By Hans Bool
CRM has been the buzzword for years after the now already common standard of ERP. Everyone knows what the best-practices of enterprise resource management are.
But what about CRM? That has from the start been more difficult to define. We all know how to streamline a business process, but how to fortalice the relation with clients...?
In the financial world, clients are there and in many situations. A shareholder could be seen as a client of the company. And what these clients want most of all is: security formalized by a steady flow of dividends. Now more important than ever.
Yet paying dividends is now challenging the company's cash-flow policy as cash is the back-up of credit which is hard to get these days. Credibility is at stake.
Many companies resigned to pay dividends which damaged the relation with shareholders. Especially to loyal shareholders, who believe in the company and those private investors who buy-and-hold their shares.
In a few situations an argument not to pay dividends - due to the dire economical and financial climate -- was accompanied with the message that these retained dividends would remain in the company "anyhow" and wouldn't affect the value of the shares. This is not right, management should know that.
But why not trusting those loyal clients (shareholders) and come up with a proposition:
- Yes, we are going to pay dividends as set out in our policy. But we want you to ask a favor. Please reinvest this dividend in buying shares of the company.
An example of this was proposed by the Spanish insurer Mapfre.
There are many alternatives and these are possible for companies that are only slightly damaged by the crisis. But even in those cases, the relation with the clients -- shareholders -- can make the difference. It is all about trust.
Copyright © 2009 Hans Bool For more information have a look at his writer's block note Article Source: http://EzineArticles.com/?expert=Hans_Bool |
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