Thursday, January 15, 2009

Business Success Depends on these 5 Tactics

Customers are now in charge. The exponential increase of website users allowed customers to compare shops and dismiss businesses that they don't like. However, research has found that in the online market, customers yearn for trustworthiness more than ever.

Customer relationships are a company’s most valuable asset - worth more everything else combined as no customers = no business. Getting and keeping more customers who stay with you longer is crucial. You don't have to worry about competition if your customers are loyal to your service. Loyal customers will be much more likely to tell their friends about you. Loyal customers spend more and bring in even more new customers. Loyalty is immensely valuable. Research has shown that a 9 percent increase in customer retention rates results in a 27 percent to 98 percent increase in profits.

It’s easy to say customers are our most important asset but turning CRM strategy into bottom-line results is hard work. It means winning the battle for customers’ hearts and minds every day, with each interaction at every customer touch point. Long-standing relationships only arise from trust gained over many transactions and by customers' belief that the company wishes to keep them around rather than drive them away.

Creating a customer-focused company starts with the definition of a CRM  software, which must then be filled out with new work processes, organizational changes, and even a revamped corporate culture.

To create customers for life, customers who will become advocates with the perception (and don’t forget that perception is reality) they need to believe that you do what's best for your customers, not just what's best for your bottom line.

Here are my top 5 tips.

1) Find out what customers want and know what you are providing matches that. Do not start with the bottom line. In fact, successful businesses has the customers' needs satisfaction in min first before profit; profit comes as a result of happy customers. Of course, profits are crucial. But long-term cash flow and profits come from regular customers.

2) Be honest and keep things simple, listen, communicate openly and keep your promises. Deliver what you say you will. Far too many businesses focus on ways to keep customers, only to lose sight of the fact that their product or service simply isn't what it should be. Include in your business focus strategies towards long-tern excellent customer care to acquire loyal, happy customers. Make it simple to do business with you.

3) Practice what you preach and preach what you practice. Treat your customers like you would like to be treated and then go even further by, in that classic phrase: exceeding their expectations. Give customers reasons to stay. Although you cannot dismiss the importance of excellent product, but it doesn't hurt to give your customers some incentive sometime. Entice your potential customers with customer discount, and hold them there with excellent customer service? Customer loyalty is needs to be appropriately valued and rewarded.

4) Know the value of your customers, segments and groups. Know who is likely to be loyal. Some customers are more trouble than they're worth. Monitor what goes into keeping a customer satisfied; if it's too costly or simply too much work - it's wrong to say that everyone should be a lifelong customer.

5) Use effective CRM systems, don't let the systems use you.   Be smart and learn to compare CRM Software options and packages. Don't be driven by the vendor or consultant - use them, they're likely to know the technology far better than you. But let customers' needs and everything above drive how you use the technology. Remember it is an aid not an end.

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