Managing Customer Relations

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Managing Customer Relationships with Personalization

Introduction

In today’s market, it is difficult for a company or business to separate itself from its competition. Globalization has made the world a smaller place so that businesses no longer compete only locally, but also with other businesses around the world. This is just one of many market pressures that companies face today. There are several strategies that organizations can develop in order to counter these competitive forces, including offering a lower price or an innovative new product. While it’s true that these strategies will most likely bring in new customers, it is just as important (if not more important) to retain the customers once they are drawn in. Businesses understand that it is drastically more expensive to gain back a customer that has been lost to a competitor than to keep the customer satisfied in the first place. Simply stated, improving customer satisfaction will generate an increase in profits. This is why more companies have begun to place more emphasis on improving customer service. One of the best ways of doing this is by adding a touch of personalization.

Definition

The term “personalized customer service” is basically the combination of two business concepts, customer service and personalization. According to Oxford Dictionaries online, customer service is “the assistance and advice provided by a company to those people who buy or use its products or services” and personalization is defined as “designing or producing (something) to meet someone’s individual requirement.” If we combine these two definitions, we come to the conclusion that personalized customer service is providing customer service so that customers are treated as individuals. The basic premise is that customers do not want to feel like they are just another number or sale, but want to have a human connection.

A better understanding of...