Tio Nakasole
Every firm today is driven by the desire to be customer-centric.
The top executives are busy establishing and renewing their vision, mission and logo, as well as setting values that may bring the customer into the heart of the business.
The application of customer relationship management (CRM) technology has become rampant in the modern age when it comes to the transformation of how products, services and retention of customers.
The banking industry has implemented and cemented the use of CRM very wide, which they take to another level of customer service. Every firm may try to satisfy each and every customer but a few retain them.
What matters most
In general, CRM is the epicentre when it comes to a business strategy that integrates internal functions and external networks to create and deliver value to targeted customers.
For the CRM to work effectively for the company, there are certain dimensions of analysis that underpinned its operation.
Firstly, are the customers targeted by the offer?
Secondly, is there a relative priority of the customer and the level of service to be offered – and lastly, the sales focus effort.
Therefore, CRM has become a means of addressing increasing competition, changing economic conditions and promotional dependence through the application of intimate customer knowledge, the knowledge gained from relationship development and past customer service experience.
In general, CRM is a mechanism that must be championed by each and every firm, as it is the lever in perfecting relationships to maximise a customer’s value over time.
Service benchmarking and human capital development
In today’s world, firms are currently in a competition that differentiates themselves in the marketplace by offering a “service guarantee”.
In the business sense, it sounds common but few practise it.
Unlike a product warrantee that promises to repair or replace the faulty item, when it comes to service guarantees, it typically offers the dissatisfied customer a refund, a contract, a discount and free service on very comprehensive terms and conditions.
Firms such as Singapore Airlines have a reputation for outstanding cabin service and FedEx for consistent overnight delivery.
All in all, this form of approach created a culture of quality service in itself, which is anchored by reliability, responsiveness, empathy, tangibles, education and internal training, people management, problem-solving and good communication skills.
The cul-de-sac syndrome and profligacy
In all international business, everyone makes errors. It is when those errors are repeated that it becomes a mistake. Without applying any bibliometric analysis to developing countries when it comes to CRM, more firms are grappling with CRM.
On 11 February 2021, a shock wave permeated locally and internationally when the government of Namibia announced the immediate shutdown and liquidation of Air Namibia.
Eskom was introduced in 1923 in South Africa by Act No. 42 of 1992, mandated to deliver cheap electricity. In the absence of proper CRM in place it has been battling to satisfy the rampant demand for electricity throughout the country, where load shedding has become now a breakfast in the desert to dwellers.
Only in Africa do you have a monopoly company (a firm without any competitor) that is getting liquidated or bailed out. Of course, without a proper CRM system in place, you will never see this coming but you will be caught off guard without any remedial solution.
Things such as inconsistency cause customer frustration, longer calls, higher customer service costs, customer service representative frustration and a loss of cross-selling opportunities.
The solution to this phenomenon may be omni-fold since most of the firms are incapacitated, maladministrated and lack wherewithal.
In the same vein, green hydrogen in Namibia has become topical in recent days with all-sided multi-investor interest.
To avoid nexus tragedy, the relationship to be offered does not have to be perfect every day, but past errors should at least be the learning curve of all imperfections.
The business success of CRM is directly associated with each organisation’s ability when it comes to capturing the customer’s information, informing the customer about their services and products, and using that information to satisfy consumers’ needs in perpetuity.
It is a must and not an option for each business to have an all-encompassing database to support their constant interaction with their customers, and understand that customer relationship management is not a peripheral activity but an integral part of the society where they are operating.
* Tio Nakasole is a final MBA student at Nust and an Economics Honours Degree holder. He is currently serving as the sales and service manager at HiFi Corporation Namibia. The views expressed do not represent those of his employer. –theoerastus@gmail.com