Winning the peace.

• Author: Hall, Robert
• Position: Marketing Solutions

"When first things are put first, second things do not become less, but more."

3. S. Lewis

As I write in mid-April, we are in the midst of a shooting war in Iraq. War is a common metaphor (perhaps too common) used to describe business activities: Battling for turf. Attacking competitors. Blitzing the market.

In today's real war in Iraq, the emphasis on winning the conflict is accompanied by a parallel concern about winning the peace. Almost everyone agrees that winning the peace will not be easy. Winning the peace is a "hearts and minds" exercise that comes hard on the heels of force. The tools and skills it takes to win the peace could hardly be more different from those it takes to win a war. Only in intention do they match.

So it is in business. Winning the business is one thing. Winning the relationship is another. Closing the loan or opening the new account is much easier than creating a loyal, committed, long-term customer relationship. Cross-selling an additional product is much easier than building a profitable, fully penetrated relationship that withstands competitors, price changes, and even the occasional slip-up over time.

Many companies have gotten good at winning wars. They have perfected maneuvers like discount pricing to attract new customers, promotions to sell things customers hadn't planned on buying, "free" products or services with long strings attached, or fee revenue from ordinary customer activities. These maneuvers advance the column, but they do little to win the peace. Often, they set the customer up to be disappointed if discount pricing comes with discount service. The customers are discouraged if they come to regret the unplanned purchase, if "free" turns out to be "pay me later," or when they tire of paying for the privilege of being punished.

What are the skills for winning the peace? For creating true value for customers that stands the test of time and change and helps us manage the entire customer life cycle?

There are two key competencies for winning both the war and the peace. They are not new, just more important than ever.

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