CHAPTER 4

Effective Customer Relations Strategies

Objectives
At the end of this Chapter, the student will be able to:
1. Memorize the 7 relationship-building strategies for business
2. Know customer service professions
3. List the six major components of a customer- focused environment
4. Competencies of Customer Service Professionals

7 Relationship-Building Strategies for Your Business

Try these tactics to get customers to think of your company first.

Successful businesses don't just communicate with prospects and customers for
special sales. Today, making your company indispensable is a vital key
to marketing success. It's a terrific way to add value, enhance your brand and position
against your competition. Here are seven relationship-building strategies that will help
you transform your company into a valuable resource:

1. Communicate frequently. How often do you reach out to customers? Do the bulk of
your communications focus on product offers and sales? For best results, it's important
to communicate frequently and vary the types of messages you send. Instead of a
constant barrage

of promotions, sprinkle in helpful newsletters or softer-sell messages. The exact

frequency you choose will depend on your industry and even seasonality, but for many
types of businesses, it's possible to combine e-mail, direct mail, phone contact and
face-to-face communication to keep prospects moving through your sales cycle without
burning out on your message.

2. Offer customer rewards. Customer loyalty or reward programs work well for many
types of businesses, from retail to cruise and travel. The most effective programs offer
graduated rewards, so the more customers spend, the more they earn. This rewards
your best, most profitable clients or customers and cuts down on low-value price
switchers-customers who switch from program to program to get entry-level rewards.
Whenever possible, offer in-kind rewards that remind your customers of your company
and its products or services.

3. Hold special events. The company-sponsored golf outing is back. With the renewed
interest in retaining and up-selling current customers, company-sponsored special
events are returning to the forefront. Any event that allows you and your staff to interact
with your best customers is a good bet, whether it's a springtime golf outing, a
summertime pool party or an early fall barbecue. Just choose the venue most
appropriate for your unique customers and business.

4. Build two-way communication. When it comes to customer relations, "listening"

can be every bit as important as "telling." Use every tool and opportunity to create
interaction, including asking for feedback through your Web site and e-newsletters,
sending customer surveys (online or offline) and providing online message boards or
blogs. Customers who know they're "heard" instantly feel a rapport and a relationship
with your company.

5. Enhance your customer service. Do you have a dedicated staff or channel for
resolving customer problems quickly and effectively? How about online customer
assistance? One of the best ways to add value and stand out from the competition is to
have superior customer service. Customers often make choices between parity
products and services based on the perceived "customer experience." This is what they
can expect to receive in the way of support from your company after a sale is closed.
Top-flight customer service on all sales will help you build repeat business, create
positive word-of-mouth and increase sales from new customers as a result.

6. Launch multicultural programs. It may be time to add a multilingual component to

your marketing program. For example, you might offer a Spanish-language translation
of your Web site or use ethnic print and broadcast media to reach niche markets. Ethnic
audiences will appreciate marketing communications in their own languages. Bilingual
customer service will also go a long way toward helping your company build
relationships with minority groups.

7. Visit the trenches. For many entrepreneurs, particularly those selling products and
services to other businesses, it's important to go beyond standard sales calls and off-
the-shelf marketing tools in order to build relationships with top customers or clients.
When was the last time you spent hours, or even a full day, with a customer-not your
sales staff, but you, the head of your company? There's no better way to really
understand the challenges your customers face and the ways you can help meet them
than to occasionally get out in the trenches. Try it. You'll find it can be a real eye-opener
and a great way to cement lasting relationships.

Customer Service Profession

Customer Service
Employee’s ability to deliver products and services to internal and external customers
Satisfying their needs and resulting in positive word-of-mouth publicity and return
business
Service industry: Businesses and organizations engaged primarily in service delivery
Defining Customer Service
The ability of knowledgeable, capable and enthusiastic employees to deliver products
and services to internal and external customers in a manner that satisfies identified and
unidentified needs, resulting in positive word-of-mouth publicity and return business
Service industry: Engages in service delivery, rather than working with products
Product: Something produced or an output by an individual or organization
Customer-Focused Organizations
Customer relationship management (CRM): Understanding and influencing customer
behavior through ongoing communication strategies in an effort to acquire, retain, and
satisfy the customer
Company that spends energy and effort on satisfying internal and external customers by
first identifying customer needs, then establishing policies, procedures, and
management and reward systems to support excellence in service delivery
Growth of Customer Service

Post-World War III

 Increase in the number of people in service occupations
Shift to service
 Economy shifted focus from manufacturing to providing timely quality service
The concept of customer service started with cottage industries
Cottage industries:
Small businesses started by people in their homes or cottages, to barter products or
services with neighbors
Post-world war II
Service
Increasing number of workers were pulled into the service sector due to increasing
demand
Shift to service due to the increasing importance of the service economy
Service economy: Trend in which businesses have shifted from primarily production and
manufacturing to more service delivery
Many organizations have developed specifically to provide services to customers

From Pre-World War II Occupations to Service Occupations

Typical former occupations Typical service occupations

Farmer Salesperson
Ranch worker Insurance agent
Machinist Food service
Engineer Administrative assistant
Steelworker Flight attendant
Miner Call center representative
Tradesperson Repair person
Railroad worker Travel professional
Homemaker Child care provider
Factory worker Security guard

Impact of the Economy on the Quality of Service Jobs

 Competition for prime service jobs well become much more intense in the
future
 Successful employees will be:
 Better educated, trained, and prepared
 Those who have tapped into the concept of professional networking
Increased Efficiency in Technology
 Has resulted in:
 Increased production and quality
 Equipment working continuously
 Enhance ease of service delivery and faster processing

Globalization of the Economy

Globalization
 Information, knowledge, and resource sharing around the world
 Focus is on business-to-business (B2B) customer service
Offshoring
  Relocation of business services by an organization from one country to
another
Outsourcing
 Contracting with third-party companies to deliver products and services to
customers or produce products
Insourcing
 Making internal employees assume functions and perform work instead of
contacting to third parties or outsourcing

Growth of E-commerce
 Consumers can surf the net for products and services without leaving their
homes or offices
 Manufacturers can provide products and services worldwide without ever
physically coming into contact with a customer

Consumer Behavior Shifts

1. Different mindset
2. Majority of consumers now are taking a very cautious approach to spending.
3. Younger consumers want to have lesser financial obligations.
4. Expectation of quality service
5. Creates a need for better-trained and better-educated customer service
professional
6. Enhanced consumer preparation
7. Result of advertising and publicity by companies, and activities of consumer
information and advocacy groups.
8. The Internet has given consumers a lot of power in dealing with manufacturers.
9. Customer satisfaction is crucial.
 Customer satisfaction: The feeling of a person whose needs have been met by
an organization.
Components of a Customer-Focused Environment
1. Customer
External customers: People outside the organization who purchase or lease products
and services.
Internal customers: People within the organization who require support and service and
provide information, products, and services to service providers.
2. Organizational culture
Includes an element of an organization that a customer encounters
.Experiences, attitudes, and norms upheld by employees set the tone for how service is
delivered and for how service providers interact with internal and external customers.
3. Human resources
Refers to employees of an organization. Attracting and retaining qualified employees is
a challenge for many companies.
Younger workers are more likely than older workers to be short-tenured employees.
4. Deliverables
Products or services provided by an organization.
Quality and quantity determine customer satisfaction
.5. elivery system
Method used by an organization to provide services and products to its customers.
Determined by industry standards, customer expectations, capabilities, costs, and
current and projected requirements.
6. Service
Manner in which employees of an organization treat their customers and each other as
they deliver their company’s deliverables.

Competencies of Customer Service Professionals

These are some of the competencies required for customer service professionals to be
successful.
There are many things that make one successful in the service profession and life.
Many skills and competencies that someone possesses can carry over into the situation
throughout life. The following are some general competencies or qualities that can
make your successful when interreacting with internal and external customers.

Adaptability Communication Judgment Flexibility

oral. Listening,
and written
Attention to detail Continuous Negotiation Resiliency
learning
Business acumen Creative thinking Organizational Self-awareness
Knowledge
Caring Diversity Problem solving Service
 orientation
Collaboration Drive for results Professionalism Technical
expertise`
Communication Initiative Quality Time management
open

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