For an effective application of a client behavior strategy it is, firstly, necessary to understand the difference between personality and behavior. According to several authors, personality is the sum of body, mind and character qualities, comprising of beliefs systems developed during the lifespan. Personality tends to be static.
Behavior (i.e., the way people act in the presence of others) is the conduct, the way and the means being – at least partly – open to change. When a complaining client is somewhat difficult which may appear to be due to changes in personality, in fact, the issue is with client behavior. As a problem in behavior may be identifiable, it is possible to make it a target of behavioral management.
A client behavior strategy that is well conceived and adequately implemented may consist of a significant competitive advantage. This strategy may be implemented trough Customer Relationship Management (CRM). Still, most organizations do not have integrated CRM strategies and typically use CRM solely as a management sales tool.
Today, CRM plays a major role in the definition of the strategic position of a company. CRM focuses on integrating information about the client, as well as in knowledge to find clients and to increase client’s lifecycle. CRM may also play an important role in helping organizations to maintain their clients and make them more related to the company. In this way, the role of CRM is even more crucial in retention of clients (Client Support).
In its purest form, CRM is oriented to originate income and profitability, through deep knowledge of data, information and insights (information plus experience equals insight), in order to be able to supply clients with what they need, when they need it, where they need it and in a way that fosters the best possible experience for the client. This fact requires segmentation of information provided to the client in areas such as sales, marketing and operations in order to consolidate the information in single place and in an accessible fashion.
Client behaviors process may create the opportunity of developing and transforming information into practical knowledge that may help the relationship with the client:
- Identify new sales opportunities and reduce sales costs.
- Increase average individual transactions.
- Increase margins and reduce operative costs.
- Improve degree of client-company interaction