1to1 - Spring 2009 - (Page 21) just [on] retaining blindly, but keeping the ones that are most valuable.” Shearer suggests profiling high-value and highly loyal customers and presenting them with targeted cross- and upsell offers, which are “conducive to making [customers] even more loyal.” Industry proponents urge companies to improve the relevance of communication to ensure customer retention. “Recognizing and respecting your existing customers with targeted communications based on their needs, not ours, is the most useful customer strategy, because this will yield the greatest return on investment both in dollars and human resource,” says Toyota’s Burris. “When times are good, marketing mistakes are easy to bury. Tough times call for critical thinking and letting go of pet programs that have outlived their usefulness.” The current economy also calls for communications that demonstrate a commitment to partnering with customers. Paul Greenberg, author of CRM at the Speed of Light, says, “Ask ‘What can we do for you?’ or [say] ‘Dear specifically targeted customer, here is some information, practical tips, or valuable advice that might be useful to you during these times.’ In other words, you’re taking a measure of business leadership, not just being the company that they are getting discounts from.” The challenge is to balance cost with reaching out to customers in a way that maintains the relationship. “The most important thing marketers can do in this economic climate is avoid the temptation to cut and run. Making adjustments is appropriate but we must continue marketing,” says Joe Stanhope, vice president of platform strategy for Weathering the Storm Even in the worst possible downturn, there will still be some customers who are buying, some who remain profitable and loyal. So one very useful aspect of customer strategy in a recession is customer data and analytics— simply having enough insight to tell one customer from another. However, there are many elements of customer service that can be delivered at very little cost, even when times are tight. Smiles and courtesy cost nothing. Send a handwritten thank-you note to a good customer. Call a customer to ask if everything was delivered properly, or if there’s anything you should do differently next time. As a bonus, these kinds of actions are likely to improve employee morale in a difficult situation. And remember: Business is a competitive sport. It might be snowing on the ball field, but that doesn’t mean there won’t still be a winner. It just requires perseverance and a different set of skills to play through a blizzard. ROI and the CEO Customer relationship initiatives are vital for thriving in the current economy, but they come at a cost. Consequently, executives who are also the lead customer strategist must demonstrate the strategic value of these customer-centric activities. The first step, some experts say, is to think like the CEO. Successful sales and marketing executives focus on metrics that the CEO will find most relevant and valuable. “Talking about [how customer strategy] impacts revenues, profits, and other quantifiable numbers is the bedrock requirement,” says Richard Vancil, vice president of the executive advisory group at IDC. “You should put on both the CEO’s hat and the customer’s hat,” adds consultant Robert Donnelly. “Underscore that business is about…profitable customers. What customer buying what combination of products represents your greatest profitability? Share that with the CEO.” This means, of course, knowing an organization’s most valuable customers. The second step experts suggest is to gain a deep understanding of customer profitability. “One thing [customer strategists] can do— and for some strange reason don’t—is to make sure they’re privy to the reams of information on customers that a given company has,” Donnelly says. “They should know more about their customers than anyone else in the company. Predicting, detecting, and acting on patterns in transactions help [companies] sell more stuff.” No matter what your approach, the first step “is to actually have a customer strategy,” says Malcolm Wicks, director of SimplePlans. “The majority of businesses do not have one. They have fine words and sometimes fine deeds, but rarely is a consistent customer strategy understood and implemented throughout the organization. It requires a joined up way of thinking about every key aspect of customers, from who they are and the customer experiences that they desire, to shaping all business strategy and major decisions around the customers. The companies that really get this will be the ones that survive and thrive.” —Don Peppers, founding partner, Peppers & Rogers Group Alterian. “It’s a great opportunity to identify the programs that are working and give them priority. Marketing during a downturn will ensure that companies come out on the other side in the best possible position.” CEOs on Marketing How does your CEO view your marketing efforts with respect to growth? As a brand-building investment 56% As an unaccountable but necessary expense 21% Not sure 15% As an unnecessary expense 8% Source: Association of National Advertisers Additional reporting by Kevin Zimmerman Spring 2009 21 http://www.1to1media.com/view.aspx?itemid=29516 http://www.ana.net/
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