Customer relationship management is vital in improving customer relationships and increasing their retention rate and sales growth. All organizations should develop techniques to improve customer service. Among the strategies is listening to the needs of the customers (Ferrell & Hartline, 2014). Sometimes, customer’s needs are not listened to, resulting in strained relationships and loss of loyal clients. At one time, I had a bad experience at a computer dealership after I tried to return a laptop that I had previously bought. The laptop was fine but crashed anytime I ran heavy programs. As I had a 1-year warranty, I wanted the laptop replaced. Unfortunately, the agent who served me claimed that my warranty was invalid. The agent argued that since I obtained the laptop in good condition, I might have tampered with its components, causing it to crash. Although the laptop's warranty seal was not broken, the agent refused to replace it. As a frequent customer of the store, I felt cheated and swore never to shop there ever again.
Similar to my experience and Martha Roger’s story, some organizations tend to forgo the lifetime value of their customers for some trivial things. Forgoing the lifetime value of a customer happens due to the failure of an organization to understand the importance of customers in its existence. Understanding the customer lifetime value is important as it helps organizations generate more profits. Having proper customer relations is one way of identifying the customer’s value as it helps in acquiring new customers and retaining the existing ones. Failing to understand the lifetime value of the customer costs organizations more money as they try to attract others and retain the existing ones. It is therefore imperative for organizations to recognize the value of their customers to improve their profitability.
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The customer's lifetime value can be realized by developing proper customer relations and giving priority to the clients. In organizations, every individual should take the responsibility of developing better customer relations (Ya et al., 2016). However, customer service agents and customer relationship managers should be the primary managers of customers. They are responsible for handling all issues that customers may have and should, therefore, ensure that the clients are satisfied at all times. Besides customer service agents and managers, the management should ensure that all customers in the organization are respected, and their needs are taken care of (Ya et al., 2016). Taking a collective effort in managing customers can ensure that their satisfaction levels increase, resulting in higher customer retention levels.
References
Reinartz, W., Krafft, M., & Hoyer, W. (2004). The Customer Relationship Management Process: Its Measurement and Impact on Performance. Journal of Marketing Research , 41 (3), 293-305. https://doi.org/10.1509/jmkr.41.3.293.35991
Ya, S., Noor, S. M., & Nasirun, N. (2016). Role of Management and Employees in Customer Focused Organizations. In Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014) (pp. 237-248). Springer, Singapore.
