The importance of top management support for CLM initiatives

Atlanta, Dec 5, 2023 – Top management support is always important in any corporate action, but it is especially necessary for the successful implementation of Customer Lifecycle Management (CLM) initiatives.

Top management commitment and guidance can make the difference between a superficial CLM system and a deeply integrated one that drives growth and customer loyalty.

Top management role and actions in CLM

• Define the vision and strategy: Top management must clearly articulate how they view the customer journey and how it fits with the overall mission and vision of the company. This sets a clear direction for everyone in the organization.
• Ensure resources: Top management must ensure that adequate (financial, human, and technological) resources are allocated to implement and maintain effective CLM strategies and tools.
• Foster a customer-centric culture: This goes beyond making mere statements. Top management must demonstrate through their behavior that they value customers. This can range from personally responding to customer complaints to recognizing and rewarding employees who provide excellent customer service.
• Promote cross-departmental collaboration: CLM initiatives are not a single department’s job. They require close collaboration between sales, marketing, support, product, etc. Top management must break down silos and encourage collaboration.
• Monitor metrics and assign responsibilities: It is essential that top management define and monitor key metrics related to thecustomer lifecycle, such as retention, customer lifetime value (LTV) and Net Promoter Score (NPS). They should also ensure that teams take responsibility for achieving targets related to these metrics.
• Invest in learning and development: Top management need to invest in training their teams in CLM best practices and related tools and technologies.
• Listen actively: Top management must be willing to listen to customer feedback and act on it. This may include conducting customer listening sessions, reviewing surveys, and analyzing data to clearly understand customer needs and challenges.
• Adapt and be flexible: Top management must be able to adapt and modify the CLM strategy according to changing market and customer needs.

Top management commitment and action are critical to the success of CLM initiatives. Without their vision, support and guidance, these initiatives may lack focus, resources, and effectiveness. With their active support, however, CLM can become a powerful engine that drives customer satisfaction and loyalty, as well as business growth.

What happens when there is not enough budget?

Effective customer lifecycle management (CLM) does not always require a large budget. While certain tools and technology solutions can be costly, there are many CLM initiatives that can be undertaken with limited resources. Here are some ideas:

• Active listening: Companies must take time to listen to customers. This can be done through social media, email or even in person. Direct feedback is extremely valuable and does not usually require expensive tools.
• Free or low-cost tools: There are free or low-cost CRM (Customer Relationship Management) tools that can help companies manage customer relationships and analyze data.
• Surveys: Free tools can be used to conduct surveys and obtain customer feedback.
• In-house training: This is about leveraging existing knowledge and skills within the team. It is advisable to organize in-house training sessions to share best practices and strategies related to customer management.
• Manual customer segmentation: Although advanced tools can do this automatically, it is possible to start by segmenting customers manually into categories based on their behavior, needs or demographic characteristics.
• Simple loyalty programs: It is advisable to implement simple loyalty programs, such as cards that offer discounts if a certain number of purchases are made.
• Valuable content: It is recommendable to create and share content that is useful to customers, such as blogs, training videos or guides. This can help educate customers and keep them engaged with the brand.
• Social media: Social media allow interacting with customers, resolving doubts, offering support, and sharing news or promotions. They are also an excellent tool for monitoring and active listening.
• Referral programs: Companies should encourage existing customers to refer new customers and offer them some type of incentive or reward.
• Manual data analysis: Before investing in advanced analytics tools, it is worth starting by manually reviewing available data (such as purchase patterns and interaction history) to gain valuable insights about customers.
• Incremental improvements: Instead of tackling substantial changes or implementations, companies can focus on small, constant improvements based on customer feedback and needs.
• Quality customer service: Sometimes, simply providing exceptional customer service is the best CLM strategy. Top management need to ensure that teams are qualified and motivated to help and resolve customer issues.

Although a limited budget may restrict some of the actions, creativity, dedication, and customer focus can compensate for the lack of financial resources. The heart of CLM is understanding and addressing customer needs, and this does not always require expensive solutions.

Time is money

It has become clear that top management must be involved in CLM initiatives and dedicate time… but how much? All management teamsare short of time. Moreover, the amount of time they need to devote to CLM activities will vary depending on several factors, including company size, industry, customer lifecycle complexity and strategic priorities.

Nonetheless, it is crucial that senior management devote regular quality time to CLM activities given the impact they have on customer retention and satisfaction, and overall profitability.

Therefore, here are some general recommendations on how top management could structure their time in relation to CLM:

• Regular review meetings: It is useful to hold regular meetings (e.g., monthly, or quarterly) focused specifically on reviewing key CLM metrics, discussing customer feedback and evaluating the effectiveness of ongoing initiatives.
• Annual strategic planning: As part of annual strategic planning, top management should consider how CLM strategies fit with the company’s overall objectives.
• Direct interaction with customers: Although not necessarily a CLM activity, it is appropriate for top management to interact directly with customers from time to time, either through meetings, surveys or even by participating in support sessions.
• Tool evaluation and selection: If the company decides to implement or change CLM tools, top management must evaluate and select the most suitable solutions.
• Change management: Any major CLM initiative is likely to require some changes in processes, functions,or tools. Top management must actively manage this change to ensure a smooth and effective transition.

That said, it is difficult to give a specific figure or exact percentage of the time that top management should devote to CLM. What is most important is that CLM activities are considered a strategic priority, and that top management actively guide and support these initiatives. Doing so they ensure that the company is focused on building and maintaining strong and valuable relationships with its customers throughout their entire lifecycle.

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