`ACHIEVING EXCELLENCE THROUGH CUSTOMER RELATIONSHIP MANAGEMENT`

Making money with Customer Service

As we all understand the battle for repeat business is critical to the long-term success of any business wanting to grow and be successful in today’s business place, the intense competition is rife. Customer Service is not just a competitive edge. In many industries it is the competitive edge that wins the day through Customer Service. Service is the standard by which customers judge your company performance. The future and competitive edge will be born through `Service’, basically because we are in total contact with the customer on many occasions.

" Most businesses do not understand that Customer Service is really selling". From my own point of view, I believe that Customer Service is as much a part of the selling aim as the Sales Executive. Service is `selling`, because it inspires customers to return more often and buy more and this is a fact, as repeat business is the major part of the company. Business done by loyal customers who return to buy again and again because they are satisfied with the service can yield a minimum 65% of volume and sales, and this should be a minimum.

One of the biggest issues (challenges) in customer relationship management is the reluctance as a general term by managers to look on customer service as a `marketing strategy`. Most industries, and I do stress most, see it as an after-sales service, something relating back to the previous sale rather than ahead to the next one.

From the research and studies I have read over the years, it has been proven that service actually is more effective, especially in service orientated organisations, to enhance volume and profit, than is marketing, promotion or advertising. All companies should offer the highest professional service strategies and I believe that service adds more to the `bottom line` than other people respect. We also need to drive forward product innovation, capital improvements, and a broad selection of how you market your company, excellent credit control services and a business strategy.

Competitive Edge

Because quality service is an effective `selling` tool, it is also a long-term competitive advantage. In fact, often it is the only competitive advantage available to companies in a service economy, in which many competitors provide essentially the same service.

Virtually all customers make buying decisions based on the service they receive from a company. When service slips sales fall-it is that simple. Conversely, even small improvements in service can result in increased profits.

We live in an era where the only difference between many products and services is discernible; to customers, often it is no more than a distinct difference in service quality. That difference, that margin, is manifested in a friendly low key feeling of approval, for products or service.

THIS IS THE COMPETITIVE EDGE.

Market Dominance

We all know that customers are real `people ‘and that customer service should have as much recognition and influence over decisions as financial and statistical considerations. When we have pooled all this together, we are well on the road to achieving a competitive advantage and even market dominance that means money.

All companies are run on statistics and financial figures but they should also value `customer Service’. After recently reading a book on how the Japanese conquered quality, I was not amazed at the outcome; quality of the Japanese was not just the reputation of statistical control, making them so strong in manufacturing top quality products. In fact, the Japanese do not run a company on figures alone, as they have stated many times, companies will go under because the most important figures are not there. In other words, Japanese companies have full statistics on `all areas` of business.

Studies that have taken place on manufacturing companies and service companies have stated that it is constantly found that manufacturing firms often are more committed to service than our so-called service firms. If a manufacturing firm accepted the failure rate in its service that a service company does, it will be out of business in a short time.

The reason that manufacturing firms are more committed to service, I think, is that they have a limited number of customers. Service companies, on the other hand, wrongly believes that customers are unlimited. Lose one and you can always get another one!

Unfortunately, I do not believe this philosophy, as in this day and age, even service companies cannot believe that customers are unlimited and therefore people rely on good customer service to keep their customers.

Benefits of Service

To clarify the value of quality service, we can say that service retains the customers we already have, attracts more customers and develops reputations that induce customers and prospects alike to do business with you in the future.

Satisfying customers, who then recommend your company to business colleagues, achieve this objective and acquaintances and who, by their comments, develop and then augment the positive reputation in the business market place.

Summary of Benefits

Benefits of quality service are condensed in the following list:

1. Customer’s loyalty- an increase in market share, return on sales.
2. Increased sales and profit.
3. More frequent sales repeat business, larger sales, and order upgrading and reordering.
4. Higher customer count and more new customers.

Savings in marketing, advertising and promotional budgets.

1. Fewer complaints in an environment receptive to complaints, the more complaints resolved, and customers stay.
2. Positive company reputation.
3. Differentialisation.
4. Improved morale and productivity because your customers respond positively to you.
5. Improved relationships-you talk to each other because you are in good moods, you are all doing good work and you enjoy what you do.
6. Fewer grievances, absenteeism and tidiness.
7. Less turnover of staff.

Customer Loyalty

One of the greatest benefits of Customer Relationship Management is Customer Loyalty. This is true because most business is repeat business. Loyalty is an edge against your competition’s erosion of their customer base.

The better the service, the bigger the customer base. The loyalty of your customers, who continue to buy products and services, is the foundation for long term success.

Customer Service Saves Money

Not only does customer -satisfying service make money, it also saves money. Keeping customers, you see, reduces marketing expense. Money unexpended on marketing equals profit retained.

Professional customer service programmes enable companies to reduce marketing expenditure because fewer customers are lost. The competitive edge on pricing at this present point in time does make some products and services uncompetitive, but this is not through the service you offer but due to uncompetitive pricing structures. Although good service may cost money, it will not cost as much as a major annual recruiting drive, if you are to add more Sales personnel.

10 Ways to appreciated Customers

1. Obey the golden rule (do unto others, as you would have them do unto you).
2. Use praise (be generous, and others will respond in a positive manner).
3. Be sincere (a customer’s trust depends on your sincerity).
4. Use the customer’s name (everyone enjoys being recognised).
5. Be a friend (it takes one to know one).
6. Smile (it’s the best way to hear what the customer is saying).
7. Listen (it’s the shortest distance between two people).
8. Give (the customer will see and appreciate the value received).
9. Think `you` instead of `I` (conscientiously use the word and already retain your sense of humour).
10. Care for the customer (actions speak louder than words).

Customers- what they want

1. To feel important.
2. Sincerity.
3. Integrity.
4. Honesty.
5. Trust.
6. Pleasing environment.

To Help Customers, You need to

1. Believe in your products and service.
2. Be convinced of their needs.
3. Avoid showing anger.
4. Remain courteous.
5. Remember they want benefits.
6. Ask questions.
7. Give them full attention.
8. Say thank you.

If we remember all the points that have been raised, it should work for a happier, `Service’ focused bonus by taking your company into the next important part of its working life which is extending your Sales through good `Customer Relationship Management` to increase the Profit.

`Managing for Customer Care`

https://www.amazon.co.uk/dp/B005AHSWEE

`Building Client Partnerships & Strategic Alliances`

https://www.amazon.co.uk/dp/B07YGS79GT

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