Five practices of the hottest customer value manag

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Five practices of customer value management

with the gradual decline of craze of CRM, SCM, ERP, etc., a new wave of management fashion represented by customer value management (CVM) began to slowly come ashore, and became expensive overnight, becoming a hot pastry for enterprises to chase each other. However, in the process of promoting CVM, enterprises are often prone to fall into various traps, resulting in higher customer acquisition costs, higher churn rates, and lower loyalty, which in turn affect the long-term profitability of customers, and let enterprises fall into a continuous vicious circle

by analyzing and summarizing the real cases of different industries around the world, we have summarized five practices of customer value management, hoping to trigger in-depth thinking

practice 1: abandon the "GSP" management and service to customers

now is an era of "service is king", so everyone has "Eight Immortals cross the sea and show their magic powers" in customer service. However, enterprises often fall into the trap of "GSP management to customers" consciously or unconsciously in the process of practice, or provide "equal size" products or services to "popular" consumers, Or "attack the whole market with one product or service", which often results in high customer service costs for the most unprofitable customers, and poor service for high-value customers, often falling into endless trouble

therefore, enterprises must resolutely abandon "GSP management and services", and should select and lock their specific market segments, and then research and develop product or service combinations based on the preferences and needs of customers in the market segments; At the same time, the market response test is carried out continuously for the product or service portfolio until a stable and high profit return is achieved

Capital one, a credit card company founded in the mid-1980s, is a model in this regard. Since credit cards have long become a highly homogeneous commodity in the United States, capital one has found another way to carry out company operations and sales around "being able to truly understand their target consumers". On the one hand, make full use of information technology to develop a large number of new products for different segments of consumer groups; On the other hand, based on the vast amount of customer information obtained, the company conducted intelligent analysis and testing of various new types of credit cards. 6. Models equipped with hydraulic chucks. In 2002 alone, capital one conducted 65000 tests of its new product portfolio. At present, the company provides a total of 6000 kinds of credit cards, each with different terms, conditions and interest rates, which is the perfect embodiment of capital one selling the right products to the right customers at the right time and at the right price. Because of this, the company has maintained a strong growth momentum since 1995, and its cross selling ability is enviable - more than 50% of its customers have purchased a variety of financial products from capital one, the sales volume has increased at an average annual rate of 41%, and the annual growth rate of return on investment has also reached 25%. What's more amazing is that the development scale of capital one is also growing. From 2001 to 2002, its ranking on the Fortune 500 jumped 67 places

practice 2: implement management according to the customer's life cycle

how to grasp the customer's needs has always been an eternal problem faced by the business community. In fact, understanding the different needs of customers in different life cycles helps the company to achieve the precise guidance of marketing and sales to a considerable extent

generally speaking, the customer life cycle includes five stages: acquisition period, promotion period, maturity period, recession period and departure period. Therefore, enterprises must consider implementing different marketing strategies at each stage of the customer's life cycle. For example, in the promotion period, enterprises need to focus on how to cultivate existing customers into high-value customers; When customers enter the mature period, enterprises should increase the power of cross selling and begin to cultivate customers' loyalty to the enterprise, and so on

usaa company is one of the most outstanding comprehensive financial services companies in the world, and has always adhered to the service creed of "once you are a customer, serve you all your life". On the one hand, USAA regularly organizes customers in different life cycle stages to jointly develop new or derivative products and services, so as to ensure the company's grasp of the real needs of customers in different life cycles. On the other hand, USAA has also formed strategic alliances with many service providers in other industries to try to meet the different needs of customers. It is precisely because of USAA's firm commitment to customer life cycle management that it has created an amazing performance of "96% customer turnover and 95% market share" in the target market dominated by soldiers and veterans

cultivation 3: building differentiated sales channels

although the influence of channels is increasing in the process of consumer purchase decision-making, few enterprises carry out the construction of channel differentiation from the dimensions of cost efficiency, consumer preferences and customer relationship building ability, which often leads to improper allocation of channel resources, damage to enterprise cost structure and weakening customer feelings

communication enterprises can be the pioneers in this regard. They establish differentiated sales channels according to customer behavior and actual needs, and then provide different levels of resource allocation support for channels with the same tensile strength of copper free tensile machines. For example, a local company in the United States entrusted 5% of its business volume to lower cost channels through the implementation of the "channel conversion plan", which saved the company $15million in costs at one fell swoop and brought $40million in revenue growth. At&&t company once added a "click to chat" function on the portal. According to statistics, this new function made the arrival time of at&t raised funds uncertain in only six months &t company's transaction volume soared three times. The "self service customer service" launched by ADC Telecom has not only brought huge cost savings to the company and improved customer satisfaction, but also reduced the business burden of the call center by 25%

practice 4: the internal operation process matches the value orientation of customers

only by making the internal operation process of the enterprise highly consistent with the value orientation of customers (i.e. purchasing power and consumption habits), can the enterprise obtain higher customer satisfaction, and then make its investment in marketing and customer service "value for money". Otherwise, it will inevitably lead to the increase of enterprise sales costs and the decline of customer satisfaction

frederic Fekkai had a deep feeling about this in the process of establishing an aristocratic hairdressing salon. What the enterprise is most proud of is the humanized services it provides customers and the large investment in building high-end brands. However, its poor appointment process almost ruined all the above efforts. The company's telephone operator who answered the appointment spoke rashly and often made mistakes. This "New York fast food" customer service scared away many customers who wanted to get "Paris style" service

fortunately, the management of the hair salon realized this in time, made radical adjustments to the existing appointment process, redesigned the operation process of the call center, and set a higher customer service standard - the telephone operator responsible for customer appointment must connect 100% of the customer calls within two rings, and 90% of the appointment requirements must be handled within 45 seconds. At the same time, the management also made statistics and analysis of the changes in the number of customer calls every quarter, every month and every day. Finally, it was found that the number of call center operators during the peak period of customer calls must be five times the normal number to ensure that the above customer service standards can be met. Therefore, the hairdressing salon not only adjusted the configuration of call center operators, but also specially hired some off-duty flight attendants with southern French accent from Air France as part-time call center operators. Their French accent is consistent with the overall image of the hairdressing salon, and their high standard of customer service also meets the expectations of customers. It is the above unremitting efforts that finally created the glittering gold lettered signboard of hair salon in the industry

practice 5: regard the call center as a marketing and sales center

it is a waste of business opportunities to only use the call center as a tool to complete internal investigation needs. If the business personnel in the call center can be provided with the appropriate information at the appropriate time, the enterprise can fully achieve a "win-win" in the interaction with customers - while improving customer satisfaction and creating rich profits for the enterprise

a retail enterprise has brought huge profits to the enterprise by letting customer service representatives properly use customer analysis tools in their service interaction with customers. The company has added a "customer code" to each customer information file, in which "a" represents the best customer of the enterprise, "B" represents high-value customers with great sales potential, and "C" represents general customers. In this way, when customer service personnel are conducting outbound marketing or handling service complaints to customers, they can effectively improve the success rate of their cross selling with the continuous appearance of new raw materials, new singers and new works through the prompt of "customer code" on the customer service software platform. (end)

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