How well do your customers treat you? (page 4 of 4)

With data mining, business intelligence and Online Analytical Processing (OLAP) processing built into the data architecture, companies can run any number and combination of queries.

The reports can be as simple as determining the percentage of recipients who responded to an email promotional offer, or as complex as modeling a customer's lifetime value.

Using customer segmentation and profiling tools, service managers can also create multiple levels of service. Not all customers are equal: some accounts are highly profitable; others are money-losers. Therefore, when measuring customer loyalty and retention, a company also must factor in the customer's relative value to the organization.

Financial metrics should not be the sole consideration. A single person account, such as an industry guru or influential editor, can have a big impact on public opinion and market reception.

A collaborative CRM system also improves customer service and support. Let's look at how far-reaching the changes can be: with an automated mobile service system, field visits can be intelligently scheduled based on distances and real-time traffic conditions.

As result, service people show up on time. After the service call, the field agent remotely can provide the office with real-time updates. The field report is accessible instantly to CIC representatives, who may receive a call from the customer in the wake of the visit.

The data also is entered automatically into the sales and service contract management systems. And based on this report and others like it, the product development team is alerted to the problem and can take remedial action. With a more responsive, intelligent and synchronized organization, customer satisfaction becomes a "team effort."

How To Get Started
For companies interested in instituting the changes outlined above, we recommend the following steps:

• Conduct a "customer information" audit: Map your entire organization to determine what customer data resides where. Look at what channels customers use to communicate. Understand how different types of information are routed and answered. Understand the distribution and frequency of all customer report. How is it analyzed and stored?

• Conduct a technical audit - In coordination with your IT group, look at the deployment of customer databases. Discuss ways to centralize and standardize customer information and how to integrate CRM with front- and back office functions. Find out if your IT vendors have automated systems to help you mine your customer data.

• Create a customer-focused business model - Utilizing the findings from the dual audits, develop a customer-centric model that employs both high-tech and low-tech strategies. Begin to measure customer value more broadly, in terms of profitability, industry influence, public relations support, technical feedback and future potential. Analyze customer transactions and feedback to understand customer needs and wants.

And, finally, shift the focus from customer satisfaction to the true predicators of future growth and success: customer loyalty and retention.

Beginning with these three steps your will company benefit from the paradigm shift in customer retention and increase profits as a result. Instead of hoping to measure how you are treating your customers, you may find improved insight into your business by understanding first how well customers are treating you.