AFTER THE SALE IS OVER…

GROUP 4 : ARTICLE PRESENTATION

Submitted By : Group 4
1.Ankur Tunaak
2.Gagandeep Singh
3.Kamal Malik
4.Modak Priy
5.Rupane Sharma
6.Sudeep Kumar Kundu
7.Vineet Dixit

GROUP NO. 4 1
 WHAT IS RELATIONSHIP MANAGEMENT

• Relationship management is a philosophy of doing

business, a strategic orientation, that focuses on keeping
and improving relationships with current customers rather
then on acquiring new customers.

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 GOAL OF RELATIONSHIP MANAGEMENT

• The primary goal of Relationship Management is to build and

maintain a base of committed customers who are profitable for the
organization.

The goal is to move the customer up Enhancing

the ladder i.e; from the point they are
strangers to the point where they
become high valued customer. Retaining

Satisfying

Acquiring

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 BENEFIT FOR BUYERS AND SELLERS

BENEFITS FOR BUYERS

Value Benefits - Customer remains loyal to a firm if they receive greater

value relative to the competitors. Value can be classified in terms of
quality, services, special benefits, etc.

Confidence Benefits - This provides the feeling of trust and confidence

along with a sense of reduce anxiety and comfort in knowing what to
expect.

Social Benefits - Customer develop a sense of familiarity and even a

social relationship between the service provider and the customer.
These ties make them less likely that they may switch.

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 BENEFITS FOR SELLERS

Economic Benefits - Long time relationship recieves high overall returns

on investments which includes increased revenue, redused marketing
and administration cost and the ability to maintain high margins
without reducing prices.

Customer behavior Benefits - These benefits can be in the form of word

of mouth communication. Loyal customer may provide social benefits
to other customers and they can serves as mentors to others in terms
of purchase.

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 CUSTOMER PROFITABILITY SEGMENT

• Company may want to treat all customers with excellent service, but
the relationship value differs and it would not be profitable to meet all
customers expectation
• 80/20 Rule : 20% of the customers produce 80% of sales / profit.
Most Profitable
customer Platinum

Gold

Iron

Least Profitable Lead

customer
The customer pyramid

GROUP NO. 4 6
 RELATIONSHIP DEVELOPMENT MODEL
Relationship Outcomes
Drivers

Customer
Relationship Benefits
Bonds Confidence Benefits
Social Benefits
Financial Bonds
Special treatment Benefits
Social Bonds
Customization Bonds Customer
Structural Bonds
Relationship

Firm
Core Service Benefits
Economic Benefits

Provision Customer behavior benefits

Satisfaction Human resource management
Perceived service Quality benefits
GROUP NO. 4 7
Perceived Value
 CUSTOMER RELATIONSHIP MANAGEMENT
SATISFACTION

A comprehensive set of relationship programs includes :

1.Customer service (Touch Points) Customer

Service Customer
2.Frequency/Loyalty Programs Service

3.Customization
Customer
Relationship Management
Frequency
Satisfaction
4.Rewards Programs /Loyalty
Programs
Rewards
Programs
5.Community Building

Customization
GROUP NO. 4 8
 RELATIONSHIP CHALLENGES
The assumption that all customers are good customers is very compatible
with the belief that “The customer is always right” yet the statement is not
always true and it may be preferred for a firm to discontinue their
relationship.

Wrong segment : A company can not target its services to all customers, it
would not be beneficial to either the company or the customers for a
company establish its relationship with a customer whose needs the
company can not meet

Net profitability in long term : Organizations should prefer not to have

relationship with unprofitable customers.

Difficult customers : These are customers who intentionally or un-

intentionally act in a manner that in some way disrupts otherwise functional
service encounters.

GROUP NO. 4 9
When a purchase cycle is long - People in the
organization change, and in all livelihood the entire
upper level management also changes but the idea
of building relationship bonds lasts forever.

GROUP NO. 4 10
 THANK YOU

GROUP NO. 4 11