APRIL 2009: In this issue...

I’ve done it. I Twitter. I entertain myself with the idea that the people following my tweets are not, in fact, twits, but executives who might be interested in my views on marketing. It could be that people are following me in order to see how much of a twit I am in my tweeting. But the reality is that I felt like a loser without an understanding of Twitter. I didn’t create a second Liz in second life, and I even resisted creating a MySpace page. So why Twitter? Why engage in these bite size updates? Because I could connect quickly, engage simply and stay in touch at my leisure. I could leverage tweets to get people talking, get followers thinking, or ask for insights to help me think. It's instant. It’s global. And it’s easy.

As I embark on my new Twitter-life, I have started to see a glimpse of what I am sure will amplify over 2009: Twitter as a sales channel.

There are those companies who use the tool to remind people they should be spending money (a danger I have learned thanks to following the Nordstrom stream) and those that update continuously (satisfying my constant need to know the Stanley Cup playoff scores). But there are also those that answer customer questions, like the internet service giant Zappos.com.

No matter where you fall on this social media landscape—information, promotion or sheer self indulgence—one thing is clear: there’s a LOT of tweeting going on. And that has to be good for sales and marketing. There is an opportunity to create loyal advocates, so moved and impressed by superior service that they will tweet lovely things about your brand. There is an opportunity to update and continuously inform users, improve customer experience, and glean important tid-bits of information that can help flesh out a holistic view of the customer.

There is also the chance of over-saturating the market with nonsense.

So, my advice for those with a quick Twitter-finger: be careful when tweeting the company tweet. If you are going to start posting, be sure you are sending the right 140 characters. Make sure you are engaging, responding and inviting conversation. After all, the same is true in the Twitter world and in the real world—people want to hear what you are saying...but they also want to be heard. Don’t let Twitter get you into one-way dialogues (namely, you spewing and customers following). Rather, let it get you tiny in-roads with customers, so that the next time you log on, glowing reviews are packing your inbox and you have leveraged another advocacy-building loyalty channel.

Until next time,

Liz Miller
Vice President
CMO Council
lmiller@cmocouncil.org
www.twitter.com/lizkmiller

Increasing Client Loyalty Without Spending a Dime

By Andrea R. Nierenberg for ManageSmarter

Whether it is your external or internal clients, you must consistently think of increasing the loyalty factor if you're business is going to thrive. So when times are tough—and the engagement of these groups becomes even more critical to your bottom line—grasp the opportunity to develop a model to maintain the consistency of your relationship-building strategies.

1. Start off by taking an inventory of these people and their needs. What do they expect of you, and how do they arrive at these expectations? Then start acting to become a solution.

2. Be someone they enjoy working with. This is the time to tune up your best attitude and realize that we need to continue to be flexible. One-size does not fit all and we need to flex our own styles as we work with our clients and internal "clients" and colleagues.

3. Stay in touch with them via their preferred method of communication. Figure out a time log that works and reach out to them with ideas, interests and just to "stay in touch."

4. Ask their advice and feedback on how to do things better or with any products or services you provide.

5. Think strategically and help them find ways to do their work better and more effectively.

6. Do something that is "out of the box." Find ways to surprise them with things that you know will interest them. Do your homework. Sometimes, just by truly listening, you will learn so much about them.

7. Stay on their radar with both high-tech and low-tech touches.

8. Be dependable and reliable and let them know that if they need you at any time, you will be available. (People rarely, if ever, call people on their private time; yet sometimes just knowing you can makes a big difference.)

9. Show your appreciation for anything they have offered you—even a complaint. They are giving you a buying signal for the future and they deserve being thanked.

10.Make sure you know what the competition is up to and keep on top of it. You need this as part of your arsenal. When times are better and they are ready to buy, whom will they think of? You.

Read the full article from ManageSmarter

Retention Strategies are Essential in Tough Times

From MarketingWeb

While the big brands bombarded the market with all measure of creative customer acquisition campaigns during the boom times, few paid enough attention to keeping their existing clients satisfied and coming back for more. With the honeymoon over and marketing budgets slashed as the global recession deepens, many are now realizing the true value of an existing, loyal client.

This is according to Ian Geary, Managing Director and founder of Computer Facilities, one of South Africa's leading specialist direct marketing bureaus and a founder member of the Direct Marketing Association of South Africa.

"If you had to analyze how many customers you have lost in the last 12 months, chances are the figures are between 10% - 40%. They have left you and will never return, either because of poor service, lack of delivery, or simply a better deal elsewhere.

"Customer retention is a highly cost effective and profitable strategy. In fact in our current business environment it is crucial if one considers the rule of thumb that 80% of your sales come from 20% of your customers. When one analyses the cost of a lost client and the further costs to recoup another, the case for sound retention strategy becomes even more compelling," says Geary.

Many companies measure their marketing campaign success by the number of new client acquisitions, signed contracts and the subsequent value of these to the company. "Very few invest the same amount of effort and research into their calculations to make them truly relevant and accurate by factoring in the number of clients who have defaulted elsewhere and the total cost of each lost client to the company," he says.

With these statistics, an astute marketer would be asking why most marketing and sales campaigns are only designed for the new customer.

One just has to look at the deals currently on offer from the mobile phone providers or the telecommunications companies. If you sign a new contract you are given a large rebate, free handset, hands-free kit and more - all in a mad dash to outbid their competitors for the sweetest offer. If you are an existing customer you have the privilege of paying full price. When last have you seen a great customer retention campaign that rewards customers for their continued business and support?

"Statistics have proven time and again that it is at least five times more profitable to invest your marketing spend in retaining existing customers than it is to acquire new customers. While we are not by any means advocating that acquisition is put on the back burner - indeed it is crucial to the future and continued growth of any business - it is vital that a balance is found between acquisition and retention and to ensure that customer defections are not offsetting acquisitions," says Geary.

Read the full article at MarketingWeb »

Service Is the New Sales

By Pam Baker for InsideCRM

While it’s no secret that companies must make the most out of existing customers in order to prosper in this economy, some businesses are unaware of how helpful CRM is in doing so, especially during routine service calls. “CRM allows service professionals to ensure consistent service offerings, pricing, discounts and terms across a range of related service contracts,” said RunE2E CEO John Brasch. “Agents can let customers know about offers that they may not be aware of — turning a simple service request into a sale.”

But cross-selling and upselling are not the only ways to net new sales through service requests.“Service warranty revenue optimization is a common benefit of service-related CRM,” explained Brasch. “In-house agents can receive alerts when a customer’s service contract is about to expire and engage in proactive outreach to ensure appropriate renewal.”

Successfully tapping into this potential gold mine begins with understanding what CRM really is. “Adopting a CRM philosophy is not just about buying CRM software. It enables your entire work force to recognize new opportunities and ways to better service your current client base,” said Matthew Petrosky, president of Shore Resolutions, a CRM, SEO and Web consulting group. “When every person in your company has access to information about your customers’ previous purchases, their pain points and even what sports teams they like, each employee can be part of the inside sales team and help build long-term relationships.”

It is vital to ensure this data is pulled together in a highly useable way. “It is important to remember that at the core of an effective CRM program is a cross-functional aggregation of a 360-degree view of the customer,” said Liz Miller, vice president of The Chief Marketing Officer (CMO) Council.

Why is this important? “When an individual customer calls, the customer service rep, sales rep or the person who happened to pick up the phone — depending on your company size — knows exactly how to engage, and if there are any opportunities to cross sell and upsell,” said Miller.

However, the data is worthless unless it is used proactively when interacting with customers. “Don’t forget the basics … Listen, listen, listen,” advised Georgianna Crosby, principal with Customer Value Partners.

Crosby said there are three distinct ways to listen and that each is equally important in netting sales from service encounters:

1. Listen to what your customer isn't saying. Don’t just service the request. Listen to what the real pain point is by asking the right questions. So often, the representative responding to a customer's request for service simply answers the question at hand and never takes into consideration what is driving the request. By simply asking for more information — “What pain is this issue causing you? Can I help you with another issue? How will resolution help you?” — you may uncover an opportunity to provide additional services.

2. Listen to your data. Ensure that CSRs (customer service representatives) have access to data about each customer to whom he or she is responding. CRM systems provide a lot of data on customers — but not necessarily in a manner that is meaningful to the CSR. Plan for the opportunity by providing valuable customer profiles with the data that has been captured; then the CSR can then determine what up-sell and cross-sell opportunities may be appropriate for the customer.

3. Listen to the voice of your customer. Leverage your customer satisfaction feedback data to identify opportunities to improve your business processes. Identify real or even perceived pain points by customers and determine what obstacles may have originally kept them from purchasing additional products and/or services — and remove the obstacles.

With the proper CRM tools in place, your service team can successfully double as a sales team.