The Blog

  • June 28, 2016
  • CRM and Brexit: teachable moment

    Denis-PombriantThe great thing about the software world that I spend so much time in is that it is very much a meritocracy, imperfect to be sure, but a place where merit is usually rewarded. That’s why the controversy over the Brits voting to leave the European Union seems so strange.

    In CRM terms, the decision to leave the EU looks a lot like dissatisfied customers taking a walk. I just wrote a book about customer loyalty and the whole Brexit looks like a riff on the movie, “How to lose a guy in ten days” with Kate Hudson and Matthew McConaughey. Everything looked so good at the beginning and watching it all go south was sometimes funny but also sad.

    If the EU could manage to find ways to alienate its constituents it didn’t miss many opportunities. In the vendor world could you imagine the same kinds of behavior? Over controlling, micro-managing, killing economies for the sin of over-spending, enabling chaotic borders, ignoring people’s feelings, and many other things drove the voting. At the end of the day, the vote wasn’t even close.

    CRM was developed precisely to help businesses to avoid the beaucratization that can leave customers out in the cold. Its many modules are designed to capture customer data, analyze it, and help vendors to make important decisions about what to do next—all in an effort to retain customers and keep them engaged. CRM is about proactive personalization and contextual interaction, two things in short supply in the EU.

    The Britons who voted to leave the union were not engaged in the European project. They’d spent the quarter century after the Maastricht Treaty absorbing the almost daily reality of big brother decision-making that too many didn’t think benefitted them.

    Unfortunately, another aspect of life with CRM might have contributed in some small way to the vote to leave. I am referring to the understanding, honed by increasing reliance on subscriptions, that one can unsubscribe from a vendor and move on whenever the mood strikes whether or not the mood is justified. No muss, no fuss, no need to consider the aftershocks to the vendor. Unfortunately, we’ve increasingly become accustomed to chasing the newest thing that coruscates with effulgence.

    But what works at a micro-economic level can be absolutely toxic when attempted on the macro plane. Governments are supposed to last and treaties are assumed to as well; they are the foundational elements on which we base decisions about the rest of our lives. They are never written in such stark terms as the GAAP accounting standards but those standards are a good example.*

    What’s most frustrating about the Brexit is that so much has gone on for so long and the channels of redress are so narrow that the only seeming solution was the vote that occurred last week. But as I’ve written before it seems there is, or should be, a pony in that pile of manure and there is.

    The EU was best when it did least. It was an economic union, a trading paradigm that enabled small countries to bypass the red tape inherent in national currencies and far too many border crossings each with their own rules. Computers can handle that work today and as for the rest of the EU? It would be nice if the EU members accepted that they’d overbuilt their union edifice, that what’s needed is less political union and simply more friction free commerce.

    On another level, I sense a business opportunity for CRM that dwarfs anything yet seen. For several years, the vendor community has been heads-down focusing on the consumerization of its software. Making the software that mediates relationships with customers as intuitive and friendly as possible is part of what drives the digitization wave.

    But a criticism of digitization has always been, for what purpose? The answer that is coming into view seems to be CRM for constituents rather than customers. Government outreach to citizens is too often bare-bones and decrepit. But what if we applied CRM ideas and technologies to government? No doubt there would be naysayers but I think their foot dragging would be in the service of a status quo that benefits too few and no longer works. It would be obvious and these naysayers could be discounted.

    A CRM approach to government means incorporating all of the social, mobile, and analytic capacities we now have but on a grander scale. It means asking for more citizen participation in communities while promising better response and outreach. Importantly people could vote with CRM raising participation rates. I know this would scare a lot of politicians who depend on low turnout and sometimes even suppression, but there it is.

    This political season is full of charlatans who are too in a hurry to knock things down and who haven’t a clue what to replace the old structures with. This is it: bring government into the 21st century using CRM technologies and ideas so that we never have a Brexit situation ever again.

    _______________

    • The Four Basic Assumptions of Accounting
    • Economic or Separate Entity: The company is treated as a separate economic entity for accounting purposes, even if it isn’t a separate legal entity.
    • Monetary Unit: The only business transactions recorded are those in financial terms (dollars and cents in the U.S.).
    • Time Period: Financial reports cover a specific period of time.
    • Going concern: Financial reporting assumes, unless otherwise known, that the business will continue operating indefinitely.

    Thanks to Carol Wiley, Accountingedu contributing writer http://www.accountingedu.org/gaap.html

     

    Published: 1 year ago


    Discussion

    • June 28th, 2016 at 2:30 pm

      Denis – nice analysis.

      Something else to keep in mind is that the French (read Charles de Gaulle) wouldn’t allow the Brits into the EU until 1973. And I completely agree it was best when it was focused on trade, and went south when it added political and social requirements.

      I think the UK ought to be able to negotiate the same or substantially similar trade agreements with the rest of Europe, as it’s in the EU’s interests as well.

      Cary

      • June 29th, 2016 at 9:10 am

        Cary,
        Nice to hear from you again. Glad we’re on the same page. I have a new book, what’s your address?

        D

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