Secrecy for short-term gain, but long-term destruction
As you may know, I ran an e-mail discussion list on Database Marketing and Relationship Management with more than 300 subscribers from all over the world and all walks of life. I also attend conferences as a speaker, read on- and offline magazines, am on other mailing lists and newsletters – the works. In other words, I pretty much know what’s out there, and what not.
It’s the ‘not’ that worries me, because as far as DBM/RM is concerned, there seems to be very little in this world that is shrouded in more secrecy than this subject. Hardly anybody wants to share his experience, his strategy and procedures with the outside world. The cards are kept close to the chest — with little real info revealed — simply because it is regarded as a significant competitive advantage, and obviously companies want to hang onto it for as long as humanly possible.
The aim and intention is simple: a competitive advantage means money. And in this day and age, the more the better. But is it really that smart, I ask you? Sure, the short-term gain for an individual company may be significant, but wouldn’t business in general flourish and society gain immensely if all companies could benefit from the knowledge of these selected few? I certainly think so, and would even put one on top of it: the short term gain may even lead to long-term destruction, because although an individual company flourishes, those others out there who struggle with customer retention, -satisfaction or even -orientation will have to revert to less-than-appropriate means to make ends meet.
It goes without saying that the customer is at the receiving end of it, getting exploited and ripped-off in the process — with South Africa probably being the best example. This obviously has a direct impact on society at large, which gets less trusting and more cynical — and I don’t need to tell you what impact this has on day-to-day life, never mind life in South Africa in particular.
Either the customer is treated with contempt and just regarded as a ever-consuming, uncritical and dumb cash cow or she is seen as something that can be ‘mined’ or ‘exploited’. So do we really wonder if the social fabric disintegrates not only around us but also inside of us? Do we really wonder about rising crime and violence if the same people that are getting treated in such disrespectful and mentally violent manner retort by directing violence and contempt at those who caused them to be like that in the first place? Do we really think that endless customer manipulation and consumption will lead to anything good? The answer is ‘No’, no matter how vociferously one tries to defend the current way of doing business or secrecy around DBM/RM.
So you think I am oversimplifying? I am not. Look at South Africa, for example. Look at how the customer is treated there, and look at the literally non-existent social fabric. Look at the crime and violence, and look at the pathetic way business and politicians are dealing with it. It makes you cry.
Look at America (and elsewhere, too), for example, where even the press has lost all its marbles by attaching the label ‘bad’ or ‘disadvantage’ to a product whose manufacturer actually dares to charge money for it (when the competition gives it away for free), as in the case of Opera Software’s Web Browser. It is shocking to see how far this retardation has already progressed and penetrated all levels of business and media.
I mean, don’t we all think that it’s the brightest brains that are leading the companies, big or small? One would certainly hope so, but reality shows us that they haven’t got the foggiest idea what they are actually doing, and the apparent ‘secrecy’ around Database Marketing and Relationship Management is just one more proof of it.
So whereas those who think they’ve got it right, actually got it all wrong, and those who didn’t get it at all, got it all wrong anyway, because they actively contribute to a society that is decaying at an alarming rate — a society they are an integral part of, a society they ultimately cannot escape, no matter how much money they take home at the end of the month.
But what’s the fuss about anyway? Are there really any secrets to be kept? In fact, are there secrets at all? My answer is a sound and solid ‘No’, and I’ll tell you why: it’s all plain common sense — nothing else. But it’s that common sense that is so notably absent, even in multi-bn dollar corporations.
Do I contradict myself by first saying those guarding the secrets should open up and then proclaiming that there actually aren’t any secrets? It may sound so, but not really, and let me explain: those guarding the ‘secrets’ haven’t realized that there aren’t any secrets to guard, that their approach is a waste of time and resources, because the same if not more could be achieved by applying common sense. Not necessarily by stopping any database-related activities, but by changing their philosophy behind DBM/RM.
Those that are looking for these apparent secrets are not only looking in the wrong place, they are also looking for the wrong things, not realizing that the apparent secrets won’t help them at all. They should also be made aware that it’s common sense and — as a result — a caring attitude that matters and not fancy segmentation or mass-customization tools, or even the traditional rip-off method.
The lack of a caring attitude is most noticeable inside the organisation itself. Although there has been a recent shift to looking after employees a little better, rather than seeing them as Human Resources that can be replaced at will, far too many still look for the holy grail in expensive technology or no-less expensive marketing and management consultants, when it’s so easy and without any need for secrecy. It’s all got to do with top management enlightenment, their understanding of the business as a critical element within society rather than a cash-generating and shareholder-pleasing machinery, and their plans, policies and actions down the hierarchy — things that empower employees and foster relationship-building rather than focussing on growth and income maximisation.
If that mindset changes in corporate headquarters and actions follow, all other elements will miraculously fall into place, and the time and effort wasted on loyalty programs and other ‘let’s suck more out of them’ initiatives will make way to a more humane and personal approach to business. The win-lose situation will ultimately make way to a win-win situation, and a better and more caring society will inevitably emerge and develop. No second prizes for guessing that this will also be good for business.
You may not know it, but an organisation that has adopted this caring approach will generate more cash, reduce expenditure at the same time (which in my books would certainly qualify as a productivity increase and better ROI), certainly please shareholders, but be an asset to society and even nature, rather than being a parasite.
Yes, most companies and organisations are merely parasites. They get into the system, cause as much damage for their own gain as possible, and if they aren’t attacked by the system itself, usually some artificial act causes them to cease to exist. In other words, they work on their own self-destruction.
But does it have to be? The answer is ‘No’. You can be big but caring. Size is not an obstacle to being good and doing good to others than just yourself and your shareholders.
The whole issue of Database Marketing and Relationship, as you will have seen now, is a lot bigger than anybody would have guessed. And not only that; it’s at the core of a company’s philosophy and the way the company presents itself to its customers — internal or external.
At the end of the day, the choice is with no one but ourselves. The recipe is simple and straight-forward — secrecies don’t exist. But it’s all a matter of our own ability to look beyond the obvious, to see where others don’t, to act where others hesitate, and to build where others destroy.
Once again, we are the masters of our own destiny, but so far we haven’t put our mental faculties to any good use. It’s a crying shame that we — these seemingly intelligent beings with the capability to discern and reason, to invent and design miracles such as the Internet — are nothing but egoistic, shortsighted parasites and suckers working on our own demise. Have we learned anything since we started walking upright? We do, so why don’t we use it? No miracles or secret recipes — only plain common sense.
The good news is that now is the time to apply common sense and start some (corporate) soul-searching — if there’s bad news, then it’s that you will have to start with yourself first.
