Customer Relationship Management Strategies - Essay Example

Customer Relationship Management Name Institution Date Table of Contents Running Head: CUSTOMER RELATIONSHIP MANAGEMENT 1 Customer Relationship Management 1 Table of Contents 1 CUSTOMER RELATIONSHIP MANAGEMENT 12 2 Executive Summary 3 Introduction 4 The process of active listening 4 Hearing 5 Attention 5 Understanding 5 Remembering 6 Evaluating 6 Responding 6 Approaches to negotiation 7 Distributive negotiation 7 Compromise 7 Impersonal 7 Lack of information 8 Appropriate strategies for dealing with customer complaints 8 Conclusions 9 Recommendations 10 Reference List 11 Executive Summary Customer relationship management is very important in the success of the organization. This report looks at strategies to that can be used in negotiation of situations that arise in the organization. The process of active listening is an important stage of trying to solve the problems or issues raised by the customer. Listening is a very important stage of communication. The process has been discussed in this report. The various negotiation strategies have been explored. The section that follows looks at the strategies that can be used in dealing with complaints raised by the customer. The conclusions echoes the main theme of the report whereas the recommendations part discusses the various options that are available to Sydney, Hobart Perth and Partners is trying to address the customer service problems that are bombarding their front-line office. A list of references at the end of the report shows the materials that have been referred to while writing this report. Introduction Communication breakdown in the cause of engaging in a transaction has adverse effects on the performance of the organization. Active listening opens an avenue through which complaints raised by clients can be addressed adequately. It is important to understand the problem before trying to solve it. Resolving to blame game does not help to resolve the prevailing problem. Employees should be ready to explain themselves clearly and seek to address each issue raised by the client. It is important to develop the skills of employees through training to ensure that they handle problems raised by the customers (Woodcock & Francis, 2008). Customer awareness and communication is very important in development effective strategies to deal with issues raised by the customers. Strategies to negotiation are used to solve strive that emerge between different encounters. Active listening is an important component of communication in the organization. Sydney, Hobart Perth and Partners have to improve communication and conflict resolution techniques. The process of active listening Listening is a very complex process which is integral portion of total communication although a part that is often ignored. Active Listening is one of the best communication skills that can be used in an organization to realize productivity and profitability through quick reaction to situations. Moreover, bad situations can be anticipated through communication and avoided in advance. Listening is the process of receiving, drawing meaning, and responding to either nonverbal or verbal messages (Schermerhorn, 2009). Listening is active and involves drawing meaning of the communicated message, Hearing is passive and someone can hear something he has not purposed to listen to. The process of active listening has certain distinct stages which include: Hearing Hearing is the first step of listening. This is the response which is caused by sound waves stimulating the ear’s sensory receptors; it is normally physical response; it is the perception made my sound waves. People have to hear before listening. One has to hear before listening. Attention The brain screens stimuli and only allows selected information to come into focus. The selected focus is called attention. Attention is a very important requirement for active listening. Less striking stimuli need extra effort to or postural adjustment on sensory receptor organs such as tympanic muscle in the ear tensing to get clear response to weak sounds. Understanding In order to understand symbols seen or heard there is need to analyze the stimuli’s meaning which has been perceived. Symbolic stimuli are not exclusively words but they also include sound of applause and sights that have a meaning to be interpreted. The meaning placed on the symbols is as a result of the past associations and the circumstance especially circumstances in which the symbols happen (Davidhizar, 2004). The listener has to understand the coded meaning and the context intended by the sender for effective communication to take place. Remembering This is a vital step in the process of listening because it means that a person has not only received interpreted and received the message but he has gone ahead to add it to the mind as a storage bank. Memory is selective just like an individual’s attention. One can remember a different thing from what was heard or seen. Evaluating This is the stage where the participation of the listener is anticipated. An active listener at this point looks at the evidence, seek facts from mere opinions, and determine the absence or presence of prejudice or bias in the message being communicated. This stage comes later in the listening process in order to make the listener make a sound judgment (Robertson, 2005). Evaluating before going through the other stages terminates the process of listening. The incoming message has to be evaluated after other processes have been evaluated. Responding The stage involves the receiver giving feedback through verbal of nonverbal means. This is stage that gives the speaker a chance to tell whether the message being communicated has been received. It is here that the sender can determine if the message was received as intended. Approaches to negotiation Negotiation is one of the most used means of conflict resolution. Strategies of negotiation are broadly categorized as either integrative or distributive in nature. Some of these strategies can be discussed as follows: Distributive negotiation This involves looking at the goal or property of negotiation as if it is a fixed amount of something valuable. It is also called fix pie negotiation. The parties in the negotiation claim an equal share of the thing causing conflict. For instance, if someone is buying something, he wants to pay the lowest price possible while on the other hand, the seller wants to make maximum, profit through high prices. The method is only suitable when there are counter parties to the negotiation (Fassaert, Schellevis & Bensing, 2007). Compromise This negotiation approach or strategy involves compromising with the partner in the negotiation. This can only take place when there is a relationship that is positive with the counter party. In this form of negotiation each party will get something they want by allowing the other to have a portion of their own. This time of negotiations instigates relationships that are lasting and improve business. Impersonal This negotiation technique involves putting the people involved in the problem separate from the problem. Negotiator can easily get tied up with people who are having the conflict-parties to the conflict. When this happens, it can be very hard reaching a conclusion. The people are therefore separated from the problem. The parties in the negotiation can complete the deal without getting involved in personal intrigues (Newman & Cullen, 2002). Lack of information An important strategy of negotiations entails keeping vital information to the negotiation team. The negotiation proceeds without having to disclose everything. If the other party does not know about anything he is kept in the dark. The priorities and objectives are kept by the party in the know. The other parties in the negotiation are not able to profit from the information. Appropriate strategies for dealing with customer complaints Dealing complaints from customers can be challenging since it is not very easy to please them 100%. There is high possibility that the services or goods offered cannot meet satisfactorily the needs of the customer. It is important to have formidable strategies for dealing with customers’ complaints raised against the organization’s services or goods. The employees have to listen carefully to the complaint and should not interrupt until the customer finishes. It is in bad taste to be defensive. The customer is not interested in personal attacks; she/he has a problem that need to be solved. The employee of staff member has to go over what the customer has said to show that he has understood the message (Hoffman & Bateson, 2005). Secondly, the employee has to ask questions regarding the situation in a concerned and caring manner. It is important to get enough information from the customer in order to understand the complaint being raised. The customer should not be cut short before he satisfactorily raises his or her complaint. It is also important for the employees to put themselves in the shoes of the customer. The objective has to be solving the issue raised but not arguing with the customer. Another department or section should not be blamed but the person handling the claim should be ready to explain the situation without trying to save face (Osborne, 2004). The customer has to be asked to suggest the best method she or he thinks is appropriate for solving the current problem. The employee has to become a partner in solving the problem posed by the prevailing problems. All alternatives to the problem have to be evaluated and the best solution chosen. The employees or the organization should not just discuss the problem but try to solve it as much as possible. A customer will feel good if he sees positive effort from the organization to try and resolve the concerns which have been raised. Conclusions Conflict resolution is important is addressing customer complaints. It is not enough to dismiss the customer complaint without addressing the issues which have been raised. The organization has to come up with methods that deal with concerns raised by the customer. The company has to understand the problem without trying to place the blame in another department. The organization has to invest in employee training and development in order to realize effective ways of dealing with customer’s complaints. The employees have to be sensitized on issues that may cause strive between the organization and the customer. Every effort should be invested in realizing customer satisfaction which in the end may result into customer loyalty. Active listening is one way of understanding the problem. A satisfactory approach has to be used in trying to solve the concerns expressed by the customers. Recommendations The front-line staff at SHP & P has to be taken through special training in order to acquire skills that are vital for negation and dealing with customers. Awareness and training among the workers has to be carried out to ensure that they are aware of how risk management and complaints management work. The complaint policy of the company has to be mastered by all workers interacting with the customers. Training in customer service is important towards making the employees realize how to deal with customers’ complaints without getting offended or causing more strive. Behaving courteously and being ready to take the blame encourages customers to realize that the company has to their interests at heart. The support service should ensure that customer complaints are dealt with in the most appropriate way possible. The employees should be able to shut up and listen to the complaints raised by the customers. Customers always look for somewhere to vent their frustration when they realize that a product does not leaver to the expectations. The company has to empathize with the situation of the customer (Grobler & Warnich, 2005). The customer feels good when he realizes that his complaints are being taken seriously. The employees can also ask open-ended questions with an effort to divert concentration from the emotional frustration of the customer. The emotional state of the customer has to be acknowledged without necessarily owning up to the problem. The gap that exist in CRM and customer service as far as resolving customer grievances is concerned has to be corrected through adequate training and sensitizing employees. For the benefit of the organization and the customer, grievances raised have to be handled in the best way possible. Effective communication will play a fundamental role towards avoiding frustrating moments with customers who feel dissatisfied (Rao, 2011). Inadequate and poor communication results into numerous complaints that are raised by customers. Senior members of the organization have also to be used to calm down irate customers. Every issue raised has to be treated with respect and nothing should be taken personal. The employees have to apologize without blaming anyone. When the customer realizes that someone is genuinely sorry, then the tension created can be easily diffused. The long term solution to the problem has to involve training and sensitizing in customer service. Reference List Davidhizar R. (2004). Listening—a nursing strategy to transcend culture. J Pract Nurs 54 (2): 22–4; quiz 26–7. Fassaert T, v. S, Schellevis F, & Bensing J (2007). Active listening in medical consultations: development of the Active Listening Observation Scale (ALOS-global). Patient Educ Couns, 68 (3): 258–64. Grobler, P.A. & Warnich, S. (2005). Human Resource Management in South Africa. London: Cengage Learning EMEA. Hoffman, K.D. & Bateson, J.E.G. (2005). Services Marketing: Concepts, Strategies, & Cases. New York: Cengage Learning. Newman, A. & Cullen, P. (2002). Retailing: Environment & Operations. New York: Cengage Learning EMEA. Osborne, L. (2004). Resolving Patient Complaints: A Step-By-Step Guide to Effective Service Recovery. Sidney: Jones & Bartlett Learning. Rao, K.R.M. (2011). Services Marketing. Bombay: Pearson Education India. Robertson, K. (2005). Active listening: more that just paying attention. Aust Fam Physician, 34 (12): 1053–5. Schermerhorn, J.R. (2009). Exploring Management. 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