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Golden Rules of Customer
Management
Velimir Srića
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The job of all jobs is to attract new
customers and to retain the old ones
Peter Drucker
3
The Times 1000 Research 2010
•
54% CFO’s believed investment in marketing
was necessary for long-term corporate growth
•
29% believe marketing investment to be a
short-term tactical measure
•
34% said marketing was the first budget they
would cut in hard times
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The Business World has Changed
• Pre 90s
– Product/Demand driven corporate
ecosystem
• Late 90s to nearly present
– Customer driven corporate ecosystem
• Present
– Transition to customer ecosystem
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Cients are
Dictators!
• Customer Experience
Management is
becoming the key
process in a company!
• Client Capital is
becoming the key
company value!
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Success = Customer Experience!
• Differentiators are no longer products &
services
– Pretty much the same from company to company
• Key differentiator is the customer’s experience
with the company
–
–
–
–
–
–
–
–
Provides a business value (so-called “loyalty”)
Comfortable
Convenient
Simple
Ubiquitous
Timely
Technologically & media friendly
Provides a collaborative, transparent environment between company
& customer
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Nothing personal! It’s just business! (D. Trump)
Successful business is personal!
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The Client Definition has Changed
• Traditional: Someone or a group that
paid you for goods and services
• Paying client
• Contemporary: Anyone or any group
that you exchange value with
• Paying Client
• Client’s Client
• Employee
• Channel/Partner
• Vendor/Supplier
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Marketing with “Integrity”
• Consultant – Client
relationship
• Win-Win mentality
• Protect your customer’s
interests
• Develop a relationship of
trust
The value you give is
the value you get!
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The Client/Customer is Spoiled
In search of
tailor-made
solutions
Wants quality at
global prices
The New
Customer
Needs quick
service
Well informed
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Research Points Out:
• On the average it’s six times more expensive
to attract a new client than to sell to an existing
client (the ratio varies from 4 to 12)
• A dissatisfied customer will communicate his
experience to 8 people (Internet?)
• A satisfied customer will communicate his
experience to 3 people
• 80% profit is attributed to 20% of key clients
• 70% dissatisfied clients will continue to do
business with you if the problem gets solved
quickly
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Research Points Out:
• Only 4% of dissatisifed clients file a complaint
• Over 90% of dissatisfied clients will leave you,
if possible
• It is twice as likely to successfully sell to a lost
customer than to a brand new prospect.
Try to win them back!
• Satisfied clients will be willing to pay more for
your services and products in the future
They are your advocates!
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Customer Advocacy is the Target!
• Customer Advocacy
– The one question that you need to ask your customer is
‘Would you recommend my company to someone
you know?”
Feed Reichheld, The Ultimate Question:
Driving Good Profits and True Growth,
Harvard Business School Press, 2006
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Key rule of loyalty: Serve your employees first
so they, in turn, can serve your customer!
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Everybody’s a Salesperson
Everybody’s a Client
• Everybody sells (not just S&M people)
• Selling is communicating (philosophy, skill,
technology), searching for Win-Win
• Everybody is a client! (internal as well as
external)
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The Loyalty Password is “Value“!
• Knowing how your customers, and how
they experience value and then
delivering on those terms is critical to
building strong customer loyalty.
Win-Win mentality
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CRM = Search for Long Term
Client Value!
• “CRM is a business strategy based on
customer relationship and experience
management aimed at optimizing the
long term customer value for a
company.”
» Muller&Srića, 2006
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CRM and e-business
•
•
•
•
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One-stop shop experience,
Information sharing with clients
Integrated “picture” and client knowledge
Personalized service for every client
Allowing clients to:
–
–
–
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Do a transaction alone (on-line)
Check the order status
Be able to act in every step
Participate in product design
• Virtual client “communities”
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The Customer Experience
• Creating communities of self-interest
– Internal & external customers
– Personal value has to be mapped to business
objectives (either as companies or individuals)
• Incentives need to be designed to make
improvement in customer experience
– Changes in compensation for employees that focus on
customer satisfaction
– Inversed pyramid logic (Welch)
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Serve first! Sell second!
Make the client experience pleasant, productive and
personalized!
Win - Win
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Integrated Supply Chains Win!
•
Competition is based on coordinated,
integrated supply chains of suppliers,
manufacturers, partners and customers.
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Extended Value Chain
• Collaborative Planning, Forecasting &
Replenishment (CPFR)
– Cooperative planning between all suppliers and
the company to improve inventory management
and delivery time to customer
• In corporate ecosystem, unthinkable due to
revealed competitive information
• In customer ecosystem, collaboration &
forecast sharing to fill customer need at
reduced cost
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Open your information system
to your customer’s customers!
• A 360 degree view of your
customer and a CRM
system are needed!
• Data and knowledge from
all customer touch points
must be combined into a
customer database
• Information system must
allow customers to use its
resources
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Channel Partners’ Feedback is
Necessary!
• Make it easy for your
customers to complain,
and treat the complaints
seriously.
• Establish firm guidelines
regarding customer
response time, reporting
and trend analysis!
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Multi channel contact centres (phone, email,
web) are product development drivers!
Call centers and social networks are the "loyalty
warriors" of the future.
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Pamper your Key Account/Client!
80% of your revenue is being generated
by 20% of your customers.
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New Concepts:
• Our health = No sick customers!
• Reward your employee for innovation, and
your customer for initiative!
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Golden Rules of Customer Management
1. The job of all jobs is to attract new customers and to retain the
old ones
2. Serve first! Sell second! Create an experience for your
customer!
3. Serve your employees first so they, in turn, can serve your
customer!
4. Customer advocacy is your key goal!
5. Everybody’s a salesperson, everybody’s a client.
6. The loyalty password is “value“ for your clients.
7. Integrated (supply) chains win!
8. Open your Information System to your customer’s customers!
9. Channel partners’ feedback is necessary!
10. Pamper your Key Account/Client!
Touch their minds and their hearts!
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THANKS YOU FOR YOUR
ATTENTION!
vsrica@efzg.hr
velimir@velimirsrica.com