The relationship between business and clients or customers is considered as one of the most imperative factors in determining the future prospect of the business. In the statement of Kumar and Reinartz (2018), it can be stated that companies those are unable to treat their customers well usually left out with unsatisfied or disloyal clients. This specifically hampers their trading future and creates scope for competitors to convert this set of disloyal clients into loyal ones. Hence, the sustainability of the firms comes into a big question. Therefore, maintaining positive relations with the customer has become the become mantra for any business to thrive in the long run.
For the specific project, Agency X, one of the integrated media agencies has been chosen. The name of the company has been kept confidential for the privacy concern; however, the data of the company would be discussed in relation to customer relationship management. The brand offers services like campaign designs, market analysis, brand analysis, strategy and budgeting, web marketing, media coverage and planning, etc. By far it has worked with reputed clients like Diamond Arabia, Taj Dubai, Middlesex University, Sofitel Dubai Downtown, Adipec Social, etc. The project aims to discuss the importance of proper customer relationship for the organisation and the effort it takes to retain their multiple customer bases.
Powerful customer service is relatively essential to this business. As it deals with multiple clients, therefore, the possibility of this business to face issues in terms of customer handling is quite high (Soltani and Navimipour, 2016). It has been identified that the brand is dealing with the media segments and has reputed organisations at its client base. Therefore, forming meaningful relationships with this multiple client base is effectively important to get future assignments. In the considerations of Nyadzayo and Khajehzadeh (2016), forming meaningful relationships with client’s demands for efforts, time, dedication, faithfulness and trust. Hence, it can be determined that maintaining a positive relationship with the multiple clients has been the primary agenda for Agency X in the Dubai market to experience future sustainability in the future.
Furthermore, it has been determined from the corporate website of Agency X that the brand usually looks are the marketing creative sides, it has expanded its service lines from ATL (Above The Line), BTL (Below The Line) to Social sites, which indicates the fact it generally covers majority of media and marketing designs (Agency X, 2018). Hence, the brand needs to be abrupt in terms of maintaining its relationship with the customers. On the contrary, Khodakarami and Chan (2014) determined that the market is considerably saturation in terms of offering media-based services; hence, the numbers of the competitor are quite high. This imposes a major threat towards Agency X and encourages the management of the brand further in maintaining positive relationships with its clients to ensure a good retention rate. Hence, the possibility of conversion by the rivals is quite high in this sector. Thus, to ensure such discrepancy, the brand is relatively getting sincere with their customer service management approach to ensure a high satisfaction rate amongst its major clients.
To keep its client happy and all time accessible, the brand has introduced “Let’s talk” option, using which the clients can anytime start interacting with the brand and place their queries. This has specifically helped the clients to get in touch with the brand and communicate with the respective department in terms of pending and delivered projects. Hence, it has been noted that Agency X is making the efficient approach in terms of helping its clients to reach the customer care department in case any issues faced with the marketing or media related designed of the brand.
The requirements that are needed for successful implementation of projects are discussed below:
Correct interactions
It has already been discussed in the above section that Agency X is an integrated media agency and a communication partner, which aims to create a brilliant fresh experience for its clients’ brand. Since the organisation has managed to create a decent customer base and majorly works for the giant brands, therefore, it needs to be flawless with the communication measures (Greve and Schlüschen, 2018). The clients herein specifically demand personalised designs and the executives of the brand are explicitly efficient and versatile to address the different and dissimilar designs of the projects. Hence, correct interactions herein act as the most phenomenal part, which always keeps both the parties connected in terms of exchanging individual feedbacks in terms of project designs (Choudhury and Harrigan, 2014). This can help Agency X in actually deliver a suitable output by addressing the specific and every minute detail of the clients. Therefore, this approach can lead to a successful implementation of projects.
Creative design
In the opinion of Taylor et al. (2015), it can be noted that the brands are getting typical with the media-related activities and seek innovation in every marketing lines. Therefore, they are showing preference towards media agencies which are proving their innovation, creativity and versatilities with the passage of time. Hence, it is explicitly significant for Agency X to be adaptive with the creative aspects and the updated trends in terms of media, studio and social marketing designs. It has been recognised from the corporate website of the particular brand that agency X has been extremely creative with its marketing and media related canvas, which certainly interests the client companies to avail their service lines with any doubt (Agency X, 2018).
Accessibility
Accessibility is another important aspect that decides on the success of the project implemented. It has been discussed in the earlier section that this type of project requires frequent interactions between clients and the brand (Aliyu and Nyadzayo, 2018). The clients usually provide personalised designs related to the projects. Since different brands deal with different products or service lines, henceforth, the marketing designs and criteria of each brand would be different from one another (Kasemsap, 2018). Hence, accessibility is very important in this case, where clines constantly communicate with the executives of Agency X in terms of explaining the details of the projects and the aspects required in final deliverables.
Trusts
Finally, trust has been one of the most imperative factors that are important for the successful implantation of projects. In the consideration of Badwan et al. (2017), it can be determined that suitable customer relationship and provision of accurate services are the best suitable determinants to gain customers’ trusts and loyalty. This enact as the driving force that helps organisations to retain its potential prospects and keep their satisfied. A client that trusts a brand shows a willingness to take frequent services from them despite few discrepancies (Kumar and Reinartz, 2018). Mutual understandings develop between both the parties that effectively complement one another’s’ needs. Hence, trust and loyal clients would also act in favour of Agency X, where the satisfied clients would promote it service lines through positive word of mouth communication and create space for new clients as well.
Simplifying customer service lines
In the statement of Soltani et al. (2018), it is significant to simplify the customer service lines by eliminating bureaucracy, which actually brings no productive sides but negative effects on companies and leaves customers immensely frustrated. Hence, a simple customer service process would lead to shorter and precise conversations and executives would enable to help their clients following the uncomplicated steps. Therefore, the chances of process efficiency are high with limited confusions. According to Skoumpopoulou and Franklin (2018), the efforts behind this approach are not only to remove the unnecessary processes but also to enlighten the CRM executives to identify the simple procedures in handling every customer’s issues.
Right etiquettes
It has been identified that right etiquettes facilitate the employees to make the communication process easy, clear and polite (Ascarza et al. 2017). Hence, it reduces the unnecessary time for problem-solving. The organisations that fail to implement the right etiquettes within employees fail to address or approach their clients with right attitudes, which often lead to conflicts and negative word exchange. Moreover, Taylor et al. (2015) denoted that professional language would also create trust within the workplace and workforce as well. As a result, customers would feel much comfortable to rely on the offered service Agency X offers and would support the brand in conducting the business successfully, which would relatively benefit the brand in earning long-term potential and loyal customers.
Empowering service agents
Even though the most effective training programs in which the database of CRM brand is loaded with under strict supervision and rules is bound to fail if the service agency is discriminated and not given the required freedom to design their tasks (Kumar and Reinartz, 2018). Although, statistically it has been proven that majority of the customer related issues are repetitive and solutions to which are already known, yet, the frequencies of new challenges and situations faced every day are very considerable. Until new situations and queries are no framed with new readymade answers, it is significant for the agents or executives to feel confident and competent to utilize individual skills and judgment to identify new solutions (Kasemsap, 2018).
Smart work
Smart work is really important in terms of employee efficiency. Employees often get bogged down with too much work pressures and amendments on previous projects. This also affects their work-life balance and enthusiasm towards work management. Therefore, employees shall be given the training to identify the smart techniques through works and tasks can be handled efficiently (Aliyu and Nyadzayo, 2018). The employees need to smart in terms of communication with the client and addressing their issues. The communication plays the most important aspects herein, where employees need to use their expertise in getting the work done by ensuring high quality but fewer efforts.
Using right customer service tools
Usage of right customer service tools is also imperative in delivering a service or tasks with high efficiency. In the consideration of Taylor et al. (2015), even the well trained, responsible and knowledgeable executives cannot give their best performance unless they are supported with requiring tools and measures. In terms of customer support, the speed of response is necessary and important to gain customers satisfaction. For example, if the employees of Agency X do not have proper access to their customers’ information, a quick service delivery cannot be given. This would relatively lead to dissatisfied and frustrated clients, which would finally impact on the relationship. Due to the lack of features, tools and measures, the executives sometimes require to ask customers to provide the information, which is already provided by them. This usually leads to the wrong impression on the company’s unprofessionalism.
Encouraging strong team spirit
The more employees stay engaged within the team, the more they would be relaxed and easy, which significantly encourage them to perform better without creating any stress. According to Taylor et al. (2015), creating support for one another, sharing each other experiences and maintaining a positive approach in the team help employees to work easy. Inevitably these positive vibes create a similar impact on customers as well.
The differential and identification would be evaluated with the support of the IDIC Model
Identify
It would be important for agency X to conduct a thorough research work on its customers that would be targeted or who would be given future services. It is worthy to work with the client base that has a positive reputation in the market. This equivalently works as a promotion for service agents as well. In case of Agency X, the brand relatively works with the giant organisations, therefore, it can to be more careful in terms of choosing its future client base working with who it can retain its market position.
Differentiate
Herein, the customers are to be differentiated in terms of value and needs. Herein, the customers that can help the brand in getting or optimising its value proposition grade shall be considered for future works (Kumar and Reinartz, 2018). Moreover, the brand shall be able to identify the customers’ needs in terms of required service lines, in case the needs are not suiting with the services offered by the brand, it shall back out.
Interaction
Once the brand gets into a contract with its customers, it shall emphasis on the interaction with its client base to comprehend their expectations. This would decide on their future relationship with the brand. Interaction directly with the customer would help the brand to precisely understand their needs, based on which the project or service would be designed.
Customise
After differentiating the customers as per values and needs, the brand needs to customise the service lines as per the desires and detailing of the customers. Proper customisation would lead to innovation and uniqueness, which would automatically lead to happy and satisfied clients.
Conclusion
The project has reached a concluding statement by underscoring the importance of customer relationship management for Agency X and the efforts the brand has taken and needs to take in future to retain its satisfied an loyal clients. The brand is taking a sincere approach in terms of maintaining its multiple clients and keeping a positive relationship with each. However, some of the measures are discussed herein; following which Agency X can avoid future challenges and threat of saturation. In this context, the scenario provides two pertinent questions which may be attempted to answer through subsequent parts of the report. It is needless to mention that such questions will act as a guide for Agency X in devising its B2B marketing strategy. The questions are mentioned below:
Question 1: Is it necessary for Agency X to manage relationships with clients?
Question 2: How can the Agency X differentiate and identify the clients worthy of relationship management (profiting making clients)?
As far as relationship portfolio is concerned, it may be noted that each and every company may need to maintain a strong relationship with its stakeholders in order to sustain and grow in the market on a long-term basis. In this context, it may be noted that the approach of having a strong and sustainable relationship with the customers of the business holds a pivotal role in determining the success rate of the business. It has been identified that a number of companies fail to sustain in the midst of cut-throat market competition only because of the fact that the management of those firms miserably fails to have a smooth and sustainable client relationship in the market.
In this note, a reference to 80/20 Pareto Principle may be worth to discuss. The said principle talks about the fact that almost in majority cases, the top 20 per cent of the population represents its 80 per cent features. In the case of a nation, it may be observed that almost 80 per cent of the total wealth of the country is concentrated in the top 20 per cent of rich persons or groups. Likewise, the principle may be applied in the case of a client relationship as well. This theory may come handy especially in the case of strategy formulation where the management may need to have a strong customer relationship strategy to deal with a number of customers with the different economic background, tastes and preferences. In other words, the principle helps the management to make an informed and well-thought judgement on sampling.
In the case of Agency X, the same rule applies as well. However, since the company is a private limited and hence the financials and other business data may not be readily available in the public domain like a corporate website with ease, it may not be possible by conducting a secondary research to gather the customer related data for the firm. In the given circumstances, the actual data for the firm may not be readily accessible and hence, an effort has been made to show the implication of the given principle by exemplifying the scenario by way of dummy data. The aforesaid data is presented in the table below for the purpose of substantiating the theory and its practical importance in the given case.
|
Company name |
Sales last year $m |
|
Company A |
75 |
|
Company B |
12 |
|
Company C |
27 |
|
Company D |
45 |
|
Company E |
26 |
|
Total |
185 |
In the above table, it may be noted that Agency X has top 5 customers who provide most of the revenue for the firm. Corresponding sales figures for the last year have been presented herein. It may be assumed that Agency X had total sales of $200 million in the last year. In the given circumstances, it may clearly be construed that Agency X has almost 93% of its total sales from top 5 customers which means that the firm must prioritise those top 5 customers for enhancing not only the revenue stream and sustaining in the market by providing value-added services. To put it differently, if Agency X does not chalk out a strategy for customer relationship management emphasising more on its top and priority customers, such clients may go to its competitors causing a major top-line loss for the firm in the long-run. Therefore, it may be concluded that the client relationship is critical in B2B marketing and Pareto Rule of 80/20 should be adhered to in such case to establish a value for the firm in the industry.
Based on the discussion and analysis performed in the preceding sections of the paper, it may be considered that the identification of priority customers is utmost needed in order to strategize the client relationship for the firm. However, it may also be noted that the unprofitable customers will also need to be identified for gaining the efficiency in top-line as well as in the bottom-line of the business. The table below shows the assumed data from a previous table and some additional data related to clients who are contributing losses to the companies. The table shows the total customer base of the business with their corresponding gross margin contribution to the firm. The third and last column of the table shows the cumulative gross margin for the firm.
|
Company name |
Gross margin $m |
Cum. gross margin $m |
|
Company A |
45 |
45 |
|
Company D |
30 |
75 |
|
Rest of the companies |
25 |
100 |
|
Company E |
20 |
120 |
|
Company C |
15 |
135 |
|
Company B |
8 |
143 |
|
Company F |
-1 |
142 |
|
Company G |
-12 |
130 |
|
Total |
130 |
130 |
From the data above, it may be inferred that Agency X is losing from Company F and G. However, it may also be kept in the mind that such loss does not tantamount to the overall loss for the firm as the cumulative margin is always positive. But, an in-depth perusal of the situation may reveal the fact that the firm may need to manage Company F and G accordingly so that the revenue stream gets more stabilized and streamlined.
If the figures in the last column of the previous table are plotted in a graph, the curve will like a wheel and that is why the wheel curve is an important and critical point of consideration for managing client relations. In conclusion, it may be recommended that Agency X may need to figure out its customers who are responsible for the loss of the firm and eliminate the inefficiencies either by way of termination or modification of contractual relationship with them. In addition, the critical customers who are making money for the business may need to be prioritized in terms of value-added service and better offering.
References:
Agency X (2018). Agency X. [online] AgencyX.com. Available at: https://www.agencyx.com/index.html [Accessed 16 Nov. (2018)].
Aliyu, O.A. and Nyadzayo, M.W., (2018). Reducing employee turnover intention: a customer relationship management perspective. Journal of Strategic Marketing, 26(3), pp.241-257.
Ascarza, E., Ebbes, P., Netzer, O. and Danielson, M., (2017). Beyond the target customer: Social effects of customer relationship management campaigns. Journal of Marketing Research, 54(3), pp.347-363.
Badwan, J.J., Al Shobaki, M.J., Naser, S.S.A. and Amuna, Y.M.A., (2017). Adopting technology for customer relationship management in higher educational institutions. International Journal of Engineering and Information Systems (IJEAIS), 1(1), pp.20-28.
Choudhury, M.M. and Harrigan, P., (2014). CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), pp.149-176.
Greve, G. and Schlüschen, A., (2018). From Customer Relationship Management to Influencer Relationship Management. In Diverse Methods in Customer Relationship Marketing and Management (pp. 80-91). IGI Global.
Kasemsap, K., (2018). Facilitating customer relationship management in modern business. In Encyclopedia of Information Science and Technology, Fourth Edition (pp. 1594-1604). IGI Global.
Khodakarami, F. and Chan, Y.E., (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Kumar, V. and Reinartz, W., (2018). Concepts of Customer Value. In Customer Relationship Management (pp. 17-29). Springer, Berlin, Heidelberg.
Kumar, V. and Reinartz, W., (2018). Customer relationship management: Concept, strategy, and tools. Springer.
Nyadzayo, M.W. and Khajehzadeh, S., (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, pp.262-270.
Skoumpopoulou, D. and Franklin, B., (2018). Implementing Customer Relationship Management (CRM) System. In Advanced Methodologies and Technologies in Digital Marketing and Entrepreneurship (pp. 57-69). IGI Global.
Soltani, Z. and Navimipour, N.J., (2016). Customer relationship management mechanisms: A systematic review of the state of the art literature and recommendations for future research. Computers in Human Behavior, 61, pp.667-688.
Soltani, Z., Zareie, B., Milani, F.S. and Navimipour, N.J., (2018). The impact of the customer relationship management on the organization performance. The Journal of High Technology Management Research.
Taylor, J., Roberts, J., Oram, C., Gupta, A., Itani, M., Baroudi, S. and Smith, R., SugarCRM Inc, (2015). Customer relationship management system and method. U.S. Patent 8,972,876.
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