The importance of ‘Customer Connect’?

There is an old adage often used and repeated multiple times in various management classes that it costs 3 times more to attract a new client than to retain an existing one. In today’s competitive world, it could certainly cost a lot more.

In a young growing organisation, retaining customers is even more important as often the customer contributes significantly to your revenues and the loss of one could set you back in your plans as you would not have a large sales team that would be able to quickly replace that loss.

Then, what is the secret to retaining customers? Among other things, I will let you in on what I consider the most important one – Customer Connect

Sure, the basics in terms of quality, timelines, and costs are critical but that ‘X Factor’ is surely the way one connects with the customer. At the end of the day it is all about people and how one manages to gain sufficient mind share.

Why is it important?

Customers are partners in our journey for growth. Staying in touch with the customer regularly will help you understand the customer organisation better leading often to increased penetration for your products and services within the customer organisation.

Customers will help open new doors. A customer to whom you have demonstrated your passion and enthusiasm will often refer you to others and will not shy away from endorsing you leading to new businesses.

Customers will give you the confidence to experiment. If you are looking to expand or diversify your set of offerings, it is always better to start offering those to your existing customers as you have already proven your capabilities and won their confidence.

Customers can provide direction. Whether through a formal feedback process or through the informal interactions, customers always provide those little insights from a different perspective that help you understand your areas of strengths and weaknesses better.

Customer interaction brings better accountability. Especially for a young team, interacting with customer leads to increased levels of accountability as they are more likely to understand the priority and the impact of what they are doing from a customer’s perspective.

The above reasons notwithstanding, one should take or create every opportunity to interact with ones customer to update them on their current running projects. A proactive approach to providing status updates goes a long way in providing confidence that things are running smoothly.

The means and methods could vary with the advent of plenty of new age tools that allow for staying connected to ones customers but at best try and keep it as human as possible. It is probably said best in a recent TV ad of a mobile giant. “Baat Karne se hi toh baat banti hai”. (Things happen when people interact)

HOW TO GET BEST OUT OF SALES TEAM?

Sales is the front-wheel drive that pulls a company forward in the marketplace. But in many companies, top managers are frustrated because the sales process seems to be disconnected from corporate objectives. This presents a serious impediment to management's efforts to achieve their goals effectively.

The process of transforming top management's goals into actionables typically breaks down for one or more of the following reasons:

• Lack of top management clarity about objectives or goals
• Difficulty in translating company objectives into sales plan
• Defining sales plans up to individual sales team members and managerial coaching
• Ambiguity in communicating objectives and business plan to the sales force
• Failure to align incentive and other reward policies with the objectives

Why does this occur so often, and what can management do about it? Actually each of these can be remedied through thoughtful management. There are various stages in sales and hence to achieve the best result, management has to take right steps at all the levels.

• At first, define the core strategy and set the objectives and goals clearly after understaning the market situation and its own growth opportunities
• Breakdown goals into smaller near term shorter goals (yearly plan broken down into quarterly plans etc.)
• Communicate the goals clearly to the sales team, with rationale behind the growth and creating confidence and excitement to participate in the growth. Communication helps in bringing the best involvement and hence higher accountability.
• Define success parameters (when can a sales executive be successful), set expectations, expect and accept feedback
• Set achievable but challenging goals and involve sales executives in the process, this actually helps and motivates them
• Recognise individual strength and areas of improvement and set targets accordingly.
• Tailor rewards and recognition programs according to the individual's performance. To motivate and retain the 'High flyers' they should be provided with customized rewards. However the management should also take care in maintaining internal and external equity

The management should also understand that different people are motivated at different levels depending on individual circumstances. Hence to achieve the best result the companies will have to understand the needs and wants of its resources. There are different types of sales people and hence to get the best out of them, the management should try to understand what will motivate them and then cater the same.

• There are sales people who are highly driven by incentives: Monetary benefits motivate them. To increase the customer base of your company employ them and provide them with the best customized remuneration (these are hunters – new sales, find fresh new business)
• There are sales people who are sensible and emotional and hence they care for their company, products/ services and customers too and hence the management should find these type of people to build brand and a good and strong customer relationship (they can be farmers – account management role)
• There are others, who are high flyers, but money alone can't motivate them and hence to motivate and retain these, the management should go on to acknowledge and recognise their efforts. Recognition in front of everyone motivates them to perform even better.
• There are some sales people who are very extrovert and outgoing, they are fearless and best in communicating and dealing with others, the management here can look for these people and get them involved in dealing with customers or target customers at official meetings or on corporate meets of different companies (more door openers. They impress in the first meeting but lack follow-up)

Hence in this way the management by reconnecting to its sales force and applying the best motivators can enhance the performance and growth of the company. These steps would facilitate in maintaining company's performance and would also help in building harmony among the management and its sales resources.

The Importance of Real Time Sales Data. Who needs it?

Running a successful business requires timely answers to critical questions. Many such questions- for departments can be answered with accurate data if made availbale in a timely manner. In the world of business, specifically sales, real time sales data can be useful functions. Well-managed real time sales data helps in quick decision making, offers transparency and reduces time in reporting resulting in improved productivity for the sales team.

After all, companies face the same questions every month. What's this month's sales number? How are we tracking the number? How confident are we of it's validity? What number do we really think we'll hit? How well can we make business decisions based on this number? But without real-time sales data that's easy to access and analyse, it's increasely difficult to answer these questions. All of this rich and relevant data is only a mouse click away. At the touch of button, real time data can unearth delinquent and deficient activities.

It provides a unified interface that facilitates efficient and convenient access to the latest data among users in a business environment. It cuts away redundancy in information and agonizing waiting periods. Access to information is instantaneous and with gigantic latency.

The data helps sales manager and executives to get a view of their sales organizations, all at a glance. The data is current and relevant, comparative and concise. The posting of regular updates of information, can help the heads of business departments to access inventory and sales information. The purpose of real time data is to provide information which could help in taking further actions. It generates competition between companies and salespeople. You can easily trace products/services that are selling well and keep yourselves updated. You can also idetify slow moving products and look at how they are merchandised. It also helps in identifying most productive sales people as the sales happens.

It is in the interest of sales managers and organizations to recognise that sales data is only and enabler and not an answer. Creating and managing sales data is only a part of bigger picture and should work towards bringing organizational changes. Managed effectively, real time data could be a potent tool in aligning resources with strategy and realizing business initiatives and goals.

Inaccurate sales forecasts can cost companies millions- in terms of expenses, earnings and credibility. That's why, in today's competitive environment, there's no room for planning or forecasting errors. Effective sales data can be a very powerful communication medium and greatly accretive to driving actions. So empower your managers with up-to-the-minute.

How can I connect with my customer better?

In a sluggish economy and highly competitive market, it is extremely crucial to retain your customers. Retention of customers is important for business stability and securing revenues but also to fund new customer acquisition.

Customers, whether they are end users or business-to-business, want to feel they are buying from someone they trust. It is very important to connect with customers in way that will not only sustain your business, but help your business grow. Understanding your customer is essential to effective communications, efficient transactions and establishing a lasting relationship.

It's easy to fragment your customers into various market segments. However, there is value for you when you listen and are actively communicating with customers. Effective communication allows you to have stronger foothold in your industry. The purpose is to create association between your business and your target audience. But you can't wait for the customer to say something. Always ask. Work with your customers to understand areas of your business from their perspective. What are you doing right, what are you not doing right, how can you further improve your offerings, etc. You will find profitable nuggets of wisdom you can improve your service or products to give customers a better experience and this will entice your customers to trust you.

Give personal touch to the service you provide. Offer yourself or staffs as personal customer representatives as often as you can. Personally answer the phone as much as you can. If you have a line of customers needing your attention, address them promptly. These little things can go a long way in connecting with customers.

Keep a database on each customer, what they bought, a few personal notes, their birth dates, and other information that you can note in conversation or mailings. It lets them know you are interested in them as individuals.

Use social media to answer most queries and proactively update your customers, they are times when customers needs live contact. Allowing customer to interact in online chat can give you that customer connection.

Plan some corporate gifts for your customers. These would act as physical representations for your business. This allows the customers to have a lasting impression about your brand. This will make them remember you first when they need your product or service in future.

Practicing ways of effectively communicating and connecting with customers can definitely gain competitive advantage. Keep in touch with your customers all year. This will ensure customer's repeat business as well as making your new customer's loyal.