Are you a marketing manager spending more and more on maintaining your old customer base? Are you worried about the financial results being produced by increasing emphasis on customer services? Are you looking for the ways by which you can maximize the value of each unit of money spent both by you and the valuable customer? This article will help you by introducing three ways by which you can increase the return on investment made in the customer relationship management field.

One of the basic things you must know is to distinguish the really valuable customers from those who appear to be but are not. There are two types of customers we come across in daily operations; those who bring normal sales but are easy to deal with and are less demanding and the other type giving a large sales volume and have equally high level of demands. It is your task, therefore, to direct the right amount of efforts on the right type of customer.

To recognize that which of the two types of customers, mentioned above, need how much time and effort, let us go through a hypothetical situation. Mr. A comes to your store three to four times a month and makes purchases of an average volume. He never complains about the products and seldom demands any returns or modifications. Although Mr. A is conscious enough of the quality if products, it is very easy to deal with him and satisfy his needs. On the other hand, Ms. B is a rich lady who visits the store with same frequency but makes high volume purchases, say almost double as that of Mr. A. On the very second or third day of her purchase, a sales representative gets busy with her almost for one to two hours. She demands product replacements, changes in colour, returns of products often and needs special attention.

To explain the fact, let us take an example in which we will make a comparison of two customers. The customer 1 is used to make large amount of shopping and therefore appears to be a better source of revenue for the company. The customer 2 makes normal or average purchases. The time interval and other shopping behaviours in terms of sales is more or less same except the sales volume. The former customer, however, takes much more time to get satisfied and demands greater amount of after sales services. The later customer, customer 2, makes purchases in a careful manner. He does launches complaints but it is much easier to meet his demands as compared to the person who thinks that he has given much more money to the company and therefore needs extra care.

We often mix the highly profitable customers with those who make purchases of large volume but are so demanding that the customer care costs incurred take the profitability to the break-even point.

A customer who makes average purchases but needs an appropriate amount of care is more likely to remain loyal to the company as compared to the one who always comes back with a bundle of complains in the huge amount of products bought.

The third and last step is to go and check for the financial effects of the customer service. Again some data mining will help you to achieve this objective as well. You will soon notice that those customers who make lower level purchases have less demands, ask for lesser returns, need less time to get their problem solved and need less human resource to be allocated to them.

Following these three steps will result in an increased level of customer service and a decreased cost. To start with, you have to analyse and interpret the facts in a different but objective way to get most out of your customer relationship management program.

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