CX Sh*t’s Gettin’ Real…

What the recent InMoment/MaritzCX merger means and what the future holds

Just a few days after it was announced that Confirmit and Dapresy joined forces, today venerable CX solution provider MaritzCX merged with Utah based InMoment. This has in essence created one of the largest, if not THE largest in terms of market share and revenue EFM provider in the space.

It’s no secret I am familiar with both of these firms, having worked in various positions with Maritz for over 13 years (including CMO) and partnered with InMoment in the years after my departure.

The MCX/InMoment merger is a bit different than others in that, to some extent, it is a merger of equals. Both with strengths and weakness in their own right, but in my estimation two culturally compatible entities with an industry foot print that is big-foot wide.

Having been around the CX block , I can tell you they make for a formidable competitor to the more recent disruptors Qualtrics and Medallia, not withstanding the excellent soirées they hold.

Are we done with EFM consolidation? I don’t think so, but we are getting close. The big players hailing from a call center heritage are Verint and NICE. Both also have been on a buying spree with Verint mopping up Vovici in 2011, then Opinionlab in 2017 and finally Foresee in 2018. NICE decided to swoop up NPS banner holder Satmetrix in 2018 too.

A few years back MCX itself merged with Allegiance and Empathica and Mindshare merge to form InMoment.

This was all done in a race to complete a successful “solution stack” in this space. EFMs are like Mexican food; it’s essentially the same ingredients combined differently. The first who can offer the best tasting, cheapest meal with the most variation wins.

That full product stack includes: dashboards, data processing (ability to crunch big numbers fast), cross platform connectivity (APIs), text analytics, social media harvesting, predictive analytics, data capture (fancy survey builders), installation services, and expert services.

All the current big players have built (Medallia), borrowed (Customerville & Clarabridge), or bought (Dapresy & Confirmit, Qualtrics & Temkin) their way to ‘full stack status’. We now have really cool state of the art locomotives. I mean these things are huge, powerful, and reliable. But they are locomotives.

In my opinion these waters are more red than an Arkansas Razorback football game and if we are honest with one another, they have been for quite a few years now. So what’s next?

Here’s what I think.

Qualtrics Provides Some Clues

First, we can certainly see in the tea leaves when SAP spent the equivalent of the GDP of Burundi on the acquisition of Qualtrics. I remember a friend of mine coming back from one their extravagant conferences and asking me “Dave, I don’t get it…they are just doing surveys right?” Surveys indeed. You would think they have created an anti-matter powered jet pack…but no. At the end of the day it is the same Mexican food, but presented really nice; buy something-get a survey-fill out a survey- report on the survey. That is the basic use case and has been for 50 years.

What’s different about the Qualtrics acquisition (other than sparking my fascination with tinted eye glasses) is that SAP has a pretty fancy CRM platform. Connecting EFM and CRM…wouldn’t that be cool. I’ve been talking about it for at least a decade, and it seems to be coming to fruition. That is part one of how to get us out of this Mexican Food Rut (although I do very much like Mexican food). CRM can help do more than prevent churn or send a carton of Bon Bons to a disgruntled hotel guest..it CAN MAKE MONEY. It’s not only about cost avoidance any more, it’s about revenue generation too.

Channel Changes

Email is dead. So much so, that I know some insight suppliers that are turning back to mail surveys to get opinions. The good news is that the fundamentals are still there; most people are inherently narcissists. They like talking about themselves and they like other people reading about their opinions. This is good.

Businesses are more thirsty than ever for the voice of the customer. They want to get smarter so they can win. Even stodgy old price leaders have pretty much come around to this realization. Customer has and always will be king. This is also very good.

What’s bad for us in ‘the biz’ is a majority of Americans have a fake email address for their ‘junk’ email and others use temp email approaches to get a gated contact, email is not a good way to do much of anything nowadays. If you get past that hurtle you have spam filters and even still…seriously? filling out a survey? The next CX conference or bar-mitzvah you go to get a show of hands from the crowd of how many people actually fill out surveys.

Unlocking how to get in contact with folks who want to be heard and giving them incentives to do so will be the key. SMS and Social Media channels show some promise, but I think it is much bigger than that.

Look to the Past to Find the Future

The largest prize to unlock is a very old one but still the most powerful. In the 1940s there was this fellow by the name of Kurt Lewin who said “hey what if we ask a bunch of people what they thought, took that information and made some educated guesses about what to do, and we just well…did it?” Thus the field of Organizational Development was born.

Companies who realize that technology alone will never make a difference and that it is really all about organizational change will win the day.

Having great golf clubs does’t make you a better golfer. Commitment and practice does. This requires a whole different set of skills that no one in the EFM space currently possesses in adequate quantities (well, I do know this one little firm in Bentonville…).

By change, I am not talking about making sure Dora got her large fries or that you were able to up-sell a cable package to an AARP customer. I mean meaningful structural change. This is very rare to witness in the current state of affairs; bringing together marketing and ops to provide one holistic experience.

To achieve enduring positive change involves working directly with organizations to help them implement change and helping them create the right culture, tools, processes, policies, products, and tools to make meaningful and permanent cross organizational change. It’s a hands-on very intimate approach that is akin to an agency relationship to an organization.

You cannot change your customer experience by correcting mistakes or cramming more stuff down their throats. Changing CX starts from within. Companies changes for the better or worse through the people who work there. The CX provider who figures out how to do this best…will win.

And for my friends at MCX and InMoment, I sincerely wish you the best on this new exciting page in CX history.

God. Family. Pizza.

That’s the life priorities in my small hometown of Berwick in Northeast Pennsylvania. When alone, some locals will confide that their priorities are, on any given day, in a slightly different order.

There are scores of pizzerias in the area but in a recent completely unscientific poll on Facebook of more than 600 local citizens and ex-pats, three pizza places separated to the front of pizza peloton; Stuccio’s, Tuzzi’s, and Dalo’s. Each is very different and each share some very common features.

The front-runner, Stuccio’s (33% favored), is a very thin crust pizza with tons of cheese and a sweet sauce. As of this writing, Tuzzi’sand Dalo’s are in a statistical dead heat for second (24%). They too are unique to the area. 

Tuzzi’s pizza has a thicker, bread-like crust with cheese spread out throughout. Dalo’s has a more concentrated placement of cheese but is also thicker; reminiscent of the

‘Old Forge’ variety served up the road outside of Scranton. Tuzzi’s and Dalo’s are excellent a day or two after served cold. Stuccio’s not so much. 

All three are unusual in that are served in rectangular “sheets” or “slabs” rather than the conventional “pies”.

Locals are extremely loyal to one or more brands of pizza. It is not an Eagles vs. Steelers kind of thing; there is respect, and near veneration for each brand even if you are not an advocate. Folks are rabid fans with ex-pats having it delivered all over the world.

To outsiders, these regional iconic delicacies are often met with a shrug. To them, they seem similar, a little weird, and occasionally not to their liking±. After all, most folks think of Pizza as something you order form Dominos or Pizza Hut, it is round, thin, and sometimes with Pepperoni on top. 

Those places don’t do so well in Berwick.

In fact, despite the Big 3 Pizzerias doing no advertising (Stuccio’s doesn’t even have a website) they absolutely trounce powerful national brands such as Pizza Hut and Dominos for preference by locals (80% vs. 1.2%).

So why are the locals so fanatical? Why do national brands get annihilated?

Sure, the local pizza is good. But there is something more. 

Something much deeper. 

More than a Recipe

Recently I have been seeing many charts in CX presentations where the speaker talks about product experience or user experience or service experience. They delineate amongst those disciplines as if customers do the same. This view may have unintended consequences, as customers do not think in terms of partitioned off pieces of the experience, but as a whole.

In some cases, the presenter then goes on and says something like, “these need to be connected together to create an omnichannel experience.” Yup.

Still others will say “there needs to be a unifying vision that connects everything.” Again, spot on.

But there is something beyond good governance, vision, and effective cross-functional collaboration that can deliver true enduring brand loyalty.

But what are they? I think we can again, of course, look to pizza for answers.

Creating Memories

In Berwick, the iconic halls of mozzarella and tomato sauce have been frequented by folks for generations1. Stuccios, Tuzzi’s and Dalo’s have been operating in Berwick for a nearly a century or longer2. As such, each pizzeria became deeply connected to the social fabric of the town. People eat local pizza for every day occasions such as lunch and dinner, but it is also to celebrate a special event or as a treat.

People remember eating it at birthday parties, the big high school rivalry football game, Christmas Eve, as a reward for the struggling student’s improved report card, or before homecoming. It is a reward for folks who have had a particularly bad day at a, particularly hard job. And yes, you can even find these square treats at weddings and wakes.

While the local pizza is delicious, they are not just selling pizza.

They are selling home. They are selling a sense of identity and pride. Pizza is a common ground that you can argue without about without hard feelings. In fact, they aren’t ‘selling’ anything as it is part of the culture. In their own small-town way, the Berwick pizza syndicate represents extremely powerful brands; certainly, more recognized locally than disruptive brands such as Uber, Airbnb, and Spotify combined.

What lessons are there in Berwick Pizza for creating a powerful brand? 

Be The Rock

First, in the forty odd years I have been noshing on my local pizza (I am a fan of Stuccios and Tuzzi’s for the record) and washing it down with a refreshing Yuengling beer, it has not changed. Not. One. Bit. 

We don’t like our traditions messed with. Coke learned this the hard way with “New Coke” which was a foible lauded as marketing genius. There was a near riot when Twinkies were supposed to go out of business. There was mass protest and a run on grocery stores when Siracha was going to shut its door due to neighbors in Irwindale complaining about the smell. General Mills did a quick course correction turning Trix cereal back to its original neon colors after trying purge non-natural ingredients for its product line up due to the demands of loyalists. In psychology this is called ‘Reactance’; people just don’t like their freedoms institutions messed with and will act out in response.

While brands have to evolve, sometimes you just let something good…be good. So often we think we need to “disrupt” an industry to be a memorable brand. It’s not true. You can be memorable by delivering a consistently excellent, but unique, offering in the marketplace.

There is magic in being manically consistent. As I have written before, there is a vast amount of research that we, as species, HATE uncertainty. It is the definition of fear; the unknown. It is better to be consistently bad than great one day and horrible the next. Be consistent in what you are delivering. The only time inconsistency is good is when you deliver it consistently. For example, a scary movie, a haunted house, sky diving…you don’t know what to expect. But you expect that. 

You don’t have to be a giant brand to be consistent. In fact, the smaller you are the easier it is. The first thing to do is to document your processes. The second is to ensure you are doing it consistently. Ideally, these processes are customer-first following what the customer wants versus what is easiest for you as an organization.

Know Thy Customers

Second, these pizzerias know their customers’ preferences and keep it simple. Each of these shops knows their customers, and their parents, grandparents, and sometimes their great-grandparents. It is generational customer intimacy and resultant loyalty. Venerable brands such as the Ford F-150 and Ram and Chevy Trucks have long used this to their advantage and achieve repurchase loyalty rates above 70% … consistently.

Remember to start with the customer first. Human-centered design is a central tenet of design thinking which I think is the absolute right way to solve problems and innovate. However, make sure, you are not accidentally re-siloing on the basis of the experience by dividing it up into pieces again; this time based on the journey rather than by functional areas.

Connect yourself to the community and your customers. This involves what design thinking folks call empathy. While as species we are pre-wired to naturally sort people into categories, strive to take an “us” perspective vs. a “them” perspective, despite having the psychological deck stacked against you. Be part of the community you serve not an outsider.

As a medium or large business, the lesson here is twofold; resist hubris and really understand your customer. Warren Buffet once said, ““In the world of business, the people who are most successful are those who are doing what they love.” Don’t invest yourself in enterprises that you don’t personally believe in. Also, make sure you are truly trying to understand your customers by not only relying on quantitative methods. Get out and talk with people. Really try to understand them and most of all respect them.

Embed Yourself (before you wreck yourself)

Find ways to embed yourself as part of day-to-day experiences people have in life. Connect the experiences you create to events and occasions. Coke figured out how to sell millions of bottles in India, by repositioning their product as a ‘special occasion’ drink. It sounds cliché’ but great experiences do create memories…big and small.

Finally, make your brand a habit. Facebook has been incredibly successful in having millions of users consult their application as their first task of the morning. Amazon’s Alexa is in the habit business, with people depending on it for news and weather while they go about preparing meals. Make the experience you provide a habit; if not a necessity.

Through journey mapping and ethnography figure out where you might fit into the day-to-day life of your customers and potential customers. Understand what they like and don’t like about the experience you provide. Understand where you can make yourself indispensable… or at least welcome. Ideally this is done before you start down the product development path in the first place.

Coda

As for me, I have to watch my pizza consumption nowadays. It is delicious, but not particularly healthy for you. That said, I do make an exception to call in my order early, stop in and pay my $7.75 in cash for a half sheet (they don’t take other forms of payment) and sit down with my parents to enjoy the pizza. And the memories.

Photo by Dave Fish

Notes:

1. None of the “big 3” deliver…and a few only accept cash…and all have limited hours of operation

2. Dalo’s was founded in 1910, Tuzzi’s in 1919, and Stuccio’s in 1948.