In our recently released Customer Experience Management Study we were surprised to find out that a majority of executives claimed that the role of the customer is not well defined in their organisations. 42.9 per cent of the US executives and only 17.2 per cent of the European executives agreed that the role of the customer is well defined in their organisation. The study, which surveyed 165 customer service and marketing executives from North America, Europe, Asia and Africa, addressed many aspects of customer relationships. Some of the stunning results include: 50 per cent of executives worldwide did not believe that they deserve the customers loyalty. Over 54 per cent claimed that their company does not conduct true dialogue with customers.
What is the role of the customer in an organisation? When asked, many executives reply to buy our products. Well, how many? At what margin? For how long? What else do you want the customer to do for you? These questions usually cause the executives to squirm in their seats, but often do not produce better response than the original vague statement.
Lacking customer role definition is a first symptom of a product focused company. By not having a detailed, measurable definition of the desirable customer, companies are basically applying the mass marketing mantra; every customer who can spell our name and has the money is a target. It is exactly this mantra that gets companies into trouble.
They establish relationships with the wrong customers and those relationships, due to its inherently wrong foundation, are usually short lived. However, short lived relationships are still the better option. Often companies end up with undesirable customers who cost them more money that they generate. Overall these customers are a losing proposition.
The role of the customer is the blueprint for the relationship. It serves multiple purposes for marketing, sales and customer service. Marketing should develop a complete plan for value for those customers, a plan that should encompass all the aspects of the relationships including cross sell and up sell as well as long term selling plan. When launching leads generation campaigns, marketing should focus on the right customers and weed out the undesirable customers.
Sales should focus their efforts on establishing long term relationships with clear milestones for additional business based on achieving a certain value successes with the customers. (Value success is the customer realization of full value for his investment in the products and services) When focusing on long term, sales can not drop the customer after the initial sale to a lower level account manager. The right sales person must stay on board for the long haul to maximize the long term opportunities.
As for customer service, they too will have to adapt to the role of the customer definition. From identifying areas for cross sell and up sell to soliciting referrals, customer service must be tuned in to the customers role and lifecycle. But the most important aspect of their function is to ensure the customer will realize the value success in order that the next stage of the relationship will be realized.
Imagine what happens when the customers role is not defined. Every day thousands of sales people are chasing business without knowing if it is good or not good business. (In fact they do not care, as they are compensated based on new business development regardless of its quality) They bring in new business and often receive special bonuses for bringing this new business.
In reality, every day companies are paying bonuses for new customer sales that might be unprofitable. Every bonus paid now makes these losses even greater!!! Companies are deepening their losses that resulted from unprofitable customers by not defining the role of the customer.
When considering defining the role of the customers, companies must consider the flowing issues:
· What is the length of the relationship?
· How many purchases do you expect him to make?
· What is the monetary value of those purchases?
· What is the overall lifetime value of the customer?
· What is the annual value of the customer?
· What growth in annual value would you expect?
· How many referrals would you expect the customer to make?
· What kind of insight would you expect? At what frequency?
· What other products or services would you expect to cross sell?
A well defined customer role will include the complete lifecycle aspects including:
· Awareness
· Purchase
· Repeat purchase
· Upgrade
· On time payment
· Referrals
· Evangelizing
· Forgiveness
· Feedback providing
· Long term relationships
· High margins
All the above aspects must be measurable so you can track your progress and ensure you are reaching your business goals with the customers. As you go through this exercise you will notice that you are asking quite a lot from your customers. Your competition is probably in a similar predicament. Then comes the moment of truth. You must then address the commitment you are willing to make to deserve the commitment level you are seeking from the customer.
The following questions should serve as guidelines for your considerations of your commitment as product or service providers:
· What experiences do you promise to deliver?
· What service level do you commit to? Measure and details.
· What listening mechanisms are you willing to deliver?
· What response level do you commit to?
· What problem resolution commitment are you willing to make?
· How would you provide preferred treatment to the best customers?
· How do you ensure consistency across multiple touch points?
· What surprises are you willing to deliver to keep the relationship exciting?
Upon answering these questions, you will be able to determine if your desired customers will actually cooperate with the role you assigned for them. It will be advisable to speak to customers about their expectations when addressing these questions.
Lacking customer role definition is lacking a structure for the relationships. It is also a way to confuse employees about what they are expected to deliver as well as not maximizing the business opportunities per customer. Any relationship in which expectations are not clear from the beginning is doomed to be short lived and disappointing.
Lior Arussy
2004-03-23
Em Foco – Opinião