By Wayne McPhillips

How many times in the last 18 months have you heard, "It's time to buckle down" or "No new spending; it's going to be a tight year?" As I look across the business landscape, it's rife with typically cool-headed professionals now on the verge of a breakdown because they feel they cannot effectively manage their customer relationships due to a lack of funds.

They are locked into the mindset that you have to spend money to make money. It is an idea that has been genetically coded into our business culture for years. And if that long-espoused rule is indeed accurate, I guess we all must assume that we cannot make money in a time we cannot spend money. (At this point, feel free to go ahead and tell your executive team there will be no increase in revenue this year, and then head toward the nearest unemployment office.)

The "It-takes-money-to-make-money" maxim has been described as the art of polarity management, but I often wonder if it might be classified not as an art but as mad science? The tried-and-true strategy for this recessionary period has been to sit tight, wait for the storm to pass and hope we are one of the last few still standing when it is done. But as we all know, Mother Nature is fickle and undiscriminating when she decides who is spared and who will crumble under the forces of the storm.

Now is the Time

The idea we cannot grow in a recession is perpetuated by those with a lack of ingenuity who believe there is a statistically significant correlation between expenses and revenue. Instead of collectively burying our heads in the sand, why not strike while the opportunities are right in front of us? You've heard all the lines:

Now is the time! Carpe diem! Do not put off until tomorrow what you can do today!

Now that you're all fired up with no place to go, just like after you attended your last motivational seminar (not this year, of course, because there is no travel budget), let us talk about solutions. The status quo has never been shifted without a group of individuals who are willing and able to engage in progressive thinking. So what is the big idea?

Simply stated, we need to offer our customers a product that does not cost us money. This type of product has a speed to market that surpasses even the latest technology. There is no need for your finance department to 'be alarmed' because it truly has no fixed or variable costs. Let us not forget the regulators. There are no worries there either, because this product will never be regulated.

Let me introduce you to a product that has recently been replaced in our current marketplace with e-mail, direct mailers and Webinars: relationship management, which can be thought of as customer service, v.2.0. And as we all know, each new release of a product must be enhanced. Unlike traditional customer service, relationship management can actually withstand the storm.

Competing on More Than Cost

Marketing 101, pop quiz: What truly drives customers to buy something during a recession: price or service? A little old discount retailer based in Bentonville, Arkansas has pioneered this debate to a new level.

Now no one can question the 'low-cost leader' position of Walmart in the discount retail market. Is there any other retailer on earth that can sell you a lifetime supply of pickles for the everyday low price of $2.98? Very few players in this market can compete with the multinational blue giant on price alone; however, Target continues to grow substantially year after year, even during this recession. How is this possible? Can you compete on more than just cost during a recession? The answer may surprise you.

Target has perfected the art of serving their guests, rather than merely selling to shoppers. Now before anyone objects, I am not suggesting that customer service is not a focus at Walmart, because it is. But Target has succeeded wildly at finding a niche with this customer-centric approach. The more callus, right-brained part of me thinks to myself, "It's just laundry soap! The same soap I can get at any of the discount retail chains!" My fiscal conscience tells me I should drive to one of the numerous stores between my office and home to buy it at the lowest price. Yet undoubtedly, I find myself instinctively strolling the aisles of the one Target store in my town because of the level of service I receive when I buy my soap. Whether we like to admit it or not, customer service still sells, even in a recession.

However, I promised to elaborate not just about customer service, but rather relationship management. In my career of managing both small and large corporate accounts, I have experienced numerous schools of thought on the best approach to client management. We all know the passive philosophy of "Shhhhh! Don't tell the client about this until we know for sure they are impacted," which I find intellectually dishonest. Then there is the approach that seems to say, "Oh grand and mighty client, I will place you on a pedestal and worship your name." Another is referenced in a recently aired TV commercial, with the vendor finding himself in a Roman coliseum and the client being 'unleashed' as a roaring ferocious lion.

No matter which approach suits you as an account representative, anyone can smile, answer a phone politely and be responsive. However, that does not constitute relationship management. Customer service is nice; relationship management is work. It requires taking time, which admittedly none of us have much of, to learn your client's business better than they know it themselves.

Revamping the Process

This learning process goes beyond system and process flows or reporting structures. I challenge you to learn the culture, norms and internal politics of the organization that contribute to a true initiation into their organization. Learn them so well you know how they will respond before they actually do. Give them a best-approach solution, even if that approach is taking that segment of their business to your competition.

Now, stay with me here.

For the few of you still reading, I am sure I lost you at that point, so let me say it again. It is OK to say, "No, valued client, I cannot offer you what the competition can do for you. I think the best solution at this time is to go to the competition for this particular product or service." I have witnessed this approach being taken, and can proudly say that I too have uttered these words. Because genuine relationship management mandates a level of honesty and transparency that goes beyond trust. Many can claim they have never lied to a customer, but have they always told the truth? True honesty is telling the client what they are not asking, but should still know about as it relates to the topic.

Customers Need You Now

The reality is that this Great Recession will not last forever. Some proclaim we have experienced the worst of it, while others predict at least another year to go. What everyone does agree on is the storm will come to an end and the landscape will not look the same. And I, for one, will not be holding my breath for the end to arrive to see what is left standing because my customers need me now. They need me to be dynamic, creative and more effective than ever before. The fourth quarter of the game is no time to succumb to fatigue, and I am determined my customers will hold a stronger position in the market because I did more than answer the phone.

I have often marveled at how successful Hollywood has been in romanticizing the battle scene through motion pictures. Saving Private Ryan, Blackhawk Down, Band of Brothers — they all depict the true depravity of man at his lowest points.

Yet, as a society, we are drawn to these movies with addiction and passion. As a Veteran, I easily relate to it. But the point is that when we get through this recession period — and we will get through it — our customers will remember those who were next to them in the fox hole. And they will recall those who ran away. Most importantly, they will remember who was there and actually trying to do more than just duck for cover.

About the Author

With more than 10 years of industry experience, Wayne McPhillips currently serves as an account director for TSYS' North American consumer credit division. During his tenure at TSYS, he has contributed to a variety of initiatives focused on client support, including client collaboration models, collaborative partnership processes and an enterprise-wide internal campaign encouraging TSYS team members to do business in the mindset of a client.