Lower-quartile performers

Lower-quartile companies (for example, low CMAT scorers) are likely to operate a classic product organizational model with strong product management disciplines and a focus on product sales. There will be a limited focus on the overall proposition, and their approach to marketing will not be focused on customers. Companies towards the top of this quartile believe that better coordination in CM will improve customer satisfaction and loyalty. However, customer management in these organizations is likely to be 'champion-based' (enthusiastic individuals), and senior, cross-enterprise leadership not apparent.

The investment in these companies should not be biased towards IT systems, as it often is in practice, but should be applied across the enterprise for all aspects of CM. Our CMAT work shows that companies at this stage benefit from making the customer management process more robust, but the net benefits should be reinvested in developing infrastructure. Steady investment for these companies is not an option. However, relative performance might not increase if competitors are also investing from a more advanced starting point. The decision facing senior managers and stakeholders in these businesses is to look long and hard at their market potential, and either invest significantly to achieve a step-change in customer management, or divest, sell or merge. Commitment, strong leadership, higher investment and careful project planning are required to generate attractive benefits over time.