Customer relationship marketing is powerful in theory, but problematic in practice. We need to take time to figure out how and why we are undermining our best efforts.
Perhaps we are overlooking the fundamental elements of a good customer relationship program. With the means to easily connect with customers, we may be rushing to cash in on the potential rewards, while forgetting the essentials of all relationships: intimacy and trust.
Close examination reveals that relationships between businesses and consumers are suffering. US satisfaction rates are at an all-time low. Complaints, boycotts, and growing discontent with large corporations are strong indicators that most CRM isn’t working.
Ironically, the very steps marketers are taking to build customer relationships are often responsible for destroying these connections. Businesses may delight in learning more about their customers and providing services to please them, but customers are fed up. They’re tired of irrelevant survey questions, overwhelming product choices, features they’ll never use on phone and car plans, and cashback-based shopper rewards programs.
The New Frontier: Internet Mining
With the proliferation of online stores that complement traditional outlets, businesses now have a rich source of information about consumer preferences. Because a brick-and-mortar store may not always have a product on its shelves, purchase results are not always a good measure of desires. Online stores can track consumer demand patterns more accurately as they offer wide ranges of products to national and global customers.
The web is more than a sales channel; it is a powerful means of collecting data in real time. The Internet truly is the new frontier for connecting with the customer, and it offers a tremendous opportunity for businesses to improve customer relationships.
The New Social Marketing: Buzz and Word of Mouth
Where does marketing come into the mix? Some experts say the old days of “push” marketing are over, where a company sent a one-way message to customers through print or television. Corporations are wondering how much ROI there really is in a 30-second Super Bowl commercial.
Consumers turn away from the media and instead tune in to each other. Engagement and word of mouth marketing are the buzzwords of this new era. Customers are doing their market research online and listening to each other. Unfortunately, many marketers continue to view engagement as one-sided.
Corporate blogs have become a great resource for CEOs and others to connect with customers on a personal basis. Despite the potential pitfalls in opening two-way communication between the public and employees, there is much to be gained by being personable, approachable, authentic, and transparent.
Customers already communicate with each other online about products and experiences with your company. If you can join the conversation in a real way, in real time, you will have an advantage over those who remain silent and inaccessible behind corporate doors.
Now there’s finally a way to find out what customers want and a way to connect with them in an authentic way. But there are risks involved in being honest and transparent. Will you and your company take the risk?
