Customer relationship management (CRM) strategies are often decided after assessing what's worked for a company over time. And that's valid: much of what develops in terms of CRM is discovered through trial and error, and is based upon a company's unique circumstances and experiences.
The pitfall, though, is that companies can fall into a CRM pattern based on tradition; in other words, "this is how things have always been done," and perpetuating those patterns rather than keeping up with changes in customers' needs, desires, and motivations.
At the core of this mistake is the company's focus on itself rather than its customer base. The more a company is steeped in its own traditions, the less it will relate to its customers over time. New companies open every day, and begin with assessing their markets as they exist on the day they open the doors. This gives the start-ups a tremendous advantage over established firms that continue old CRM methods, and contributes to why recent U.S. Small Business Administration statistics for business closures have been roughly equal to business start-ups.
The bottom-line in CRM is simply this: companies must know their customers as they are now, not as they were last year, much less ten years ago.
Info Sources for CRM Planning
The most basic way to find out what customers like, don't like, want, need, and so forth is to simply ask them. It doesn't have to be a formal survey. In fact, the word itself suggests that the customer will have to perform a service for the company, which is the exact opposite of the desired impression. Rather than giving the customer an assignment (i.e., "Please take this survey"), a more effective approach might be, "Your feedback is very important to us: please tell us about your experience." Ask a few basic questions that focus on the customer's satisfaction, and offer something in return for their feedback, such as a discount or gift.
Along with structured feedback, an often-dismissed (but vital) source of input comes from informal interaction with customers. People want to be heard. They like to talk about what they're spending money on. And they actually want the company they're doing business with to care about the exchange. Customers realize they can't talk to a company per se, but they can and do talk with people who work for the company. Train employees to simply listen, and give them a way to convey what they hear from customers up the chain so that the input can be put to use in future CRM planning.
Another way to track customer trends is with basic research (industry journals, news, online discussion forums, CRM associations, etc.). CRM is an ever-evolving practice that is continually impacted by current events, the economy at large, and developing technology. Planning for future products and services relies on accurate analysis of trends. But in many cases, existing products and services can continue fulfilling customer demands for years; the key is to adjust how the company relates to its customers in light of what's happening now.
Plan CRM from the Customer's Point of View
Imagine being in the customer's position. What matters most? What motivates the choice to buy from a particular vendor? What other options are there? Everyone involved in CRM planning is also a customer of other companies, so imagining being a customer of their own company isn't a huge leap. The problem is, CRM planners too often focus on their roles instead of the customers' perspectives.
It all comes down to answering one basic question: "If I were the customer, what would satisfy me?" In order to know that, planners have to follow the first rule of customer relationship management:
"Know thy customer."
 |
