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It’s an eternal tug of war in the business world: Customers want more and better-quality service, while businesses seek ways to limit spending or cut costs. But smart companies are finding ways to satisfy both parties by taking advantage of technology to cost-effectively acquire new customers and keep the ones they have. Whether behind the scenes or on the front end, technology is the new star of customer strategy.

At California’s Mammoth Mountain Ski Area, well-heeled customers present both a challenge and an opportunity. “There are a lot of activities and businesses competing for their wallet share, and their expectations are extremely high,” says vice president Greg Dallas.

Dallas spearheaded a point-of-sale integration project to provide a seamless resort experience for guests. Not only does the program help fulfil guests’ needs across several lodges, execute loyalty programs and manage guest relationships across the resort, it also collects item-level data for individual guests.

Now, Mammoth can identify top-spending customers and design specialised, high-touch programs to serve them better – and maximise wallet share. Skiers, in turn, can get personalised, integrated service just by flashing a ski pass at any point-of-sale.

Those kinds of personalised experiences must stretch across a spectrum of customer interactions, according to a recent report by the Chief Marketing Officer (CMO) Council.(1) Why? “Savvy customers today are very good at tuning out commercial noise,” according to the report. “To reach a customer there must be a multi-channel, multi-level personalisation strategy that takes all customer points of interaction into account,” including Web, e-mail, texting and call centres.

As technology becomes more a part of every day life, “[customers] are becoming accustomed to being able to buy what they want, where they want, when they want,” according to a report(2) by TNS Retail Forward, a retail and shopper insights consultant firm in Columbus, Ohio. For example, customers now expect online banking services to integrate seamlessly with branches and ATMs. It’s taken for granted that airlines offer electronic ticketing, online check-in and in-person service that all fit neatly together. And, increasingly, customers expect a seamless, information-rich interaction with retailers online and off.

Retailers are also finding out that a multi-channel approach can deliver greater wallet share and new customers: “[S]lightly more than half of online consumers have researched a product online and then purchased it offline in a traditional brick-and-mortar location,”(3) according to independent analyst firm Forrester. “In addition, 45 percent say that they buy additional products once in the store, spending on average US$154 in incremental purchases.” What's more, “the high rate of cross-channel consumers who switch retailers when they switch channels indicates a huge opportunity for retailers to capture additional sales,” Forrester says.

Information, and the personalisation it affords, is a key to delivering the service customers demand.

"Shoppers increasingly will expect service and information on demand, whether browsing in the store, shopping online or with a wireless device, or even while in the dressing room," according to TNS Retail Forward. Some stores have installed digital touch-screen systems that let shoppers communicate with device-toting sales people, to request a different size or colour garment, for example. What's more, the digital touch screens can make up-sell and add-on product suggestions, based on the customer input.

And, some retailers are offering information rich Web sites deliberately aimed at driving in-store purchases. Hardware giant Lowes, for example, lets customers design their dream kitchen online before visiting a store to purchase the components, points out TNS Retail Forward.

As technology assumes a larger role in mediating the customer relationship, CIOs are increasingly getting involved in the early stages of strategy.

A close relationship between IT and the business side was crucial to the way Dallas employed technology at Mammoth. Working with business owners to develop strategy not only results in the best outcomes, but it also generates a sense of cooperation and teamwork that can carry a good idea from the drawing board to reality – and truly affect the customer experience, Dallas says.

“You get [business owners] excited about it and then you’re not on your own advocating for costly infrastructure,” Dallas says. When the business begins to view technology – and the CIO – as drivers of customer service, then, says Dallas, "it’s a much easier discussion."