Regardless of industry segment, progressive CEOs and Board of Directors are now looking into the customer intimacy model as a means to increase revenue and gain market advantage by insuring the loyalty of customers in the future. Often many company or organizations says, "We want to be in partnership with our customers" or "We value our customers' needs" but often those values inculcated into mainstream processes and tasks (Safdie, 1998). Numerous articles are being published promoting the importance of customer intimacy, and ways to improve it, or touting the needs and means to flawless execution of the said model.
These articles are indeed providing good strategies towards better profitability. However, most of the problems that a company encounters differ from one another. The solution to the problems encountered by a company aiming for the flawless execution of a perfect customer intimacy model requires careful study. This includes examining the various alternative solutions. From these alternative solutions risk are assessed and mitigations are generated. Then optimal solutions are picked from these alternative solutions to generate the implementation plan.
Finally, a method of how to evaluate the results is generated for use in the assessment of the progress. STATEMENT OF THE PROBLEM The purpose of this study is to explore the alternative solutions of Intersect Investment to attain the following goals: 1. Complete implementation plan of a customer intimacy model that will build long-term relationships based on trust and value to the customer in order to develop a new brand image that will gain Wall Street’s trust. 2.
Eliminate or reduce employee turnover in the sales department partly as a consequence to the customer intimacy model transformation The study also explores the opportunities associated with the issues faced when dealing with these alternative solutions. After identifying the key alternative solutions, this study goes further by assessing the risk and mitigations associated with these solutions. ALTERNATIVE SOLUTIONS Customer Satisfaction Down by 5% for the Last 5 Years
Although customer intimacy does not directly equate to customer satisfaction, without customer intimacy at work, dissatisfaction among the customers will lead to lower profit. Customer intimacy can be defined as the formal or informal set of relationships established between supplier and customer, with a diverse array of partners, from corporate leadership to functional leadership (engineering, marketing, operations, maintenance, or service) and end-users of products or services (Abraham, 2002).
The lowering customer satisfaction calls for an implementation of customer intimacy which would produce loyal customers. The alternative solution is not to solve directly the issue of customer satisfaction but by providing dynamic relationships at multiple points and frequency of contacts between the company and its customer, as well as multiple points of view about the relationship and its benefits to both parties. This would allow Intersect Investment to focus its strategies on customer needs and requirements.
Like the results of Joel’s study that customer’s want a "trusted advisor," and they want it to be us. They love the expanded portfolio of services. The weight of this campaign therefore rest mostly on the Intersect reps. Training should be provided to this people to insure that they gain the trust of customers. Couple this with the expanded portfolio of services that the company can provide, and the dedication of each member of Intersect Investment to provide what customer wants and what customer need, this should provide a solution to the impending problem of customer intimacy transformation.
Replacement of the Executive Vice President of Marketing and Sales The new Executive Vice President of Marketing and Sales, Janet Angelo, will be faced with two obstacles, the need to understand the present situation at Intersect Investment and the need to quickly gain the trust of her people. The solution to these problems is only one, it is like shooting two birds in one stone. Janet should take the leadership of transforming the focus to customer intimacy perspective.
She should be able to see the difference between management and taking leadership. Although leadership and management overlap, each entails a unique set of activities or functions. Managers typically perform functions associated with planning, investigating, organizing, and control, and leaders deal with the interpersonal aspects of a manager's job (Kinicki, & Kreitner, 2007). He should therefore go into the key persons among her people and understand from their perspective the current situation and outlook they have regarding customer intimacy.
Through this, she should be able to lead them on what are the things to do in order to put up a concrete plan towards customer intimacy model. High Employee Turnover at the Marketing Department A recent study by Thomas Hardy, the Senior Vice President of Human Resource has indicated that there is a 25% employee turnover in sales as oppose to 7% company wide. The root cause of this is because some of the employees are confused with the transformation and are having doubts regarding the ability of their leaders to make this transformation successful.
The solution to this is therefore to provide a company wide awareness of the plans and methods by which Intersect Investment is able to make this transformation. It also involves trying to convert people who are hesitant of the transformation rather than firing them and replacing them. Smart employer tries to figure out how to keep instead of replace a good worker (Hawthorne, 2000).