Customer Relations - Maximising the relationship you have with your customers
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The document discusses maximizing customer relationships through effective customer relationship management (CRM). It emphasizes understanding customers through data collection and segmentation to better target communications and products. It also stresses building trust with customers through relevant interactions and providing value to encourage loyalty and reduce churn.
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Customer Relations - Maximising the relationship you have with your customers
- 1. Customer Relations Maximising the relationship you have with your customers Thom Poole March 2007
- 3. Why Me? Quick biography of Thom Poole
- 5. Marketing principles revisited A reminder of why the customer is so important
- 8. The Marketing Mix Products Pricing Place (Distribution) Promotion People Processes Physical Evidence
- 10. Communications model A linear model of communication (based on Schramm (1995) and Shannon & Weaver (1962) – from Fill (1999))
- 15. Amazon
- 33. Trust lifecycle Time Level of Trust Unaware Build Trust Confirm Trust Maintain Trust Register/Transact/Confirm Consider/Validation/Assess Browse/Search/Compare Trial Threshold Purchase Threshold Habit Threshold Untrust phase Extrinsic Intrinstic Recommendation Poole (2005), adapted from Reynolds (2000)
- 34. What is ‘data’? How do we get it, how do we use it?
- 35. Where does all the data come from?
- 41. Genealogy example - 1891
- 43. Data Abuse From: Alexander Bucklin <ruddelliliin@gesasinc.com> Reply-To: Alexander Bucklin <ruddelliliin@gesasinc.com> To: thompoole@emailaddress.com Date: 28-Aug-2006 06:58 Subject: Re: RXjevu Hi, Good news for you. PHARMACY directly from the manufacturer, Economize up to 60 % with us http://polikeyuhadesun.com , , , me and the darkness became even more intense. Jim-are you all right? Can you hear me? Floyds face was just above mine, looking worried. Was I all right? o wohqtyd wcpgy r l j
- 46. Who is spamming? Top relaying countries 20.3% Others 1.8% Germany 12 2.0% Japan 10= 2.0% Poland 10= 2.1% Taiwan 9 2.4% Austria 8 2.5% Spain 7 2.6% Brazil 6 3.0% Canada 5 5.0% France 4 9.7% South Korea 3 22.3% China (in. Hong Kong) 2 24.5% . United States 1 Percentage Country Position
- 49. Your next steps What do you need to do next?
- 51. Thank you Any questions? Thom Poole Managing Consultant [email_address]
Editor's Notes
- When a sales manager said - ‘People buy from their friends - so be a friend’, I thought - no-one is going befriend a cut-throat sales representative! In essence, what they are saying is that if you’re a seen as friendly and approachable, you will build trust. But you also need to target your customers carefully, and let them know who you are. What is it that makes your customers tick? Can you exploit that knowledge of your customers? Are you developing products and services that are of use to the customer profile? The famous advert, I think, sums it all up - “So, what was it you wanted to sell me?”
- This is a version of the famous encoding/decoding communications model, and surrounding the message is NOISE! It shows the message emanating from the ‘Source’, being encoded by language or image, before being decoded by the ‘Receiver’ who will then provide some form of feedback. The noise, however, is the factor that can confuse or destroy the message. Online noise takes the form of spam, messages from competitors, too many messages, inappropriate targeting, etc. As marketers we try to eliminate noise, but in the online world we are now coming up against ear-shattering and very distractive noise – so the Minority Report example is certainly a marketing nirvana. It is time marketers fought back against this noise. Legislation can go someway to helping this – well targeted, meaningful dialogue with customers is were we can make most impact.
- If I could show you how to increase your sales by 50% without increasing your marketing budget, would you be interested? Of course you would, what marketing professional or business owner wouldn't be interested? By the time you have finished this article you will have figured out how to do just that. Take a few moments and think of all the inactive customer files you have in your file cabinet. Business owners often make the costly mistake of servicing a customer once then assuming &quot;they'll stay&quot; as a customer or client without maintaining and growing that relationship.
- A year later that business owner is wondering what happened to that customer and where they went. Why haven't they hear from them? Did they leave? If so, why? When you consider that the last two make up the majority of why a client or customer will no longer use your service or buy your products - it can be a hard pill to swallow. After all it means they are an inactive client because they felt you didn't care about them and your competitor did. This makes sense when you consider that customers often purchase your service or product because they have developed a relationship with you, they owned another product or yours, or they were referred to you by a friend or associate. When faced with the above facts why is it businesses spend 80% of their marketing dollars going after new customers and clients rather than nurturing, retaining, and maintaining the customer relationships they already have?
- As you can see your marketing dollars will go further if you use it to build, nurture, and develop your customer relationships. This isn't as difficult as you think. Building these relationships just means treating your customers and clients as if they truly are your strategic partners and showing them that you truly care about them. It's important to try to satisfy them with the right products and services, supported by the right promotion and making it available at the right time and location. Customers can easily detect indifference and insincerity and they simply will not tolerate it. Long-term client and customer loyalty is a long-term challenge that you must strive for every day and with every transaction no matter how big or small. While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. Companies that fail to nurture and retain their customer base ultimately fail. You will also spend twice as much to get new clients as you will in maintaining your existing customer base.You will also be limited in your ability to attract new clients if you can't hold onto and satisfy your existing customers and clients. The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships, so that you get business from existing clients and customers. This is a strategy that will move you forward in increasing your sales by 50% without increasing your budget.
- When I was a salesman, my boss told me that people bought products or services from their ‘friends’. I have yet to meet a salesman that I could call a friend – not whilst they were trying to get my money, anyway! Trust is the basis for building loyalty which in turn will increase interaction – it is up to you to turn this interaction into profit. As a personal example – I am an Apple McIntosh user at home, but have to suffer PC’s at work. Think about the customer loyalty Apple has – most Apple users can be identified by two main attributes – they are fiercely loyal to the brand, and they are poor, because the loyalty costs so much! I have used Michael Porter’s value chain model to demonstrate the trust-focused value chain, culminating in ‘trust’ in a brand, product or service. It is no fluke that trust occupies the same space that ‘profit’ does in Porter’s model, indeed I could have extended it with another field to the right called profit. Being trustworthy is profitable.
- The normal trust lifecycle curve shows that a customer will start in an untrusting state - they are unaware of the brand’s reputation. During the transaction, the customer will build a view of the company, trusting the relationship as they go. Over time, and [hopefully] with repeat transactions, this trust will be confirmed, and then maintained. Advocates, as we highlighted before, will reduce the time required to build trust, because if you trust the advocate who recommended the company to you, you will adopt some of that trust.
- Genealogy is not the answer to your marketing problems - it will only help if you are interested in tracking your family tree, or who lived in your house previously. If you could get hold of the last census - in 2001 - you would only have access to anonymous information, based on parishes or villages. But, this anonymous data can be useful for starting your research, and for building a database - if you are marketing to older people, you will be looking for certain demographics and certain local services. For Business to Business marketing, the census is almost useless, unless it involves highly manual labour markets.