31 May
3 Tips For Better Customer Relationship Management
As there are two basic faces of each and everything, same is the case with the humans. When we study the two basic opposing behaviours, positive and negative, it is termed as consumer behaviour and is one of the basic sources of competitive advantage in the present times. Where the positive behaviour becomes a source of increasing revenues and automatically generated public relations, the negative behaviours pose an obvious as well as potential problem in both the long and short run. This article will elaborate how some of the apparently beneficial and positive buying behaviours can do more harm than good.
Those who are in the field of customer service, which is a very crucial area in the marketing field, know the importance of concepts described above. It is in response to this and other similar concepts that customer service and after sales services we receive these days is considerably higher than those of a decade ago. It is due to this very fact that customers are getting more and more demanding.
As a result of fierce competition and globalization, customers are exercising more and more rights and the companies have to expand the circle of customer care services offered in order to stay competitive in the marketplace. These efforts always involve costs which are directed towards following the fact that retaining an old customer needs lesser resources as compared to capturing a new one.
To explain the fact, let us take an example in which we will make a comparison of two customers. The customer 1 is used to make large amount of shopping and therefore appears to be a better source of revenue for the company. The customer 2 makes normal or average purchases. The time interval and other shopping behaviours in terms of sales is more or less same except the sales volume. The former customer, however, takes much more time to get satisfied and demands greater amount of after sales services. The later customer, customer 2, makes purchases in a careful manner. He does launches complaints but it is much easier to meet his demands as compared to the person who thinks that he has given much more money to the company and therefore needs extra care.
If you analyse the above presented situation, it will not take much effort and time to judge which customer is better for the company to deal with. It is the point which most of the managers and sales representatives do not analyse and implement.
A customer who makes average purchases but needs an appropriate amount of care is more likely to remain loyal to the company as compared to the one who always comes back with a bundle of complains in the huge amount of products bought.
Another aspect of the issue is over focusing on the lesser proportion of the customers who give large amount of business as compared to those who regularly give smaller amount of revenues. If the focus is shifted from the lesser percentage to greater percentage, the results can prove useful not only in maintaining customer relations but also the steady growth of the business.
In the end, it is necessary to look for the ways in which the sales and customer care efforts can result in steadily increasing profits. While meeting the tough demands of high profile customers, those who contribute less but more often should never ever be ignored.
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