As the timeless adage suggests, “Forge new acquaintances, yet preserve the longstanding; one is akin to silver, the other akin to gold.” This sentiment holds true not only in our personal lives but also in the realm of commerce. This is particularly applicable in fiercely competitive sectors, such as the Financial Accounting Outsourcing (FAO) industry, where the sustained patronage of a single client can greatly impact the value generated by the company.
What is customer relationship management or client relationship management?
This question must have sparked in your head the second you clicked on this blog, well, we have analyzed all our sources and have brought you a unique and well-compiled blog that will answer all your questions about CRM, CRM process, CRM strategies, and the steps of CRM. You will also read about customer relationship management or CRM’s importance and CRM process steps.
By implementing efficient customer relationship management processes, companies can better understand their customer’s needs and provide them with personalized experiences that ultimately lead to increased loyalty and customer retention. Developing and implementing customer relationship management strategies can help businesses effectively manage customer interactions, enhance customer loyalty, and ultimately drive revenue growth.
The ever-evolving business environment consistently presents fresh prospects and obstacles, which inevitably affect customer relationship management. The days of simple gestures such as sending festival greetings and hosting annual dinners as sufficient measures for maintaining strong client relationships are long gone.
In contemporary times, customer relationship management entails a collaborative partnership between service providers and clients, which demands a novel approach and distinct methodologies, given the heightened expectations.
This blog endeavors to examine the Customer Relationship Management predicaments encountered by Finance and Account Outsourcing companies and explore some of the finest practices they have implemented to surmount these challenges.
CHALLENGES IN FAO CLIENT RELATIONSHIP MANAGEMENT
- Geo-location and Time zone: Geo-location and time zone discrepancies pose an inevitable challenge when outsourcing Financial Accounting operations to countries situated in remote parts of the globe. To mitigate this issue, Finance and Account Outsourcing companies should consider including relevant provisions in the contracts, sensitize and train their employees accordingly, and even modify work hours in situations where no other alternatives are feasible.
- Language barriers: Language barriers can arise despite the predominance of English as the lingua franca of global business. Accents, colloquialisms, and other linguistic nuances can present their own unique set of challenges. FAO companies should consider these factors when recruiting personnel and provide the necessary training to overcome any language-related issues.
- Culture: Culture is a delicate matter, particularly in certain nations, where social norms and values can differ significantly. What may be appropriate and acceptable in one country may be perceived as inappropriate and unacceptable in another. As FAO companies onboard new clients, they must consider cultural differences and sensitively prepare their teams to navigate them appropriately.
- Technology: Technology is a constantly evolving domain, and outsourcing inherently relies on technology to optimize operations. Specific applications are also required for Financial Accounting activities. As a result, FAO partners must remain vigilant about technological advancements and select the most effective platforms and tools to ensure competitive delivery of services to their clients.
- Industry practices: While the basic tenets of Financial Accounting are universal, there may be regional or country-specific discrepancies in the form of Generally Accepted Accounting Practices (GAAP). To address this issue, most nations are transitioning to International Financial Reporting Standards (IFRS). However, some countries have yet to implement them, while others adhere to older versions of IFRS, leading to further inconsistencies. The FAO delivery team must be adequately trained and knowledgeable about these nuances to ensure that the service delivery satisfies both the client’s requirements and the applicable local accounting standards.
- Taxation: Taxation presents another challenge for FAO companies, particularly in terms of assisting international clients, as each country has its unique tax system. The Finance and Account Outsourcing delivery team must be well-trained and knowledgeable about the prevailing tax laws in the client’s country to ensure that the services are delivered effectively.
- Compliance: Each country has its specific compliance laws, which the FAO teams must be well-versed in to ensure proper compliance and safeguard the client’s interests. Any lapses in compliance can result in significant financial and non-financial losses to the client, which could severely damage the relationship.
- Inflexible clients: Occasionally, clients can be rigid and unyielding, which poses a significant challenge to the FAO partner, as some level of flexibility is required for any business relationship to thrive. Such clients must be managed diplomatically by the client relations manager on the team to ensure that the relationship remains intact.
- Unprofessional/incapable vendor management teams: If the customer management teams of the FAO company are unprofessional or incompetent, the senior customer management must address the issue with the client relations manager directly to prevent the delivery from being impacted and the relationship from deteriorating.
- Control freaks: Dealing with control freak clients can be a challenging task that requires time and patience. In most customer management cases, it’s necessary to demonstrate to these clients how alternative methods can deliver better results and add value to the partnership to persuade them to adopt a more collaborative approach.
- The silent ones: Dealing with clients who do not communicate can be a major challenge. Such clients can be difficult to handle, and it requires able client relations managers with excellent CRM strategies and skills to encourage them to open up and communicate. It’s important to establish open lines of communication from the outset, set expectations, and have regular check-ins to ensure that the client is satisfied with the services being provided. If a client is consistently unresponsive, it may be necessary to re-evaluate the partnership and consider other options.
- Lack of team spirit: Absence of team synergy: Clients who perceive FAO providers as external entities or outsiders are challenging to work with. Establishing a collaborative spirit requires exceptional interpersonal skills to win them over.
BEST PRACTICES TO MANAGE CLIENT RELATIONSHIPS:
- Align your team with your client’s requirements and goals: To ensure efficient coordination between your team and the client organization, it is important for your team to understand the culture, business requirements, and aspirations of your client. This alignment will help in delivering services as per the Service Level Agreements (SLAs) and meeting the client’s expectations
- Respect your client’s time: To enhance client satisfaction and maintain a healthy relationship, it is crucial for FAO teams to prioritize the value of time. Clients prioritize their time, as it is considered the most valuable asset in the world, and they do not want to waste it. As such, Finance and Account Outsourcing teams must keep this in mind during all interactions with their clients. Adhering to schedules and timelines professionally and punctually can have a significant impact on the customer relationship.
- Be proactive in asking for your client’s requirements, queries, and suggestions: The CRM process steps encourage maintaining a proactive approach in asking for your client’s requirements, queries, and suggestions. A strong relationship involves active participation from both parties. Your client team may have doubts or require assistance, and they may have suggestions to improve your business processes. Ask your client about these matters to ensure smooth communication and partnership. Sometimes, you may need to analyze and communicate your client’s needs before they even realize it themselves. As a Finance and Account Outsourcing partner, you may gain a better understanding of their operating requirements only while executing services. To prevent delays and maintain positive business relationships, stay proactive and analyze and communicate your client’s operating requirements beforehand.
- Get Face to Face: Prioritize face-to-face communication. In any CRM process, it’s natural for things to go wrong occasionally. In such cases, it’s best to communicate with the client in person or through a telecall instead of sending an email. Personal communication can help reduce tension and rebuild the relationship, demonstrating a commitment to resolving any issues and improving the partnership.
- Have appropriate technology tools and software: Ensure appropriate technology and software: Clients expect to see progress in service delivery and access reports regularly. The lack of appropriate technology and tools can result in inadequacies that can lead to strained business relationships. By using the required technology and tools, the client can clearly understand what has been delivered and if it meets their expectations, avoiding misunderstandings and delays. Implementing effective CRM techniques such as personalized marketing campaigns and timely customer support can greatly improve customer satisfaction and drive business growth. Therefore, it is important to have the right technology and software in place to facilitate effective communication and timely reporting.
- Under Promise and Over Deliver: This is a proven technique to build a strong and enduring relationship with clients. By setting realistic expectations and delivering more than was promised, clients are left feeling satisfied and valued. Such service providers are highly appreciated by clients as it helps them achieve their goals beyond what they had anticipated
- Avoid being Petty: In a long-term FAO partnership, clients expect their partners to act like true partners and not be petty. The temptation to prioritize short-term gains over long-term benefits should be avoided. By taking a more holistic view of the partnership, FAO partners can build trust and strengthen the relationship with their clients over time.
- Be open with your client and point out their mistakes clearly without hesitation: Transparency is key to maintaining a healthy and long-lasting relationship with clients. It is important for FAO companies to openly communicate with their clients and address any inefficiencies or mistakes. Some enterprises may be hesitant to do so out of fear of losing the client, but this can lead to even greater losses in the long run. It is better, to be frank, and point out any issues to ensure that the necessary inputs are provided and that mutually agreed-upon Standard Operating Procedures (SOPs) are followed. This not only helps avoid legal and financial trouble but also strengthens the trust and credibility between the parties involved.
- Build Credibility Over Time: Trust and credibility are essential in any business partnership, and FAO partnerships are no exception. It takes time to build this trust and credibility, so be prepared to invest effort into building it. Use the approaches outlined above to demonstrate your reliability, professionalism, and commitment to quality service delivery. Consistent delivery of high-quality services and timely communication will help build a strong and lasting relationship with your clients.
- Be Transparent and Human: Transparency and honesty are crucial for building strong and lasting partnerships with clients. When mistakes happen, it’s important to admit them and take appropriate corrective actions instead of trying to cover them up. Clients appreciate partners who are transparent and human, and who take responsibility for their actions. This not only helps to maintain trust and credibility in the client relationship management scenario but also creates a positive working environment where both parties can openly communicate and work towards mutual success.
CONCLUSION
As FAO arrangements evolve into true partnerships, Client Relationship Management (CRM) needs to be viewed as partner management rather than an old-style business relationship. The CRM importance cannot be overstated when it comes to maintaining strong and long-lasting relationships with customers.
The best practices discussed in this article can help FAO companies in this regard, but the list is not exhaustive. There is always room for innovation and ingenuity in CRM and CRM strategies, just as in any other activity. By adopting these practices and continuously improving, Finance and Account Outsourcing companies can build long-term, successful partnerships with their clients.