Customer Management: How to do it successfully

Customer Management: How to do it successfully

A good relationship with your customers is today the keystone to lastingly bind your customers to your company. After all, the competition never sleeps and is only a click away. For you to be successful, good customer management is necessary. What makes good customer management?

What is Customer Management?

Customer management is the taking of targeted measures to improve customer orientation in a company. The focus is on systematically improving customer satisfaction, building customer loyalty and increasing customer value. Customer management is often used synonymously with customer relationship management. By this is meant the complete orientation of a company towards the needs of its customers. In customer management, software solutions such as CRM systems are often used, which facilitate the administration of customer data and business relationships.

Why is customer management important?

After employees, customers are a company’s most important asset. After all, they decide the economic success of your business. With the complete alignment of your products and service with the needs of your customers, you can increase the success of your business. Plus, it’s much cheaper to persuade existing customers to make another purchase than it is to acquire new customers. With good customer management, you ensure that you exploit the sales potential of existing customers and reduce your selling costs. This way you ensure the constant growth of your business.

The four Cs of customer management

Customer management can be divided into four areas: customer focus, customer retention, customer satisfaction, and customer value.

A strong customer focus leads to higher customer satisfaction. A high level of customer satisfaction strengthens customer loyalty. A high level of customer retention increases long-term customer value. Higher customer value in turn leads to increased sales in your business.

1. Customer orientation

The basis of successful customer management is targeted customer orientation. This means that the customer is at the center of all business activities and decisions. To put your customers in the spotlight, you need to know their needs and wants. The easiest way to find out is to perform a customer analysis. The prerequisite for this is access to all important customer data and information about your customers, for example via a CRM system. After a successful customer analysis, you can adapt your offers to your respective customers.

2. Customer satisfaction

If your customers are satisfied, they will continue to buy from you in the future and recommend your business to others. That’s why it’s important to meet the needs of your customers. The more you meet or, at best, exceed your customers’ expectations, the higher the customer satisfaction. Good communication is crucial for this. For example, you can use customer surveys to identify potential problems at an early stage and take active steps to resolve them. Good customer management includes well-thought-out complaints handling.

3. Customer loyalty

Retention is all about encouraging your new customers to make more purchases and building long-term loyalty. The objective is to expand your usual clientele and prevent it from migrating to a competitor. This also includes reactivating inactive or old customers with targeted campaigns. Customer loyalty can be legal, for example via contracts, technical via professional expertise or psychological via an emotional bond.

4. Customer value

Finally, the goal of successful customer management is to increase customer value.

What is customer value?

Customer lifetime value describes the average value that a customer brings to a business over the long-term customer relationship.

Individual customers have different customer values. The calculation is used to differentiate and segment your customers. If you know the respective value, you can focus on your profitable customers. With successful customer management, you can better allocate your resources and pay more attention to the right customers.

What do you need for successful customer management?

data gathering

The basic requirement for professional customer management is the central collection and availability of your customer data. You can save previous orders and all customer information via a CRM system, for example, and view them anytime and from anywhere.

data quality

Besides the availability of your data, its quality is also crucial. Incomplete, outdated or incorrect data leads to dissatisfied customers. For example, if an outdated address is used in online shipping, the result is a poor customer experience. Even marketing campaigns cannot be executed properly if there are incorrect data records.

Consistent sales process

In order for your customers to feel well taken care of and for you to develop a relationship with your customers, it is important that you have a consistent process for your customer support. Who is responsible for which customer? Where in the customer journey is the customer and what information do they need? A structured sales process allows you to better focus on your potential leads and allows you to work more productively. If you map your sales process in the CRM system, each employee can see the current status of the customer at all times, such as previous phone calls, emails, responsibilities, contracts and the current sales phase.

data analysis and forecasting

Good customer management not only includes a 360 degree view of your customers, but also comprehensive analytics and sales and sales forecasts. You can view customer analyzes and forecasts directly in the system via a CRM system. Thanks to the graphical presentation, you can see current developments at a glance and react quickly to changes.

claims management

Professional customer management also includes the timely and structured handling of complaints or incoming complaints. A CRM system with appropriate service functionalities can also be useful here. You can respond quickly and efficiently using a support ticket system with automatic pre-qualification and categorization of service requests. Use the complaints received to identify potential for improvement and optimize the product.

What are the benefits of customer management?

  • Client orientation : With customer management, you put your customers at the center of all business activities and create customer orientation.
  • Development and stabilization of the customer relationship: With the right customer management you always have an eye on all developments and can build long-term customer relationships
  • Increase in customer loyalty: If your customers feel that they are in good hands and taken care of, this prevents them from leaving for the competition.
  • Sales increase : Professional customer management with well-thought-out customer segmentation also increases your long-term sales and reduces your selling costs.

Conclusion: Customer management as the starting point for a long-term customer relationship

Today, customer management encompasses much more than just managing customer data. Data quality, analysis and structured processes are crucial for good customer orientation. If the factors and customer management are correct, long-term customer relationships can be established and customer value increased. A CRM system offers you all the prerequisites for successful customer management.

Leave a Comment

Your email address will not be published.