Customer expectations

Customer relationships sometimes follow a certain automatism. It is a natural for a customer to make a second purchase from a company they are familiar with, rather than seeking out

an unknown company. This puts the respective company in an extremely advantageous position, in which it can nurture that relationship to ensure future purchases. Even if the customer is not 100% convinced of the company, that first purchase opens the door for a lifelong customer relationship. Companies can, for example, reward customer loyalty and in this way deepen customer loyalty (Zineldin, 2006, p. 433).

It seems that all endeavours in a CRM project have a central starting point. It is mainly the customer. Despite all the promises of customer centricity, the customer perception of CRM activities is nearly unknown. It is not yet proven if customers appreciate CRM activities and if they really recognise the advantages of CRM implementation. It is not quite clear if CRM activities really motivate customers to maintain relationships with a company. It has also to be questioned whether analysis of CRM tools do really match with customers perceptions.

It seems that the customer has somehow got lost during CRM activities. Involving the customer in this regard could be a success factor as well. Customers can provide valuable insights for a more purposeful implementation of CRM. It is not necessary for the customer to understand CRM processes in order for them to provide valuable feedback and help the company maintain the relationship (Kim et al., 2012, pp. 84–85).

Developments show that customers are more involved in company processes than ever. The customer is recognised as part of the internal environment and companies strive to serve their customers, because they are the reason for all activities within a company (Kietzmann et al., 2011, p. 243). Companies need to understand the importance of CRM as an overall philosophy, and as a strategic concept. In a new customer relationship an open dialogue engaged in at eye level is preferred in order to really understand the customer (Greenberg, 2010, p. 412).

It is not quite clear what is the most appropriate organizational structure to achieve maximum customer engagement. What kind of structure is preferred by the customer? It is not surprising that customers have a clear message; they don´t care about the organizational structure of the supplier. What is much more important for customers is the quality of the support. What matters in this regard is the response time in case of problems, and the problem-solving skills of the employees and their competence in decision-making (Kotorov, 2002, p. 219).

Companies should be aware that satisfied customers do not hesitate to buy from the competition if they offer better price options. Satisfaction alone is therefore no guarantee for a lasting customer relationship. Only if a loyal customer behaviour is determined, a provider change cannot be identified so easily anymore. Therefore, it is advisable to make a distinction between satisfied and loyal customers (Griffin, 1997, p. 1ff).

Customer satisfaction can be analysed with the KANO-Model described in Figure 8. The name comes from the inventor of the model and it shows how the satisfaction of customers develops when the intensity of certain influences is changed.

Figure 8. Customer satisfaction model.

Source: Kano, 1984, p. 39.

The model distinguishes between three different factors that can influence customer satisfaction. Must-be requirements are the first category. From the customer perspective, these services are regarded as basic requirements. If these factors are not met, the customer is dissatisfied. It should be noted that even a high level of fulfilment does not trigger customer satisfaction. If these factors are fulfilled, the customer's perception is neutral. One-dimensional requirements achieve customer satisfaction with increased fulfilment. The more

these are fulfilled, the higher the customer satisfaction. Performance factors develop linearly and can also cause dissatisfaction if they are not fulfilled. Attractive requirements differ from one-dimensional factors as non-fulfilment will not trigger dissatisfaction in the customer.

The degree of fulfilment shows a disproportionate trend with regard to satisfaction (Schneider, 2008, p. 41).

Another trend is to act in a service-oriented manner, create new customers and keep existing ones. The product itself is in any case relevant, but there is extra service necessary to ensure customer loyalty. Active and transparent communication supports a service-oriented approach. Service orientation is comprised of internal process alignment and the willingness to invest in customer relationships. Service is necessary for product support after purchase.

Customers want to feel comfortable with their decision to buy products. If they can expect first class support in case of problems or adjustments, their comfort will be assurred.

Customer orientation is necessary to consider through the production process (Vargo, Lusch, 2004, pp. 2–15).

Self-service activities are becoming an ever more popular form of purchase. Especially with the advent of online markets and the ready supply of information, customers can appreciate their ability to actively participate in the transaction and production process. E-commerce is an area where customers enjoy the freedom to execute transactions without any employee.

Experiences are exchanged openly with other customers (Roosendaal, Esch, 2007, p. 15).

An implemented CRM strategy provides customer benefits by allowing companies insights into their customers’ needs and wishes. This can result in adjusted products or services, tailored to the needs of the customer. Customers can expect better treatment and better, transparent communication and information (Kassanoff, 2000, p. 62).