Can you hear your customers?
By Ed Romson, CEO, Rocair Corporation
Your customers are talking to you all the time, telling you what they want and how you can be successful. They sometimes talk very loudly, but you cannot hear them. You may think you know what they are saying, but you have to guess. They are talking to you from behind a glass window.
This is the situation in which many companies find themselves, if they are not keeping records of the contacts they have with their customers. Even when they do keep some records, they do not generate reports from that data; it is like their customers are speaking a different language.
Your company probably keeps records of sales in your invoice file. In a separate place, you keep records of where your product is shipped, or where your service was delivered. This is where most companies stop with data collection. However, your customer is talking to you from behind that window when they call for support, to schedule a repair visit or even when they inquire about your newest products.
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You may not have the kind of direct contact with customers that will allow you to know what those customers want. There are people in your company that deal with those customers every day, but without keeping records of those contacts, that information is locked inside their heads.
Customer data collection and reporting need not be complex or expensive. Every person who has direct contact with the customer should be able to record that contact in some way. Some very small companies have a paper file that contains all of these details, and that file is accessible by everyone who needs to influence the customer. But there are electronic means for doing the same thing and these programs greatly increase your productivity and profitability.
You have probably heard of the hot trend in this area, Customer Relationship Management or CRM. It is a very popular topic of conversation and of sales calls by CRM vendors these days. However, CRM means many things to different people. At its core, CRM means knowing who your customers are and managing your business and your contacts with them, in order that they are satisfied.
Many of these CRM software solutions are very expensive, not only in direct cost, but also in the time and effort it takes to implement them in your company. You do not have to start there. A simple database might be just what you need. Created in FileMaker ProTM or Microsoft AccessTM, it can help you record customer details and contacts and allows for simple reports on that data. You may not be able to create this using the resources within your company, but there are many people and companies that can help you, for a small fee.
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Before you start to explore the vast world of CRM software you could consider using your website, with a database behind it, as a simple way to manage your customer contacts. I currently have a client who made the decision to postpone the purchase of a CRM package until the volume of their sales increased. We designed a website that allows customers to access information, to ask questions and request repairs. It allows distributors to do the same thing and to arrange for product returns. It also allows the company to register its customers and distributors. The website is a way to ensure good communication between the company and their customers and distributors. The cost was one third of the cost of a full CRM package. The company will have to move to a full CRM package, but the design of the website database will allow them to transfer that data over to the new system when they make the change.
Choosing a CRM package is the topic of many books and articles. Entire consulting practices are set up to address this process. I will just say that there are CRM software packages that will fit your needs, even if you are a small to medium size company. You do not have to send millions of pesos, if you look for the software that is right for you.
Once you start collecting this ocean of data it will do you no good if you ignore the most important result of this process. You must have reports on which you can base your decisions and take action.
This will be my topic for next month's article. Please come back to MangerOnline and we will discuss how to continue to break down those barriers between you and your customers, so that you can truly hear them and understand what they are saying.
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