High Value Customers - What Happens In Between Purchases?

In every sector the customer Contact- Recontact Cycle or Purchase- RePurchase Cycle has a different rhythm. For example in fast moving consumer goods or mass transportation the touch point cycle may be a daily occurrence creating, not only the need continuously to maintain high standards of service quality but also an almost immediate opportunity to redress service failures. However other sectors have a much longer Purchase- RePurchase Cycle where the customer may purchase infrequently, sporadically but, as in the case of high value merchandise, create a high revenue opportunity for the supplier.

Think about cars, jewellery, buildings, plant, machine tools or various commodities. What happens before during and after any single purchase can have a profound effect on the customer’s repurchase decision. So how is the relationship maintained during the period when the customer is not involved in a purchase process?  How can value be added to the initial purchase decision in a way that goes beyond product or service guarantee liability and establishes a bond that, at the very least, ensures the supplier is on the shopping list for the next purchase?

Clearly such a process is not without cost and the investment required is thereby a function of the value of the contact to the supplier, but does it extend beyond the simple investment of money?

Should an organisation providing high cost solution invest time and effort in understanding the customer or prospect’s needs to the degree that they are able to contribute to the success of the customer or their organisation and if so does that mean that relationship management has a role in a wider definition of customer service?  Most so called relationship management software programmes are really sales prospecting tools - the old rolodex in a computer. Could there be more to it, a process where the supplier thinks about how the product or service is being used by the customer, the position it is in its lifecycle and what could be useful to the customer at that stage?

If so that requires a different mind-set. Popping up in front of a customer after two years after selling them the last one without any contact and trying to sell them a new car may achieve some success but it may be more successful if a relationship management strategy is designed that contacts them in between to give them something that adds value to their purchase decision and makes them feel that the supplier is their first choice next time.

As I hear the sound of accountants throwing themselves from the roof of head office at the thought of GIVING customers anything it is worth also considering how a little creativity may help. Information can be an item that has a low cost of acquisition and communication but can have high perceived value.

If your organisation has a long Purchase- RePurchase Cycle  what can you give your customers between purchases that extends the service proposition, reinforces the relationship and puts your organisation in pole position for the next purchase?

Most of all how can you avoid the customer saying “I only ever hear from you when you want to sell me something”?

 

Phillip Forrest