| "One cannot always oblige; one can, however, always | | | | relationships that often ask for simplicity, empathy, |
| speak obligingly..." says Sri Sathya Sai Baba, Indian | | | | credibility and sincerity cease the moment commercial |
| spiritual master, which is an exact explanation for the | | | | returns on investments are discussed. Which is what |
| complex role of corporate communication in modern | | | | communication is all about; communicating to |
| corporations today. | | | | customers, and not with them. |
| The customer, as the old saying goes, is the king! A | | | | Researchers have often argued that to understand |
| king he truly is he believes, that is, till the | | | | brand-customer relationships, it is necessary to |
| not-so-charitable mandarins of marketing let him know | | | | consider what the brand thinks of its customers, more |
| and make him aware, rather painfully for him, that he is | | | | than what the customers think of a brand. Marketers |
| one among the many millions that feel that way, | | | | struggle hard to enhance the satisfaction of customers |
| without actually being that way. However, the same | | | | only to find that they choose their competitors. Why |
| mandarins grudgingly acknowledge that a happy | | | | does this happen? Research has further shown that |
| customer is a brand's success, while a delighted | | | | investments in customer communication, which logically |
| customer is a brand's ambassador. The customer | | | | seems to be the most crucial aspect in a relationship, |
| relationship management paradigm - popularly | | | | has been the most neglected area in most companies. |
| abbreviated as CRM - is built precisely on these pillars. | | | | The argument for this lies in the reality that 65% of all |
| And the customer enjoys a precarious position in this | | | | customer service activities are outsourced to business |
| paradigm. | | | | processing units (BPUs). That means the brand does |
| In the concentrated CRM efforts a company often | | | | not directly handle customer interactions and queries - |
| forgets the basic thing that is the cornerstone of the | | | | unless they are of a certain level, of course. This is |
| concept... relationship! Traditional marketing theories | | | | akin to asking your friend to talk to your representative |
| have always focused on attracting new customers, | | | | about everything that you want to say, including... |
| rather than retaining existing customers. Over the past | | | | affairs of the heart, and speak directly only if it is |
| decade, thanks to intensified competition and greater | | | | something serious! This attitude, in the first instance, is |
| variety of products, this has gradually altered. The | | | | marketing-driven and one-sided. There are also many |
| current flavor of marketing is 'retain' more than 'gain'. | | | | brand loyalty programs, which are being attempted by |
| Because retention leads to growth and growth leads | | | | marketers in isolation without the back up support of |
| to fulfillment. | | | | several other relevant and related strategies. There is |
| In marketing, today, the consumer is treated not as a | | | | a distinctive need for marketers to understand the |
| king but like a mischievous sprite. He is accused - well, | | | | importance of customer communication, and not |
| almost - of making a brand dance to his wishes and | | | | merely look at it from the point of view of PR, |
| whims. While purists tend to argue that brands need | | | | Advertising or other known corporate forms of |
| customers and vice versa, modernists counter it by | | | | communication. |
| saying that customers need a brand, any brand, so | | | | Often corporate communication strategies are |
| long as the brand is his willing genie. This | | | | designed... to work as a bridge between stakeholders, |
| disproportionate balance shapes brand communication | | | | to justify policies and decisions, to deliver business |
| strategies. Positioning per se is no longer a marketer's | | | | strategies, to inform and persuade, and of course to |
| tool but rather as an awkward proposition to grab the | | | | emphasize that the company is committed to putting |
| customer's fancy. Positioning is not brand or product or | | | | customer interests first, almost as an afterthought! |
| benefit or feature-centric anymore; it is | | | | Thus corporate communications is almost always |
| customer-centric. | | | | understood as a process used to build, foster, nurture |
| What is then important to establish a relationship | | | | and extend business relationships with customers. This |
| between a brand and its customer? In order to build a | | | | is unfortunately a bureaucratic understanding, as GE's |
| personal relationship, the brand's personality has to | | | | former CEO Jack Welch says, "Bureaucracies love to |
| come through (Michael C Gray, 2006). It will no longer | | | | focus inward. It's not that they dislike customers; they |
| be brand and customer, but simply 'you' and 'I'... a | | | | just don't find them as interesting as themselves." And |
| collaboration is well-developed leads to 'we', which | | | | the communication reflects it. |
| could be a fulfilling state for a brand and a customer. | | | | In 'Customers Are People: The Human Touch', author |
| Social researchers have always advised marketers | | | | Jon McKean states that in competitive markets, where |
| that people prefer to do business with people, not | | | | customers have a choice between similar products |
| institutions or brands. This implies that corporate | | | | and pricing, "70% percent of customer decision-making |
| communication has to be the link that helps to build and | | | | is based on how customers are treated." "Yet," |
| maintain a healthy relationship between both | | | | McKean adds, "Over 80 per cent of customer |
| stakeholders. Technically there can be several types | | | | initiatives are focused on 'selling to customers better' |
| of regular communication: newsletters, fax messages, | | | | through superior products, prices and promotions, than |
| voice broadcasts, blogs, sales letters, emails and more. | | | | in investing more resources in treating customers |
| Communication with customers reflects the following | | | | better..." How best can a person be treated? By simply |
| aspects of a relationship.o Strong cultureo Favorable | | | | being talked to in a better manner. |
| identityo Coherent philosophyo Genuine sense of | | | | The question staring squarely on the faces of |
| camaraderie | | | | companies is: "How to make a customer loyal?" When |
| It may not be instant gratification or affection but | | | | companies talk of relationships where customers have |
| effective corporate communication establishes an | | | | real choices, they are honestly trying to be the best |
| appropriate and professional relationship with the | | | | suitor to the customer, 'as the customer sees it', and |
| customer, including quick, responsible channels of | | | | not 'as they want the customer to see it'. Reichheld |
| two-way communication. Corporate Communication is | | | | and other loyalty experts have studied this issue for |
| all about managing perceptions and ensuring that with | | | | years and have concluded that relationships are driven |
| effective and timely dissemination of information a | | | | by the behaviour and perception of customers of the |
| positive corporate image is created that ensures a | | | | value of the relationship that exists between the brand |
| smooth and affirmative relationship with all customers, | | | | and himself, which is the net result of what economic |
| at all times. | | | | and psychological value the customer receives from |
| Be it a corporate body, company, research institution, | | | | the brand. |
| non-governmental organisation, PSU, all of them need | | | | According to psychologists customers' emotional |
| to have a respectable image and reputation in the | | | | states influence about 50 percent of the value they |
| eyes of the customer. In today's day and age of | | | | perceive from their purchases. Jim Barnes, author of |
| increasing competition, easy access to information and | | | | 'Secrets of Customer Relationship Management: It's All |
| media explosion - reputation management has gained | | | | About How You Make Them Feel', sums it up by |
| even greater importance. So, corporate | | | | saying, "Value is created every time a customer is |
| communications as a role has become significant and | | | | made to feel welcome, important and valued." |
| professional in nature while dealing with customers. | | | | After reasonably agreeing to the fact that the |
| Gone are the days when corporate communications | | | | important aspects in CRM are relationship and how |
| merely meant 'wining and dining the client'; it has now | | | | customers, on account of their distinct behaviour and |
| emerged as a science and art of perception | | | | personality, differently and uniquely perceive a |
| management. The concept of managing relationships | | | | relationship, it is also imperative to stress on the point |
| with customers is as old as trade itself, but the focus | | | | that corporate communication is the prime driver of |
| has always been to sell products and services (Kotler, | | | | any relationship. As the leading Indian telecom brand |
| Philip, Introduction to Marketing Principles). Competition, | | | | AirTel shows in its advertisements, communication is all |
| driven by globalization and the Internet, has changed | | | | about expressing oneself. |
| the face of business. Customers now have a variety | | | | A brand identity is shaped by a collective interactive |
| of choices and, most importantly, they are becoming | | | | experience of customers, product, policy, and strategy. |
| far more knowledgeable and demanding. The power | | | | Which is why developing a brand-customer relationship |
| has truly shifted to the customer. With this scenario, | | | | is important. The choice is simple: either a brand makes |
| most companies realize that they need to treat their | | | | a customer experience or it gets created despite the |
| customers with more care. | | | | brand. To create a successful relationship, the brand |
| Companies are now desperately searching for | | | | must develop a compelling identity with the customer |
| different ways to manage their relationships | | | | and have a genuine value proposition. The brand must |
| effectively, not only to acquire new customers, but | | | | rely on customer perspective, appreciate the viewpoint |
| also to retain the existing ones. According to a | | | | and have the ability to communicate appropriately. A |
| Harvard Business Review Study by Reicheld & | | | | common pitfall for many brands is that they do not |
| Sasser, some companies can boost their profits by | | | | take the time to think about how they should articulate |
| almost 100% by retaining just 5% or more of their | | | | the brand identity. Needless to say, a successful brand |
| existing customers. | | | | strategy is incomplete without a sound communications |
| Customers express their satisfaction in many ways. | | | | strategy. The organization must be aligned in ways |
| When they are satisfied, they mostly say nothing but | | | | that anticipate and fulfill customers' emotional |
| return again, and again, to buy or use more. Measuring | | | | expectations at every touch point to create meaningful |
| satisfaction is only half the story. It is also necessary to | | | | relationships and lasting competitive advantage. |
| determine customers' expectations or the importance | | | | Successful customer communication clearly highlights |
| they attach to different overtures of a brand, | | | | the brand's functional, emotional, and self-expressive |
| otherwise resources could be spent raising satisfaction | | | | benefits, as the customer would like to see. It is |
| levels of things that do not matter. The measurement | | | | delivered in a way that is superior or unique when |
| of expectations or importance is more difficult than the | | | | compared to competitors. Customer experience is |
| measurement of satisfaction. Many people do not | | | | shaped by a series of interactions with an organization. |
| know or cannot admit, even to themselves, what is | | | | According to Jonathan Hardcastle, barriers to effective |
| important. | | | | communication such as frames of reference, value |
| Consumers do not spend their time rationalizing why | | | | judgments, selective listening, filtering and distrust (all |
| they do things, their views change and they may not | | | | between sender and receiver) complicate the |
| be able to easily communicate or admit to the | | | | communication systems and messages. However, |
| complex issues in the buying argument. A customer | | | | these can be overcome by sending clear, complete, |
| satisfaction index is a snapshot at a point in time. | | | | and specific messages, which are to put it rather |
| People's views change continuously and the | | | | romantically, 'straight from the heart'. Demonstrating |
| performance of companies in delivering customer | | | | love and affection, clarifying intentions, being reliable |
| satisfaction is also changing. Measuring satisfaction | | | | and dynamic can enhance credibility, exhibiting warmth |
| must be a continuous process. (Paul & Nick | | | | and friendliness, and building a positive image. Soliciting |
| Hague, White paper on Customer Satisfaction | | | | and providing specific feedback can also enhance |
| Surveys, B2B International Ltd.) | | | | communication effectiveness between partners, which |
| Even when experts discuss CRM, the discussion is | | | | is what brands should consider customers as. |
| almost always from the point of view of marketing, | | | | One of the most important consumer satisfaction |
| sales and business development. Seldom is CRM | | | | elements is the ability to ask questions and being able |
| looked upon as a 'goal' that every organization should | | | | to receive appropriately satisfying answers from the |
| actively pursue. Often it is looked upon as a tool that | | | | brand's representatives. Gaining information, uncovering |
| every organisation could use. The differences are | | | | motives, giving incentives, obtaining participation, |
| plenty. And CRM is not an IT function. CRM is more | | | | checking understanding, initiating the thinking process, |
| often a function of communication, by the company | | | | inducing agreements, and refocusing attention, are all |
| directly, through an intermediary such as a PR agency | | | | essential components of an effective consumer |
| or simply through the media. | | | | communication plan, says Hardcastle. Thus, the active |
| Successful CRM practices is not about statistics, data | | | | listening skills of a brand help to build rapport with |
| warehousing or loyalty programs, rather it is about | | | | customers that is both intimate and empathetic. |
| competing in the relationship dimension-not as an | | | | The other most important aspect is the subtle |
| alternative to having a competitive product or | | | | non-verbal communication of a brand and the |
| reasonable price-but acting as a differentiator in terms | | | | customers, that is useful both in reading the underlying |
| of 'feelings for the customer', however abstractly - and | | | | emotions and attitudes of customers, while reinforcing |
| sometimes absurdly - romantic that may sound. If | | | | a brand's verbal messages. Understanding subtle |
| brands can get an edge based on how customers | | | | communication can enhance the brand-customer |
| feel about the brand, it's a much more sustainable | | | | relationship. |
| relationship in the long run. This feeling for a brand, as | | | | Coupled with this are improving standards of |
| brand theorists prefer to call it is directly proportional to | | | | technology and devices that add an edge to the |
| the communication efforts, written words and spoken | | | | communication process. Unfortunately |
| sentences, that emanate from a company. | | | | over-dependence on technology and automation has |
| Link it to the corporate communication strategy and | | | | had an adverse impact on customer relationship. While |
| you will have a direct connect between the company | | | | on one hand brands talk of a relationship - a concept |
| and its customer. The critical dimension of any CRM | | | | normally associated with living things largely and human |
| practice is the relationship that a brand shares with its | | | | beings in particular - on the other hand the overuse of |
| customers. Using the word customer itself may sound | | | | technology has led to a dissociation that has taken the |
| a trifle improper here because 'customer' implies that | | | | customer and brand away from each other. This |
| the person is 'outside' a relationship. And any | | | | dichotomous situation has to be recognised by the |
| relationship is expressed and nurtured by | | | | brand as well as the customer, for communication is all |
| communication. | | | | about power positions, and it is important to understand |
| Almost always marketers try to understand a | | | | that in a relationship the power positions are on an |
| customer from the marketing perspective, as people | | | | even keel. |
| who have to be 'given' something to retain their loyalty. | | | | Concluding, due to the growing complexity and |
| This naturally places them on a moral (and | | | | turbulence of the business environment and the related |
| commercial) pedestal that enables them to look down | | | | growth in research knowledge about customer |
| upon hapless customers as beneficiaries of their | | | | behavior patterns, managers of the 21st century have |
| largess. In communication parlance this signifies up and | | | | to take four themes as paramount; the necessity of |
| down power positions. And in a relationship between | | | | managing the challenges of change; functioning within a |
| equals the power position is not hierarchical. | | | | global environment; being sensitive to the diversity |
| Sometimes the anachronistic social mindset refuses to | | | | among people; and behaving with ethical integrity. |
| place the customer on even keel with a brand - and | | | | The final ingredient that binds a customer to your |
| vice versa - painting him as a king, or as an | | | | brand in a lasting relationship is dialogue. Your |
| unrealistically greedy pauper. | | | | company's brand isn't a monolithic, hermetic face that |
| CRM is a simple process, because establishing a | | | | the organization presents to the world. Rather, it's an |
| relationship is simple. Nowhere is understanding more | | | | ongoing exchange where you listen carefully to your |
| profound than when it comes to human emotions... but | | | | customers, understand what they say, and respond by |
| surprisingly the very same human emotions have been | | | | modifying your value proposition and extending your |
| overlooked by companies while interacting with their | | | | businesses appropriately to fulfil customers' desires. |
| customers. | | | | You exist because of the customer. This selflessness |
| What is a relationship? When is there a relationship | | | | is the cornerstone to successful CRM. |
| between two entities? What is the role of corporate | | | | Therefore any corporate communication effort should |
| communications in establishing, maintaining and fulfilling | | | | focus broadly on three aspects: understanding |
| such relationships? Relationship could simply mean to | | | | relationships, understanding the distinct behaviour of |
| be a particular type of connection existing between | | | | consumers to relationship overtures and understanding |
| people related to with each other biologically or | | | | (and establishing) the role of communication in |
| emotionally and having social or economic dealings with | | | | effective and enduring customer relationships. |
| each other. Unfortunately all pretenses of dealing with | | | | |