In today's business environment, the best way to improve profitability is to maximise customer loyalty, according to Andrew Clare, managing partner of Reliance.
The world is experiencing a technological revolution, Clare said, but this will soon be followed by a customer revolution. "The client needs to be given more recognition. Why is it that companies don't discuss clients in boardroom meetings, they'll discuss all the other internal processes such as finances and human resources, but leave out the reason they are there in the first place, the client?"
He noted that while companies understand that intelligence on customers is essential for a successful company, few are investing in systems that will help them gain an understanding of this powerful group. The result is that companies are failing their clients due to a poor ability to deliver due to hindrances caused by internal systems and requirements, he said. Companies need to grow the value of their client relationships and, as a result, their market share will grow considerably.
Companies need to learn to put people first and technology second, he said. "Both these aspects are important. Technology enables companies to increase their growth, but technology doesn't work on its own. People need to be empowered to use this technology. So every company needs to make an investment in both people and technology, but always put people first because they are the drivers behind this technology."
Clare said some airline companies have created a good client-centric experience. The American "no-frills" airline, Southwestern and Dubai-based Emirates are a few companies that have flourished due to their successful client-centred approach, he noted.
Companies need to understand branding and pass on brand values to employees, who in turn become brand ambassadors and contribute to client loyalty, he said. "A mere 5% increase in loyalty can increase profit by 25% to 80%. And the company won't need to spend any more money on acquiring clients. All they need to do is maximise their client loyalty."
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