In these times of uncertainty, the importance of managing and monitoring Customer Service in order to deliver a superior experience, based upon 1 to 1 knowledge of each individual is heightened.

The good news is that those companies who are making an effort to build customer loyalty through exceptional customer service are finding themselves at least partially insulated against this economic backlash. In tough times, people like to deal with companies that genuinely care about them. We are more careful with what we spend and who we spend it with. Companies who have been mistreating, ignoring or otherwise abusing their customers will suffer the most.

So the big question is – how do you win on service in an uncertain economy? The experiences of customers play pivotal role in their continued patronage of a company. Succeeding, therefore, requires a realization of the realities that customer rules in a downturn, that customer focused metrics provide the best “EARLY WARNING” indicators to watch, and that listening and learning from customers is essential for reacting to the turbulence of the market place in these tough times.

Outstanding Customer Service gives the better results then offering lowest priced product. I am quoting as per the source of Harris Interactive, customer experience report March-2006. It says, that with outstanding services the percentages of respondents are 52% where as lowest priced products percentage are just 38%.

Let’s talk about Customer Rules in uncertain economy for 3 primary reasons-

1. Customer Retention is a Strategic Capability- In an uncertain economy you can’t afford to lose customers, because they cost considerably more to REPLACE than to RETAIN. Solidifying those relationships is a strategic capability founded upon trust – a belief by the customer that the company her or his best interest at heart, and can be depended upon for respect, tolerance and honesty.
2. Investment in customer relationships can be made incrementally- In an uncertain economy, resources are reduced. Under these conditions it is smart to avoid “boil the ocean” investment and focus upon those that a) can be made incrementally and b) demonstrate an immediate benefit with the potential of a larger and longer term payout.

Investments in customer relationship meet these criteria. By prioritizing limited customer service resources against that subset of most valuable customers, spending may be increased, thereby achieving the greatest “BANG FOR THE BUCK” now, while simultaneously developing a relationship that will extend well beyond the end of current down economic period.

3. Customer gives you Growth- Growth comes from the knowledge that even in the worst economic downturn. Cost saving arise because service and marketing resources can be more intelligently applied to those individual customers with the highest likelihood of growth.
4. Measure and monitor the leading indicators of lifetime value change, in order to glean insight about how best to manage customers; and focus upon customer experience metrics to ensure the delivery of high quality service that drives the purchase decision.

Listen to and learn from Customers, to understand their needs and preferences, in order to enhance the customer experience and to create “switching cost” that lessen the likelihood of defection to a competitor.

When the next uncertain economy arrives, will your company be better prepared than it is today? It can be, provided that it acts upon these principals to deliver superior customer experiences, founded upon a 1 to 1 knowledge of each individual.

Thanks.

Rishi