Latest / Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint / Boost Profits & Reduce Stress: The Simple Power of Customer Relationship Management
Transcript
- 0:01Hello and welcome to the show. Today we are going to look at
- 0:05customer relationship management or client relationship
- 0:08management. What does that mean and why is
- 0:11it important? If you've been listening to the
- 0:13show for any length of time, you know that it's something I've
- 0:16hinted on every now and then, but it's one of these perennial
- 0:19issues. So we can't we can't ignore it
- 0:23because it's it comes up every now and then again in business.
- 0:26So it's not something that you can't over stress.
- 0:28It's not something that you can't over flog, at least for
- 0:31those of us who are in the early stages of a business.
- 0:34So if you are a conglomerate or you're a behaving of like MTN,
- 0:39what else are big national banks?
- 0:43You know, customer relationship can be a tagline and you guys
- 0:46don't pay attention to it and you still do well because you
- 0:49reached a certain level of what I say critical mass.
- 0:53But now for those of us in the early days, this is not
- 0:55something that we can trifle with.
- 0:58So the big business is MTN. They can put you on hold for 30
- 1:02minutes, but they know that, you know, they all behave the same
- 1:06way. So it's not like you have an
- 1:08alternative. It's not like if you run away
- 1:10from MTN and you move to 9 Mobile, the service is going to
- 1:13be any better. And it's the same thing with the
- 1:15banks. They'll put you on hold for 3045
- 1:18minutes because it's the same thing everywhere.
- 1:21So until we get to that level, we can't afford to mess with
- 1:24customer relationship management, customer service
- 1:28issues, all these sorts of things.
- 1:30In fact, I have a theory. I don't know how I'm going to be
- 1:34able to prove it until maybe one day if I end up consulting for
- 1:37one of the big conglomerates, big multinational organizations.
- 1:43I have a theory that even at that stage you can use, yeah,
- 1:48I'm good customer service, customer relationship management
- 1:50issues to be a distinguishing factor for your business when
- 1:55that's that's a theory. If I ever get a chance to prove
- 1:57it, I'll be sure to let you guys know over here on the podcast.
- 2:01Yeah, well, like I said, technically speaking, we're
- 2:04going to limit it to customer relationship management and not
- 2:08everything that is customer focused or customer service and
- 2:11then all of that. So First off, it'll help if we
- 2:15define what a relationship is because there are some people
- 2:19who say look relationship is what I have with my mom or my
- 2:22wife or my siblings. Relationship is not what I have
- 2:26with a business. So cut the crap.
- 2:29There's no such thing as customer relationship management
- 2:31because there's no relationship to begin with in the 1st place.
- 2:35Now, in a sense, people who say that are correct, but
- 2:39technically speaking, if you think about it, what a
- 2:42relationship is, it's just the state of existence between two
- 2:45people. So in that sense, we are in
- 2:48relationships not just with personal entities but also
- 2:52inter. Is it interpersonal or you know,
- 2:55you get the drift. We have personal entities and
- 2:57then entities that are not persons.
- 2:59So our relationship with these things all the time.
- 3:01For those who also are living here in Nigeria, there's no
- 3:03doubt that you are in a relationship with the Nigerian
- 3:07state because there is a state of existence.
- 3:09There's a state of relationship. There's a state of terms that
- 3:13exist between you and the Nigerian state.
- 3:15So in the sense you can say relationship is all I have with
- 3:18my mom, my kids, my siblings. Yeah, I guess you might be
- 3:21right. But you look at it in a
- 3:23technical sense. There's a state of existence
- 3:25that always exists between two people and two entities.
- 3:28And so when we find that we are in multiple relationships all
- 3:32the time, especially with our prospects or with our customers,
- 3:35because there's a state of existence that occurs between
- 3:39both of us. Now whether the relationship is
- 3:41good or bad, that's another topic for contention.
- 3:47And whether the relationship is fruitful or not, that's also
- 3:49another thing to be decided. But we are always in a state of
- 3:53relationship somewhat with our prospects and with our
- 3:57customers. So customer relationship
- 3:58management, is there a relationship?
- 4:00Yes, there is a relationship, just not the kind that you have
- 4:04with your mom or with your kids or with your siblings or with
- 4:06your dad. So do relationships need
- 4:10managing? Because remember, customer
- 4:12relationship management, do relationship need managing
- 4:16Because there are some of you who think, look in my personal
- 4:18affairs with my mom, with my siblings, with my spouse, with
- 4:22my kids, with my whoever, the relationship just takes care of
- 4:26itself. So I don't need to actively or
- 4:29proactively manage anything. But unfortunately, the answer
- 4:33is, even when you have a relationship with your mom and
- 4:37with your siblings and with your dad, the relationship actually
- 4:41need some level of managing or some proactivity.
- 4:45Because if you don't do that, then your relationships are not
- 4:48going to achieve the desired ends.
- 4:51Because all relationships are geared towards something.
- 4:54There's no sort of relationship that is just relationship for
- 4:57relationship in sake. Even people who are friends with
- 5:01benefits, you can see that it is related, it is geared towards
- 5:04something even though the ends are questionable if we can't put
- 5:08it that way. So all relationships needs
- 5:12managing. So for your marriage, the end of
- 5:15the marriage or the goal of the marriage is mutual companionship
- 5:18and we're trying to raise kids that are self-sufficient.
- 5:22So we have to proactively manage the relationship towards all
- 5:26this. You can't just wake up every day
- 5:29and expect that the relationship with your wife is going to sort
- 5:32itself out or the relationship with your husband will sort
- 5:35itself out. Both of you have to proactively
- 5:38manage these sorts of things. So if you are a caveman of
- 5:42sorts, once in a while you need to have a bath, groom, use
- 5:46perfume, smell nice so that your wife can find you attractive
- 5:49again, organize date nights, try to caught her once in a while,
- 5:54you get the drift. You are trying to manage the
- 5:57relationship and it's the same thing with the kids.
- 6:01Spend time with them, watch some of their TV, go out and try and
- 6:04play with them, help out with homework, get to gossip with
- 6:08them. Know who their friends are.
- 6:09That's for those of you who have teenage kids cousins.
- 6:12One of my cousins who's turning 51 of my big cousins is turning
- 6:175353 ish. 54 ish and her kids are her kids are old, well, not
- 6:23old anyway, but older than my own kids.
- 6:26So is it It's a delight to watch the relationship that she has
- 6:29with our own children. She has two kids.
- 6:32The the younger one, the girl is 20 something.
- 6:36The boy is older than that. But it's a delight watching them
- 6:40converse. You know, they drive, she's
- 6:42sitting in the car, they're talking about all sorts of
- 6:44things. Well, anyway, it's not about my
- 6:46family issues. But what I'm just trying to say
- 6:48is that all relationships, excuse me, all relationships
- 6:51need managing the same thing. Sibling relationships, sibling
- 6:55relationships are for mutual flourishing and support through
- 6:58life. So the whole point with my
- 7:00brothers and my sisters and my cousins is that we will support
- 7:03each other as we grow. So we need to manage the
- 7:06relationships. Now what does that have to do
- 7:09for those of us who are business minded, greedy, entrepreneurial,
- 7:15whatever word you want to call it, It's the same when we enter
- 7:18into commercial or business relationships.
- 7:21Now, business relationships are all about the transfer of value,
- 7:24and value means different things to different people depending on
- 7:27the context. But for the business, let's be
- 7:30safe to say that value equals money.
- 7:33I'm oversimplifying it, but just follow me here.
- 7:36I'm trying to show something. So for the business, let's say
- 7:39value equals money and then to the customer, value equals the
- 7:43solution or the transformation or you know, whatever it is that
- 7:47they are seeking. So you can see that commercial
- 7:50and business relationships are built around value.
- 7:52So we have to proactively manage around these things so that we
- 7:56can get value out of the relationship so that the
- 8:00customer gets the solution, the transformation, the good
- 8:03results. And then you business owner, you
- 8:06get all the money. Then let's see what else.
- 8:11OK, customer relationship management.
- 8:12We've done relationship, we've done management.
- 8:14OK, customer. Now who is a customer by the
- 8:18way? The C in CRM, some people say
- 8:22customer relationship management, some people say
- 8:23client relationship management. To keep things to go with a
- 8:28simple everyday man, everyday woman working definition.
- 8:31I use them interchangeably. The main difference I'll say in
- 8:35in regular balance, the way people normally speak.
- 8:38It's just that when you hear client, you're thinking in much
- 8:41more business to business context.
- 8:43But then when you see a customer, you're thinking
- 8:45business to what's it called, business to consumer.
- 8:50So for the lady who sells a Gucci in the market, she sees
- 8:53you and she's like, hey, customer, long time, how have
- 8:54you been? But then for those of us who
- 8:57provide, OK, like back when I was a photographer, I couldn't
- 9:01exactly see one of my brides and say, hey, customer, how you
- 9:04been? That's somehow.
- 9:06So I'll look at the bride and I'll introduce her to other
- 9:09people and say, oh, this is my client.
- 9:11So that's the difference. Customer, client.
- 9:13But you can use both terms interchangeably, at least when
- 9:17you're talking to me. If you're talking to other
- 9:18people who are sticklers for definitions, you know they will
- 9:21correct you sharply. Like, no, you call this person a
- 9:23customer. This person is actually our
- 9:24client or no, they call this person a client.
- 9:26This person is actually a customer.
- 9:28So a customer is someone who has given you money in the past for
- 9:32your product or service or your solution.
- 9:35That's the simple definition that I like to use.
- 9:38So customer or client, they've given you money in the past.
- 9:42In other words, if the person has not given you money in the
- 9:45past, technically speaking, the person is a prospect.
- 9:48This is somebody that you hope will enter into a business
- 9:51relationship with you. Now, why are we trying to manage
- 9:56these relationships? The reason why we're trying to
- 9:58manage relationship is because we're trying to maximize
- 10:01lifetime customer value. The idea behind it is this.
- 10:05When somebody does business with you, Let's look at TomTom for
- 10:09instance. OK, no TomTom, that's too small.
- 10:12Let's look at the loaf of bread. Yes, that's my favorite example
- 10:14that I've given when it comes to maximizing lifetime customer
- 10:18value. Oh, by the way, forgive me for
- 10:19the noise in the background. It's a full house and so my kids
- 10:23are just monkeying about in the house, but you know, the day is
- 10:28almost over. So I might as well just go ahead
- 10:30and make this recording. So where was I bread bread and
- 10:35maximizing lifetime customer value.
- 10:37So if somebody comes and buys one loaf of bread from you,
- 10:41right now, bread in the part of the city where I live is 1200
- 10:46naira. Now I know that there's some of
- 10:48you like, you know, in Lagos, certain brands of bread are more
- 10:51expensive. I find that really shocking.
- 10:53But anyway, currently 1200 naira.
- 10:56So if somebody comes and buys one loaf of bread from you and
- 10:59the person never comes back, that is the only profit that you
- 11:02get out of that business transaction.
- 11:04So let's say 1200, but your profit is 200 naira.
- 11:08So this person comes and goes. All you captured was 200 naira.
- 11:12But if you figure out a way to get the person to come back
- 11:14again and again and again, if the person comes and buys 6
- 11:17loaves from you over the course of six months, then your profit
- 11:22margin being 200 naira, you have managed to get 1200 naira in
- 11:26profit. Now, 1200 naira in profit is
- 11:29better than just 200 naira in profit.
- 11:32Imagine if you get the person to come the whole year.
- 11:35Imagine if the person comes three years in a row.
- 11:39And imagine if you guys get the sort of relationship where
- 11:42you're chatty and everything, you know, the whole family, you
- 11:45guys are cool. The person doesn't just buy
- 11:47bread, but the person starts buying bread and eggs and maybe
- 11:52corned beef and then something else.
- 11:53So you get the whole gist. So we try to develop these
- 11:58relationships because we're trying to maximize lifetime
- 12:00customer value because if people buy from us once, then the
- 12:05profit, we only get it once. But if people buy from us over
- 12:10and over again, we get repeatable profit in larger
- 12:14quantity over longer periods of time.
- 12:17Now, another reason why we try to maximize life or manage
- 12:21relationship is because when people buy from us only once, we
- 12:24have to now spend more time and more money in sales and
- 12:27marketing. So for the fellow who comes to
- 12:29buy the loaf of bread and who keeps coming back again and
- 12:32again and again, I don't need to spend money to attract him
- 12:36anymore because he's already here or she's already here in
- 12:40the store. So I can spend my time looking
- 12:43for other people to come to the store.
- 12:45OK, let me put it this way. If you have a store and you have
- 12:49regulars that come, let's say you have a neighbourhood shop
- 12:53and you have regulars of, let's say fifty families that come to
- 12:58your shop and they do so every week for the whole year, and
- 13:02they've been doing so for the past five years.
- 13:04You're not going to have BP, you're not going to have high
- 13:07tension because there's a second level of revenue that you've
- 13:10been used to because these people have been coming and
- 13:11coming and coming. But if it's up and down and up
- 13:14and down and up and down, and families come and families go
- 13:18and somebody comes, they quarrel with your sales girl, they're
- 13:20angry, they take their business elsewhere, then you now have BP
- 13:24because you're wondering, last month was good, we did 1.2 M,
- 13:29But this month we've gone halfway into the month.
- 13:32We've only managed to do 400 K. What's going on?
- 13:36You know, and then you're nervous and then all of that.
- 13:38So This is why we try to manage the relationships.
- 13:41We get people coming back over and over again.
- 13:43We're maximizing lifetime customer value.
- 13:46So like I said, back to the whole thing of your mom and your
- 13:49wife or your husband, is the relationship going to manage
- 13:53itself? Don't just wake up and expect
- 13:56that the relationship with your husband is just going to take
- 13:58care of itself. You have to be proactive.
- 14:00So husbands, we have to be proactive.
- 14:02Wives people also have to be proactive as well.
- 14:04The good thing about wives is, you know, husbands are simple
- 14:08people, so you don't need much to keep us engaged, if you catch
- 14:12my drift. All right, so will the
- 14:15relationship manage itself? Like I said, no, not in most
- 14:17cases. There are people who are
- 14:20actualized customers or sufficiently motivated
- 14:23customers, and these people keep coming back on their own.
- 14:26But these people are in the minority and these are customers
- 14:29who know exactly what it is that they want.
- 14:31Like I was telling somebody earlier today, the first time I
- 14:34came across one of these people in my wedding photography and
- 14:37practice years ago, I was shocked because lady showed up
- 14:41and she was like, hey, how are you doing?
- 14:42You seeing your photos? They're really nice.
- 14:44She brought us an album. This is my parents album.
- 14:47They got married in 19, blah, blah, blah, blah, blah.
- 14:50This thing was made in. This was one of these albums
- 14:53that was made abroad maybe like in Italy or something.
- 14:56This is what they got. It is something, something,
- 14:59something kind of paper. Look at the matting, look at
- 15:02the. Look at the seams.
- 15:05Look at the this, look at the that.
- 15:06This is exactly what I want for my wedding.
- 15:09Do you have this exact thing? How soon can you get it?
- 15:14How much will it cost for this for us to replicate this exact
- 15:18same thing? And I was shocked because I've
- 15:20never seen the customer just roll up like that.
- 15:23Who knows exactly down to the technical whatever is like this
- 15:27is exactly what I want. Can you give it to me?
- 15:29And then how much? OK, no problem.
- 15:30Give me your account number. Oh, shocked.
- 15:32So that has only happened to me once.
- 15:35Those sorts of people, actualized people, sufficiently
- 15:38motivated people, they keep coming back and back on their
- 15:40own because they know why they're coming to you.
- 15:42So except if you are an absolute idiot and you're negligent and
- 15:48you do something to ruin the relationship, you can expect to
- 15:51see these people come back again and again.
- 15:54But for most people who are not actualized buyers or
- 15:58sufficiently motivated buyers, you have to manage the
- 16:01relationship. So other customers, other
- 16:03clients, they have to be engaged, they have to be
- 16:06motivated, they have to be incentivized to keep coming back
- 16:09again and again and again. Now, how do we manage the
- 16:13relationship #1 like I said, when we're talking about
- 16:16husbands and wives, take the initiative.
- 16:18So wives, wink wink, don't always wait for your husband to
- 16:21take the initiative. I'm assuming that we're all
- 16:25adults listening to the show so you can read in between the
- 16:27lines. So take the initiative.
- 16:30Husbands take the initiative. Wives take the initiative.
- 16:33When we're dealing with our customers, take the initiative.
- 16:36Don't wait for the customer to take the initiative.
- 16:40For most people, it's not going to happen.
- 16:42And #2 you have to be deliberate about your outreach.
- 16:46You can't just wake up one day and think, I haven't seen this
- 16:50customer for like 8 months now. I wonder how this person is and
- 16:54then you pick up the phone and then try to call.
- 16:56No, you have to be deliberate about it.
- 16:59Shuttle it in your calendar or whatever.
- 17:01You're going to be hitting this guy up every two, two months.
- 17:03He's an important customer. You don't want to lose the deal.
- 17:06Or you schedule the end of year thing where you know you send
- 17:10them a Christmas present or a card or a note.
- 17:12Thank you very much for your business in 20252026.
- 17:15You know, whatever. We have to be deliberate about
- 17:18the outreach. We can't just wake up one day.
- 17:20I'm like I was in Cameo, what happened to her?
- 17:23Hashi Jappa and then you try calling and indeed she has
- 17:26Jaqpad. Jaqpa is a recent phenomenon in
- 17:29Nigeria where Nigerians are emigrating, running away,
- 17:33particularly to Canada, at least at this time.
- 17:37Who knows next year what the flavour of Nigerian immigration
- 17:40is going to be. So it has to be deliberate.
- 17:43Then we also have to be customer focused.
- 17:47We need to hone in on their needs, that wants, their values,
- 17:49and their interests. Remember how I was talking about
- 17:52maximizing lifetime customer value?
- 17:54If we want them to keep coming back and back and we want to
- 17:58keep growing our bank account, we want to keep getting our
- 18:00deposits. Unfortunately for us, the only
- 18:02way to grow our deposits is to pay attention to the other
- 18:05people. So to be selfish, we have to be
- 18:08selfless. So we have to focus in on their
- 18:10needs, their wants, their values, their interests, and
- 18:13make sure that those things are being met.
- 18:16So in the summary, those are the things we need to do to manage
- 18:19the relationship. So how do you take the
- 18:21initiative? You take the initiative by
- 18:24having a calendar, by having a diary, by having some reminder
- 18:28system, by having some note taking system.
- 18:31Why do we need a system like this?
- 18:34Because we end up talking to dozens and dozens of customers
- 18:38over the years and eventually you get to the stage where you
- 18:41can't remember everything about all of them, the people that
- 18:45have fantastic memories, like some of these neighbourhood shop
- 18:48people. And there's this pharmacist in
- 18:51my neighbourhood. It's like the guy knows
- 18:53everybody. You come inside, he knows your
- 18:54name somehow. He knows your wife name even
- 18:57though you only mentioned it once.
- 18:59He also knows the name of your children.
- 19:01And he can say, oh, so This is why.
- 19:02So he's 12 years old now. He say, oh, no, actually, yeah,
- 19:05he's 1313. The children are growing up.
- 19:07As in the guy's magic. Don't assume that you are magic.
- 19:12If you are magic, somebody would have told you by now.
- 19:14So don't assume that you are magic.
- 19:17You unfortunately, unlike my pharmacist, neighborhood
- 19:20pharmacist, you need a calendar, you need a diary, you need the
- 19:23reminder system, a note taking system, whatever it is, because
- 19:27number of people that we're talking to keeps going up and up
- 19:30and up. Now this system is what we call
- 19:36the CRM or CRM tool because I'm sure some of you have been
- 19:39hearing CRM tools, customer relationship management tools.
- 19:42And since I started talking about this 20 minutes ago, you
- 19:45guys have been waiting for me to see CRM.
- 19:48And now the build up is done and we are here.
- 19:51What this system is called is ACRM tool.
- 19:55It can be a website, it can be an app.
- 19:58There are different kinds of industry standards and there are
- 20:00different kinds of formal solutions that are available on
- 20:03the market. But this is not the focus of the
- 20:05show yet. So I'm not going to tell you
- 20:08guys get Salesforce or get Zoho. Or get, let's see what else
- 20:17HubSpot or get whatever it is that is out there.
- 20:21And then all these retail management software, you know,
- 20:23like when you go into the store and they scan 'cause there are
- 20:26some of them that allow people to have customers phone numbers
- 20:29and things like that. Like some store back when we
- 20:33lived in Lagos, there was this store, really small, small
- 20:36boutique like this where they used to sell makeup 'cause my
- 20:39mom used to be AQ tax girl. QTX is what do you call this
- 20:45thing nails, the thing that used to paint your nails.
- 20:48So now QTX is, is old, it's legacy.
- 20:51So you know, young girls nowadays don't use QTX because
- 20:53QTX is what my mom's use, you know, that kind of thing.
- 20:56So my mom's AQTX girl. And then for lipstick, it used
- 20:59to be kind, I can't remember used, there's some red mats kind
- 21:05of thing. Anyway, so that was the only
- 21:08store that she could find it. And those people, they were
- 21:09sharp. So they didn't just use that
- 21:12whole thing for scanning. You know, you go and you take
- 21:14it, you scan and then you pay, they give you receipt.
- 21:17But they had Mumsy's details there.
- 21:18And those people who are really, really who are good, I mean,
- 21:22they did their homework. They kind of knew when Mumsy's
- 21:24lipstick was about to finish and they would send messages that oh
- 21:27ma, this brand we have stocked up.
- 21:29We have this dot dot dot dot dot a text message.
- 21:33Then somebody else might even call like, oh, mommy, we've got
- 21:36them in stockhold. The thing is going down now and
- 21:38then, Mumsy, of course, Mr. Tari Shima, let's go our driver to
- 21:41the store to pick up our supplies.
- 21:44So you can see that there are lots of things that can serve
- 21:50the function of CRM tools, including the fancy scanning
- 21:54software that we use in our shops.
- 21:56But I'm not going to say you should use any of these things.
- 21:59Particularly the reason why I'm not going to focus on that on
- 22:03this episode is because there are people right now like you
- 22:06and me, who needs simple, everyday solutions, solutions
- 22:11that someone starting out can use right now to make traction.
- 22:15Because the thing about HubSpot is, yes, there's free account.
- 22:19Let's see, Salesforce, OK, no, Salesforce is paid.
- 22:22Zoho, you have to pay. Let's see what else.
- 22:25But The thing is I'm trying to focus on things that you don't
- 22:28have to pay anything, you don't have to download anything, you
- 22:33don't have to go to YouTube to try and learn how to apply
- 22:37anything because it's just there.
- 22:39So that's going to be the focus of this, the episodes that will
- 22:43continue now, since we've done 20 minutes already, I'll bring
- 22:46this to a close. From tomorrow onwards, we're
- 22:48going to start looking at specific examples of calendars,
- 22:52of Diaries, of reminder systems, of note taking systems so you
- 22:56don't forget to keep, so you don't forget anything that you
- 23:00can keep track of all your customer relationships.
- 23:04I remember the goal is trying to maximize life, customer lifetime
- 23:07value. We're trying to get repeat
- 23:09businesses, sorry, repeat business and and referrals.
- 23:12We're trying to make sure that the person buys from us.
- 23:14In January, they come two times in February, they come three
- 23:17times in March, maybe they come once.
- 23:20But then eventually we get to April, May and they have brought
- 23:23their wife along and maybe referred somebody in the office
- 23:25and that is what we're trying to grow here.
- 23:28So tomorrow specific examples of tools that we can use.
- 23:32So that's all for today folks. Please connect with me on
- 23:34WhatsApp. The phone number is 08064662140
- 23:40and the country code is +234. For those of you who are not
- 23:43Nigerian, then connect with me on LinkedIn.
- 23:46My name is Tavishima Ayede, I'm the host of the show.
- 23:49You can confirm the spelling of my name and my e-mail address
- 23:52from the link. We are currently listening to
- 23:53this episode. Thank you very much for your
- 23:55time and attention. I'll catch you guys at the next
- 23:58episode. And please, husbands and wives,
- 24:00remember to take the initiative in your relationships because
- 24:04these relationships are not going to manage themselves.
- 24:07So I'll catch you guys at the next episode.