Building Customer Relationships

Posted by Staff Writer on Monday, June 29, 2009 at 12:31pm.

Customer Experience Management or CEM and problem solving are the newest techniques to creating a positive experience for every customer, managing expectations and generating repeat business. These techniques are “secret weapons” in marketing that work as well in Nairobi as they do in London or New York.

CEM is often confused with its predecessor, CRM or Customer Relationship Management – but the two are very different. Small and mid-sized businesses need a CEM system that combines both types of features. Very large companies may want to keep the two functions separate.

CRM first emerged more than 25 years ago as basic software to store customer contact information, preferences and buying habits. In the past five years, CEM has been added to the mix, taking the CRM process one step further.

Customer Experience Management software includes features that help manage the customer’s experience from the first contact to the repeat sales. It may include problem-solving components that record customer complaints and track them to resolution. According to Abdullah Aduol, a business consultant in Nairobi, CRM is mostly used by the sales department to track the sales process and prospect for new clients. CEM is used by all departments within a company to monitor performance, solve problems and facilitate communication.

The goals of CEM are to:
• Improve customer satisfaction
• Generate increased revenue through repeat sales
• Garner customer loyalty
• Make marketing more effective by tracking which techniques work
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Both CRM and CEM can be used to cross-sell additional products or market to new clients.

One of the main features of CEM software is surveys, usually online surveys. By asking customers about their experiences – good and bad – the entrepreneur can learn what areas are performing well, and what areas need improvement. While online surveys are popular, any method of gathering feedback from customers can be used for an effective CEM system.

Many small businesses use a consultant or third party to conduct surveys and gather information on performance. Customers may speak more openly about the flaws or service faux pas, when talking to someone who is not directly responsible for them. If information gathering is done in house, it is important to listen carefully and not be defensive.
Tracking changes is another important part of CEM. It is not enough to identify problems and implement a solution. The business owner must follow through to be certain that the efforts are successful.

Problem solving is a critical component of building long-lasting, mutually beneficial customer relationships. “When a customer has a problem, that is not the end of the business relationship,” says Aduol. “In many ways, that is the beginning of building an enduring relationship.”

However, such business relationships require work. The basic steps to problem solving include:
• Listen
• Ask open-ended questions to gather facts
• Apologize
• Offer the customer a choice of solutions

Listen
It is important to listen to the customer’s concerns. This can be very difficult, because usually entrepreneurs believe in their product 100% and don’t want to hear anything negative. But constructive criticism helps business owners grow and improve their products. They identify issues that need to be resolved, and uncover the potential for more sales.

Ask Questions
It is always hard to listen to a customer complain – and even harder when the complaints are justified. Open-ended questions that permit the customer to vent his or her frustration are best. Usually, after several questions, the customer will begin to wind down, and become less talkative. This is an excellent opportunity to move to the next step.

Apologize
Many entrepreneurs have trouble with this step, but a sincere, detailed apology is necessary. Admitting that something went wrong, that the result was unacceptable, and accepting blame is a key step in winning back the customer’s confidence.

Offer a Choice of Solutions
Use psychology by offering the customer two or three solutions, and letting the customer choose between them. If a customer buys a defective product, you may offer a choice between an immediate replacement, a refund or a discount on an upgraded product. It doesn’t matter which option the customer chooses – he or she will be happier than if you only offered one solution.

Using a good CEM system and effective problem solving will enable you to build enduring relationships with customers.