Old habits die hard

Summary: Corporations in India use technology in relationship management. But the Indian customer psyche may be turned off by ‘faceless’ initiatives.


Multinational corporations in India, like Banks, are using technology in customer relationship management. It’s meant to connect with customers.

Call lists

The frontline sales staff manage these links through ’phone calls. They have access to customer databases to do so. The call lists are identical, so each pitches zealously to the same customers to ‘develop’ the relationship.

But, because of the increasing overheads, there’s pressure for ROI, and the sole objective of calling is to increase profitability through new technology.

Pitching sales?

Customers, however, are unimpressed. They evaluate service. For example, as one relates –

Bank’s credit card people constantly bombard me with unwanted loan offers… I called them for help with a relatively small credit limit enhancement on my card, but was told to ‘first apply for a loan’… Soon enough they came up with the ‘prize’ of an upgrade to twenty times the original credit value! These tricks are offensive. My account is decades old, but perhaps I should now switch Banks.

Aggressive

‘Foot-in-the-door’ sales tactics have always been used to manipulate customer needs aggressively.

These old marketing habits remain. The difference is their being tied-in with the new use of technology - telemarketing.

Squeezing brand

Research says that 80 percent of the business comes from existing customers. The credit card business is (or should be) a value-added scheme built on the longer-term association.

‘Selling’ shouldn’t become browbeating, but often does. The company thus appears to be squeezing the brand relationship – the cornerstone of their success.

Emotional needs

Relationships in collectivistic societies like India are built on strong emotional elements.

Many customers are unappreciative of unwanted calls. Few also among the frontline salespeople making the calls are adept at telephonic conversations.

They generally lack both learning and experience in putting the customers’ emotional needs ahead of their own (and the company’s) agenda.

Human contact

The telemarketing process could well erode customer loyalty. Impersonal technology is uncomfortable for a people used to face-to-face human contact.

From customer viewpoint, interactions with the individual employees matter, to earn loyalty and trust for the company.

Buyer decisions

Companies in the Indian cultural context, should be concerned about how these interactions could affect buyer decisions.

Their own market image may be affected, since the average customer doesn’t differentiate between the individual employee and the institution.

Besides, since consumers today tend to think over their choices, these practices may just transform relationships to worse instead of better.

Social sensitivity

Impersonal technology-driven initiatives may thus backfire in the social context. If aggressive and insensitive, they eventually weaken the source of selling itself.

The ability to handle sensitive social cognitive processes seldom comes naturally. That means sales personnel pushed into customer relationship management need to learn how to handle the interface effectively.

From the business viewpoint, it’s crucial for frontline staff to develop their own social sensitivity and emotional intelligence before they tackle the onerous task of dealing with customer sentiments.

Comments/opinions anyone??