Customer Democracy

I heard this term recently and rather like it.

As a self appointed “customer champion”, I like the idea of customers exercising their democratic right. In doing so, customers can exercise freedom of choice by churning from one underperforming provider to another. They could exercise freedom of speech by complaining or praising via Social Media. They can express freedom of thought by researching and investigating suppliers, products and services like never before.

So how can organisations respond to the growing democratic spirit of consumers? As with any democracy, its adapt or die. Those slow to truly listen to the voice of the customer and reinvent themselves from the outside-in may find themselves consigned to the history books. I am growing ever more confident that CRM, a term associated with software and, inevitably, IT implementation disaster stories, is finally becoming understood for what it is: It is a business STRATEGY that is supported by people, processes and product to generate MUTUAL value for both the provider and customer. I believe this message is beginning to emerge from the mire of the GFC and is being driven by the need to adapt to the new world of Customer Democracy.