Personal Needs vs. Customer Relationships

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Many companies talk about the need to establish strong ‘relationships’ with their customers. Some compile complex Customer Relationship Management algorithms to develop and maintain these relationships. And, these companies rightly recognize that the transactional interactions of the past are ineffective in creating loyal customers.

The concept of customer relationships makes sense in the context of meeting personal needs. As in all interpersonal relationships, from friendships, to marriage, to company and client, trust and the promise of mutual benefits are the foundation for growth and development. When we put others’ needs first in relationships, we’re more likely to make those relationships work.

Emotional Needs Not Yet a Business Priority

After decades of formally documenting the stages of business-customer relationships, we’ve learned that many companies become complacent in their endeavor to understand, satisfy, and embrace the emotional needs of consumers. Companies understand the meaning of ‘relationships,’ but rarely consider what it takes to make their audiences’ needs a priority. They seemingly cross their fingers hoping that what brought customers to their company will cause them to be loyal. Just as in most human romantic relationships, business-to-consumer relationships fall apart when one party (the business) fails to track the evolving needs of the partner (the consumer). The challenge of sustaining long-term value pushes businesses toward considering short-term relationships as the easiest route to profits.

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About the Author

Mark Ingwer PhD is a consumer psychologist and the managing partner of Insight Consulting Group, a global marketing and strategy consultancy specializing in market research and consumer insights. He has over 25 years of experience applying his unique blend of psychology, marketing, and business acumen to helping companies optimize their brand and marketing strategy based on an in-depth understanding of their customers. He is the author of the book, Empathetic Marketing published by Palgrave.

Golden Rules for Dealing with Asian Businesses, part 2 of 3

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6. Never cause anyone to lose face
No understanding of Asian mentality is complete without a grasp of the concept of face. Having face means having a high status in the eyes of one’s peers, and it is a mark of personal dignity. You should always be aware of the face factor in your dealings with Asians and never do or say anything that could cause someone to lose face.

7. Suggestions, especially criticism, must be indirect
Open criticism, especially of a personal nature, is taboo in Asian cultures. If one disapproves of a statement or course of action, alternatives may be suggested in a humble manner, as indirectly as possible (“we tried something like that last year… ” or “another thing we found useful… “).

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About the Authors

Kai Hammerich received his M.B.A. from Northwestern University, Kellogg Graduate School of Management and his M.Sc. in economics from the University of Aarhus, Denmark. Based in London, he is a consultant with the international search firm Russell Reynolds Associates. Kai has conducted numerous CEO and board-level assignments for major global companies. He has in-depth experience advising clients on how to align a company’s talent portfolio with its overall business strategy and company culture. Kai has been nominated by BusinessWeek as one of the most influential search experts worldwide.

Richard D. Lewis is a renowned British linguist and founder of Richard Lewis Communications – a language school for executives as well as a company that advises on cross-cultural business issues. He is the creator of the Lewis Model of Cross-Cultural Communication and author of many books including the bestselling When Cultures Collide: Leading Across Cultures.

Golden Rules for Dealing with Asian Businesses, part 1 of 3

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Today, more Americans than ever are doing business in China, Japan, Korea and other parts of Asia. Below is advice explaining what Western business people need to know about national traits and customs in those countries if they want to succeed.

1. Speech is to promote harmony
In the West the primary purpose of speech is to exchange information. In Asian cultures, what is actually said is of less importance than how and when it is said and who says it. Platitudes are trotted out in profusion in Japan; flattery is also included. Westerners consider it as time wasting and pointless; in the Asian view, the longer this harmonious exchange is maintained, the more likely it is that successful business will ensue.

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About the Authors

Kai Hammerich received his M.B.A. from Northwestern University, Kellogg Graduate School of Management and his M.Sc. in economics from the University of Aarhus, Denmark. Based in London, he is a consultant with the international search firm Russell Reynolds Associates. Kai has conducted numerous CEO and board-level assignments for major global companies. He has in-depth experience advising clients on how to align a company’s talent portfolio with its overall business strategy and company culture. Kai has been nominated by BusinessWeek as one of the most influential search experts worldwide.

Richard D. Lewis is a renowned British linguist and founder of Richard Lewis Communications – a language school for executives as well as a company that advises on cross-cultural business issues. He is the creator of the Lewis Model of Cross-Cultural Communication and author of many books including the bestselling When Cultures Collide: Leading Across Cultures.

Are your sales historical or hysterical?

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Summer’s over. Back to school.

Boy, there are some memories. High school. College. Subjects you loved, subjects you hated. Teachers you loved, teachers you hated.

THE QUESTION IS: What did you learn in school? What lessons are you still using?

I have 2.5 major, early and later school-learned lessons I am grateful for:
1. Grammar from 9th and 10th grade. It’s the basis of my writing and communication. In today’s world, misuse of the words they’re, their, their, your, and you’re create lasting (bad) first impressions.
2. In college (Temple University in 1964), my modern European history professor said, “It’s not the date of what happened that matters. It’s what happened in response to the date (events, outcomes) that creates history.”
2.5 Later in life I came to the realization that algebra was not about math, it was about learning how to solve problems logically. I wish my algebra teacher could have put it that way when I started.

And how about sales and business? What lessons have you learned? What lessons are you still using?

I have 2.5 major, early sales lessons I am grateful for:
1. Questions control conversations. The person that’s asking is in control.
2. Relax, find common ground, and be friendly with the prospect BEFORE you start the sales conversation.
2.5 Find out why they want to buy BEFORE you start to sell.

Here are 11.5 lessons you can use to start this school year off with a bang – and a bunch of sales:
1. Study your (or your company’s) last 100 sales. The history of where your last 100 sales came from will predict and help you complete your next 100 sales.
2. Videotape the buying motives of your top ten customers. Call your top ten customers and meet with them for a short, casual conversation about WHY they buy from you. Video the conversation.
3. Meet one customer a day for morning coffee. Just talk personally. In a year this will give you the personal insight of 250 customers.
4. Study service issues. Find out what issues customers have. Study how (and how fast) they were resolved.
5. Study backorders. Why did the back order occur? How was it dealt with? How was it resolved?
6. Talk to users, not just buyers. Go to your customers and talk to the people that USE your product or service. Find out what they love and what’s missing. Video the interviews. SECRET: Get purchasing people to be at the meeting with the people that USE your product, so they can understand the difference between price, productivity, value, and profit.
7. Talk to your loyal customers that don’t buy price. Find out the true non-price buying motive(s) for dealing with you.
8. Get involved on a deeper, hands-on level. Make a few deliveries yourself. Take a few service calls yourself. Work in accounting for a day. Find out what’s really happening with and to your customers.
9. Get short meetings with executives. Talk about the issues they value the most – loyalty, productivity, morale, and profit. Maybe ask a question or two about their vision or leadership philosophy, and leave. DO NOT ASK FOR BUSINESS. Just make an impression. IDEA: create a blog around executive leadership philosophies.
10. Start your own value messaging in social media. Post your ideas and thoughts on all social media outlets. Then email the links to all your customers and prospects so they can follow you.
11. Post customer testimonials on YouTube. Then email and tweet the links to all your customers and prospects.
11.5 Create a customer “reasons” book. List all the reasons why they buy, say no, stay loyal, or leave you. As you write, answers and actions will become evident.

KEY POINT OF UNDERSTANDING: The lessons you have learned from your history of doing business with customers is very valuable, BUT not as valuable as your customer’s history of doing business with you. A subtle but powerful difference. Both are valuable, but your customer’s input from their perspective can teach you how to achieve and maintain loyalty.

KEY TO IMPLEMENTATION: Re-construct your sales presentation around customer’s responses and perceived values.

WINNING NEW BUSINESS: Where is your new business coming from? The best way to find new business is to talk to old business, learn the lessons, and refine your practices and presentation to be in harmony with their needs and expectations.

Those are lessons you can learn from and earn from.

Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.

About the Author

Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].

The Emerging Strategy of Innovative Service

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The world of the customer has dramatically changed. The tough economy has made customers more value conscious, demonstrating far more caution in how they spend their hard-earned dollar. The proliferation of self-service (while a blessing when it works) has made customers more frustrated when they feel trapped in a process with no live person to help. And the Internet, with its social media reach, has empowered customers with strong influence over other customers and the reputation of companies.

Such a plethora of challenges has required all organizations to rethink their strategy. Since revenue from customers and the power of their advocacy dramatically impacts organizational growth and profits, assuming “we know what’s best for our customers” is akin to a death knell.

But, the largest challenge today is not the changing expectations of the new, normal picky, fickle, vocal and wired customer. It is their requirement for an experience that heightens their emotional connection and ramps up their affinity. Customers are bored and want their hearts to race and their spirits to soar. And, here is the backstory.

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About the Author

Chip R. Bell is a customer loyalty consultant and the author of several national best-selling books. His last three books include The 9 ½ Principles of Innovative Service, Managers as Mentors (with Marshall Goldsmith) and Wired and Dangerous (with John Patterson). He can be reached at www.chipbell.com