GGSR CHAPT 7

• Customer Relations


  Ongoing interaction between companies and their customers
• We will focus on ways how to manage relationships with customers
• We will demystify the notion that relationship with the customers cannot be discussed concisely or briefly due to the many variables that come into play
• We will lay out the most basic terms why maintaining customer relations is important, what are the reasons the companies lose grip on the customers
• We will discuss what exemplifies excellent customer service
• Customer Relationship Management


  A way of thinking that considers the value given to the relationship of one's business to its customers
• Customer Relationship Management


  An established technique that encompasses everything about the relationship with the customers
• Customer Relationship Management


  A method of growing the value of one's business within every customer's perspectives
• Customer Relationship Management should extend not only on the point of sale and physical communication with each customer, it also goes deep with the organization's hierarchy to the customers and the general public
• Customer Retention


  The main task of businesses to keep customers and retain their loyalty
• Losing half of one's customers per year may affect the stability of the business's cash flow if it does not retain its customers
• Applying the Pareto principle, most businesses will realize 80% of its cash flow is generated from the 20% of their repeat customers
• It implies that businesses can thrive just by focusing on customer retention
• The challenge is how businesses can hold on to their cash flows
• Customer Engagement


  Maintaining customer is one factor, developing new loyal customers should be looked into regarding customer relations
• The challenge is how businesses can achieve more value from new customers and turn into brand advocates that can carry the brand or company to a whole new audience through word-of-mouth marketing or referrals
• Customer De-Selection


  Many businesses should also be wary of customers that can bring down the company's overall value. Not all customers are good for the organization
• Some customers may be disruptive, costly to retain, some may even pose as a danger to a brand's reputation or cause harm to employees if not given attention
• Transactions and opportunity costs tend to be higher on customers who tend to give less value than the organization has spent on maintaining them
• It is important part of customer relation to select customers in some situations
• The Value of the Customer


  How can the company reap more value from customer's sustainably and repeatedly over time is the bottomline of customer relation management
• Loyal customers are more valuable than others because of the overall value they bring to the company
• Customer loyalty also brings more income by turning the customers themselves as brand advocates that push the brand beyond its marketing reach at zero cost
• The element of emotion that the customers have toward the company or brand is very important
• Without the human connection, brands tend to fail to acquire and maintain customers through years and decades of operation
• Creating the Base of Relationship Management


  1. Identify and segment (know your customer)

  2. Studying consumer behavior (study the transactional records of customers in existing companies, looking at their history of past campaigns, communications with the customers and other market research sources)

  3. Setting up a strategy -a strategy that fits its own need, short, medium, long term plans to meet set milestones

  4. Maintaining the strategy-after the identification, segmentation, try to determine which among the strategies is most applicable in order to maximize profits and minimize to avoid losses
• Causes of Complaints About Non Commercial Establishments

  • Little or no customer support
  • Delay in fixing problems and lack of initiative to solve it
  • Lacking work quality of the finished project
  • Poor overall service
  • Overpricing (most common for monopolies)
• Competence, not hype, keep customer loyal
• Incompetence, not competition, destroy consumer relationships
• Keeping customers to your brand is both an art and a science
• There should be a method in place for a strategy to reap significant result, creating competence should be aspired for to gain the trust of their customers
• Proven Customer-Focused Principles to Apply

  • Urgent delivery of value- time is of the essence, customer's time should always be a priority
  • Personalized service to the Customer - attend to the customer's varying needs, wants and preferences
  • Proactivity and Exceeding Expectations- it is about anticipating, meeting and exceeding customer's needs and satisfaction
  • Hospitality in all engagements- Regardless of any situation, customers expects to be treated fairly, humanely and with respect
  • Transparency with the Customer. Be open to to the customer about everything regarding a product or products is always a top priority. Any missed details puts the customer in an uncomfortable position and may easily end up in a lawsuit
  • Consistency in Delivering Value- To be consistent is to create trust and commitment Maintain consistency not just for a short period but from day one onwards. Quality never goes out of style, and this saying goes well with attracting long-term customers