3.

ESTIMATE CUSTOMER ACQUISITION

AND RETENTION COSTS

USING THE CLV, THE TOTAL COSTS FOR

ACQUIRING OR RETAINING A CUSTOMER
CAN BE CALCULATED AND DETERMINED.
THE CLV CAN ALSO BE A GUIDE IN SLECTIVE
PRODUCT DISCOUNTING.
 4. DEVELOP & IMPLEMENT A CUSTOMER
SERVICE TRAINING PROGRAM
THE CUSTOMERS ARE THE LIFEBLOOD OF ANY
BUSINESS. THIS MAKES CUSTOMER SERVICE
CRITICALLY IMPORTANT. CUSTOMERS EXPECT TO GET
WHAT THEY PAY FOR. SATISFACTION IS KEY.

KEEPING THE CUSTOMER SATISFIED SHOULD BE THE

GOAL OF THE COMPANY BECAUSE THIS MAKES
CUSTOMERS PURCHASE OVER AND OVER AGAIN.
 A CUSTOMER SERVICE SKILLS CAN HELP
THE EMPLOYEES ESTABLISH A CUSTOMER-
DRIVEN BEHAVIOR. IMPLEMENTING A
TRAINING PROGRAM THAT COMMITS THE
ENTIRE ORGANIZATION TO CUSTOMER
RELATIONSHIP MANAGEMENT (CRM) CAN
MAKE EVERY FUNCTIONAL DEPARTMENT
UNDERSTAND THEIR VITAL ROLE AND DEVELOP
SIGINIFICANT CRM SKILLS SUCH AS LISTENING
SKILLS, CONFLICT RESOLUTION, CUSTOMER
NEEDS ANTCIPATION AND EMPATHY AMONG
OTHERS.
 5. EMPOWER SALESPERSONS TO MAKE
DECISIONS
THE SALESPEOPLE IS THE ONE RESPONSIBLE FOR
SEALING THE DEAL WITH A CUSTOMER. A
SALESPERSON SHOULD BE EMPOWERED TO MAKE
INSTANTANEOUS DECISION WHILE WITH A
CUSTOMER OR POTENTIAL CUSTOMER.

SETTING THE PARAMETERS FOR SALESPEOPLE AND

EMPOWERING THEM TO ADDRESS CUSTOMER
PROBLEMS WOULD RESULT TO A BETTER CUSTOMER
RELATIONSHIP OUTCOMES.
 6. ESTABLISH COMMUNICATION LINES
BETWEEN YOUR CUSTOMER & CUSTOMER
CONTACT STAFF
COMMUNICATION IS ESSENTIAL FOR CRM
STRATEGIES. PERSONALIZE & HUMANIZE THE
BUSINESS AND ITS ATMOSHPERE. MAKE SURE TO
REQUIRE THE SALES CONTACT PERSONNEL TO
INTRODUCE THEMSELVES TO CUSTOMERS.
CUSTOMERS PREFER LIVING AND BREATHING SALES
PEOPLE OVER COLD AND IMPERSONAL
ORGANIZATIONS.
 7. SHOP YOUR COMPETITION

KEEP TRACK OF WHAT COMPETITORS ARE

DOING IN THE AREA OF CUSTOMER
SERVICE. ADOPT THEIR GOOD PRACTICES
TO STAY AHEAD OF THE GAME.
8. KEEP INNOVATING CUSTOMER SERVICE
NEVER BE SATISFIED WITH THE LEVEL OF YOUR
SERVICE. TRY TO DISCOVER HOW THE ORGANIZATION
CAN MAKE THE EXPERIENCE OF CUSTOMERS BETTER.
KEEP CUSTOMER SERVICE COSTS IN CHECK BY
OCCASIONALLY DOING COST-BENEFIT ANALYSIS OR
THE APPROACH OF ESTIMATING THE STRENGTHS AND
WEAKNESSES OF ALTERNATIVES OF SATISFY
TRANSACTIONS FOR A BUSINESS.
 9. PROMOTE GENUINE CUSTOMER
SERVICE WITH PASSION
CUSTOMERS CAN EASILY DISCERN IF CUSTOMER
SERVICE IS INSINCERE. CUSTOMER CONTACT
PERSONNEL MUST INTERNALIZE THAT THE CUSTOMER
IS THE ACTUAL SOURCE OF THEIR LIVELIHOOD.
 EXERCISE QUESTIONS
1. WHY DOES IT SEEM THAT ONLY HIGH-END RETAILERS PRACTICE
SUPERIOR CUSTOMER SERVICE? IS IT POSSIBLE FOR LOW TO
MEDIUM-END RETAILERS TO GIVE SUPERIOR CUSTOMER SERVICE?
EXPLAIN AND GIVE SOME EXAMPLES FOR YOUR ANSWER.