Cost is often the first thing that comes to mind when you mention CRM – customer relationship management. The business pages are full of talk of failed strategies and fortunes spent. Yet there is a range of accessible research and relationship-building measures you can take to benefit both your own business and that of your customers.
‘Customer service’ is a term we’re all guilty of bandying about. But do we really understand what constitutes customer service? To a customer, service might have nothing to do with price and everything to do with specification, or quality, or delivery schedules. What’s more, your customers may not necessarily see your sales staff as the epitome of your service: they may be more impressed by the helpfulness of delivery drivers, or the efficiency of your paperwork. A better understanding of the motivation and workings of your customer base is the foundation for building loyal, secure relationships that will see both supplier and customer through tough times.
Customer Service Network
The Customer Service Network keeps UK organisations up-to-date with best practice in building relationships with customers. Over 300 organisations ranging from banks and retailers to councils, manufacturers and football clubs are members.
The Network’s managing director John Hughes said there were five basic steps to assessing where you stand with your customers.
“Firstly, give yourselves a reality check by talking candidly to your customers – and listening to what they tell you about your performance. You must also examine all aspects of your operational effectiveness: how easy are you to do business with? Next, you should engage the people in your own organisation, listening to their input. This may bring a few surprises: you may find torch-bearers for customer service in places you hadn’t expected them. You must show leadership and vision but must also share and promote your culture and values right across the organisation.
“Lastly, your organisation must be able to move with the times. In Britain we don’t have a widespread culture of service excellence, so there are huge opportunities out there for companies that are prepared to go the extra mile.”
In the timber trade, International Timber has successfully implemented customer relationship management techniques to grow its customer base. Commercial director Tony Miles said: “A few years ago we found that some customers were not aware of the full breadth of our range and opportunities were being lost. We analysed customer behaviour and also the reasons why we might not be their automatic choice for some products. We then used the resulting information to improve our offering. Having a greater understanding of our customers has proved very successful. We also see ourselves as partners to both suppliers and customers – part of a flow chain – and we’ll often use our insight to work with a supplier and open up new areas of business.
Electronic analysis
The information you collect about your customers’ preferences is most easily analysed electronically. Specialist CRM packages are available, and some come integrated with other software. Kerridge Commercial Systems marketing manager Suzanne Millward said: “CRM is the opportunity to better manage and increase the value of your customers, and that is critical for survival in today’s economy. CRM is integral to our K8 software solution, ensuring all customer communications are properly captured and available to everyone in the company. CRM provides details of all channels used to communicate with customers, whether it be letters, telephone, fax, e-mail, a showroom, internet or sales rep, in one single place, allowing an understanding of customers and how to market to them on a selective basis. It also gives the opportunity to control the second tier customers who otherwise might not be contacted on a regular basis.”
To get started with CRM, ‘Service Probe’, one of the CBI‘s benchmarking tools, could be a starting point. Good business is built on good relationships, and understanding what’s important to your customers – and to their markets – is vital in the daily battle for business.
