?One can not always oblige, one can, however, always speak obligingly ?? says Sri Sathya Sai Baba, Indian spiritual master, modern Which is to exact explanation for the complex role of corporate communication in corporations today.
The customer, as the old saying goes, is the king! A king he truly is he believes, that is, till the not-so-charitable mandarins of marketing let him know and make him aware, rather painfully for him that, he is one among the many millions that feel that way, without actually being that way. However, the same mandarins grudgingly acknowledge that a happy customer is a brand?s success, while a delighted customer is a brand?s ambassador. The customer relationship management paradigm ? popularly abbreviated as CRM ? is built on these pillars PRECISELY. And the customer enjoys a precarious position in this paradigm.
In the CRM Efforts concentrated a company often forgets the basic thing that is the cornerstone of the concept ? relationship! Traditional marketing theories have always focused on attracting new customers, rather than retaining existing customers. Over the past decade, thanks to intensified competition and greater variety of products, this has gradually altered. The current flavor of marketing is ?retain? more than ?gain?. Because retention leads to growth and growth leads to fulfillment. In marketing, today, the consumer is treated not as a king but like a mischievous sprite. He is accused ? well, almost ? of making a fire dance to his wishes and whims. While purists argue that brands need Tend to customers and vice versa, Modernists counter it by saying that customers need a brand, any brand, so long as the brand is enjoying his willingness. This disproportionate balance shapes brand communication strategies. Positioning in itself is no longer a marketer?s tool but rather as awkward proposition at grave to the customer?s fancy. Positioning is not brand or product or benefit or feature-centric anymore, it is customer-centric
What is then important to Establish a relationship between a brand and its customer.? In order to build a personal relationship, the brand?s personality has to come through (Michael C. Gray, 2006). It will no longer be brand and customer, but simply ?you? and ?I? ? collaboration is a well-developed leads to ?we?, Which could be a fulfilling state for a brand and a customer.
Social researchers have always advised marketers that people prefer to do business with people, not institutions or brands. This implies that corporate communication has to be the link that helps to build and maintain a healthy relationship between both stakeholders. Technically there can be several types of regular communication: newsletters, fax messages, voice broadcasts, blogs, sales letters, emails and more
Communication with customers Reflects the following aspects of a relationship..
o Strong culture
o Favorable identity
o Coherent Philosophy
o Genuine sense of camaraderie
It may not be instant gratification or affection but effective corporate communication at Establishes Appropriate and professional relationship with the customer, including quick, responsible channels of two-way communication.
Corporate communication is all about managing perceptions and Ensuring that effective and timely dissemination of with a positive corporate image information is created that Ensures a smooth and affirmative relationship with all customers, at all times.
Be it a corporate body , company, research institution, non-governmental organization, PSU, all of them need to have a respectable image and reputation in the eyes of the customer. In today?s day and age of increasing competition, easy access to information and media explosion ? has gained even greater reputation management importance. . So, as a corporate communications role has become significant in nature and professional while dealing with customers
Gone are the days when corporate communications Merely meant ?wining and dining the client?, it has now emerged as a science and art of perception management. The concept of managing relationships with customers is as old as trade itself, but the focus has always been to sell products and services (Kotler, Philip, Introduction to Marketing Principles). Competition, driven by globalization and the Internet has changed the face of business. Customers now have a variety of choices and, most importantly, they are becoming far more knowledgeable and demanding. The power has shifted to the customer truly. With this scenario, most companies realize that they need to treat their customers with more care.
Companies are now desperately searching for different ways to manage their relationships Effectively, not only to acquire new customers, but also to retain the existing ones. According to a study by Harvard Business Review Reicheld & Sasser, some companies can boost their profits by almost 100% by retaining just 5% or more of their existing customers. Customers express their satisfaction in many ways. When they are satisfied, they mostly say nothing but return again, and again, to buy or use more. Measuring satisfaction is only half the story. So it is Necessary to deter mine customers? expectations or the importance they attach to different overtures of a fire, otherwise resources could be spent raising satisfaction levels of things that matter not Thurs. The measurement of expectations is more difficult or importance than the measurement of satisfaction. Many people do not know or can not admit, even to Themselves, what is important. Consumers spend their time not Thurs rationalizing why they do things, their views change and they may not be able to easily communicate or admit to the complex issues in the buying argument. A customer satisfaction index is a snapshot at a point in time. People?s views change continuously and the performance of companies in delivering customer satisfaction is changing also. Measuring satisfaction must be a continuous process. (Paul & Nick Hague, White Paper on Customer Satisfaction Surveys, B2B International Ltd.). Even when experts discuss CRM, the discussion is almost always from the point of view of marketing, sales and business development. Seldom is looked upon as a CRM ?goal? that every organization should Actively pursue. Often it is looked upon as a tool that every organization could use. The differences are plenty. And CRM is not an IT function. CRM is more often a function of communication, by the company directly, through intermediary to search as a PR agency or simply through the media. Successful CRM practices is not about statistics, data warehousing or loyalty programs, rather it is about competing in the relationship dimension, not as in alternative to having a competitive product or reasonable price-but acting as a differentiator in terms of ?feelings for the customer?, however abstractly ? and sometimes absurdly ? romantic that may sound. Run if brands can get an edge based on how customers feel about the brand, it?s a much more sustainable in the long relationship. This feeling for a brand, as brand theorists prefer to call it is directly proportional to the communication Efforts, words written and spoken sentences, that emanate from a company. link it to the corporate communication strategy and you will have a direct connect between the company and its customer. The critical dimension of any CRM practice is the relationship that a brand shares with its customers. Using the word itself may sound a trifle customer improper here because ?customer? implies that the person is ?outside? a relationship. And any relationship is expressed and nurtured by communication. Almost always marketers try to understand a customer from the marketing perspective, as people who have to be ?given? something to retain their loyalty. This naturally places them on a moral (and commercial) pedestal that Enables them to look down upon hapless customers as beneficiaries of their largess. In communication parlance signifies this up and power down positions. And in a relationship between equals the power position is not hierarchical. Sometimes the anachronistic social mindset refuses to place the customer on even keel with a brand ? and vice versa ? painting him as a king, or as to unrealistically greedy pauper
CRM is a simple process, because Establishing a. relationship is simple. Nowhere is more profound understanding than when it comes to human emotions ? but surprisingly the very same human emotions have been overlooked by companies while interacting with their customers.
What is a relationship? When is there a relationship between two entities? What is the role of corporate communications in establishing, Maintaining and seeking fulfilling relationships? Relationship could simply mean to be a Particular type of connection existing between people related to each other with biologically or emotionally and having social or economic dealings with each other. Unfortunately all pretenses of dealing with relationships that often ask for simplicity, empathy, credibility and sincerity cease the moment commercial returns on investments are discussed. Which is what communication is all about, communicating to customers, and not with them
Researchers have often Argued that to understand brand-customer relationships, it is Necessary to consider what the brand thinks of its customers, more. than what the customers think of a brand. Marketers struggle hard to enhance the satisfaction of customers only to find that they choose their competitors. Why does this happen? Research has further shown that investments in customer communication, Which logically seems to be the most crucial aspect in a relationship, has been the most neglected area in most companies.
The argument for this lies in the reality that 65 % of all customer service activities are outsourced to business processing units (BPUs). That means the brand does not directly handle customer interactions and queries ? unless they are of a Certain level, of course. This is akin to asking your friend to talk to your representative about everything that you want to say, including ? affairs of the heart, and speak directly only if it is something serious! This attitude, in the first instance, is marketing-driven and one-sided. There are so many brand-loyalty programs, Which are being attempted by marketers in isolation without the support of several back up other relevant and related strategies. There is a distinctive need for marketers to understand the importance of customer communication, and not Merely look at it from the point of view of public relations, advertising or other known corporate forms of communication. Often corporate communication strategies are Designed ? to work as a bridge between stakeholders, to justify policies and decisions, to deliver business strategies, to inform and persuade, and of course to emphasize that the company is committed to putting customer interests first, almost as an after thought! ?
p> Thus corporate communications is almost always understood as a process used to build, foster, nurture and extend business relationships with customers. This is unfortunately a bureaucratic understanding, as GE?s former CEO Jack Welch says, ?bureaucracies love to focus inward It?s not that they dislike customers;. They just do not find them as interesting as themselves.? . And the communication Reflects it
In ?Customers Are People: The Human Touch?, author Jon McKean states that in competitive markets, where customers have a choice between similar products and pricing, ?70% percent of customer decision-making is based on how customers are treated. ? ?Yet,? McKean adds, ?Over 80 per cent of customer initiatives are focused on ?selling to customers better? through superior products, prices and promotions, than in investing more resources in treating customers better ?? How best can a person be treated? . Simply by being talked to in a better manner
The question staring squarely on the faces of companies is: ?How to make a customer loyal?? When companies talk of relationships where customers have real choices, they are honestly trying to be the best suitor to the customer, ?as the customer sees it,? and not ?as they want the customer to see it?. Reichheld and other loyalty experts have studied this issue for years and have concluded that relationships are driven by the behavior and perception of customers of the value of the relationship that exists between the brand and himself, which is the net result of what economic and psychological value Receives the customer from the fire.
According to psychologists customers? emotional states influence about 50 percent of the value they perceive from their purchases. Jim Barnes, author of ?Secrets of Customer Relationship Management: It?s All About How You Make Them Feel?, sums it up by saying, ?Value is created every time a customer is made to feel welcome, important and valued.?
reasonably After agreeing to the fact that the important aspects in CRM are relationship and how customers, on account of their distinct behavior and personality, differently and uniquely perceive a relationship, it is therefore imperative to stress on the point that corporate communication is the prime driver of any relationship. As the leading Indian telecom brand AirTel shows in its advertisements, communication is all about expressing oneself.
A brand identity is shaped by a collective interactive experience of customers, product, policy, and strategy. Which is why developing a brand-customer relationship is important. The choice is simple: either a brand makes a customer experience or it gets created despite the fire. To create a successful relationship proposition, the brand must develop a compelling identity with the customer and have a genuine value. The brand must rely on customer perspective, appreciate the view point and have the ability to communicate appropriately. A common pitfall for many brands is that they do not take the time to think about how they should articulate the brand identity. Needless to say, a successful brand strategy is incomplete without a sound communications strategy. The organization must be aligned in ways that anticipate and Fulfill customers? expectations at every touch point emotionally to create meaningful relationships and lasting competitive advantage. Successful customer communication clearly highlights the brand?s functional, emotional, and self-expressive benefits, as the customer would like to see. It is delivered in a way that is unique or superior when Compared to Competitors. Customer experience is shaped by a series of interactions with in organization. According to Jonathan Hardcastle, barriers to effective communication examined as frames of reference, value judgments, selective listening, filtering and distrust (all between sender and receiver ) complicate the communication systems and messages. However, these can be overcome by sending clear, complete, and specific messages, Which are to put it rather romantically, ?straight from the heart?. Demonstrating love and affection, clarifying intentions, being reliable and dynamic can enhance credibility, exhibiting warmth and friendliness, and building a positive image. Soliciting and providing specific feedback can also enhance communication effectiveness between partners, Which is what brands should consider customers As.
One of the most important consumer satisfaction elements is the ability to ask questions and being able to receive appropriately satisfying answers from the brand?s representatives. Gaining information, uncovering motives, giving incentives, obtaining participation, checking understanding, initiating the thinking process, inducing agreements, and refocusing attention, are all essential components of an effective consumer communication plan, says Hardcastle. Thus, the active listening skills of a brand to help build rapport with customers that is both intimate and empathetic.
The other most important aspect is the subtle non-verbal communication of a brand and the customers, that is useful both in reading the underlying emotions and attitudes of customers, while reinforcing a brand?s verbal messages. Understanding subtle communication can enhance the brand-customer relationship. Coupled with this are improving standards of technology and devices that add an edge to the communication process. Unfortunately over-dependence on technology and automation has had an adverse impact on customer relationship. While on one hand brands talk of a relationship ? a concept normally associated with living things and human beings Largely in particular ? on the other hand the overuse of technology has led to a dissociation that has taken the customer and brand away from each other. This dichotomous situation
has to be Recognized by the brand as well as the customer, for communication is all about power positions, and it is important to understand that in a relationship the power positions are on an even keel.
Concluding, due to the growing complexity and turbulence of the business environment and the related growth in research knowledge about customer behavior patterns, managers of the 21st century have to take four themes as paramount, the necessity of managing the challenges of change, functioning within a global environment, being sensitive to the diversity among people,. and behaving with ethical integrity
The final ingredient that binds a customer to your brand in a lasting relationship is dialogue. Your company?s brand is not a monolithic, hermetic face that the organization presents to the world. Rather, it?s an ongoing exchange where you listen carefully to your customers, understand what they say, and respond by modifying your value proposition and Extending your businesses appropriately to Fulfil customers? desires. You exist because of the customer. This selflessness is the cornerstone to successful CRM
Therefore any corporate communication effort should focus broadly on three aspects:. Understanding relationships, understanding the distinct behavior of consumers to relationship overtures and understanding (and Establishing) the role of communication in effective and enduring customer relationships.
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Author: K Sai Prasaad
Designation: Head, Department of Marketing & Communication Management
College: Convergence Institute of Media, Management and Information Technology Studies (Commits), Bangalore, India
University: Makhanlal Chaturvedi National University of Journalism and Communication, India
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Public release date: 14-Mar-2012
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