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The Effects of Poor Management in Customer Relations

by Kristine Tucker, studioD

Successful businesses need effective managers who can build and maintain strong customer relations. Establishing good customer relations is one of the best ways to ensure you'll get repeat business, and your customers will refer your products or services to their family and friends. Poor management in customer service can lead to disgruntled customers and a bad reputation for your company.

Lost Sales

Poor management of customer relations leads to ineffective sales calls and lost opportunities. For example, some customer relations management models, often known as CRMs, use technology to evaluate company goals, sales objectives and company deadlines to help sales agents sell products or services. More effective CRMs use client demographics, customer needs and customer priorities to increase sales and maintain customer loyalty. A customer-oriented style of management is more effective because it focuses on what customers want, not what company leadership expects, according to "Forbes."

Dissatisfied Customers

Shortsighted customer relations management results in unhappy, dissatisfied customers. Sales agents who use one presentation style to attract new customers or keep current ones often fall short. Some customers are interested in the newest products and want details on improved or upgraded merchandise or services. Others prefer the tried-and-true and simply want efficient service, ensuring products arrive quickly and safely. Effective customer relations management requires individualized attention. Sales agents must get to know their clientele so they can maintain a strong customer base.

Increased Competition

Mediocre customer relations leads to increased competition. If your company doesn't know how to effectively ensure strong customer relations, then you can bet your competitors will try to steal your clients. They might offer better services, free technical training, troubleshooting advice, free product samples or one-on-one personalized assessments to meet customer demands. Companies that focus on their internal pipeline, rather than customer needs, will likely lose out to their competitors, suggests "Forbes." Poor customer relations management gives your competitors an edge.

Undisciplined Sales Agents

Ineffective customer relations management often results in undisciplined, robotic employees who rely on written sales pitches, outdated sales data and antiquated by-the-book approaches to spark consumer interest and improve sales. When your company is trying to increase consumer awareness, engage new clients and satisfy current customers, sales agents must step out of the box. Upper management must provide training and motivation so sales agents engage in ongoing product and consumer research; discover innovative sales practices; establish personal connections with clients; provide excellent customer service; implement effective problem-solving techniques; and meet personalized goals.

About the Author

As curriculum developer and educator, Kristine Tucker has enjoyed the plethora of English assignments she's read (and graded!) over the years. Her experiences as vice-president of an energy consulting firm have given her the opportunity to explore business writing and HR. Tucker has a BA and holds Ohio teaching credentials.

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