What is Customer Management?

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  • Written By: Troy Holmes
  • Edited By: W. Everett
  • Last Modified Date: 04 October 2019
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One of the most important aspects in managing business is the ability to listen, understand, and respond to the needs of the customer. Most customers want to work with a business that demonstrates the desire to help him with whatever he needs. Customer management is the ability to interpret and manage the needs and expectations of a customer through effective planning, management, and communication. This is relevant for both products and services.

With the vast global marketplace, a business has many methods of reaching the customer. Today the customer may walk into a store or search the Internet for goods and services he needs. A company needs to ensure that a positive customer perception is achieved with each encounter with its product or services.

Good customer service is achieved when a company creates an experience that exceeds the expectations of the customer. This perception is the main reason people return to a company to buy additional products. A company that focuses on the customer in the areas of quality, delivery, and customer recognition will typically build brand loyalty. Important interactions to manage include purchasing, complaints, and returns of all products and services for an organization.


A loyal customer is the best customer. This customer will select a specific product by name regardless of the price. Acquiring a loyal customer requires time, quality, and an excellence with each customer experience. A loyal customer is an advocate for the company, which creates free marketing for a brand. The primary goal of all customer management programs is to create loyal customers through focused successes with each customer experience.

Many companies have created customer relationship management (CRM) processes to help track and audit each customer. This software creates profiles of customers. By tracking the customer's buying habits, a company can create advertising material that is specific to the individual customers' needs.

Name recognition is an effective customer management tool for creating a personal relationship with consumers. Many stores use the customer's name during a transaction to add the personal relationship touch. This technique is typically used in retail sales.

Customer complaints are a critical component of the customer management process. Managing complaints requires sincerity and empathy for the customer. The customer manager should be focused on resolving the issue quickly and efficiently. This customer interaction is the opportunity to create a positive customer experience from a negative situation.


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