Search

Five Rules for Growing Customer Loyalty Even as Coronavirus Disrupts Supply Chains

MarketingProfs 18 Mar 2020 02:00

The looming supply disruption as a result of coronavirus, along with tariffs and other factors, offers historical opportunities for companies to build—or destroy—customer goodwill.

A Tale of Two Companies

Consider the fate of two companies: Company A and Company B. Both are relatively successful, and both are faced with an extended supply disruption.

Company A responds to the shortage by trying to maintain its traditional customer management processes with diminishing product availability. The VP of Sales is careful to be transparent, informing the customers of its supply shortages and assuring them that it is doing everything possible to secure increasingly scarce supplier allocations.

The company's sales reps try to prioritize each of their customers. Soon, the company is overwhelmed with conflicting priorities, with each sales rep trying to hold inventory for his or her customers, leading the company to adopt the default option—first-come first-served—as its response to the shortage.

That is essentially no customer management strategy at all, and it is a recipe for a long-lasting pool of customer ill will.

Continue reading original article...

Tags

Jonathan ByrnesProfit IsleMIT