Companies often select solutions to solve a problem, or streamline operations, or unburden team members. If these solutions aren’t chosen with a full understanding of the problem(s)—and often the root cause(s)—companies can find themselves with point solutions.
Point solutions are a cheap, tactical, quick fix. They fail to factor associated issues or contributors. That failure can have different outcomes:
- Exchanging one problem for a new one
- Addressing only a sliver of the problem
- Making the original problem worse
- Requiring additional time and/or budget and/or resources
- Having no impact at all
Companies with significant or numerous point solutions often have uncontrolled costs, exception-driven process, team members filling gaps, and chaos.
For every company intent on meetings revenue and business objectives, that is hell.
Let’s consider what often brings about the fall.
The Road to Hell…
Companies typically have good intentions when they fall victim to the point solutions. Those choosing the solution may not have the necessary background to make the decision. Perhaps the solution promises to fix a problem that’s gone unsolved. Perhaps there is desperation. Or hope.
However they originate, point solutions take different forms:
Technology, Software, Digitization
The challenge with this category is that software, technology, and digital solutions are often marketed as outsized solutions compared to what is truly delivered.
As an example, marketing software may drive inbound response, but business success relies more on content that nurtures customers and speaks directly to their needs. As Dan Lyons pointed out in Disrupted, the company that produces that software itself employs a legion of inside salespeople. That team would be unnecessary if their company’s software alone satisfied all marketing and sales activity.
In fairness, companies may derive significant value from that software. However, it is in no way a substitute for a defined strategy, customer intelligence, targeted content, and the expertise required to engage, acquire, and grow valuable customer relationships.
Another example: I worked with a client whose technology stack was a series of point solutions. Given the fractured infrastructure, the team filled the gaps:
Point Solutions Often Require Resources to Fill Gaps
The company forfeited all time, cost, and business benefits from these technologies. Then they doubled-down and used team members as meta point solutions.
Analytic Intelligence
All too often, companies that analyze data present the result as a customer intelligence silver bullet.
I have seen countless analytic product demos in which the presenter jumps from the derived insight to a generic tactic: discounting. Rather than generate true intelligence about customers’ needs, or values, or what behaviors signal, the recommendation is to race to the bottom.
What has changed with analytic intelligence is how these raw results are presented: once in doorstop binders, or zip discs, or dashboards.
Artificial intelligence (AI) runs the risk of becoming a point solution. Intelligent humans still must first define correct outcomes before true insight is realized.
Analytic results are an input, not an end state. To assume otherwise is to take the highway to point solution hell.
Resources
Team members often serve a specific function, limited by activity or technology. Frequently these resources cannot contribute beyond the very narrow band of their experience.
They too are a point solution.
As an example, I had 8 calls to my cable provider to understand changes to my service. Not one representative could answer a simple question: what will it cost?
These resources were point solutions. They could perform one function: read what is on their screen (which apparently didn’t include price). However, none were able to solve my stunningly simple problem.
Instead, they put their customer through point solution hell.
More importantly, they moved me from inertia to cutting the cord.
Consider the expense of carrying resources that serve a single purpose. Those costs certainly include salary, but they could also come at the expense of revenue.
Companies with significant or numerous point solutions often have uncontrolled costs, exception-driven process, team members filling gaps, and chaos. For every company intent on meetings revenue and business objectives, that is hell.
Process
Often companies assume that they can establish a set-it-and-forget-it process. To be clear, proven process should become standard, and automated where possible. I am referring to the convenient belief that process alone is a silver bullet.
A prospective client approached me to resolve their customer acquisition issues. They were sold on a point solution: send email. They assumed that their website would carry the balance of the marketing and sales process.
I would recommend this strategy provided that all the up- and downstream requirements for success were in place. In this case, there were two issues:
- They had no email list. (And they didn’t know about CAN-SPAM regulations.)
- Their website looked like an auto parts catalog. It did not introduce their product and guide prospects to a purchase decision.
Their point solution conviction represented significant risk: alienating customers creates opportunity for the competition.
They did not consider the success contributors end-to-end including their alienating website. They could not understand that their point solution—“just send email!”—would ultimately break their business.
Whatever the source, point solutions promise you heaven and put you through hell.
Walk Toward the Light
Happily, there is a path out of this hell. These steps lead you from the pit:
- Define, and quantify where possible, what is being solved.
- Also define the end state, quantified where possible.
- Conduct a rigorous issue assessment to understand the full scope of the issue. Remember, point solutions fail to factor associated issues. Approach this step as an investment.As an example, a client’s customers defected during onboarding. Customer service over-burdened their new customers, but the greater problem began in the sales process. Both had to be addressed before new customers were effectively retained.
- Define the end state, quantifying where possible.
- Define the gaps. These are the areas that need to be addressed.
- Set out the solutions to fill these gaps. Quantify and apply the metrics from steps 1, 2, and 4 as contrasts.
Point solutions can be hell. They fuel inefficiency and drive up costs. They cause an unending cycle of exception management. They block growth. They waste resources and budget.
Worse, point solutions damn companies to limited revenue and unnecessary risk.
The heavenly news is that the path from point solution hell leads to a profitable future.
Would you like to discuss point solutions? Or removing them to meet revenue goals? Let’s talk! Set up a 30-minute phone conversation with Marina.
Photo credit: Nik Shuliahin