If your customers are not the main source of income for your business, then they will certainly be leveraging your income (e.g. a free to read newsletter or magazine, funded by advertising has two types of customers – the reader and the advertiser.)
Your customers are an up-to-date and valuable source of the information which is vital for your business to succeed. To manage your customers correctly, you need to:
- Know your customers wants and needs so you can focus on your production and service efforts
- Know which products, or customers, have the most growth potential so you can focus on heightening that potential
- Know which of your products, or customers, are most likely to be profitable so you can focus on maximising your profit
- Know which of your customers are going to be your biggest advocates so you can turn to them for testimonials and organic growth support
Let’s talk about Pareto’s Law (otherwise known as the 80:20 rule). Pareto’s law states that in a typical organisation:
- 20% of customers account for 80% of your turnover
- 20% of customers account for 80% of your profits
- 20% of customers account for 80% of your service and supply problems
You need to ensure you know which customers fit into which category and then manage them accordingly.
A highly satisfied customer, who sees the value of your product or service will usually make an excellent advocate and needs to be treated like a VIP. At the other end of the scale, a highly dissatisfied customer will probably have no loyalty and could be a saboteur for your business. You need to either seek to rebuild the relationship and strengthen it for future business or manage the separation with professional integrity.
A good modern day CRM system allows you to understand a customer’s wants and needs and what you need to do to produce and deliver their requirements. It also allows you to share the knowledge, within your business, of how a relationship is perceived and therefore how it should be managed. In short, it allows you to satisfy all your customers’ needs across the whole of their organisation whilst ensuring you, as an organisation can gain the strength of knowledge to be a success.
Forward thinking organisations understand the vital need to maintain a strategic focus on CRM and to resource and manage it appropriately. For them, a strong, modern and competitive CRM system enables them to strengthen their supplier-customer relationship and they are constantly looking to upgrade and improve their systems so that they continue to stay ahead of their competitors.
Discover more about what a successful CRM system can mean for your business and what solutions are currently in the marketplace by attending The Manufacturer Connect on 21 June in Birmingham.
Apply for a free place at v.themanufacturerconnect.com