In part one of a look at new-school thinking on client attraction and client retention strategies, top US leadership consultant Dr Dan Novak examines how the context of client relations has changed profoundly in recent years.
IN THE near-past it was the aim of many client attraction and client retention strategies to lock-in clients through preferred-supplier agreements, in the hope the organization will land all of the client's spending in the segment.
Such attempts to “own” clients and markets are no longer viable, warns Dan Novak, a senior consultant with Leadership Strategies Group.
He says: “Instead, organizations must engage in open, deep and transparent relationships that provide value to clients. Open strategies provide new opportunities to attract, serve and retain clients in the new global context.”
Novak, says “global realities” faced by companies has changed, and that attraction and retention strategies must reflect these new conditions, which include:
- Ubiquitous connectivity;
- Ready access to information;
- Ecosystems that create value; and
- Open relationships with all stakeholders.
Client value now coming through innovation, not pricing
Novak comments: “Clients are pursued by global organizations with disparate and creative offerings, and value no longer comes solely through efficiency and price leadership. Instead, value comes through innovation, information sharing and concierge-type relationships.”
Novak cites health care as an example of this; where consumers are gaining open access to information about diseases, treatments, pharmaceuticals, providers and costs, and that specialty hospitals around the globe pursue patients as ‘medical tourists’.
He also addresses the unprecedented reach offered by mobile computing to consumers in developing nations as a factor.
“More people now have a mobile phone than a landline, and this connectivity is creating new, open markets that are extremely fluid and interactive,” Novak says. “Consumers have 24-hour access to information and to wide-ranging perceptions about products and services, organizations and client experiences. This enables non-traditional competitors and collaborators to emerge easily at local and global levels.”
‘Virtual’ ecosystems are creating integrated markets
Novak cites “ecosystems composed of virtual organizations and virtual employees” are yet another significant transition in globally integrated markets.
“These interactive, continuously morphing ecosystems create value through perpetual collaboration and innovation. Organizations must view themselves as part of global ecosystems and recognize that these open approaches are more likely to attract and retain clients than historically closed approaches,” comments Novak, who spent 31 years at IBM in a broad range of leadership, sales, entrepreneurial and international roles.
Related Links
Join client and customer conversations, expert urges firms
Web 2.0 ‘is reshaping client relations strategies’
Context of modern client relations is key
20/10/2009
Planet Client is the only online editorial resource dedicated to giving small to medium sized enterprises a deeper understanding of how to win clients, retain clients and understand clients.
Client & Customer Content (What’s this?)
