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Author:Balajee Rajaram
Telecom, Product Management, Development, Business
Product Management for Pummies - Part 3
The only customer satisfaction parameter for a product manager is the repeat sales that is happening with the customer. And this CSAT focus in one of the key focus areas in customer focus for a Product Manager at Habitat level Management.

Customer support departments often use Quantitative data of product usage to determine C-SAT. Sales people use perceptions of their compatriots in customer organization to determine C-SAT. In many cases I have seen Repeat Sales not happening, when both C-SAT parameters are excellent.

Not only cases of Operation Success and Patient Dead happens, but also the converse. Operations seem to be an abject failure, but patient somehow seems to be in pink of health and business grows, irrespective of the fact that customer keeps on with chronic complaining.

Since nothing succeeds like success, business/sales heads stop worrying why they succeeded and start thinking about their next year, citing their luck, hardwork or god’s grace for their success.

Continuous Product Positioning

In B2B products, no matter what amount of satisfaction customer has, unless the customer’s business is growing in the segments where our product is used, repeat sales is not going to occur. It is important for a product manager to understand where the product stands in customer’s business scheme of things.

And if it is not in the place where it can grow in customer’s business, can it be positioned there, now or in next few quarters with or without some modifications in the product..? Many a times, Sales people in their heat, will keep on banging their head against a wall with the hope that in due course of time business would eventually grow.

This may or may not be possible. It is the product manager’s responsibility to ensure that newer ways of positioning the product for different applications is made out for existing customers in close interactions with the Sales Teams and better understanding of Customer’s business plans.

The Product Manager has to have the complete understanding of technology, its nuances, applications and different ‘species’ possible on the product. Whenever Sales people (who are relationship oriented) are backed up by good Product Managers (who are technology and business oriented) the team work will produce exciting results.

The Business War

It need not be two different people. I have seen some good sales people who can wear dual hats and do both the jobs effectively, particularly in BFSI domain. In Telecom domain also, I have seen some people who are good in both, but very limited. Probably it is because of the complexity of products and solutions that are possible, Product Management becomes more complex. It might also be that Telecom Organizations are huge and relationship management at different levels and departments itself will consume a lot of energy.

I often tell my team that Business is like waging a war. Product Managers are the Mission Control sitting at the Base. Sales team are the Soldiers and Ground Commanders in frontline. Project Managers are the Logistic supply columns. Ammunition and devices are the various technology solutions that Product managers keep giving to their front-line operations to move ahead. Business Development is the Air Cover that is needed to keep the 30,000 feet view of operations.

Once when I was discussing this, our Customer Support Manager became agitated. He said “How dare you call our customer as our enemy? In your example, it seems customer is the enemy to be beaten dead. Then where is my role? ”.

Another person interjected “Your job then is in Crematorium. Customer disposal”

I had a tough time controlling the session and bringing it back to my point.

Then I said “Market is the ground that we need to capture. Competition is the enemy that we need to beat. Customers are the landmarks that we would gain control of. Customer Support are the defense troops guarding our prized possessions”.

***********

In general, Salesmen and Sales Heads are like soldiers and commanders in the front-line. They will be able to do their ground strategy effectively. They will definitely understand their direction and extent of progress. But then they are at ground level. They need continuous base support for ammunition, logistic supplies and on-air support to cover their troops movement. That is what the Product Managers need to do. Keep supplying them with new ammo and devices, provide effective air-cover in terms of strategic analysis and ensure that they are in progress.

What to win: Customer’s Heart or Mind..?

This is a debate that goes on in any Sales/BD teams. To answer it short and sweet, winning Customer’s heart ensures long term relationship while winning customer’s mind ensures immediate business.

Sales people of all types concentrate on winning the customer’s heart. Relationship is the basis of their sales process. Product Managers need to concentrate on winning customer’s mind. They need to help sales to win over the customer’s mind.

Who is our Customer..? Customer or Customer’s Customer..?

In B2B products one dilemma that product managers often face is to define who the customer is? Is it the customer or the Customer’s customer..? How do we define the product..? From whose perspective it needs to be defined technically..? Whose satisfaction is important..?

The product definition has to be from its users perspectives. Let us say product has two components. One component used by our customer and another used by customer as well as customer’s customer. The two components have to be defined differently.

The component customer uses should be defined with customer background in mind. The component customer’s customer uses should primarily be defined with respect to Customer’s customer background. We can reasonably expect our customer to be an engineer, but not customer’s customer.

This End user focus needs to be there in the Product definition with the Product Manager at Habitat level management.

When it comes to the question of whose satisfaction is important to be measured by me, my answer is our direct customer’s satisfaction is important to be measured. The End users satisfaction is important to our customer and not to us. Spending resources on measuring it does not give us any direct benefit.

It is because unless our customer takes the responsibility of his customer’s satisfaction, his business cannot grow. Unless our customer is focused on his end-user, his and our business cannot thrive. If we are in a situation where our customer is unable to understand end-user perception and thrusts end-user satisfaction on us, then we need to correct that situation in customer organization, rather than doing his job for him.

In these discussions I mean customer as our customer and not Channel Partner.

Requirements Focus

There are very many quality management systems that I have experienced. It all started with simple ISO 15 years back. Then it was TQM, 5S, Kaisen, 6Sigma, Lean Management, CMM, CMMI, Tao, BPM and many other methodologies.

When I entered industry as a trainee 18 years back, my Quality Manager asked me to define Quality. I said “working well”. Then he corrected me “There is nothing like working well. It is meeting the specifications”.

Some time later, when he asked about quality, I answered “Meeting Specifications”. He again corrected me “No. It is meeting customer requirements”.

Some time later, again when I answered quality is meeting customer requirements, he corrected me “No. No. It is customer satisfaction”

Few years later, he said “No.No.No. It is customer delight”. Meanwhile the organization got closed down.

When there is a problem, will we treat the symptom or will we treat the root-cause..?

Defining Quality in terms of requirements, specifications, customer satisfaction, delight are all like treating symptoms for a problem. I define quality in terms of meeting business objectives of us and our customer in the most efficient way.

To some it may appear so simplistic. It is not. A well-tuned process increases the overall efficiency of an organizations business delivery mechanism. It does not increase the effectiveness of the organization.

Effectiveness is the key to organization. 100% efficiency is useless if it is ineffective. Hence Quality has to be stated in terms of effectiveness first and efficiency next. At the same time, without an efficient process, organizations will fail to delivery repeatedly. Hence proper Quality Management Systems are important.

But for a Product Manager at Habitat level management, Quality is meeting the business objectives. Now with respect to the business objectives, be it product development, maintenance, service delivery or a software release, with respect to the business objectives for that particular release, requirements and specifications need to be frozen.

This kind of Business objectives focused Requirements has to be brought in by the Product Manager. The Product Manager has to ensure that requirements transacted and understood by technology are well in line with the business goals.

*** To be continued ***

-Balajee Rajaram

 
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