1. Customers today are using different channels to engage constantly with their preferred brands. These customers are responsible for spreading electronic word-of mouth thereby influencing others. You have recently started your venture of an online grocery store. As an organization that has traditionally been dealing with customer’s offline, you realize the need to turn to using customer relationship management software toengage with your customers. What are the pros and cons of using this as a means to engage with customers effectively? Justify your standpoint
Answers
Explanation:
Method 1: Account / relationship management (via sales)
Pros: Ability to use your existing sales team to consult with clients.
Cons: Such customer engagement can be ad-hoc and hit-and-miss when it comes to uncovering the likes and needs of customers. Often, favor is given to the largest accounts, or attention given to the biggest complainers (the “squeaky wheels”). In addition, sales folks are mostly (only?) interested in generating add-on sales, and clients realize this – and consider every engagement with them as a sales meeting.
Method 2: Customer surveys
Pros: Fast and cheap, no need to leave the office
Cons: Here too, results can be hit and miss, and may mostly elicit complaints. Survey participation is notoriously low, skewing insight to the few who participate. Finally, any insight will likely be minimal and shallow at best.
Method 3: Customer Satisfaction Scoring (e.g. NPS or CSAT)
Pros: A more formal and comprehensive version of customer polling, results can be more insightful than mere surveys
Cons: These programs can be surprisingly expensive and resource intensive – many companies outsource these to consulting firms or hire employees dedicated to managing them. Despite this, there is still no (or minimal) face-to-face engagement, insight can be shallow, and the program is more about determining whether the client would recommend your company to their colleagues. While this information is good to know, it provides little insight that can help your company from a strategic, product or marketing perspective.