Golden Rules of Customer Management. Velimir Srića
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1 1 Golden Rules of Customer Management Velimir Srića
2 2 The job of all jobs is to attract new customers and to retain the old ones Peter Drucker
3 3 The Times 1000 Research % 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
4 4 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
5 5 Cients are Dictators! Customer Experience Management is becoming the key process in a company! Client Capital is becoming the key company value!
6 6 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
7 7 Nothing personal! It s just business! (D. Trump) Successful business is personal!
8 8 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
9 9 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!
10 10 The Client/Customer is Spoiled In search of tailor-made solutions Wants quality at global prices The New Customer Well informed Needs quick service
11 11 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
12 12 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!
13 13 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
14 14 Key rule of loyalty: Serve your employees first so they, in turn, can serve your customer!
15 15 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)
16 16 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
17 17 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
18 18 CRM and e-business One-stop shop experience, Information sharing with clients Integrated picture and client knowledge Personalized service for every client Allowing clients to: Do a transaction alone (on-line) Check the order status Be able to act in every step Participate in product design Virtual client communities
19 19 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)
20 20 Serve first! Sell second! Make the client experience pleasant, productive and personalized! Win - Win
21 21 Integrated Supply Chains Win! Competition is based on coordinated, integrated supply chains of suppliers, manufacturers, partners and customers.
22 22 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
23 23 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
24 24 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!
25 25 Multi channel contact centres (phone, , web) are product development drivers! Call centers and social networks are the "loyalty warriors" of the future.
26 26 Pamper your Key Account/Client! 80% of your revenue is being generated by 20% of your customers.
27 27 New Concepts: Our health = No sick customers! Reward your employee for innovation, and your customer for initiative!
28 28 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!
29 29 THANKS YOU FOR YOUR ATTENTION!
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