invested in it and have more of a propensity to renew the financial contract. Symptoms of this behavior are when Customer Success is asked to intervene in sales-sensitive situations to clear technical challenges that are perceived as hurting the chances for renewal or expansion.
  4. Helping customers adopt more of the product’s capabilities but motivated by how it benefits the customer?
    • Goal = helping customer achieve their business goals so they can improve efficiency, or increase market share, or solve other business challenges that prevent them from growing
  5. All of the above?
    • Goal = do whatever is needed

Usually the answer is #5, which makes it not so straight-forward nor so simple. If companies take an honest look at it though, they might admit that they have their Customer Success teams focused on achieving #3, which when it’s considered as starkly as it’s written above, sounds crummy, like it’s short-changing the customer and causing damage to the relationship.

Unlike Marketing and Sales, whose missions are clean and easy to understand, Customer Success is too often charged with having to equally prioritize the following: implementation, enablement, support, consulting, coaching, nurturing, negotiating, selling, closing deals. Why the lack of focus? Pardon the straying into the theater of politics but it almost sounds like Donald Trump’s foreign policy. It’s all over the place, it’s inconsistent, it sends mixed signals, satisfies very few, accomplishes only a fraction of what it hopes to do, and is confusing to the people it’s meant to deal with.

There needs to be some order introduced into the Customer Success world so to make things easier I propose applying some basic math.

Adoption = quality product + clearly defined outcomes + enablement + quality, timely guidance
Renewal = adoption of the solution + quality relationship based on trust
Expansion = adoption of the solution + quality relationship based on trust + clear business need

Looking at it in reverse, Expansion won’t happen until there is Adoption of the solution, the relationship between the parties is good, and the customer has a clear business need for investing more with the vendor. Renewal won’t happen unless there is Adoption of the solution and the relationship is sound. Adoption won’t happen unless the product works, the customer has articulated clear business outcomes, they’ve been enabled with the right skills and knowledge to use the solution to achieve those outcomes, and they’ve received high quality guidance in a timely manner along the way. This is obviously a proactive methodology that prioritizes Adoption above all else. When you see things laid out mathematically they make sense. The logic flows. Changing the equation to prioritize Renewal or Expansion before Adoption defies science and human nature. It might work for some situations but it’ll work against you over time.

To close, and speaking of proactive, I’ll leave you with a line from Silje Nergaard‘s song, Two for the Road.

“I’d rather hit the road than have the road hit me”.  

Maybe it should be on a t-shirt.

 

 

Customer Success Plans. Really, they’re not that hard.

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In a call earlier today with my good friend, David Sakamoto, Head of Customer Success for the Americas at Cisco, a wide-ranging conversation eventually turned to customer success plans. While we are each big believers in the tool and have had great experiences utilizing it with enterprise customers, it seems to have fallen a bit out of fashion lately. We’re not seeing success plans as a topic very much on conference and meetup agendas. If I do, it is only given the surface treatment as in, all customers should have a success plan. But no detailed sharing of experiences and of empirical proof that they matter to customers. Nor do I trip across blogs that touch on them. So I did some random, unscientific inquiries with people I know to see whether their organizations utilize the tool. The results were spotty. Some do, many don’t. Some produce them but only for strategic customers. Some only for customers that demonstrate some sort of need for one (I can’t figure out that rationale), and one that does it for all their customers (but it’s a manual process and they are a small SaaS vendor with only 50 accounts). So I dug into this topic a bit more.

A year ago, TSIA, published in their annual State of Customer Success the following graph that details how CSMs in their community of enterprise companies are spending their time. Nowhere on the list is “success plans”. What you do see are “get well” plans but you can also see from the definition that those types of plans are reactive (details the steps to put out fires that threaten future revenue) versus the proactive nature of a success plan (details the path towards achieving business outcomes).

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So what gives? Why aren’t organizations producing success plans more broadly, as a best practice, for more of their customers? How do people offer proactive guidance that drives adoption, especially for larger and more complex environments? Is the answer to just do weekly phone calls, as if we’re still in the 20th century? Could it be that companies are now producing software solutions that are so solid, so easy-to-use and implement, and so intuitive that customers easily adopt them without the need for guidance? Ahem.

Let’s be honest, most CSMs don’t create success plans for their accounts for one or more of the following reasons:

  1. They aren’t required to
  2. Time constraints
  3. Not enough information about the customer
  4. The customers have not shown an interest in the past

All these excuses (sorry, reasons) are why there are so many “get well” plans in existence. So, let’s tackle each one:

  1. They aren’t required to – This tells me CS management themselves don’t understand the value of success plans and probably (I can almost guarantee) haven’t discussed them with customers.
  2. Time constraints – This I understand and appreciate but have you tried to automate the creation of the success plan?
  3. Not enough information about the customer – Huh? Don’t you have a CRM? Hasn’t the salesperson captured most of the pertinent information already?
  4. The customers have not shown an interest in the past – I bet they haven’t and it’s likely because they’ve not received enough value or have had very little follow-through from the CSM.

Let’s dive into #3.  Even the world’s worst salesperson will have this information documented:

Section A

  1. what industry the customer is in
  2. what they bought
  3. what they spent
  4. their renewal date
  5. the names of key contacts in the account
  6. the names of key vendor contacts (account manager, CSM)

Better salespeople will have this data as well:

Section B

  1. why the customer bought the product/solution; what are they trying to solve?
  2. partners they might be using and how (implementation, staff augmentation, etc)

In addition to all that, the best salespeople I’ve ever worked with will include the information below and be able to recite, without notes, an elevator pitch around it:

Section C

  1. a breakdown of interest of each key stakeholder in the account
  2. particular business challenges facing both the company and the industry that they are in and how the vendor can help them successfully face these challenges

Let’s not even consider AI software that can, and eventually will, vastly enrich the overall knowledge of the account that’s contained in the CRM. An example is AI software like this in the financial services industry that factors in demographic, geographic, and publicly available tax information to produce a full picture of expected costs and returns for a financial customer. Basically, they are hell-bent on replacing costly financial advisors. That’s the future and I suggest that more companies start getting serious about producing success plans for all their B2B customers.  I can hear screams of “WHAT?!?!? There’s no time!” In answer, I return to #2 in the reasons above. Have you tried automating the process?

It’s not that hard. Have your IT or CRM administrator create a form that looks like the kind of professional success plan you’d present to customers and that gets automatically generated when they sign a contract. Have that form populated with pertinent, customer-facing information (stored in CRM fields) that should already have been collected during the sales process, such as:

  • items 2, 4, 6 from Section A
  • items 1, 2 from Section B
  • item 2 from Section C

The program could also map out a timeline for the customer’s expected adoption of the product (based on best practices you should already have learned and documented from other similar size and type customers).

Once the form is auto-populated, have it sent to the assigned CSM for review before they send it on to the customer. Or go full-on automation, if you have the confidence, and have it sent straight to the customer. Am I forgetting anything?

Thanks for reading what I think is probably the most mechanical blog post I’ve written in 10 years. I hope it didn’t hurt too much.

 

 

 

 

The lab coated CSM

I’ll say it now.  In five years the job of a Customer Success Manager will be almost 100% focused on managing the performance of algorithms that drive the customer towards achieving their goals. We’ll see a 180 degree flip in how things are largely done now. CSMs in that near future will spend their time reviewing new findings of consumer/customer behavior and the data that show the progress customers have made towards their expected outcomes. They’ll use that information to tune the algorithms. CSMs will be more data scientists than customer relations experts. Provocative? Not really. Inevitable? Yes. Impersonal and detached from the reality of a customer’s experience? I can see that it might be perceived that way but, no. How can I be so confident? Because this type of work style is already being done everyday by a department employed by most companies but whose mission is aimed at a different target group (buyers) than the one targeted by Customer Success. Modern Marketers conduct themselves more or less this way now.

In the April 3, 2017 edition of The New Yorker magazine is an article entitled, The Algorithm Will See You Now. The piece mainly states that medical technology is advancing so rapidly and the pressure to reduce costs of the healthcare system is also increasing at a similar rate that the two together are forcing a rethink of how diagnostic medicine can, and should, be most efficiently and accurately delivered. My quick take for you from the article (written by a biological scientist)… it’s cheaper, faster, and in some cases, more accurate for machines to do the job of radiologists. There are limitations though that have to do with what are referred to as factual knowledge and experiential knowledge and while the state of the technology is quite sophisticated and there is enthusiasm for its ability to augment the diagnostic process, it isn’t yet seen to be a complete replacement of the human expert. Pick up the edition and read the article to get the complete picture. I can’t do two things here: 1)I cannot include the link because of the paywall, and 2) I cannot give the article the justice it deserves.

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A similar state exists in the Customer Success industry. Many people operate on experiential knowledge (gut) without a lot of factual knowledge. Conversely, we have vendors who focus a bit too much on factual knowledge and don’t give enough weight to experiential knowledge. That’s what I meant last week at the Toronto Customer Success Executive Breakfast (sponsored by Gainsight) when I said that the future of Customer Success will see smart people focused almost entirely on managing processes. They’ll exercise a blend of factual knowledge (from tools like Gainsight) and experiential knowledge (a highly mature gut instinct stemming from the experiences they’ve had themselves working directly with customers and also from conclusions reached by AI machine learning software) to determine the most accurate course of action that should be taken in order to improve the algorithms. Otherwise, how will it be possible for Customer Success to effectively perform, scale, and personalize its approach so the customer feels they get the right attention at the right time? This is especially true when you consider the implications of the data represented in the McKinsey chart below.

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IoT, automation, escalating customer expectations, increasing calls for higher share value, accelerating business disruption… all these things and more are conspiring to force companies to deliver increased, personalized customer attention faster and at less cost. Scale is the only option but not just any scale. Personalized scale.

Do you have difficulty seeing this evolution of Customer Success? If so, I have one question for you. Is diagnosing customer health any more complex than diagnosing the health of the human body?

A Pattern Language

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My wife gave me a book way back in the late 1980s when she realized I had a strong interest in buildings and architecture. A blog I wrote for Eloqua back in 2012 called, The Thoreau Guide to Marketing Automation, touches on that particular, and amateur, passion of mine. As an aside, the blog post was re-branded when Oracle acquired the company and soon after that event came erasure of my authorship. 🙂

The book, written in 1977, is called, A Pattern Language. It discusses societies’ building of their physical structures and the impact that collective and independent decisions have on fundamental needs of the human psyche. It was, and apparently still is, considered a bit of a bible by people who look at the bigger picture of how the most people-oriented communities function and are organically built, of how design and choice of construction materials can promote healthy minds, bodies, and relationships. The relevance for this post is that A Pattern Language was influenced by the then-emerging language to describe computer programming and design. One of the authors, Christopher Alexander, said, “A pattern language has the structure of a network. It’s an idea that comes simply from the observation that most of the wonderful places of the world were not made by architects but by the people.” In other words, the best ideas are community-generated, and even though that might intuitively suggest there is no overall design, there actually is. Collectively, we’ve mostly built what we need by following an unconscious pattern of (building) evolution based on need, utility, and personal preference. A pattern language, if you will. Peril comes when organic need is superseded by abstraction, when there is too much form and not enough function, or when the well-being of humans is a lower ranked factor in design. The language breaks. It breaks because it no longer serves.

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I was reminded of this book recently when I observed our dog during one of our walks. Watch your own dog and the way they relate to the physical environment that is external to their home. They expect the familiar because they associate people and places with indelible imprints those things have made in their memory stores. The world works for them because our buildings, streets, garbage receptacles, trees, and people have helped our dog build a wealth of pattern-generated memories that enable him to conduct himself in the world without having full accessibility to our human language. He knows where he lives, he knows where he should and shouldn’t toilet, he knows about cars and trucks and skateboards, and based on their demeanor he even knows what type of person would most likely respond well to his greetings. He’s the recipient of a language that humans have physically built with their surroundings and in the way they individually present themselves to him on a daily basis through their unconscious behaviors. You might think your daily walk from the parking lot to the subway goes unnoticed but it isn’t. He’s expecting you. You might think your stumble at the curb went unnoticed. It wasn’t; it made him stop and stare. You broke the pattern. Your zigzag walk out of the pub at midnight may have seemed straight as an arrow to you but it made him stop and tilt his head as he tried to understand why you’re behaving differently than others. Patterns are rules (scientifically referred to as behaviorism) for dogs. They adapt but only when new patterns emerge. So if you continue to teeter towards your Uber ride night after night your doctor will take notice from the results of your next blood test but my dog won’t because that’s what he expects of you now.

Here’s where I bridge this blog to business.

Over centuries commerce developed organically from small transactions between a shopkeeper who had something of value that someone else (the customer) felt they needed to much more complex arrangements in which a company organized itself to sell more of a product to a broader market of customers. Sales became an occupation and these people sold through a small number of direct channels to prospects who were reliant on the salesperson for information and for all other aspects of the transaction, save for the actual decision to buy. Once they made the purchase it was up to the customer to figure out how to derive value from the thing they bought. A pattern had developed over a couple hundred years from the belief (and proof) that that’s how business is done and that’s how money was supposed to be made. It had become what we had all expected it should be. Until the pattern was broken.

Software as a Service (SaaS) turned that paradigm on its head and we see now that customers have taken control. Through the exponential power of the Internet they educate themselves and through the simplicity of the subscription model they can make easier choices to move from one company to another. Customers expect superior service and superior ease of use. Quickness to value is the new rule and software companies are now the dog tilting its head as it tries to understand why the old pattern has been broken. Patterns form a language that allows us to function, until the pattern breaks. Take it from Blackjack.
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Renewal play? Not so fast.

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A few weeks ago we each had the opportunity to attend and to speak at the Customer Success Summit 2017 (Totango’s annual conference) in San Francisco, CA. This year’s event again brought together customer success leaders brimming with thought-provoking ideas – some that we didn’t necessarily agree with and some that were affirmations of what we are already doing, or anticipate seeing and doing, in customer success (CS). Like many customer success management conferences this past year, the general themes were: how to scale the CS organization, the role artificial intelligence and bots should play in services; cross-organizational implications of customer success effort; and the need to focus more intently on designing processes and activities that accurately target and nurture the customer along their journey.

These are all extremely vital and relevant customer success topics and the industry’s collective energy around generating best practices for each will likely yield big business benefits in the years ahead. We caution though about the tendency to draw attention away from a topic that is even more fundamental and yet has been insufficiently addressed. We decided to collaborate on this post because we believe the industry is in a rush to get to the finish line before it has figured out the answer to “what is the primary role of customer success?” To answer that, we need to state this. We consider the customer’s ability to adopt a  solution the key building block to success and to the customer’s likelihood to continue their investment in the product.  Persistently high churn rates and persistently low retention rates offer the most obvious proof of that and that much work needs to be done to develop best practices for adoption.  Before you can even start talking about renewals and expansion opportunities we believe goal-based adoption must become the main focus of a customer success manager. Because before you can even think of talking to a customer about a renewal you need to have the answers to the following questions:

  • who are they?
  • how would you characterize the health of the relationship between your company and the customer?
  • what challenges did they overcome to derive business benefit from your solution?
  • where are they on the solution maturity scale?
  • when did they expect the solution would address their business goals?
  • why should they be excited about reinvesting in your company and your solution?

If they haven’t adopted your solution, what do you think the odds are of you having answers to these questions?

In its most recent customer success industry baseline survey, the Technology Services Industry Association (TSIA) reported in this publication that only 45% of those companies have their customer success organization focused primarily on driving adoption. Another 45% reported that their CS organization is focused primarily on driving retention. The remaining 10% of companies say that they have their CS org focused on driving growth. While acknowledging there are all kinds of companies at all levels of maturity and recognizing that companies are still looking at pulling as many revenue-generating levers as they can, we find it counter-intuitive to believe there can be any long-term success in achieving and maintaining high retention levels (let alone growth) without first achieving the hard part, successful adoption of the product/solution. We feel strongly about this especially when we read a blog like this from Kissmetrics in which they explain how customer analysis can significantly reduce churn rates. They argue, (and we agree with them), that [customer] “Research matters because it offers your team the opportunity to create the ultimate customer experience. To satisfy customers, you must understand their behaviors, needs, and wants. You need to know the why and how behind all their actions.”

Does customer experience factor into their propensity to renew? Does it factor into their propensity to invest more with your firm? We feel foolish for even asking those questions because the answer is so obviously YES to both.

We all know the success of a SaaS company hinges on many factors like showing your potential investors low customer acquisition costs (CAC) while amassing a recurring revenue customer base that is continually expanding and renewing over time. How do you build and expand your company in a way that is scalable and retain customers over time? It isn’t by forcing the latest feature on your customer or simply by getting them live on your platform, without having identified any real value just so you can recognize the revenue. The path to success is identifying what problem your customer is seeking to solve and delivering on a promise to solve it in a fairly seamless and effortless way.

Don’t just take our word for it. The highly regarded VC firm, Bessemer Venture Partners, included extensive evidence substantiating our claim  in this report, but we’ll call out just two: 

“Wall Street investors and your customers hate to see a large mix of services revenue in cloud businesses. You should focus your product development, sales, and client success teams on reducing the implementation friction, time, and cost as much as possible.”

“It’s very difficult and expensive to grow subscription businesses if you have moderate customer churn– and prohibitive if your churn is high.  As detailed financial models of CLTV (Customer Lifetime Value) and Free Cash Flow demonstrate, the single biggest driver of long-term profitability for your cloud business (and thus valuation) is the renewal rate of your customers.”

Still not convinced? Think about your own buying behavior. Would you renew a contract for your home Internet Service Provider(ISP) if it never delivered a consistently reliable performance? If it failed to provide the ease-of-use and speed that was advertised and promised by the vendor? Of course not. Now think of your customers. You shouldn’t really be surprised that they decided to not renew when you should have been aware that:

  • they aren’t using the product to the extent you had expected
  • the tickets they’ve opened with your contact center indicate a pattern of usage suggesting they are at a very immature stage of adoption
  • they aren’t responding to your communications
  • they aren’t even opening your communications

So how can you get out of this rut?

There is a plethora of publicly available written content that focuses on user adoption tactics, best practices for utilizing the various customer success tools that can help with this process, how to scale while improving your ability to factor in your customer’s behavior and anticipating their needs, and how you can prioritize adoption as the most powerful process you will ever have with your customer. It’s the one that matters most to them and should therefore matter most to you.

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This blog was co-authored by:

Emilia D’Anzica is the Vice President of Customer Engagement at WalkMe. In the span of her career, Emilia has received several awards for being a top client service manager and leader while scaling global customer success teams. Emilia is a certified Scrum Master, active PMP certified Project Manager and a Trans-Global Executive MBA graduate from St. Mary’s College of California. She is based in San Francisco, CA.

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Peter Armaly is a Principal Transformation Advisor at Oracle Marketing Cloud. He is a senior-level customer success and digital marketing transformation professional with extensive experience working with wide-ranging clients of both SaaS and On-Premise engagement models. His career includes working for companies as varied as: Oracle, TSIA, BMC Software, Eloqua, CA Technologies, Rogers Telecommunications, Canadian Tire, and CP Rail. Peter is a visionary leader in the Customer Success industry and has made solid contributions of quality content (presentations, blogs, podcasts).  He is based in Toronto, Canada.

 

The melding of social and business data

It had to happen eventually.  When Mark Zuckerberg said, “People have really gotten comfortable not only sharing more information and different kinds, but more openly and with more people. That social norm is just something that has evolved over time”, it meant to me that he, like a lot of other people, recognize that society has accepted the tremendous benefits of Internet-connectivity and that those benefits outweigh downside risk.  The list of risks, beyond the obvious cyber-crime, malware, and viruses, should include one with the potential for greater impact, that our personal information may be used for profit by those to whom we do not grant explicit permission for use. 

Today’s edition of the Wall Street Journal contains an interesting article about insurers mining data to profile clients.  We should all know that the insurance industry has forever relied on massive amounts of data in order to properly set premiums and to guarantee profit.  This is just smart business and indeed there is nothing unusual about exploiting data for those purposes.  The difference this time is that they are not only mining their own data that they collected.  Instead of relying upon blood and urine tests to form the basis of their decisions, they are attempting to extract accurate answers to that thorny question of who they should and should not insure from many external data sources that include: online shopping histories, catalog purchases, magazine subscriptions, and social-networking sites.  Sounds like a rich store of information upon which one could begin building a profile.  Apparently, the testing is at the earliest stages and processes are being built to allow for review of borderline cases.   That’s good because based only on what I read in the article, I think the “technology” has a long way to go before it can be trusted.  While I applaud the effort, I think there’s still too much room for error.  There’s too much hypothetical chance of someone being declined for a policy, or having to pay a much higher premium, perhaps, because of behavior they exhibit when interacting within their communities on Facebook, as an example.

I’m a big fan of computing, of its power and potential for improving our lives and the way we conduct our social and commercial affairs.  I’m also a big fan of circumspection, and human insight.  Let’s hope the two can always work well together.