There’s a lot buzz & interest around customer-centricity and CRM but according to a survey done by Strativity Group, many executives in companies really don’t understand the economics behind customer relationships leading to poor understanding, appreciation and execution. Take a look at some findings:
- Over 75% of respondents did not know the cost of a new customer while 81% did not know the cost of a customer complaint.
- 50% of respondents did not know their organization’s annual retention rates.
- 60% of senior executives claim they do not deserve their customers’ loyalty.
- 51% of respondents claim that their company does not deliver unique and beneficial products or services
- 56% agree that their company’s products or services are worth the price they charge.
- 34% affirm that they have the tools and authority to serve their customers.
Strategies fail due to poor execution!
- Basic execution parameters such as frequently visiting customers (34%), providing
the necessary tools and authority to employees (34%), and strongly linking
compensation with service quality (29%) is lacking.
Employee readiness to execute remains a challenge!
- 29% of the respondents indicated that their compensation plan emphasizes quality of service and not just productivity.
- 34% of respondents claim that their employees have the tools and authority to solve customer problems.
- 30% of respondents agreed that their company invests in people more than in technology.
Yet, according to the study, 70% of companies indicate that customer strategies are more important than they were three years ago.
I guess the challenge is to not only to have a customer strategic plan in place but it is also important to align people, processes and right metrics to make it a success.