Now, this is a wonderful opportunity for some companies to pull ahead of their competitors. Unfortunately, some competitors have a knee-jerk reaction that a great way to save money or deal with low income and a cut in revenues is to cut their services and capabilities for customers. This is the farthest thing from the truth. If anything, this is the most important time to cement relationships with customers, reassure them, gain their trust and make sure they know that you're doing what's best for them.
So, if you're going to be looking at customer strategy in 2009, what you want to do is make sure that you don't give customers the impression that because times are hard for you, you're making times harder for them. If anything, you want to get across that you understand their pain and will try to help them through this time.
This is also a great time to take a really good look at the metrics that you're using as a company -- not just the financial metrics, customer behavior metrics, or attitudinal metrics, such as customer satisfaction, but at your own customer financial metrics. We believe in Return on Customer (ROC). We have a book out by that name, and when you look at ROC, what you're able to do is balance the short-term and the long-term success of your firm. You give your employees, for example, credit for the amount of money that they helped us make from a particular customer this quarter, but at the same time you try to understand whether or not value has been created at the cost of the future, or in addition to building equity with that same customer in the future. So, the question for companies that are practicing ROC is not just how much did you make from customers this quarter, but how much did you make this quarter and what is the long-term value of those customers projected to be? This way you're never tempted to do anything in the short-term, even in the bad economy, that will cut the value of these customers in the long run.
Hear more in Creating Customer Value, a SearchCRM.com monthly podcast series with Peppers and Rogers.
Dig Deeper on Microsoft Dynamics CRM
Related Q&A from Don Peppers
How can you determine the cost of keeping a customer who is threatening to leave? Learn methods for calculating customer profitability for one ... Continue Reading
You can establish call center metrics that encourage agents to build customer satisfaction while also improving profitability. Learn how in this ... Continue Reading
Learn the pros and cons of using click- to-call vs. click-to-chat software and find out which is best for reducing costs and improving the customer ... Continue Reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.