We all know that successful credit management is all about establishing strong customer relationship.
However, it’s important to remember that the point of a good client relationship isn’t just to get them to pay their bills. Of course, that’s a major benefit – but there’s a lot more that you can get from the connection you’ve established. In fact, it can lead to some opportunities for long-term growth for your business.
How? Well, here are just four of the ways that a relationship-focused approach to credit management (and the rest of your customer interactions) can help your organization achieve real growth:
1. Build brand loyalty
Simply put, if a customer likes a company, they’re more likely to spend their money with that business.
According to the American Express Global Customer Service Barometer, more than two-thirds of consumers are willing to spend 14 per cent more on average with a company that they believe delivers excellent service.
“Good service is good business because it creates impassioned, loyal customers,” explained Kelly Fisher, senior vice president of relationship care strategy at American Express.
2. Improve your offering
Once you have established a strong customer relationship, you’re more likely to understand exactly what it is that a customer needs.
Armed with this information, you can customize your product or service to meet the client’s requirements, thus improving your offering and making your product or service even more valuable to them. This also demonstrates your commitment to customer satisfaction and helps to ensure that as the client’s requirements change and grow, they’ll continue to turn to you as a supplier.
3. Word-of-mouth advertising
According to American Express’s survey, nearly half of respondents (46 per cent) said they always tell others about good service interactions – and they tell an average of eight people.
The study also showed that word-of-mouth advertising is most effective in influencing customer behavior, with 42 per cent of people saying that a recommendation from a friend or family member is most likely to get them to try doing business with a new company (compared to a sale or promotion at 34 per cent, or a company’s reputation at 15 per cent).
“Engaged customers spend more and share their excitement with others, which often influences their buying decisions,” Ms Fisher said.
She explained that this is why willingness to recommend a product or company to a friend has become such an important measure for service companies. “Service can really be a powerful way to drive the growth of a business,” she added.
4. Honest feedback
Another benefit of building strong customer relationships is that you can get constructive feedback from trusted clients who know your business, products and services.
For example, suggestions from happy customers could help you discover new products or services that your clients need. Or you might find a way to improve your internal processes based on customer feedback.
Find out more
Here at OnGuard, our credit management software can communicate with existing CRM systems (via API), making it easy to combine customer relationship management with credit management. The result is a truly relationship-focused approach to all of your customer service functions – something that will be sure to help your business see future growth.
To find out more about OnGuard and how it can be used in conjunction with your CRM software, contact us on +31 (0)294 25 6666 or via email at firstname.lastname@example.org.