Changing consumer attitudes are driving Customer Relationship Management. Fuelled by Internet induced expectations and an even increasing mood of self reliance among customers, companies have to compete in an environment where communication, buying processes, data management, delivery and service are all-important in the battle for longterm, profitable relationships.

Customers now require:

- Control over the buying process (information, comparison, selection, easy to find, use and respond to)

- The best possible price (including delivery, and without compromise to brand or product quality)

- The quickest, slickest delivery system (preferably free)

- All payment options (secure)

- Communications designed to suit the particular need (computerised; complex; caring)

The above apply whatever the form of trading:

- Direct
- Traditional
- Retail
- E-commerce
- Wholesale
- Combination

These attitudes combined with the development of new technology and the growing convergence of a number of ‘new – new’ and ‘emerging – new’ communications and distribution technologies such as:

- ‘Fixed link’ telephony and telemarketing
- Internet and VOIP
- Mobile telephony, SMS etc.
- Digital TV, Cable, Satellite

Leading to an increasing focus on Customer Relationship Management by all types of organisations, as they realise that technological change allows them to re-organise the way that they manage customer relationships and make them more profitable.

Organisations are searching for something far more holistic, consistent and yet dynamic.

To achieve that and a sustainable competitive advantage in Customer Relationship Management means working with the management team, staff and suppliers of the company, where reasonable and cost effective using technology (e.g. intranet, extranet) to help to deliver the actions necessary to maximise performance.

One must:

- Define profitable market sectors and customers
- Understand customers needs and expectations
- Identify profitable product and service propositions
- Create effective, efficient, adaptable, cost effective infrastructures

Customer Relationship Management is: the customer focussed management of the whole relationship with each customer, in order to measure, create and increase income and reduce costs for each customer and customer segment and thus to generate greater positive lifetime value across the portfolio.

Customer Relationship Management requires the organisation to know the answers to questions such as:

- Which of my customers are profitable or unprofitable?

- Do I know their lifetime value?

- Which of my products and services are they buying and not buying?

- Have I measured customers’ purchase behaviour patterns, their loyalty/retention/repeat purchase and multiple product purchases?

- What channel preferences do customers have?

- Who are my most profitable customers and what is their ranking/grouping by risk, by product service grouping, by profit, and by revenue?

- What strategies can I use to improve a customer’s profitability profile?

It also requires the organisation to deliver customer value. Customers must feel that the organisation:

- ‘Understands what I want’
- ‘Communicates with me’
- ‘Provides me with added value’
- ‘Gives me reasons not to switch’
- ‘Treats me as an individual’

To achieve these answers Customer Relationship Management requires focus on both sides of the equation:

- Customer Communications Management
- Process Quality Management

And on three key delivery mechanisms, those are:

- Proposition
- Processes
- People

To be fully effective at Customer Relationship Management an organisation has to position the business unit or enterprise (proposition, processes and people) so that the customer is as the centre of their business. True Customer Relationship Management means that the business has streamlined customer management through the integration of all customer ‘touch points’, such as marketing, customer service and payment in such a way that true customer satisfaction and loyalty appear to occur effortlessly.

Customer Relationship Management is not a ‘fad’ it is a business philosophy that helps to increase revenue, reduce costs and to build and retain a loyal customer base.

Keyword terms :

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All businesses strive to provide excellent customer service, but there’s a fine line between service and servility. Extreme servility is called obsequiousness. Now there’s a word for you to know. Even if you don’t know what it means, you’ve experienced it—maybe in a restaurant, a clothing store, a car dealership, anywhere where employees hope that by virtue of their attention they will make sales or garner large tips. It’s one thing to be attentive and meet customers’ needs; it’s another to be so present and “in their face” that customers think you want them to adopt you.

A few months ago, I ordered a gift of steaks and roasts from a meat mail order business for some family members. When no acknowledgement came, I called to find out if they had gotten their present. As it turned out, the parcel delivery service had left the package at the wrong address, but the people who had received it in error were honest enough to immediately call the intended recipients to let them know about the mix up.

The only person who had made a mistake was the delivery man who’d misread the mailing label, and no one ever heard a word out of him or his company. The same can’t be said for the meat company. In its relentless pursuit to keep customers satisfied, company representatives started calling me—daily—to make sure I was still happy and to see if I didn’t want to order more meat.

After the umpteenth call that resulted in no additional purchases from me, I asked to have my name and number removed from the calling list. Being nice hadn’t worked. Maybe some force would be more effective. Keep in mind I had had absolutely no beef with the mail order company until now. It was at this point, however, that customer service attention turned into customer obsession.

I thought I’d gotten the point across, but about a week later I started receiving calls at my work number. When I would take advantage of the caller ID feature on my phone, I saw an area code and number I didn’t recognize. I answered in my usual way, but each time the caller said nothing and simply hung up. This happened several times until I checked the number and discovered it was the cattle crew. This was out of control. I’d said no from my home number. The answer wasn’t going to be any different on my business line. Now they were intruding on my work day without saying a word.

One final call (and I emphasize the word final) came at 9:17 p.m. last week. Dinner was long over, and no one in the house was thinking about food, especially not about T-bones. No one was consciously thinking about anything since we were all asleep. It had taken almost an hour to get the three-year-old to quit fussing about having to go to bed, but at last he’d drifted off. That is, until the phone rang. I was roused from a very deep sleep by the phone ringing and our child yelling for Mommy.

Too unawake to check the caller ID, I answered. To my utter amazement, it was another company rep wanting to know if I was ready to order more filets. It was time to take this bull by the horns. “No,” I said, “not now, not ever again!” I can’t remember exactly, but I’m sure I pointed out that I’d asked to have my name and number removed from their list. That he had had the audacity to call so late in the evening was absolutely beyond my comprehension.

This experience is a clear illustration of how customer service can go terribly wrong. Probably part of this was due to someone misreading the data and assuming that since I had placed a substantial order, I would likely do so again. Who knows? Maybe I would have at a later time, but the “overkill” from the sales staff turned out to be a deal breaker as far as I’m concerned.

Let this be a cautionary tale for any businesses out there that think “hard selling” is going to work every time. In many cases it will backfire and have just the opposite effect from the one you want.

I’ve recently conducted a less-than-statistically-valid study polling people (my office manager, my aunt, and a very nice woman behind me in a line at Safeway) about customer disservice. Although not all the results are in, here are ten tips to take to heart to keep your customers truly satisfied:

1. Just because your business model says customers should, in all probability, be interested in buying something, don’t assume they’re kidding when they tell you no.

2. Limit unsolicited calls to the same person.

3. Call at a reasonable time.

4. After you hear “Hello,” really listen to what the other person says to you.

5. Don’t argue when the customer says “no.”

6. Honor the customer’s wishes.

7. If you are offering service to someone in person, be available, but don’t hover.

8. An internet order does not give you authorization to call someone at home or work to offer add-on purchases or services.

9. Know that a lot of people have caller ID, so don’t call and hang up without saying something.

10. Ask yourself: Would you want to get the call you’re getting ready to make?

This is just a starting point. Maybe you have some pet peeves of your own. If so, send them to our website. There are plenty of people we like to hear from. Just don’t contact me about buying anything that was standing on four legs and had a pulse until recently. I’m now a vegetarian thanks to the last person who did!

Keyword terms :

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