From the Center for Strategic Relations, a twice-monthly supplement to Applying Strategic Relations, mailed at your request

Measuring Client Behavior

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In the last lesson, I shared with you why quantifying customer relationship value is important to understand the behavior of a given group. Today's lesson teaches you how to determine how to measure relationship value in your organization.

Stay tuned for next months lesson where you'll apply measures of behavior to improve customer acquisition.

Warmest regards,

Justin Hitt
Consultant, Author & Speaker

How To Measure Client Behavior So You Can Get More From Your Relationship Building Efforts

By Justin Hitt, Strategic Relationships Consultant,

It takes time and financial resources to build relationships that translate into growth for your business and value to clients. Nevertheless, how do you know you're on the right track?

One way is to measure client behavior in a way that helps you determine what is important to building the relationship. Then adjust your actions according to create more value in every interaction.

Behavioral measurements aren't always obvious on the surface of a relationship. First, you'll need to develop criteria and points of measure that identify desirable traits in your client base. Next, you'll want to use these measures to identify those actions that improve the results of relationship building efforts.

Identifying Points Of Measure You Can Use To Quantify Client Relationships

What is it that clients do that makes them more profitable for you to serve? There are certain characteristics that your loyal and profitable clients have that others will not. Clients display these characteristics, or behaviors, in response to what you do for them.

To quantify client relationships, measure at each customer interaction points various aspects from client prospective. Determine what you measure by how you sell your solution, your industry, and what clients expect.

To identify the points of measure most appropriate to your organization, use the following guidelines:

It is better to measure each customer interaction point separately for the most complete picture of client behavior, however, if you must start at one single point then start with an initial purchase. You'll find that to quantify client behavior you must understand which behaviors are appropriate for each type of interaction with your organization.

As clients engage your organization their needs, desires, and expectations change in identifiable states that you'll need to be aware of to make the most of relationship building efforts.

While you are measuring individual clients, you'll find certain characteristics are more prevalent in some segments than in others. Use this new knowledge to refine segmentation, improve interactions, and guide the actions you take in building relationships with these groups.

Ways To Turn What You Know Into Stronger Client Relationships And Growth For Your Business

The only way to translate knowledge about clients into growth for your business is to use these measures to change your own behavior. What you learn from measuring customer interactions can improve lead generation, customer retention, and your ability to increase profits.

If you are concerned about the validity or value of these methods, then start with a few strong relationships at a few revenue-producing interactions. You don't have to overhaul your entire customer management system, just test behavior measures against what you are already doing.

The key is that you take everything you learn about your clients and use it to refine your relationship building efforts. Focus on retention, loyalty, and repeat behaviors that create revenue until you develop measures right for your organization. If you focus on mutual objectives from a client prospective, you'll find quickly the justification for incorporating these methods in all areas of your organization.

Application examples include ...

To turn what you know about clients into growth for your business and greater value for clients, you simply just need to take thoughtful actions. Focus your efforts, start small, and test your way to a system that works for you.The biggest mistake companies make in translating knowledge into results with customers is they try to do too many things.

How To Get The Most From Relationship Building Efforts Through Actions Based On Customer Behavior

Client behavior in response to your actions is your guide for improving relationships and getting more return from your resources. Optimize your relationships building efforts using an "Action » Response Behavior » Feedback" process that incrementally improves the value you provide clients. Define this process for yourself as:

  1. Action -- What your company does in the course of interacting with a particular client or segment of clients. This includes how you perform at every customer interaction point, or how your product performs when observed by the client.
  2. Response Behavior -- How your client or segment of clients responds to your actions at a particular customer interaction point. These responses can be positive or negative, can advance the relationship or weaken it, and measured by results created or a client's next action.
  3. Feedback -- The results of such client behavior including opinions of expectations collected in close proximity of the measured event. An analytical response created by surveying a client after an interaction, looking at monetary exchange at the interaction, and other points of measure that are predictive of outcomes.

Each cycle through this process gathers more details about client concerns, desires, expectations, perceptions, and other points that can improve your value. You'll extract useful insights that improve marketing attraction rates, sales conversion, and client service satisfaction. With just three steps, you'll get more from what you already know about clients than with any other method.

Identify, translate, and take action. By measuring client behavior and using those measures to improve your value, you'll be able to grow your business. Even more importantly, you'll know which relationship building efforts are actually producing results for your bottom line. Imagine spending less time making costly mistakes in your marketing, sales, and service efforts.

How do you measure your client relationships?

© 2004 JWH Consolidated LLC dba Center for Strategic Relations, All rights reserved.
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Are your sales people wasting time while marketing is throwing away money? Learn now to make customer segmentation work for your company, so you can cultivate profits instead of headaches. For a sequential approach to profitable customers ...

Justin Hitt is a strategic relations consultant and the author of "How to Get more Profits by Cultivating Your Best Customers". Clients include business owners and executives of medium to large companies worldwide. He can be reached at

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