Why is Customer Intimacy so Important?
Hassaan Khalid, Student (University), Pakistan
I am not sure about this, but my teacher told me it takes only 3 months on average for your competitors to copy your product
once you release it in the market. In some industries its even less.
This copying situation gives any firm two choices
1. Come up with something new every one or two months and make your own products obsolete like mobile phone companies do. But that can be challenging.
2. Increase customer loyalty. If you have a good CRM system your customer keeps coming back to you. He is loyal. He will not look for other vendors in the market. It increases your opportunity for cross-sell and up-sell. It guarantees a continual revenue stream into the organization. Customer intimacy technically makes the customer feel he is valued and important. "Man's deepest desire is the desire to be important..."
So instead of gambling everything on innovation, you instead guarantee customers via customer intimacy. And they are a rich source of PR referrals too. So they bring more customers with them.