How to take a Customer Point of View

The Information Age is rapidly morphing into the Relationship Age, but business processes and metrics are stuck in the Industrial Age. That is until now. With Customer Relationship Intelligence (CRI), you can…

  • Compete on relationships.

    1. Relationships drive business. Always have. Always will.
    2. Relationships are created one Interaction after another over time.  It is the cumulative effect of the Interactions in developing the relationship that is determinative–not what Interactions were used or even how many–as long as the Interactions are cohesive and integrated. Many alternative Interaction combinations are possible.
    3. Relationship Value measures whether an Interaction moves the relationship forward or backward, and expresses the cumulative effect of a series of Interactions in developing a relationship, essentially becoming a numeric proxy for the underlying Interactions.
    4. Relationship Value measures cause-and-effect. With numbers there are patterns, enabling a strategic overview. Good patterns can be replicated. Destructive patterns can be avoided. One bad Interaction can destroy the goodwill built up by a series of positive interactions; undermining the relationship and jeopardizing the company’s ability to build a sustainable competitive advantage.
    5. Relationships are cross functional.
    6. A relationship development process aligns key Interactions found in Marketing, Sales, Services, Social Media, Communities, Finance, Operations, and more BIG Data sources in one Interaction Record in one CRI Interaction Database.
  • Spend time and money where there is the greatest payoff.

    1. The money is in Retention. Attract and acquire customers you’d want to keep.
    2. 20% of customers account for ~ 80% of revenue and often 100% of profit.
    3. These high profit customers cost more to engage, but the payoff is HUGE. (In our starting benchmark, 3X the cost, but 16X the revenue.)
    4. These high profit customers behave differently than other customers. They want to engage. They want a relationship.
    5. With our new metric Relationship Value we can capture their behavior patterns to tie the patterns to profit and to optimize value creation.
  • Understand customer behavior—their relationship patterns—early enough to act to make a difference in outcomes.

    1. Relationship Value is a real-time leading indicator. Lagging indicators like profit or satisfaction—which most executives use– won’t let you act in time to matter. Operational CRI (Customer Relationship Intelligence) is
      1. As simple as frontline staff knowing the next best action to take because they can see what the normal pattern is.
      2. As mission critical as a manager having time to investigate an exception and optimize the results—good or bad—when they see a relationship fall out of pattern.
    2. With CRI you can identify customers with profit improvement potential—within high profit customers and others that could move up in value.
    3. Identify customers at risk—hard to do with averages, as most executives rely on. With relationship patterns you can see what is going on.

 

Customer Experience Wisdom: Profitable customers behave differently. They want a relationship.

Questions: Do you track relationship behavior and profit patterns well enough to act in time to make a difference in an outcome?

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