The evolution of CRM – Customer Relationship Management – started late in the 1990’s, in response to more “customer-centric” times. A real need had been recognised for businesses to be able to offer proactive customer service of the highest possible standard; at the same time using this process for the purpose of building a database of customer profiles for future use. This data for future use was for the benefit of all departments – from upper-echelon management, through sales, marketing, and obviously customer service.

The short version is that over the years “spending” on CRM has compounded in growth, into billions of dollars annually. Exceeding $75 billion in 2005, so, we can only imagine what this spend is today?! Being so spendy; CRM implementations should ensure that every employee – the entire hierarchy, through to customer service teams, are all kept with their eyes on the prize.

What has been found however is that when change management is not used in the implementation of CRM systems. No amount of investment achieves a predetermined ROI (return on investment). So this combination of strategic management, and information systems that was devised to increase customer satisfaction, whilst checking out basically what the customer wants, with the aim of brand building, and customer retention – ultimately better profits – was simply not working. Now we know that the key to achieving CRM success; is syncing its implementation with the process of change management.

Change management addresses four processes:

• leadership practices
• infrastructure change
• training practices
• performance metrics

It is these four processes which help to expedite far more superior CRM executions. Take leadership practices for example – whenever a large CRM spend is initiated, there is bound to be a great deal of change in any corporate culture. The trick is that corporate culture changes need to take effect in a non- unsettling, or non-threatening way. All of a sudden the business is becoming “customer-centric”, and therefore any changes need to be marketed within the structure of the business too.

This internal marketing force is required to be as intensive as any external marketing force might be. Where change is concerned, internal marketing starts with top management and all the way down to end-user buy in. Communication throughout the organisational structure is therefore intensively fostered, aligned, and formalised which helps any changes to work with success. While there is a great deal more to be said about change management and how its use, or non-use, can make or break a CRM implementation. Let’s leave it at that for now, and perhaps deal with infrastructure change, training practices, and performance metrics at a later date.

Virtually everyone on this earth who has had access to retail stores, fast-food outlets, restaurants, and other service-based entities, has experienced a scene being made by a poor customer, who is generally trapped in the throes of their ego. Not to be judgmental – you know the type. If you don’t, here are a few general examples:

• They barge to the front of the line as if they are the only person in the world and have no idea how civilized society behaves as far as lines are concerned.
• They rant and scream about anything and everything, virtually foaming at the mouth, just for the sake of complaining.
• The way they behave with regards to virtually everything is handled in a way that suggests they have been framed for a particularly nasty murder.
• The louder they shout and complain, we get the impression, the more important they feel, which only makes us feel more embarrassed to be part of the same species.
• The problem they are complaining about is generally miniscule in comparison to the extent of the complaint.
• No solution to the problem is acceptable, unless it entails getting the entire compliment of staff fired.
• They return to complain at the same place, about the same thing time after time – almost as though this is how they get their “fix”.

While this type of behavior is fine if you live on your own planet, these customers do not – they share a planet with the rest of us, and this behavior is completely illogical.  Consider the possibilities, that poor customer service is only experienced by a poor customer.

It is not the job of a customer service agent or employee offering a service to deal with psychopaths. This is a job for health professionals. So, no matter how hard “the customer is always right” argument is thrust down the throats of employees in training, not every customer has the right to scream obscenities or throw temper tantrums in public.

Customer status is not so hallowed that nasty, unhappy people need be placated, and there is such a thing as a quality “NO”. Treating people like dirt defies unwritten laws of respect and basic decency.  Perceived past encounters with below-par service does not make it acceptable to flip the lid whenever they feel like it. In situations such as this, the customer is actually wrong, and employees in service related jobs, also need to understand this.

We all experience a little poor service, or small mistakes in handling sometimes. But allowing a customer to behave like a raving tyrant because of this is absolutely unacceptable. It is a petty, narcissistic, controlling abuse of power that is corrupt. If we as customers do not get what we want, customer service agents also need to be trained that this is a fact of life. It is also our responsibility to handle the complaint in a decent and mature way; not like egotistical obnoxious oppressors.

Today, customer service is becoming more scientific than ever but some of the science behind it is not new. It is much more than about before and after-sales service. We live in a global economy, where the Internet is the chief protagonist, and Competitive Intelligence (CI) is the new catchphrase of the day. CI is not the only “CIA meets the boardroom” taking place by means of Internet technology, but it is not rocket science, and any business can take advantage of the benefits derived.

Businesses are watching their competitors through their websites, and virtually every firm that means business, has an online presence. By the same token, every business that wants to be on top of the corporate heap, should be doing the same. So, as Spy vs. Spy as this practice might seem, it is a lot more out in the open than in the bad old days, when the KGB and CIA were crouching on either side of the Iron Curtain – furtively recording every move made. However the techniques used are very similar to those that took place during the Cold War.

Competitive intelligence is designed to help businesses anticipate moves, and respond to opposition. So, just like the CIA, MI5, and the KGB recorded, debriefed, tracked, scrutinized, and analyzed every of each-others motives, matching them move for move in a process called “trade-craft”. So too are businesses involved in a very similar systematic process that is just as highly effective – CI.

The basic theme is to achieve a better understanding of what another business uses which gives them a competitive edge. We are not alluding to anything illegal or unethical such as industrial espionage. An example of industrial espionage is stealing the secret formula for Coca Cola. CI is above-board, astute, well-thought-out, systematic and an innovation which that drives better conclusions for companies.

One thing we can guarantee any business owner (A) of, is that their competitors (B,C,D and E) have made it their business to learn about (A’s) methods, in particular if (A) is successful.  (A) may be the biggest and best, but they still need to know what (B,C,D and E) are doing that enables them to have a stake in a similar market share. A Competitive Intelligence framework provides the tools to create more significant value, shape goals, formulate strategies, develop tactics, as well as counter threats from rivals in the same industry.

It is essential for any business to make a distinction between their brands, products, and services from rivals, even if these products are similar in nature. PWC (PricewaterhouseCoopers) has found that fast-growth firms use Competitive Intelligence, and find it to be either critically or at the least “very” important for enabling them to position themselves against threats, adapt to changes in the market, increase revenue, save money, and at very little cost in terms of return on investment. Even High School football teams use this methodology to great effect, and any business with an online presence, should be effectively making use of CI too.

Unfortunately not all marketing campaigns are designed with customer retention in mind, regardless of how necessary. In the majority advertising is designed to attract new customers, while existing clients are ignored and get left to move on to the next supplier.

Let’s look at two examples:

1. The online gambling industry, while keen to attract new customers, has acknowledged just how important player retention is – without regular members, these websites cease to exist. The majority of their big promotions are aimed at VIP members and regularly returning players. While new customers are offered incentives to join, it is loyal members that are offered the cream. These websites spend fortunes on existing client promotions and 24/7 customer service, to make sure their very important players return to play, and are nurtured every step of the way.

On the flip side of the coin:

1. Cellular telephone companies spend fortunes to attract new clients and give so much away that it appears that these incentives are completely insane. Sign a new contract and receive massive incentives, but current customers are rarely rewarded. Who wants free minutes between the hours of 12am and 5am, or a few ebucks that add up to nothing for a normal user? Therefore it makes good sense to sign a new contract with another provider who is offering something special, no matter how fleeting this might be – they can always move on again.

Experts agree that marketing dollars are far better spent on customer retention. This means we should be looking for ‘stickiness’, not new customers who will just go away. In the past ‘stickiness’ came naturally, but now we can drive to any mall, or even shop online, so, rarely stop to shop at the corner grocery store. By the same token, sales personnel are barely trained in customer car and don’t care to know your name. It used to be nice to have Joe from the corner store call you by name and ask how you enjoyed the ham. He kept his customer numbers, and would give you a telephone call to let you know that the new stock of Christmas hams had arrived – this courtesy was to his benefit.

As a result of new trends there are millions if not billions of disloyal shoppers. But with a little will and the help of advanced technology, this can actually change. We now also see superstores giving away loyalty incentives, they have the ability to keep large amounts of data on record and are re-establishing contact with the customer.

Word of mouth advertising is the most effective form of marketing of them all. It does not matter how many prices you slash, a customer won’t return or talk about your store if they don’t feel appreciated. Good customer service is about sending the customer away happy, so, you know they will come back again. It is much harder work to sell the same item to a different customer every time.

Good customer service is like starting a new relationship – one that the customer would like to pursue. Be helpful, train your staff to do the same; be consistent, always answer phones – that’s what “call forward” was invented for, and remember people want to speak to a person, not a machine. Reward customers well for loyalty, be patient when dealing with complaints, listen to what they tell you, only make promises that you can keep, walk the extra mile, throw in something extra for free, and train all your personnel to do exactly the same.

You may feel that it is trite for us to say; but good customer service is simple, it is simply a matter of old fashioned common sense and good manners. At the end of the day you, your product or your business will be judged by the action you take, and not by what you say.