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Walking The Tightrope Between Cost Efficiency And Customer Performance
No doubt about it, it’s a struggle between the front office and the back office. To be financially competitive while building loyalty, companies must be able to determine the best tradeoff between cost efficiency and customer performance. This is true in your marketing efforts, and other mission-critical activities.
Businesses today are challenged by serving "two masters": on the one hand it’s the consumer-facing activities of sales, services and marketing; and financial cost management on the other. Today, it's even more critical to bring the two together, as companies look to enrich and profit from every customer interaction. Otherwise, how does management know how to invest in the right channels to deal with customers, while extracting the most from the sales and service dollar?
To be build loyalty through marketing, while being financially competitive, companies must be able to determine the best tradeoff between effectiveness and efficiency. Companies need to look at up-sell, cross-sell, customer service levels and average sales price and then correlate that information with traditional back-office metrics, such as cost, load and channel expense. By leveraging this information, managers can gain additional insights and perform root-cause analysis.
Measurement is key. If you can't measure your performance, and how it has changed over time, there is no way to improve it. Performance management needs to couple these capabilities with processes and technologies that allow continuous and measured improvement, as well as rapid and low risk implementation.
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