Can we call them 'good customers"?
Do executives have ever met these good customers? Almost, No.
Unfortunately, high risk and high delinquent customers are met more frequently and more times.
In the current business model, thanks to concepts of head-count and out-sourcing, many of these customers are met/ handled face-to-face by company's Direct Marketing Agents, Dealers or Field Inspectors. Company hardly gets a chance to meet them unless company fails in its service delivery in the events of pre-closing, complaints like misapplication of payments, delay in issuance of No-Due-Certificate, etc.
Every marketing book says that retention of customers is important and retention is more profitable than acquisition of new customers. In my 30 years exposure in retail finance business, many companies tried and delivered better service to depositors, but not to borrowers. There is still a wrong stigma that borrowers are inferior and that companies do favour by lending them. This has been changing at an increasing rate with increased professionalisation. Still, efforts to show ' respect' and 'appreciate' good customers are NOT being practised by even those so-called professional finance companies. They certainly care and respond.
Do not these good customers deserve little more so as to make them come back to the same company for additional or increased loan?
Firstly, there must be a customer service department / manager who handles every communication be it an enquiry, a service requirement or a complaint from any customer. Customers must be let known the contact details of customer service in all its communication including web-site, prominently. They certainly must prioritise the requirements and complaints from non-delinquent customers for solution, preferably in 2-3 working days, acknowledgement of receipt of their communication with service reference number within 1 working day apart. Speed of response is highly appreciated in customer service. More importantly, customer service must function in a way that there is no scope for complaint on them. Critical thing in customer service is delivering solutions continuously and consistently. Depending on the size of the company and service requirements, this department must be staffed in right numbers and quality. Obviously, this department/ manager must report to CEO or MD directly so as to analyse and facilitate to reenginner product, process and procedures so as to reduce the service requirements and improve quality.
Secondly, there must be a communication with these customers from some seniors from head office, preferably CEO or MD on occasions like new product launches, etc. In trying to further enhance brand equity, a greeting on Birthdays to all good customers with an appreciation of their promptness and good account history would go a long way to get referrals and also additional or increased business from these customers. This needs to be done accurately, being continuous and consistent apart. Nobody likes to get greetings a week later, right?
When the author was a marketing manager in a captive finance MNC, this concept was introduced. Many customers were happy, thankful and appreciative. With in a year, the MD who happened to be a bean counter, shelved the project as a cost-cutting measure. He was subsequently, obviously and deservedly dismissed for many other reasons; I wish that he was dismissed for this reason alone. Believe me, bean counters ought to be CFOs and they can never make good CEOs or MDs.
So, build brand equity around these good customers by respecting and appreciating. It is no more a luxury but necessity.
