Andy's Articles

CRM? DON'T MAKE ME LAUGH…
MOST COMPANIES IN THE UK TODAY, DON'T EVEN UNDERSTAND THE BASICS OF CONTEMPORARY direct marketing.

Let's face it. There has been more tosh written about customer service, customer relationships and customer loyalty than any other marketing subject in the last few years.

And still it continues. The new buzz is CRM, standing for Customer Relationship Management.

Every company you read about, hear about or talk to, now reckon they are putting their customers first. Or that's what they are saying at least…

Not to put to fine a point on it, that's absolute bollocks. Quite simply, they are being seduced by a concept.

Every single day, you seem to come across another jaw-droppingly bad example of how not to do it…

Very few companies that I know, in the States, Europe & The UK and in The Middle East, where I visit every four weeks, are practicing what they preach. They are all, in the main, making the predictable noises.

Are you one of them?

Odds are that you are. You are more likely to be spending, on average, around 7 times more money on trying to get a new customer, than on the ones you already have.

That is pure insanity in any business, anywhere. But, I bet you are probably doing it. Most companies are, so you're not alone…

Yes, it is my observation after 22 years in this crazy business, that most companies in the UK still don't even understand direct marketing. So there's absolutely zero chance of them understanding CRM, which is direct marketing by another name.

So, my advice to most of you, is forget about CRM. You are nowhere near ready for it. You have more basic and fundamental issues to address first.

And, the first thing you must embrace, is the first commandment of contemporary marketing, which is written in stone…

"It is infinitely more profitable to service an existing customer, than it is to find a new one"

Looking after your customers correctly, is not only a vital element in business these days, but it offers massive business potential for companies of all types and sizes and in all sectors. The reason is simple. Most companies are not doing this at all or, alternatively, are playing at it.

This offers tremendous opportunities for forward thinking companies to be first in any particular sector and reap the fantastic rewards that are waiting to be claimed.

However, to be a trailblazer - a leader - your company first has to recognize the immense value of an existing customer. You will need to recognize and act on the very powerful cost justification for focusing your efforts on customer retention, rather than acquisition.

Then, once you have done that, ensure that you are totally committed to creating and developing a strong and meaningful relationship with them, for their continuing benefit and your continuing profit.

But, by totally committed, I mean culturally and budgetary. To embark on such a programme, will mean a radical change in the way every single member of your company from the Chairman down to the cleaner, thinks, acts and performs.

It represents a total change in emphasis and application.

For a start, your company will have to build a marketing database. Not a mailing list, a meaningful marketing database. ( there is a massive difference by the way ).

Don't try and do it yourself. You will almost certainly make a mess of it. The database needs to drive the marketing programme and therefore has to be built and structured in a way that can cope with the intended growth and changes in policy and direction.

Experienced direct marketing professionals are comfortable with these unique dynamics and their advice will be invaluable.

Secondly, and of vital importance, are disciplines for the continual updating and developing of the database. This can be done by phone, fax or email, to supplement proven techniques employed in the on-going programme.

After all that is in place and only then, you will be set to embark on the communications strategy. You will have to originate a meaningful and realistic approach. Decide on your objectives and then, once again, call on specialist advice to make it all happen.

But remember, this is classic direct marketing activity. It will need the input of knowledgeable professionals who have experience of such activity. Don't for heaven's sake, use your existing ad agency. They won't know the first place to start.

It's a completely different culture to producing pretty pictures and storytelling copy, let alone banal ads that no one understands, that don't sell and that cost most clients a fortune.

To start with, your customer database has to be segmented. Everyone will be different. Your database will not be an amorphous mass of customers. It will be a number of individuals, with different likes, dislikes, requirements and purchasing habits.

Remember, these days the secret of success is marketing on the differences of people, not their similarities.

Accordingly, the messages you send out to people, have to reflect that. Do not talk to everyone, talk to someone. By looking at it like that, you will start to connect to people a lot more.

And, when you connect, you have more chance of influencing, persuading and reassuring them to do more business with you.

But, be aware. Things are moving very quickly out there. Customer service for example, is already old hat. It is now all about customer satisfaction.

Service is what you give to a motor car. Satisfaction is what you must now give to people. Treat them well, reward them, make them feel special and they will treat you well in return, by staying loyal to you.

But, you have to be totally committed. Otherwise your customers will see straight through you.

Be consistent, be genuine and, above all, find out what they want and give it to them. And then say "thank you"

Don't fall into the age-old trap of giving customers what you think they want. If you do, you'll be out of business quicker than you'll believe.

How do we find out what they want, I hear you say. Easy. Ask them. They'll be pleased that you have asked. It is not unusual these days to get over 40% response from a well produced and incentivised questionnaire.

One more thing. If your company has installed one of those appalling machines that answer the telephone instead of a human being, rip it out of the wall NOW and bin it.

Never mind what your dimwitted financial controller tells you, this will not save you money and make your company operationally more effective.

Of course a human being will cost you more. But, in the long run that person will be well worth the additional investment.

Your customers and potential customers do not want to talk to a machine. They do not deserve to talk to a machine. If they have taken the time to call your company, they deserve to talk to a real live human being.

Ensure that they do.

Andy Owen is Managing Director of Andy Owen & Associates, a Strategic Marketing Consultancy, with offices in Birmingham, Dubai, Paris, New York & Los Angeles. He personally visits Dubai every four weeks to work with clients in the area. He can be contacted on 0044 121 778 6640, or by email at andyowen@aol.com en.co.uk