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Strategic CRM For Dummies
3 Reasons for Customer-Centricity In The Age of The Consumer
Lee gives 3 compelling reasons why customer-centricity is more than a buzzword.
1. It’s A Buyers’ Market
According to Lee, many business leaders and journals remain stuck in a time warp of internally focused business strategies, rather than customer-centric ones. Lee cites as examples Business Week and The Wall Street Journal as indulging in wishful business thinking, speaking of “regaining pricing power,” for instance. And yet, the business environment has shifted fundamentally. Here are some of the environmental shifts that the market has taken:
Demographics: An aging population means a fundamental shift from accumulation phase buying to retirement spending
Shorter product cycle times and increased productivity are flooding markets with too many goods and services for markets to absorb.
Global market competition and online communities are creating a hyper-competitive environment in which only the toughtest companies can survive.
2. Customers Are Taking Charge
Customers are learning how to leverage their advantage in today’s buyer’s market. Social media allows them to take the microphone away from marketers and demand that marketers listen to them, rather than try to influence them:
Run the proposition that companies have to shut up and listen to their customers up the average corporate flagpole. You’ll get run out of Dodge. After all, how can you make next quarter’s numbers by listening? Gotta squeeze those customers for every nickel they’re worth—every month, every week, every day, every hour—to make this quarter’s goals. Who has time to worry about next quarter and the next and the next?
3. Companies Have To Offer More To Stay Even
But CxOs are still fighting “unreasonable customer expectations” and demanding that customers pay them a “reasonable price.” Reasonable enough to support whopping CxO salaries. Wanna stand up in front of a team of your peers and tell them to do more and expect the same, or even less? Duck.
Strategic CRM To the Rescue
Companies are under increased shareholder pressure to perform. But how? Cost-cutting will soon run its course. Endless reorganization, which Lee realistically calls downsizing in disguise, is counter-productive. Hard Selling and marketing no longer work. The only option left is to align with customers.
The above video by Emailvision describes Strategic CRM as “marketing as if you only have only one.” Companies that have heard the message of Stragic CRM, and used it to their benefit include:
- Promologistics: “We now feel confident about the promises that we make to our customers, who rely on our services to grow their businesses.”
- Shoplet.com: “[It] gave us the ability to create highly targeted campaigns, understand their effectiveness and highlight areas for improvement.”
- Gazzar Wines: “We grew our sales by 20%…Our email marketing now engages customers with tailored product recommendations based on their purchase history and browsing profile.