Uz Portfolio Management

Executive Certificate in Treasury Management
University Of Zimbabwe
Relationship Management
Study Guide ECTMRM 2007
 CCL 2007
CONTENTS
_____________________________
Relationship Management Study Guide - Executive Certificate In Treasury Management
University Of Zimbabwe / CCL Business Training
1.0 Introduction 3
Defining Relationships 4
New Generation Organisation 4
2.0 Understanding Relationships 5
Fundamentals of Relationships
5 Internal Relationship Management
7
Organizational culture 7
Strive for Win Results 9
3.0 Relationship Development 10
Institutional Relationship Management 11
4.0 Customer relationship management 13
Core Values and beliefs 14
Customer Profitability 15
Customer Acquisition 15
Customer Retention 16
Customer Growth 18
5.0 Making Relationships Work 19
6.0 References 22
 CCL Consulting Group 2007

All rights reserved. No part of this module may be reproduced, stored in any
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying or otherwise, without the prior permission of CCL
Consulting Group Private Limited.
3rd Floor, Pockets Building, 50 Jason Moyo, Harare, Zimbabwe

http://www.ccl.co.zw, E-mail ccl@ccl.co.zw
(263) 04-753 066 / 756 188, 091 287 675
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INTRODUCTION
1.0
_____________________________
1.1 Learning Outcomes
The main aim of this module is to enable students to identify key customer
relationships, internally and externally and develop strategies for improving them.
Essentially there are 4 key objectives to be achieved. By the end students will be
able to:
1. Develop an understanding of how internal relationships affect customer

satisfaction and the bottomline.
2. Develop the skill to manage the often complex business relationships.
3. Justify the need to develop and nurture long-term business relationships.
4. Think critically and strategize on development and management of

profitable relationships with customers.
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1.2 Defining Business
It is a network of stakeholder relationships with the objective of creating value

and wealth for the parties involved. The relationships involve the organisation
and any of the following among others;
 Customers
 Suppliers
 Employees
 Financiers
 Regulatory authorities, etc
 When do we need the services of the following?
 RBZ
 International banks
 Other local banks
 Recruitment agencies
 Financiers
 Customers
 Government
1.3 The Bottomline
All these relationships are created and managed so that the customers,
management and eventually shareholders are satisfied. The customer is
central in this relationship network.
Business success hinges on how successful an organisation interacts and

manages this network of relationships and develops these into long term
partnerships.
The old viewpoint in industry was: 'Here's what we can make - who wants to buy
our product?' or we can make a Ford for you in any colour for as long as it is
black!
1.4 The New Generation Organisation
The new viewpoint for a new generation organisation is:

 'what exactly do our customers want and need?' and
 'What do we need to do to be able to produce and deliver it?'
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This is a significant change of paradigm and a quantum leap in terms of how we

look at our business activity. Understand your customers and strive to satisfy
them. New generation companies realize that sound customer relationships are
more effective for corporate survival and growth. Customers' needs are distinctly
different to and far broader than a product or service, and the features and
benefits encompassed.
It is prudent to understand that customers' needs generally extend to issues far

beyond your proposition, and will often include the buying-selling process (prior
to providing anything), the way your communications are handled, and the nature
of the customer-supplier relationship.
UNDERSTANDING RELATIONSHIPS
2.0 _____________________________
What is a valued relationship?
It is any connection between two or more parties in view of drawing from each
other and mutually benefiting from the association. According to Christopher
Lovelock (1996), it is one in which the customer finds value because the benefits
received from the service delivery or product significantly outweighs the
associated costs of obtaining them. From the company’s point of view it is that
which is financially profitable over time and in which the benefits of serving the
customer may extend beyond revenues to include such intangibles as the
learning obtained from working with that customer.
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2.1 Relationship approach to management

New Economy demands a rethink to business:
* The networked society
* Focus on services
* New customer roles
* Globalisation
* Deregulation of financial institutions
2.2 Fundamentals of Relationships
2.2.1 Mutual Consent

Parties to a relationship willingly choose to enter into a relationship. They know
that a relationship exists. Many companies believe that they are in a relationship
with customers when customers are not interested in any relationship. Some
relationships are contractual and others are social.
2.2.2 Understanding
Partners to a relationship are appreciative, sympathetic, empathetic and
considerate of one another. Understanding relates to the genuine interest to
know each other’s situation and accept it with its shortcomings. The service
provider or manufacturer must understand the customer’s needs and
requirements so that they do not force their product on to the customer but
should structure a tailored financial solution for specific financial need.
Equally important, the customer must also develop interest to understand the
supplier’s situation and limitations. It makes the relationship relevant.
2.2.2 Information / communication

Lasting relationships rely heavily on level of information flow and effective
communication. Parties to a relationship must not be selfish about information.
Both parties should volunteer information that is regarded helpful for the
development of deeper understanding and learning in the relationship.
2.2.3 Mutual Trust

Trust is central to all relationships. Trust must be two way. It forms the currency
of all commerce. A trusted partner is the one that can be relied on, one that is not
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regarded as an adversary. They must be credible and not self centred but close
to each other. The warmth of the relationship is apparent. The following equation
developed by Don Peppers and Martha Rodgers completes the puzzle.
Trust = Credibility + Reliability + Intimacy y

Self Orientation
2.2.4 Mutual Interest and Mutual Benefit
Parties to a relationship are driven by mutual interest and mutual benefit. They
are not driven by the self-concept. The bigger the community of mutual interest
the more the relationship is wanted by both parties, the stronger it is and the
longer it will last.
A B
Community of mutual interest
In the same vein the smaller the shared interest level and mutual benefit the
weaker the relationship. It calls for honesty and selflessness and commitment to
a win-win result. No unjust profiteering, Employees are equitably rewarded.
Customers are satisfied and the company makes a profit.
2.2.5 Ethical conduct

Parties to a relationship always strive to do what is legal and right. Lasting
relationships are those not born out of clandestine arrangements. Even with new
people in influence positions such relationships will survive.
2.2.6 Respect for privacy

Invasion of privacy is often a cause for concern in business relationships. It is
important to know much about your partner but how far can we go to mine for
information regarding our relations without being considered invaders into private
lives?
2.3 Internal relationship management
The idea is to ensure that the organisation does not suffer from internal
counterproductive discord. Employees and management must be pulling in one
direction avoiding the “us and them” syndrome. Unity of purpose (direction) is
achievable if people operate in teams and not groups.
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Discussion
What are the key deliverables of internal relationship management?
Consistent quality of output – customer knowledge and interest to serve

Motivation – empowerment, employee needs and goal congruence
Productivity – are motivated employees necessarily more productive
2.3.1 The Concept
 The customer is inside the organisation

 The supplier is internal and seeks customer satisfaction
 The employee is the customer whilst the job is the product
 Consistently meeting quality requirements of external target markets ensures
building strong internal customer relationships
Practical internal relationship management (internal marketing) is a process that

educates all employees about the firm’s services and who in the firm provides
them. It seeks to encourage coherence and smooth value creation and delivery
process.
Often, the internal marketing process is informal at best. Employees simply talk
to each other and develop relationships on their own. There is often a threat of
communication failure due to perceptual differences. There is also a challenge of
the inevitable conflict between departments owing to goal incongruence,
conflicting reward systems and organizational politics.
Jumping the Hurdles
Here are a few techniques you can use to increase the effectiveness of your
internal marketing efforts:
i. Begin with new employee orientation
Instead of burdening new employees with a recitation of personnel policies they

could easily read on their own, introduce them to your firm’s services and
experts. Give each department five to ten minutes (no more, because the new
persons are already on information overload) to present an overview of what
each department does and who does it. Have your most energetic speakers
represent each group. Encourage new employees to visit individuals in other
departments after they’re settled. If your compliance people don’t know your
corporate finance or credit people, how can they possibly recommend their
services?
ii. Encourage "cross-eating"
Rather than thinking about internal marketing or cross selling, encourage cross
eating. Food is the best icebreaker among people. Encourage interdepartmental
lunches. Consider organizing lunches or providing food. Follow up regularly to
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see whether employees are participating. (Here’s a hint—they’ll do it if you and

other senior people in your firm do it. People naturally emulate what they
perceive to be successful behaviours, so if you start the process, they’ll follow.
The flip side of this, of course, is if you’re sitting behind your desk 60 hours a
week with your door closed, they’ll emulate that behaviour, too.)
iii. Use star performers
Of course, conduct regular internal training sessions on all your services. The
important thing is to have your very best presenter do the training. Too often,
internal training is relegated to either a department head or the most technically
astute employee. An accurate-but-dull presenter will hinder your internal
marketing effort. An energetic, likable, enthusiastic team member will help
capture the attention of others, and generate excitement about the service.
iv. Discount new services
Consider allowing employees to offer new services at a discount. Nothing works

better than word-of-mouth advertising. If you can make your employees
advocates of your services, they’ll be your best referral source for new business.
v. Cheer on the team
Reward and recognize the people who let clients know about new services. It
doesn’t necessarily have to be a financial reward. Sometimes a simple thank-you
note or e-mail does the trick.
vi. Use your internal newsletter and intranet effectively
Ask each department to submit information current activities and to provide good
news about business development efforts. Remember that the goal in these
venues is to inform and uplift.
vii. Discuss results honestly
This is the time for discussions about which internal marketing efforts are working
and which aren’t. It’s absolutely not the time for displays of hot air. Trust builds
when people are honest with each other. Sharing both successes and failures
(call them learning experiences if you want) enables people to understand the
complexities of the firm’s different services, what makes them useful, and what
services clients are and aren’t accepting. It is also a unique opportunity for
problem solving.
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2.4 Strive for Win-Results
Win – win, not win –lose, lose – win or lose – lose

- All Parties must feel like winners
- View each other as partners and not as an adversary
- No room for excessive greed and short-term street smarts
- Employees must be fairly rewarded, encouraged and motivated
Astute relationship management never regards business as a battle or customers

as enemies to be beaten. It is possible to be a trickster and cheat your customer
into buying a product that does not address their concerns, but when you do that
you are making them lose and you winning. That is a selfish and shortsighted
strategy. Such customers will “walk away” from you. If employees feel cheated
or unfairly treated, they resign or sabotage the business.
a. Win – win scenario where both parties walk away feeling satisfied
knowing that neither parties has taken advantage of the other.
b. Win – lose scenario where the seller (employer) wins at the expense of
the buyer (employee). The seller may feel good but the buyer feels
cheated and looks forward to revenge.
c. Lose – win scenario where the seller (employer) loses and the buyer
(employee) wins. Usually the seller expects to make up in future but the
opportunity never comes.
d. Lose – lose scenario where both parties lose and neither feels good
coming out of the transaction.
Discussion
 What is required to ensure lasting business relationships?

 Why is it important to enter into long-term business relationships?
 How do business organisations resolve relationship conflicts?
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Relationship Life Cycle
3.0 _____________________________
3.1 Relationship Life Cycle
Business relationships (internal or external customer) follow a development cycle

that borrows from a biological metaphor of birth, growth, maturity and death. One
always wishes that relationships last forever. The strategic question is what to do
at each stage of the relationship phase.
Below is a typical life cycle of a business relationship.

Relationship Development
New Growing Mature Declining
3.1.1 New Relationship Phase
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 Suspicion hence self orientation still present

 Minimal trust
 More learning required
 Prospects turn into customers (new employees join the organisation)
 Low intimacy
 Low business volume
 Low profitability
3.1.2 Growth Phase
 Trust level improves as mutual benefit shows

 Intimacy level improves
 Continued learning
 Customers turn into clients
 Repeat business
 Profitability improves
 Referral business
3.1.3 Maturity Phase
 High trust levels

 Continued learning
 Very intimate
 Shared resources and joint investments in R&D
 Profitable relationship
 Referral business – clients turn into advocates
3.1.4 Decline Phase
 Low trust levels

 Customer dissatisfaction
 Low purchase
 Low profitability
 Customer defection or separation
3.2 Institutional relationship management
Organisations need to realize that institutional relationship management is

complex compared to individual relationships. The decision making unit is often
big, ideally comprising individuals whose needs may not be the same. These are
called buying influences and thus need to be managed carefully and individually.
Characteristic of many organisations are the following buying roles:
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3.2.1 User buying Influence – the role of the user buying influence is to make
judgements about potential impact of your augmented product on their
performance. User buyers will supervise or use the product and so their personal
success is directly tied to the success of your solution. The user buying influence
is concerned about the job to be done (how does this impact my job
responsibilities).
You cannot afford to ignore this buying influence even if you are connected to the
big guns. Management can and sometimes does approve orders for products
that user departments just as soon would not buy but the eventual outcome of
these is generally bad for everyone concerned. Resentment, lack of co-
operation or outright sabotage from user buying influences can affect future
potential sales.
3.2.2 Economic buying influence – this gives final approval to buy. The role is
to release the money to buy or invest. There is always one person or a set of
people playing this role for any given proposal. The economic buying influence
can say YES when everybody else has said NO, as well as veto a deal that
everybody else has approved. He or she exercises the golden rule: whoever has
gold makes the rules! His or her focus is on the bottom line and effect on the
organization (what return will we get on this investment?).
3.2.3 Technical buying Influence – the role of the technical buyer is to screen
out possible suppliers. Their focus is on the augmented product itself, and they
make recommendations based on how well (measurable and quantifiable
aspects) the proposal meets a variety of objective specifications. Technical
buyers cannot give a final YES but they can give a final NO. The technical
gatekeepers do not decide who wins, but they decide who can play the game
(does this meet the specified criteria?). There are usually several people playing
this role. Technical buyers are often difficult to identify but you can only
underestimate their power at your own peril.
3.2.4 Advisor – the unique and very special role of an advisor is to guide you to
your particular sales objective by leading you to the buyers and by giving you
information that you need to position yourself effectively with each one of them.
Advisors may be found in your organization, in the buying organization or both.
Their focus is on helping you make this sale (how can we make this relationship
happen?). You do not want to give away a hamper containing wine for Christmas
to a client who returns it saying they do not drink alcohol!
Understanding these four buying influence roles and identifying all the people
playing them with regard to your sales goal is the foundation of cutting edge
selling. Selling to the economic buying influence alone can be as disastrous as
only selling to someone who doesn’t give the final “yes”. Stay out of that comfort
zone and sell to all the buying influences.
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Discussion
How do we deal with customer relationships that are so personal that the
relationship manager may leave the organisation with the customer or business
relationships that are too personal? In other words how do we avoid losing
customers with staff turnover?
CUSTOMER RELATIONSHIP MANAGEMENT
4.0 _____________________________
4.1 View of CRM in the New Economy
“In the new economy of intense, global competition and constant change, a
golden business rule from yesterday remains constant: the customer reigns
supreme. Today, successful businesses must excel in all areas of customer
intimacy, product leadership and operational excellence. Winning companies
never lose site of constantly evolving customer demands and strive to exceed
customer expectations.” SAP
4.2 Today’s Challenges
 Abundance of choice
 Availability of information
 Falling discretionary incomes
 Commoditisation
 Time scarcity
4.3 Outcomes
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 Customer defections
 Declining bottom line
 Customer attrition
 Complaints
 Reduced affiliations and loyalty
 Price sensitivity
Major re-thinking of marketing and management is therefore required.

Relationships are now more important than anything.
4.4 What is CRM?
Customer relationship management is a business strategy to select and manage

the most valuable customer relationships. CRM is a customer centric business
philosophy and culture to support effective marketing, sales and service
processes. CRM strategies can only work where the leadership and culture are
right. (Bob Thompson, CEO of Customer Think Corp)
4.4.1 Core Values and Beliefs in RM
Each customer is regarded as an individual compared to traditional marketing

approach that has a mass approach. Strategies are around the customer and
not what the business can offer. Every thing starts with the customer and ends
with the customer! Marketing is narrowed down as follows:
Mass market >> Segment >> Niche >> Individual l
Relationship management favours one-2-one approach where the individual is

considered separately. This is based on the premise that customers’ situations
and drivers are different. Individual situations and needs are addressed
independently. Relative scope and profitability of the relationships are regarded
as key.
Collaboration and Joint value – creation

- Emphasis is on collaboration between customers and suppliers
- Joint teams in R & D, financing projects, marketing etc
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- Joint value creation compared to the traditional value chain (as popularised by
M Porter).
Long-term relationships pay more

- Return on relationships
* Reduced costs when fewer customers defect. Remember it costs more than
4 times more to attract a new customer than to serve an existing one.
* Increased ‘customer share’ or ‘share of wallet’
Discussion
Hard Facts about business
Did you know that >>>
1. About 20% of each business’ customers account for nearly 100% of its profits.
2. This top 20% group of customers poses both a threat and an opportunity to
your business. The opportunity is in that once you have identified them you
can easily target them for retention and cross-sell programs. The threat is that
most businesses have traditionally over-charged their best customers to
subsidise other loss inducing customers. This has normally resulted in the
top clients being dissatisfied and thus being highly targeted by competition.
The strategy therefore is for the business to identify its top 20% customers
and seeking to grow them.
3. If you have not been using the Pareto rule then you were having it wrong
throughout!
4.4.2 Why customer profitability?
The emphasis of CRM is on long-term customer profitability. Organisations

should identify, attract, retain and grow only the profitable customers. In other
words they should avoid dealing with unprofitable and ungrowabe customers.
Lifetime profitability analysis should be done to categorise the customer portfolio
into A, B, C, D and Z. The Z category would be candidates for sacking. Why
emphasize on profitability?
 Businesses that are not profitable always go under in the long run.
 It enables the business to identify short-term profit improvement strategies
that can be immediately implemented.
 It can assist the organisation to nurture currently unprofitable customers
towards profitability.
 Analysing the relevant profit drivers can help a business to achieve that
higher level of profitability faster by focusing the right tactics on the right
customers.
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 The analysis also helps to identify unprofitable customers who are unlikely to
ever become profitable and need sacking.
 Profitability analysis helps the business to anticipate the profit potential of
customers and thus enabling it to focus more on the highest profit potentials.
4.5 Customer acquisition
Customer acquisition is a critical issue faced by organisations as they attempt to

build a valuable customer base. New customers have to be acquired because
even in well-managed companies there is some level of attrition. Lost customers
must be replaced. The strategic questions to answer are which potential new
customers should be targeted, how should they to be approached and what
should be offered to lure them?
Marketing companies should worry over three key performance indicators for
their customer acquisition programs namely,
 How many customers are acquired?

 What should be the acquisition cost per new customer?
 What should be e value of the acquired customer?
The ideal combination is a low cost acquisition program that generates high
customer equity. It must be remembered that safety in big numbers is not always
profitable. Some customers cost more than what they are worth./
4.5.1 Customer Acquisition tools
o Personal selling
o Under- serviced accounts
o Satisfied customers – referral customers
o Networking – personal contacts with the well connected
o Promotional Activities
 Exhibitions, seminars, trade shows and conferences
 Sales promotions, advertising,
 Publicity,
o Websites - interactive
o Lists and Directories
 Attendee lists, telephone directories
o Canvassing and pitching
o Telemarketing
The decision on which customers to acquire must rest on customer value
estimates. All other things being equal, a customer that shows a higher value
estimate is a better prospect for acquisition. It is a core principle of CRM to use
customer knowledge to target acquisition efforts accurately and cost effectively.
In a CRM environment it is often possible to query the current and prospective
customer databases for clues to guide customer acquisition.
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4.5.2 Strategizing on Customer Acquisition
Progressive organisations consider what to offer prospective customers; some

industries are consistent with entry-level products for customer acquisition. Retail
banks usually offer higher interests for deposits.
Know whom you are targeting. Whilst some target the high net worth, others
target every one. Establish your ideal customer profile. Then define your unique
selling proposition or extra value proposition enough to separate your product
from competition. Differentiate and sell. But do not end there.
4.6 Customer retention
A customer retention strategy should aim to keep a high proportion of current

customers by reducing customer defections. Just as customer acquisition is
focused, customer retention should focus on customers that offer the greatest
strategic value to the organization. Strategic value means the focus is on the total
potential customer lifetime value. You need to bear in mind that your most valued
customers are also those that are very attractive prospects for your competitors.
Given the cost of acquiring customers, businesses can’t expect to grow customer
business simply by attracting more new customers. They must retain
existing customers longer and build the customer base by looking more
closely at the other end of the customer lifecycle — attrition.
4.6.1 Strategies for Customer Retention
i. Meet customers' expectations

The most basic approach is to meet customer expectations. An organization that
fails to meet its customers' expectations struggles. You should strive to exceed
customers' expectations to ensure customer satisfaction, and also to raise the
credibility of your augmented products and services in the eyes of its customers.
Customers normally become delighted when a supplier under-promises and
over-delivers. To over-promise and under-deliver is a recipe for customers to
become very dissatisfied. Satisfied customers are loyal and invite others.
Dissatisfied customers defect and tell others too! But please take note >>>
Rule No 1 - You cannot assume that you know what a customer's expectations
are ... You must ask.
Rule No 2 - Customer expectations will constantly change so they must be

determined on an on-going basis.
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ii. Loyalty schemes

Loyalty schemes reward customers for their patronage and it is suggested that
successful schemes deliver the following value to participants:
 Cash value – how much is the reward worth in cash compared to what is
spent to obtain it?
 Redemption value – how wide a range of rewards is offered?
 Aspirational value – how much does the customer want the reward?
 Relevance value – how appropriate are the rewards to identified
customers?
 Convenience value – how easy is it to collect the credits and redeem them
for a reward?
iii. Customer clubs

These are organized to deliver a range of benefits to members. To become a
member and obtain the benefits clubs require customers to register giving
necessary personal details. Clubs can only succeed if members experience
benefits that they value.
You may consider; access to members-only products and services, prompt alerts
on upcoming and improved products, discounts, electronic newsletters etc.
iv. Bonding
Aim to create social and structural bonds with customers to raise switching costs
such as,
 Multi product bonding – there are economies for customers dealing with a few
suppliers. When the relationship breaks the customer incurs significant costs,
financial, psychic and physical.
 Financial such as offering discounts (higher rates) with product bundling
 Legal contracts
 Technological where the customer invests in technology tying them down to
you.
 Learning relationships get smarter with each interaction. Every interaction and
modification improves your ability to fit your products to particular customers.
This raises customer” switching costs and acts as a barrier against competitor
invasion.
v. Build Commitment
Several authorities have urged companies to work on developing customer
commitment. Committed customers are more than satisfied, they believe your
company is superior to other competitors, they are involved in your brand, offer
or company, they have a strong intention to buy that overrides promotional offers
from competitors.
4.6 Customer growth
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Relationship driven companies should aim to grow the value of retained

customers. These companies can pursue aggressive cross selling and up selling
initiatives. Customers do not however respond very favorably to persistent calls
to buy additional products and services that they regard as not related to their
requirements. Customer development in a relationship environment can only be
successful is it is a product of intelligent data mining, customization and
integrated customer communication.
So what do we need to make this quantum leap of customer integration?
A new way of thinking:

 change in paradigm
 change in the messages sent and received
 change in the overall culture
And a new way of doing things:

 processes that are capable and effective
 structures and systems that support a business centred on its customers
 connectivity (end-to-end processes) both internally and externally (e.g.,
with customers through the web).
Making Relationships Work
5.0 20
_____________________________
4.1 Communication is very important
Partners in a relationship need accurate, current, relevant and adequate

information communicated in very intelligible manner timely. It is important for
decision making. Up datedness and ability to communicate effectively on the part
of both partners is therefore demanded.
The treasury (in banks) needs to be equipped with a robust information system
such as the Reuters to deal with global banks.
Technology is required to help improve the efficiencies of the communication

process. Examples of technological devices that are helpful to facilitate
communication and operations are hotline video conferencing with top
management, email, direct telephone lines, pagers, and mobile phones.
Discussion
1. What often causes communication failure in the treasury?

2. Why do most of our customer relationships short term?
3. Why are most of our customers multi-banked?
4.2 Make your relationships work
It has been emphasised that customer relationship management is all about

people, process and technology. And whenever you find those pieces of the
relationship puzzle mentioned, you’ll always find people mentioned first. That’s
because people are the key ingredient in building relationships.
IT power needs to be exploited to create platforms to mine relevant customer

data from existing data files; data that can be used to identify service or product
gaps for customer growth.
Your organisations should be able to develop intelligent data analytics to identify

avenues to grow your current customers. The data should be integrated to give a
complete view of any customer under query. The focus is not on products but on
customers.
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Although technology is pivotal, people often make or break relationships. Below

are some softer tips on the people side of the equation to build customer loyalty.
1. Give more attention to your most profitable customers. Use the Pareto rule.
2. Take ownership of your customer’s problem, even if you are not the cause of
it. This means acting like you were the cause of the problem by apologizing,
empathizing and putting in 100% effort to get it fixed.
3. Follow up with every customer who was upset or had a difficult problem. Make
sure the problem was resolved to their satisfaction.
4. With every customer interaction, ask yourself: If this were me, what would I
want? In other words, are you following the Golden Rule and treating your
customers the way you would want to be treated in a similar situation?
5. Thank your customers and co-workers every chance you get. Why your co-
workers? Because it will make them feel appreciated and help give them a sense
of well being, which in turn will trickle down to your customers.
6. Fax, mail or email articles or other materials to your customers if you think they
can benefit from the information. In fact keep your communication lines open and
open. Be there for the customer.
7. Remember personal details about your customers such as birthdays,

children’s names and accomplishments. This is where CRM technology helps,
but is certainly not essential.
8. Look for ways to bend the rules and remove service obstacles.
9. Never forget that time is a person’s most precious commodity. Respect your
customers’ time and schedule. This means being on time – or early – to
appointments, wrapping up your presentation in the allotted time and leaving
succinct voice mail messages.
10. Provide your customers with respect, friendliness, knowledge and concern for
their needs first, and with the products and services you sell second.
11. Remember all the fundamentals about relationships. Be committed and not
involved.
12. Smile every time you talk on the telephone. It will come through in your voice.
13. Establish customer devotion
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People are not devoted to products; they're devoted to an experience. It is

important to note that delivering a great customer experience is not just about
meeting customers' needs and expectations; it's about meeting their hopes and
aspirations. Here are a few tips.
a. Engagement - Listen to understand
Organizations need to listen to their customers in a way that shows that those
customers are valued. This is especially important because customers'
expectations are constantly changing -- moment-by-moment.
b. Enlistment - Make customers feel like partners
It's imperative that companies include customers in such a way that they feel like
partners. One-way to do so: feedback. Companies should beg for feedback and
celebrate it like the gift that it is.
c. Enlightenment - Integrate service and learning
Customers are devoted to companies that help them learn and make them
smarter. It's very powerful. It says, 'We care about your growth.’
d. Empowerment - Help customers feel confident and secure
Creating a consistent and comfortable customer experience helps customers to

feel more in control.
e. Enchantment - Create a magical experience
A great experience is also about being unique. Companies need to personalize

the experience in a way that surprises customers.
f. Entrustment - Affirm that there is trust in the relationship
"All trust begins with a leap of faith," Bell said. "If you trust customers first they
will respond to you in kind." Something in the relationship fundamentally changes
when you show trust. Service recovery is about managing betrayal. It's not about
fixing the problem only, it's about how you communicate empathy.
g. Endearment - Connect with passion
Customers like dealing with employees who are committed, but they love dealing
with employees who are passionate. Do not to put all their effort into
transactional costs and miss the relationship value.
h. Manage customer complaints effectively
23
 Apologise but do not over apologise
 Show interest in the complaint
 Refer quickly if you can offer redress
 Urgent reinstatement or restitution is required to recover from the failure
 Empathise with the aggrieved
 Follow-up after the resolution - remember you still need the client
REFERENCES
_____________________________
6.0
1. Paul R Gamble, Merlin Stone, Neil Woodcock and Bryan Foss, Up Close
and Personal, Customer Relationship Marketing at Work 2nd Ed (2001)
Kogan Page Limited.
2. Francis Buttle, Customer Relationship Management Concepts and Tools,
(2004), Elsevier Butterworth- Heinemann.
3. Don Peppers, Martha Rodgers and Bob Dorf, Is Your Company Ready For
One To One Marketing, Harvard Business Review Jan 1999.
4. Christopher Lovelock, Services Marketing, Butterworth, 1996.
5. Susan Fournier etal, Preventing the Premature Death of Relationship
Marketing, Harvard Business Review Jan 1998.
6. Robert C. Blattberg etal, Interactive Marketing: Exploiting the Age of
Addressability, Sloan Management Review Jan 1991.
7. Leyland Pitt etal, Managing the Process of Competitive Advantage with
Customer Equity as the Outcome, Cardiff Business School Jan 1991.
8. Robert C. Blattberg and John Deighton, Manage Marketing By The Equity
Test, Sloan Management Review Jan 1991.
24
9. http://www.1to1.com
10. http://www.sellingpower.com
11. http://www.carlsonmarketing.com
12. http://www.relationshipmarketing.com
13. http://www.gsb.stanford.edu/eep
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Executive Certificate in Treasury Management

Study Guide ECTMRM 2007

 CCL Consulting Group 2007

3rd Floor, Pockets Building, 50 Jason Moyo, Harare, Zimbabwe

1.1 Learning Outcomes

1. Develop an understanding of how internal relationships affect customer

2. Develop the skill to manage the often complex business relationships.

3. Justify the need to develop and nurture long-term business relationships.

4. Think critically and strategize on development and management of

1.2 Defining Business

It is a network of stakeholder relationships with the objective of creating value

 When do we need the services of the following?

1.3 The Bottomline

Business success hinges on how successful an organisation interacts and

1.4 The New Generation Organisation

The new viewpoint for a new generation organisation is:

This is a significant change of paradigm and a quantum leap in terms of how we

It is prudent to understand that customers' needs generally extend to issues far

What is a valued relationship?

2.1 Relationship approach to management

* The networked society

* New customer roles

* Deregulation of financial institutions

2.2 Fundamentals of Relationships

2.2.1 Mutual Consent

2.2.2 Information / communication

2.2.3 Mutual Trust

Trust = Credibility + Reliability + Intimacy y

Community of mutual interest

2.2.5 Ethical conduct

2.2.6 Respect for privacy

Consistent quality of output – customer knowledge and interest to serve

2.3.1 The Concept

 The customer is inside the organisation

Practical internal relationship management (internal marketing) is a process that

Instead of burdening new employees with a recitation of personnel policies they

see whether employees are participating. (Here’s a hint—they’ll do it if you and

iii. Use star performers

iv. Discount new services

Consider allowing employees to offer new services at a discount. Nothing works

v. Cheer on the team

vi. Use your internal newsletter and intranet effectively

vii. Discuss results honestly

2.4 Strive for Win-Results

Win – win, not win –lose, lose – win or lose – lose

Astute relationship management never regards business as a battle or customers

 What is required to ensure lasting business relationships?

Relationship Life Cycle

3.1 Relationship Life Cycle

Business relationships (internal or external customer) follow a development cycle

Below is a typical life cycle of a business relationship.

New Growing Mature Declining

3.1.1 New Relationship Phase

 Suspicion hence self orientation still present

3.1.2 Growth Phase

 Trust level improves as mutual benefit shows

3.1.3 Maturity Phase

 High trust levels

3.1.4 Decline Phase

 Low trust levels

3.2 Institutional relationship management

Organisations need to realize that institutional relationship management is

CUSTOMER RELATIONSHIP MANAGEMENT