CRM =
Customer's (don't) Really Matter
CRM was supposed to bring
companies closer to their clients. The basic idea was to; find out
what a client wants and needs, give it to them, and get them to be
your client for life.
But as with all good
technology, it hasn't actually brought the sales teams, marketing
departments, R&D, or customer service departments any closer to
the customer at all! Technology is a poor subsitute for the human
voice and social interaction.
I really feel sorry for the
companies that struggled with the software, spent hundreds of man
hours on design and implementation plans, dumped thousands and
thousands of dollars into consulting sessions, developed training
manuals and trained the trainers, held the meetings and issued
management memos only to find that the problem of customer loyalty
was the same if not worse.
They had the right idea but
they were listening to those lame marketing gurus again! The same
guys who have been promoting direct mail postcards as the best
choice for farming prospects at a whopping 1-3% response rate!!
(Whopee! Where do I sign up?) Seeing technology as a cure all for
customer service is a grave mistake.
First, there is a serious
problem with the oxymoron Client Relationship Management. Intimate
loving families and friends can't manage their relationships, hence
a 50% divorce! How in the heck is a company that sees its clients
only a few hours each year going to manage the
relationship?
At best, you can sustain, grow,
and cultivate the relationship. At worst, you will lose it due to
changes in the client's circumstances or aging, competition,
economic and political factors, changing markets or (heaven forbid)
your own terrible customer service and shoddy workmanship. But you
will never be able to manage your clients. As a matter of fact...
it is the client who manages you. They tell you what products they
want, and what your product is worth, how they want it delivered,
and like green french fries and the Edsel, whether they want it at
all!
Companies that have to fight
for their customers usually have internal problems. I heard that
the CEO of a major insurance company said, " We stopped advertising
once, we lost 50% of our business that year." This is a company
that has trouble with client retention!
Retaining customers should
never be a major struggle, and if it is, you are doing something
wrong. It usually stems from not understanding the customer. Going
to a computer program to improve customer relations, or find out
what the customer is thinking is, quite frankly, nuts.
Let me give you an example from
my own shopping habits. There are 4 major supermarkets within a 5
mile radius of my house. One has great produce prices, the others
don't. I usually shop at that market for produce only, because
their other prices are too high. I have a membership card with that
store. Do they know why I only shop for produce at their store? NO!
Will my shopping habits change if their prices change? Yes. Do they
know that? No. Can they get that information from my membership
card? No. Can they get it if the guy at checkout asks me? You bet!
As a matter of fact I have volunteered the information. I have told
checkers in passing on several occassions I think their produce
prices are the best in town...do you think that information got to
the store manager? Probably not! Am I going to seek out the manager
to tell him? Probably not! But if I do, is he going to go in the
office and make note of my comment somewhere so he can serve me
better? No way!
Now,do you think the other
stores know why I don't buy their produce? They have no clue, even
though I have a membership card with them as well, they have no
idea why I never buy their produce.
In-house customer surveys and
focus groups and even "Hi, how ya doin?" conversations put the
client and the company on the same side of the table, working
together as partners to develop better products, services, and
processes, and to cement relationships.
Here's another example of CRM
failings, current gas prices are driving down SUV sales. Can CRM
software tell you that gas prices are going to hit an all time high
in summer? Can CRM software tell you that your competition is
coming out with a hybrid that will save produce 50% higher MPG. Can
CRM software tell you that your customer was in an accident that
will make getting into an SUV painful and difficult, and that for
the next few years he is going to buy sedans? No...but a single
follow-up phone call by the salesman will tell you everything you
need to know if you ask the right questions.
Building layers of insulation
between the company and the client; software programs,
autoresponders, marketers, voice mail systems, web sites, and self
serve check outs are the death of communication between a business
and its clients. Most people won't try to navigate the maze to tell
you they are dissatified, they will just leave...and you'll never
know why because they won't leave a message on your voice mail or
tape a note to the self serve register.
But if you see frustration on a
clients face, you can act immediately to turn a problem into a
success. Some of the most loyal customers come from a bad situation
turned surprisingly good. Case in point, At a fast food restaurant
near my office I was carrying the tray to my table loaded with food
for 4, all adults from my workplace. Another customer turned
suddenly in front of me and all the food was on the floor. Frys and
drinks everywhere. The manager immediately came over, dropping what
he was doing during the busy rush hour, asked for my receipt, told
me not to worry about it, to go sit down, he remade the order and
had it delivered to my table within 5 minutes. For months afterward
we ate there everyday, partly out of a sense of obligation, partly
because we now trusted this restaurant and liked the manager, and
we often brought other co-workers with us or brought back food for
those to busy to leave for lunch. The restaurant certainly got its
money worth on that $20.00 investment. And if we had had to replace
that meal ourselves it would have had a totally different outcome.
CRM cannot be credited with the success of the managers handling of
this problem.
Hire a customer service team
made up of people who love people, are excellent listeners, and who
genuinely enjoy their job! Hire a customer service team of problem
solvers, people who enjoy the challenge of creatively solving
problems for people, pay them what they are worth! Train them to
pass on all information from the customer to management
immediately. Then train management to act on that information
immediately. A free service call or product is a small price for
retaining customers and gaining referrals, and costs much less than
CRM systems. There is no better client relationship than the one
that is face to face, person to person. Your customer service
employees are the front line. They are your company image, they
represent your company much more than your logos or ads. It's a lot
cheaper to pay your customer service people a living wage and use
them to get the information you need, than to squander thousands of
dollars and man hours on CRM software that cannot.
Meredith Gossland is owner of
Lasting Impressions 2, a small business marketing service,
specializing in greeting card marketing, custom gift baskets for
clients, multicultural marketing and marketing seminars.
http://www.lastingimpressions2.com Contact her at
info@lastingimpressions2.com
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