The Jan-Feb HBR features the article “Rethinking Marketing,” by Roland Rust, Christine Moorman and Gaurav Bhalla. In it, the authors argue that B2C companies need to adopt strategies that put the customer in the center, and tailor products and services to small segments, rather than pushing products and services onto the mass market.
VRM advocates will encounter in the piece lots to disagree with around “managing” customers and pushing offers on them, Including a rather gruesome example of “one insurance & financial services company (that has) proved adept at tailoring products to customers’ life events.”
Customers who lose a spouse, for example, are flagged for special attention from a team that offers them customized products.
Nevertheless, there are many undeniably beneficial things that come out of the customer orientation the authors advocate. Most significant to me is their proposed shift in customer service from a cost to be contained to a strategic asset:
This function should be handled in house…to help cultivate long-term relationships. Delta Airlines, for example, recently pulled out of its call centers overseas because cultural differences damaged the airline’s ability to interact with its North American customers.
I spent time on the phone with Delta today, for the first time in more than a year, & I was pleasantly surprised with how adeptly the rep handled my call.
I’ve been preaching this for some time (here, here, here). Customer service is a vital customer touchpoint that should not only be done in house, it should be carefully monitored & scrutinized for valuable customer insights.
VRM conflicts aside, “Rethinking Marketing” is valuable for reiterating the assertion that customer service is a vital, core function of any organization that sells to people.
Related posts:
Good customer service is an investment
A method for gathering customer intelligence from your front-line staff
Customer service is such an important job, perhaps we should spread it around
