If you take the time to read the articles that gave rise to the “Relationship Marketing”, “CRM” and “Customer Experience” movements there are a number of principles that lie at the core:
- Work relentlessly to create superior value for your customers;
- Treat different customers differently because different customers have different needs;
- Treat different customers differently because you cannot afford to spend the same amount of money on ‘Economy’ customers as you can on ‘First Class’ customers – to use an airline metaphor;
- Treating different customers differently includes adjusting your actions towards the customers on an ongoing basis as you learn more and more about them – some called this customisation, websites call it personalisation, others understanding it as tailoring your actions to suit the person in front of you; and
- If you do this consistently and better than your competitors, your customers will continue to do business with you even when they are offered ‘incentives’ (usually in the form of price discounts) to switch to your competitors.
The interesting thing about human beings is that we cherry pick – we take what we like and completely discard the rest. It is as if you are given a recipe for a great dish and you select some of the ingredients and just throw the others away because they disturb you in some way. As a result of this, too many companies – but not all, have come to understand “relationship” in a totally self-serving way. If they were being truthful they would write a letter along the following lines:
Welcome to Big Corporate, we are delighted to have you on board. We are not like Apple. We don’t disrupt industries; we do not even come out with must have products; our service levels are also pretty ordinary as we do the minimum we can get by with to keep a lid on costs. The reality is that we are pretty much like everyone else who competes for customers in our category.
Over the last ten years or so our world has turned upside down. And it is all down to the Internet – it has given you shoppers the upper hand. Not only can you compare prices easily, you can also share your voice with millions around the world and listen to your fellow shoppers instead of our corporate speech: our advertising and PR.
So we listened to the Relationship Marketing and CRM folks. We have bought into this in a big way and invested many millions in the software that will enable us to build a relationship with you. Why is that important you ask? Well if we build a relationship with you then we get to make more money, more profit!
Let me explain what we mean by “relationship”. We are thinking along the following lines:
- We will get as much data on you as possible – anything we can get away with legally;
- We will use that data to figure out what we can sell you and then we are going to send you letters and emails to encourage you to buy what we think you are up for buying;
- If you do not respond the first time then we will give it another go and then another go;
- We will offer you these products at a higher price than the price that we are offering people who currently do not do business with us;
- If your existing product, policy or subscription comes to an end then we will send you a renewal reminder that is some 30% higher than you could get if you were to sign up as a new customer through our website;
- We want you to fit in with the way that we work, the way we do business;
- We are expecting you to do more of the work yourself so it would be great if you were to go to our website and help yourself and if you do manage to call our Customer Service line then we expect that you will use our IVR to help yourself;
- If you do manage to get through to one of our agents then we cannot guarantee that we will be able to sort out your issues there and then. If we cannot sort out your issue then we expect you to ring back on another day as our agents are not allowed to ring you back at a time that suits you;
- We really do not like complaints as we believe that we are doing the best that we can so we are going to make it as hard as we can for you to complain including insisting that you put your complaint in writing and send it via the post;
- Even though we are in the digital age we are not going to allow you a click to chat facility for when you are having problems on our website and need our help;
- Nor are we going to allow you to use an instant messaging system to get through to our agents;
- Whilst we do allow you to send email don’t expect the kind of response that you get at work. No, please allow at least two-day – usually more.
Now that I have explained what we mean by relationship we are really hopeful that you will be so satisfied that you will tell all your friends and family to become our customers!”
Here is the ridiculous part: no company would ever consider sending this kind of communication to a new customer yet that is what the customer will experience because that is how many companies operate!