By Dick Wooden on April 6, 2016 at 3:30 PM
A foundational leg of CRM in a for-profit business is the retention of loyal and profitable customers. But too many times the "Emotion" is left out and there is not a People First CRM focus.
How a customer FEELS about an interaction is the most significant driver of Customer Loyalty.
Why Are We Talking About Emotion?
Temkin Group has labeled 2016 “The Year of Emotion.” Their research shows that out of the three components of customer experience, emotion has the most significant impact on loyalty, yet it is also the component that companies are the least adept at handling and often seem to ignore it entirely
In a recent speech Bruce Temkin gave at the Customer Experience Professionals Association (CXPA.org) CustomerSpark event in Dallas, Bruce talked about the importance of focusing on emotion. Given that 2016 is “The Year of Emotion,” this will be a popular topic for Temkin Group this year.
Improve the Customer Experience
This Temkin Group video shows the importance of emotion when it comes to an organization's approach to customer experience. Visit their Customer Experience Matters blog for more information on emotion.
Find additional information about the 6 laws fo Customer Experience:
Law #6: You can't Fake It
The Importance of a Customer Relationship & Management System:
Every interaction with a customer has with your organization is an opportunity to build loyalty- or a chance to lose it.
Points to consider and gaining Success with CRM:
Acquiring new customers can cost 5 times more than satisfying and retaining current customers
A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
The average company loses 10% of its customers each year
A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry
The customer profitability rate tends to increase over the life of a retained customer
Even small improvements in daily contact with customers and employees can result in a significant increase in loyalty – a leading indicator of future growth and revenue
Resolve customer questions, issues and requests quickly for a high-quality customer experience, capitalize on new selling opportunities, and provide convenient self-service solutions to customers with the easy-to-use functionality.
A Well-Used CRM system includes:
Customer Relationship Tracking – provide a better and more focused customer service by having all aspects of the account in one place.
Nurturing Marketing campaigns that help educate your content readers and demonstrate the value your offering provides.
Service Resolution – Create and track trouble-tickets to give customers the solutions they need. Use prior information from your knowledge database to solve reoccurring issues faster and more completely.
Defect Tracking- Continuously improves your products and keep customers up–to-date on the latest issues and resolutions.
A set of measurements and reporting to view progress in delivering a positive customer experience, meeting their needs, and anticipating what your future customers will be asking for.
Online Customer Support – Provide an easy way for customers to create and track trouble tickets online.
Accounts Receivable notification – Increase cash flow by automatically notifying customers and your Customer Service department of past due invoices, expiring contracts, etc.
Tips on Improving the Customer Experience...