Five steps to thriving in an experience economy – How can TRM contribute?

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I have extracted some points raised in Shaun Smiths’ article at mycustomer.com which will be addressed by organisations that adopt a TRM (Trusted Relationship Management) approach to their customers.

Research from IBM found that companies that are successful in creating both an emotional and functional bond have much higher levels of retention and also cross sells. It found that retention rates were 84% compared to only 30% for those organisations that didn’t create a functional and emotional bond, and it found that cross-sell success was 82% compared to 16%.

1. Customer
insight

What do they value? – to make them fans you need to have level of insight around what your most profitable customers value so that you can make a proposition to meet their needs.

How are their needs changing? – make sure you are ahead of the curve by knowing how their needs are changing.

TRM: Don’t guess – ask your
customers.

Provide them with access to your
knowledge about them so that they can correct and update your information for
mutual benefit.

2. Brand
promise

Once
you are clear about who your profitable customers are and what they value and
what you can do differently, then you need to be really clear about what your
stand for, what your propositions are and what your promise is. What does your
brand stand for, what can you promise and how will this differentiate you?

TRM: Don’t guess – ask your
customers.

Provide them with a communication
channel so they can tell you what they like and don’t like about you for mutual
benefit.

3. Design the
customer experience

Virgin
Airways, for instance, looked at its profitable customers, considered what they
value, and decided what they can do to create an experience which
differentiates it. They looked at the customer journey and designed it to take
out the pain points at the critical points in the journey. And it has very
successfully taken huge market share from its competitors by doing that.

TRM: Don’t guess – ask your
customers.

Virgin do a lot of that but,
using TRM, even their communication can be improved.

4. Drive
organisational behaviour

"Over
the last few years we have also seen a shift towards more outbound
communications, using contact centres to provide outbound marketing and
cross-sell and so on," adds Smith. "For most customers, ‘CRM’ is
about that phone call that you get from the call centre from
Bangalore at five o’clock on a Saturday
evening. It is about that junk mail that comes through your door. It is the
spam email in your inbox. For many customers, CRM is a dirty word. It means
people trying to sell me stuff I don’t want because they don’t know much about
me. And actually one of the things that technology can do is
give us real
insight around customers and what they value and enables us to provide that
value by doing that.

TRM: Don’t guess – ask your
customers.

CRM is no longer trusted as the accurate customer knowledge base to
provide relevant information for customers. The data has been corrupted,
stolen, shared and sold to the detriment of customers as described by Smith above.

The
solution is to involve your customers by extending CRM to TRM allowing 2-way communication and justifying the word 'Relationship'.

5. External
communications

Being
a big company or being around a long time is no longer so important to
customers. Yet much of traditional marketing still focuses on telling customers
that the company is big, has been around a long time and is everywhere. But
what the customers really want to know is why they should trust you. According
to research by Grey Worldwide, millennials are 31% more likely than baby
boomers to rank “is a company or brand I can trust” as a top five customer
service attribute. Trust is becoming an increasingly big deal.

TRM: More Trust = More Business = More Money!

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