What price customer service?

It seems that lately everyone is busy but when I speak to customers, suppliers, friends etc its always the same thing busy chasing existing business  Its true that everyone is looking for a bargain at the moment and who can blame them, there's never been a better time to buy something whether its a car, furniture, TV or indeed software or services which my own company provides. Prices are coming down in all areas. I had a discussion last week with the provider of our insurances and he said that he is twice as busy as last year providing quotes for people. In that industry the rise of price comparison sites have meant that people are shopping simply on price now and not considering the customer service angle at all. Personally as far as possible I prefer to do business with someone I know and trust and can call on if there is a problem. Usually I find that because I know and trust them, there rarely is a problem! Wonder if there is a connection there?  Is our culture now so obsessed by price and trying to get things as cheaply as possible?  I hope not, I still seek good customer service and want to be looked after by my suppliers.  I want to know that when times are tough they are there to help out.  For that I am willing to pay a little extra, but not too much!

A customer of ours in the waste industry has seen the price of waste paper, plastics etc drop dramatically in recent months and that is partly due to the influx of new companies to the market and the price has subsequently dropped. I read yesterday that some waste companies are going under because of this. Now there's nothing wrong with good old fashioned competition and new companies coming into an established market is a good thing. As those companies coming in have a low or no cost base they can keep their prices low. However there is no substitute for experience and often you have to pay for that experience. For example if I was purchasing a flight across the Atlantic I would much rather pay extra for a provider who has done it many times before than someone who set up last month - no matter what price! As business people we are inherently risk takers but that's a risk too far! 

Finally, making the customer experience as pleasurable as possible is very important. Make it as easy as possible to work with you and to buy from you so that people return as often as possible. Offer as many touch points as possible, face to face, phone, web site, blog, facebook etc the list is endless these days.  

So service and experience are very important in my book buts that's not to say that you can charge what you want. Keep your prices reasonable and concentrate on service and experience and I believe that you will win more often than not! 

Using CRM to your advantage in a recession - Part Two

A common misconception is that CRM is a sales & marketing tool, if used correctly it is a Business management tool and can provide some precious information on the future shape of the business. This second post on using CRM in a recession focusses on maximising the implementation of a new system

• Plan your implementation. You wouldn’t set off on a long journey in the car without knowing you had fuel and oil, the tyres are inflated and most importantly where you are going. Similarly you should not set off on an important software implementation without knowing where you are going and what you are going to need to get there, hardware, people, connectivity etc. It’s a fact that starting off with the end goal in mind does pay dividends. So make sure you have defined your KPI’s you need from the system and monitor them.

• People & Processes. All too often people think that CRM is about technology, the reality is nothing could be further from the truth as it is people who will make it work but the same people will hide behind the technology when things are not going so well! Correctly implemented CRM technology should make their job easier but take care that they are not bogged down by over complicated processes which the technology will only exaggerate. Keep it simple and make the technology work around their daily processes and it will be accepted by good people.

• Financing. Explore the options available to you to finance the system. Clearly you will want to gain Return on Investment as soon as possible so consider leasing the software and services you are going to need from the vendor. Perhaps there is a rental model available which suits your business, known as Software as a Service (SaaS), whilst this does not suit everyone it may suit your own business model.

• Choose your Vendor carefully. A common misconception is to build a bespoke system from scratch. However the larger vendors now have over 20 years experience in building and developing CRM systems, so use that experience. In most cases it will be possible to customise their systems to varying degrees so you can still bespoke the part of the system that you need to. There really is no need to re-invent the wheel. Pick a vendor with a track record and where CRM is a key focus of their business, not “something they also do”.

• Choose your partner carefully. It is rare that companies have the in house skills to implement a CRM system themselves and at some stage will need outside help from an expert. That help may just be around training or may include full implementation assistance. This has a cost which can typically be 2 or even 3 times the cost of the software so you need to make sure you are working with a reliable partner who takes the time to understand your requirements. Ask for references, look at their past history, don’t just look at sales awards, that just means they have sold a lot of software but how many of their customers are loyal and satisfied?

• Close the loop. For a full experience consider closing the loop and going for a full system where the CRM system integrates with the Finance system so that you have one view of your customer. Typically any business will have enquiries which turn in to quotes which hopefully turn into orders which are then fulfilled and invoiced and the money is collected. A system which can manage that process will pay dividends.