Customer Relations

68% of customers who cease dealing with a supplier do so because they are upset with the treatment they have received - don't let that happen to you...

10 Tips on Customer Relationship Management

1. Welcome the customer

Taking the trouble to welcome and thank a new customer for his business, whilst deliberately refraining from any selling, can make a real difference to the amount of business done between the supplier and the customer over time

In a world where everything is increasingly "I" and "me" focused, and many don't have time for others, a little courtesy can go a long way to make you stand out from the crowd in a positive way

If your business operates in a very formal environment I'd do this by letter, otherwise I'd use the telephone (in my opinion email is fine as part of the mix but not as the sole welcome of a perceived high value transaction)

2. Stay in contact - have a maintenance plan

When was the last time you contacted each of your customers and what was the purpose of the call?

Just because you may not have heard from a valued customer for a while, that doesn't necessarily mean everything is hunky dory - If you don't maintain regular contact, the first you may hear of any problem could be that customer's defection to a competitor, by which time it's too late to do anything about it

Think of valid business reasons to be in regular contact, not just "How are you doing?/How's it going?"

3. Handling complaints

Was a recent problem resolved to your customer's satisfaction - is there anything else you can do for him? This is a big one, and how you handle it is vital

This presents an excellent opportunity for you to progress the relationship if you handle it right:

If one of your customers calls you with a complaint, let him rant and rave as long as is necessary for him to give vent to his frustration

Then empathise with him and thank him for getting straight on to you. (How many dissatisfied customers bother to complain in comparison with those who just quietly go elsewhere? Some estimate the figure at 96%!) Only then can you work together to solve the problem - if you manage to do this successfully why not see if there's a tangible way to thank the customer for giving you the opportunity to do so? If you do, you will potentially have this customer for life

4. Stay on top

If you were the customer would you be happy to deal with a company that complacently believed that it had "got it right" and didn't bother to innovate?

Be aware of new competitor entrants to your market and constantly follow product or service developments of existing competitors so that you can pre-empt any potential defection by reassuring your customers of what you have done and will do for them

5. Listen to your customers

Are you esearching your market to ensure that you are aware of its current needs and inviting feedback on your performance from your customers?

Make it easy for your customers to contact you, whatever their reason - and take action regarding their concerns

6. Reward referrals

Are there any incentives for existing customers to refer prospects to you?

It makes good business sense to have well thought out incentives in place - and ensure that your customers know about them!

7. Get together with your valued customers

Do you organise any site visits, user groups or corporate hospitality?

If you remember to think about the Average Lifetime Value, it will help you to gauge how much to invest in these types of activity

8. Be helpful and generous

Have you introduced a new product or service that some customers are now benefiting from and which could provide additional value for others?

Have you over-bought on a product that you could offer to a valued customer at well below normal price, giving you space and cash flow and the customer a once-in-a-lifetime saving?

9. Be vigilant

Are certain customers slower than average at progressing their dealings with you? Are there internal politics at work, about which you know nothing? Are they going elsewhere? Why not find out - ask them!

10. Lapsed customers

Ensure that you always know why a customer is inactive or has lapsed and that customer's potential value to you and you'll be better able to gauge whether it's worth your while to try and win him back and, if so, the amount of effort you should expend to do so