Customer management programmes can achieve all of these things with a visible return within 3 months if [designed correctly]. In 2009 alone, our clients have identified practical ways of achieving up to 35% increases in revenue (6% market share increase); 28% reduction in costs; 12% increase in EBIT. Customer management is a vital lever of business performance, and investors and analysts are beginning to take more notice of how well companies manage customers. Make sure you can tell them.
Ask any manager who has successfully implemented a new customer management strategy or system about the one vital ingredient of success. Very likely, they’ll say ‘Leadership’. Visible, active, passionate leadership. Research shows* time and time again that leaders have a vital role in making customer management change happen. Without strong Leadership, customer management projects tend to be reduced to within-function process changes, one-off campaigns, small scale training exercises or customer experience projects with grand aims that end up having little or no impact on the customers’ experience!
So, it follows, if leaders want to increase business performance significantly (arguably in every industry) they need to lead their organisations visibly and consistently to manage customers more professionally. A chapter in our forthcoming book is for leaders who want to guide their organisations to become better managers of customers. Leave a comment here and we’ll send you an e-copy of the leadership chapter, packed with examples, behaviours, tips and techniques for business leaders. Thanks
2 responses so far ↓
1 Ray Brown // Nov 15, 2009 at 11:39 am
Hi Neil Greetings from Melbourne. I agree that leadership is key in customer management as in other areas of business. Other than profit what are the key drivers for senior people to “get” the customer “message”. rgds Ray
2 neilwoodcockblog // Nov 17, 2009 at 8:22 pm
Hi Ray – thanks for this. ultimately, you can argue that all bus drivers lead to profit in private sector orgs, but some more indirectly. There are specific enabling drivers depending on the business context. For example, market analysts can be impressed by companies with the customer technology / digital infrastructure to enable faster speed to market (quicker entry into emerging markets for instance); or to identify and develop relationships with HVCs; or to enable cross and upsell across brands in a diverse portfolio; or to lock out competition via customer database/relationships; or to have the processes and systems to work more efficiently internally (through customer self service for instance); or to have the knowledge and agility through the value chain (perhaps by being able to negotiate more strongly with suppliers). These are all ‘customer’ investment initiatives which will please analysts and therefore leadership teams! Neil
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