Customer Advocacy
Facts On Customer Advocacy
Customer advocacy is a way a company can fully please the customer and make more money while doing it. A customer advocate communicates with the customer and the company to come to a better understanding or to help in a tough situation. They can even give updates to the customer, when resolving an issue. They make sure that the customer and company is happy and work on ways to stop the situation from happening again. Customer advocacy starts with the customer advocate.
Most companies have specific policies that relate to things like services, sales, customer complaints and products. Although these things are all geared to producing a happy customer, there may also be marketing techniques involved. Every company strives to make a customer happy but they can do things that may seem like they are actually losing money, to accomplish this. This can impress the customer, so that they are completely satisfied. But by changing or presenting a certain policy, the company can actually make more money and increase profit margins.
For example, if you have purchased a satellite dish and you need it installed, many times there will be no set time for the company to arrive on the installation day. This can cause a great inconvenience to a customer if they have to work or shop that particular day. The company may realize that they are losing customers by doing this and change the policy by including an estimated time of arrival. Although this may seem like the company might lose money, they will gain customers by including this in their customer advocacy policies.
Another example of this type of customer advocacy can be a company stating that they will match the price of their competitor on a certain product. This usually occurs when the product is sought after or available at a number of stores. Department stores that stock all types of merchandise ranging form automotive parts to food can make much more money using this approach. They depend on the customer that does not want to drive across town to purchase the same item, at the same price. Again, the company appears as though they may lose money with this marketing technique but they will do better financially and have happy customers at the same time.
Customer advocacy even happens if there is no gain in money and it also serves the customer. This all depends on the specific company and the policy it uses. Some companies will do things like, tell the customers to purchase the competitor’s product if they don’t have it in stock. Other times they may suggest a different, less expensive product that fit’s the needs of the customer more efficiently. In these cases, the company will probably suffer with a loss from these types of policies but this can change if the customer is satisfied with the results. A satisfied customer will be a returning customer and that is possibly the most important reason for a company to have customer advocacy policies.
Watchdog or customer advocacy groups are non profit organizations that inform the public about company and their policies. They can expose a company for a wrong doing or they can help to give people advice on using different companies or saving money on products or services. They advocate for the rights and safety of customers. They help to make the public aware of companies with poor policies and a lack of communications skills. They also make sure to alert the public to any company that has policies that can indirectly harm a person. These things can include identity theft, elderly care and automobile safety.