I recently agreed to administer the client database for a non-profit organization I volunteer for along with managing their email promotions. I wasn’t surprised to find a large number of unidentified client segments in their database. When you have many hands touching a data resource coupled with staff turnover it doesn’t take long for the data to go awry. I was once again reminded of the strategic importance client data management plays in the success of sales and marketing.
An economic downturn like the one we’re in forces all businesses to review their go-to-market strategies. Everyone is looking for better ways to sell and service customers because firms can easily increase profitability by increasing customer retention by as little as 5%. The longer you can retain a client, the more profit you generate from increased purchases, referrals and the reduced costs associated with long-term relationships.
If you’re a business selling to other businesses the first question you have to ask yourself is, “Do you really know your customers?” If you’re like most firms that may not be as easy to answer as a simple yes. Customers are viewed differently by various parts of your organization leading to a multi-dimensional view. Is the customer classified as a person (decision-maker) or the business entity? Are there mutiple parts of that entity from parent to subsidiary?
Without a compreshensive client profile drawn from all parts of your organization you could end up with a narrow strategic perspective – a myopia that affects potential future business. If your customers have multiple touch points within your firm (sales, marketing, customer service, product management) be sure you have a central client data repository everyone feeds, reads and uses. Otherwise you could be missing cross-selling opportunities and opening a backdoor for the competition.
If you’re looking for a strategic business growth solution then look at whether your firm is product/service or client/relationship oriented. Active relationship management shifts the focus from a single slice of the client pie to viewing it as a whole so you can see the entire customer relationship picture. Increase your success in 2010 by reviewing and improving your client information management environment.
Susan Frederick
http://twitter.com/sueafrederick
Tags: customers, Data management, marketing, marketing strategies, marketing tips, small business, smb
