If you’re going to dedicate any time and brain power on a real CRM strategy in this fresh, new year, here are 4 questions you need to ask yourself. The answers will determine if you’re going to be successful, or just spinning your wheels:

1. Is It Integrated? - A CRM strategy that sits on its own shelf is destined to fail. Unless you can weave the elements of the strategy into your business plan, through the operations and budgets of your various business units, don’t bother. Silos suck, but you need to figure out ways to latch them together for the benefit of your customers. Integrate or die!

2. Is It Engaging? - Without employees who actually “get it,” and give a damn, you’re CRM strategy is so much dust in the wind. Employees will see the value in the mission, and figure out ways (on their own) to deliver the brand promise, or they won’t. And if the brand promise and CRM strategy aren’t compelling, you’re done before you started.

3. Is It Incremental? - Another reason employees often don’t embrace real change like a customer initiative is that is smells like the “flavor of the month,” especially when it’s touted as “The Year of the Customer” or “Corporate Paradigm Shift” or other such tripe. You need to prove it’s real. To make it feasible and not some sort of pipe dream, the plan for improvements must be incremental. Any large company can’t turn the boat on a dime. Accept it. As you stay focused and win small victories, you build credibility, and you win advocates.

4. Is It Measurable? - “That which gets measured gets done.” It’s now a cliche but it’s also true. Build discipline around customer behavior and results. Why wouldn’t you? Retention, cross-sales, referrals, average revenue per customer, customer lifetime value. They are the key to growth and profitability. And beware satisfaction measurements. Often they don’t translate to bottom-line results.

So go forth and make your company a better place for your customers. They’ll reward you for it!

Just wanted to be sure I wished all of you a fantastic holiday season. After a recent trip to the mall (and watching some spectacularly rude customers), it’s hard to remember what this time of year is about. So here’s hoping you get to spend some relaxing days with friends and loved ones, and not stuck on the road between Oak Brook and Woodfield malls.

Enjoy, and we’ll see you in 2010!!

This is a great list of “don’ts” for restaurant staff, describing how not to serve customers. It’s written by Bruce Buschel, a New York Times writer and more who’s opening a seafood restaurant.

It’s a great list because so many of the items go to the heart of great customer experience, seem so obvious, and yet are constantly violated by waiters, waitresses and others. For example: “Never serve anything that looks creepy or runny or wrong.” That’s something my 12 year-old son would understand, and yet it still happens. Or what about: “Do not curse, no matter how young or hip the guests.” Duh.

Of course, there are more subtle suggestions as well, but the fact that many of these don’ts need to be spelled out is a hint at just how bad service is in many restaurants.

Have you had a horrible dining experience lately? Let me know.

Sometimes it’s worth your while to take a step back and rethink what your company is spending its time and money focusing on.  For most businesses, sales and marketing garner a lot of attention, and for good reason. For you to succeed, your organization must build awareness and acquire new customers.

But it seems that often the focus on acquisition pulls attention away from efforts that are usually even more important: those designed to keep the customers you already have. For instance:

Research shows that increasing customer retention by just 2 %, you can decrease your overall costs by 10%. 10%! Think what that does to your bottom line, even without the accompanying increase in customers and revenue.

Speaking of customers, if you can increase your retention by 5% – for most companies, not an unrealistic goal – the financial impact is staggering. Over five years, your customer base will have grown by over 25%, with no increase in your sales growth! Over ten years, you’ll have over 56% more customers.

So, let’s ask again: is it worth it to focus on customer retention? What do you think?

The primary reason customers defect is “employee indifference.” I have to say, that’s the reason we eventually pulled both our commercial and personal accounts from US Bank. In fact, indifference isn’t really enough. I would say it was “egregious indifference,” if that’s possible. I won’t bore you with the details. Suffice to say, I’m not a fan.

So – given that we were no longer customers – I didn’t think I’d have reason to complain about US Bank again. I was wrong.

My wife used a US Bank drive-thru ATM and, amid the typical chaos of our lives, sufferered a brain…burp and drove off without waiting for her card to be dispensed. The next day she realized the mistake and went back to US Bank to inquire about the card.

“Oh, no problem,” the employee stated. “They’ll look up your customer information and it will automatically get sent back to you.”

“That’s great,” my relieved spouse responded. “Though I’m not sure how you’d know my address, since I’m not a customer. Could I give you my address.”

“Oh,” the employee muttered, her tone darkening. “If you’re not a US Bank customer, the company that services our ATMs will just destroy it.”

“But,” my wife protested. “Could I contact the company and…”

“We don’t have their number,” the employee said, already having mentally exited the conversation.

“You don’t have the number of the company that services your ATMs?” my wife asked incredulously, but to no avail. She gave up and left.

So…thanks, US Bank! I don’t know how you do it, but way to stay consistent!

I believe you offer a “5 star promise” for customer service. All I know is that, in my experience, getting close to the 5 stars causes me to get very hot.

This suddenly hit me yesterday. I’ve been preaching about customer experience to companies, and trying to get across how efforts like “customer initiatives” are doomed to fail. The only path to success lies in a sincere and inherent desire from the top down to create exceptional experiences. But then, yesterday, I realized I could distill success in CE matters to the “3 P’s.”

1. Brand Promise - What is your brand promise? Most folks I talk to can’s articulate it, and there are very few companies where all the employees know the brand promise off the top of their heads. There are fewer companies still where the brand promise is actually weaved through all interactions and communications with customers creating a power, positive perception.

2. People – If the big cahuna is truly committed to delivering an exceptional and memorable customer experience, he or she will also be committed to hiring people who share the same principles and values. Companies that do this well (think Zappos or Union Square Hospitality Group) understand that you can’t train people to be devoted to their customers. It doesn’t work. You have to start with the right clay before you try to mold.

3. Process - Sure you could say “product” is a possible 3rd P, but I don’t think so. If you have a solid brand promise, and you hire the right people in terms of attitude, then you can set up processes that empower those employees. Process becomes an enabler, ensuring that every customer is treated to a memorable customer experience. With the wrong people, process can become a crutch and an excuse for poor customer experience.

More to come on this. I welcome your comments.

I was asked, in an interview with BNET Retail, what I thought was going to happen to Zappos’ distinctive (and valuable) culture when the acquisition with Amazon was completed.

What do you think? Can Zappos retain its irrational, feel-good uniqueness?