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RELATIONSHIP:
CUSTOMER
SERVICE
Objectives:
1. Explain the concept of the customer relationship
management.
2. Define relationship marketing.
3. Explain the value of consumer.
4. Identify and describe relationship development
studies.
5. Illustrate successful customer service strategy.
DISCOVERING CUSTOMER RELATIONSHIP
MANAGEMENT ( CRM )
Customer Relationship Management
• The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction. (Kotler and
Armstrong)
• It helps the company in gaining, maintaining, and
increasing market share.
Customer Customer
Value Satisfaction
CRM
Customer-perceived value
- Customer pick products, which they think offer
utmost value. Consumer may subjectively see
the value and cost of the product. Their
selection of products and services will be based
on their individual value perspective.
Customer satisfaction
- It is based on the perceived performance
od the products in connection with the
expectations of the customers.
DEFINING RELATIONSHIP MARKETING
Relation Marketing
• Is a set of activities designed to develop and
manage customer loyalty and long-term
customer relationship.
• Teaches companies and the customers to build
trust by having interactions, which will result
in lasting relationship.
• The concept of relationship marketing, it is
wrong to say that the process ends after
customer buys the products. Feedback
and follow-through using related products
and service are outstanding.
Fresh Perspective: Advantage of Having
a Strong Relationship Marketing
Maintaining long-term customer relationship
- By building a relationship with customers and
not treating them as just for the sales, the loyalty of
the customers will be developed and the likelihood of
patronizing the product for extended time increases.
Receive referrals from potential customers
- The testimonials and recommendations
of the satisfied and loyal customers are a
powerful persuasive tool to influence their
families, friends, and colleagues.
Provides feedback mechanism
- Getting the complaints of the customers
is a form of feedback. It is essential that sellers
know how to receive complaints by making the
customer feel that his or her complaint is
properly attended.
Gives competitive edge
- Having satisfied and loyal customers
means having certain captured market. This
will provide the company a competitive
advantage regarding market share.
Understanding the Value of
Customers in Marketing
• Strong customer relationships makes the
business more profitable in the long
term.
• Value of a customer in marketing is being
the source of information in developing
or improving their product and service
features and benefits.
Customer as Advocate
• Word of mouth is effective means of
promotion. It can influence people’s buying
decision.
Learning the Relationship
Development Strategies
According to levels: (Kotler and Armstrong)
Basic relationships: Companies with having
identified many low-margin target customers often utilize
this approach.
Full-part partnership: Companies with having
identified few and high margin target customers sort to this
kind of relationship.
According to Marketing Tools: (Kotler and Armstrong)
Frequency marketing program: Most of the companies
use this kind of approach in establishing and maintaining a
relationship with customers.
Club marketing programs: Sometimes companies
provide sponsorships for clubs, which give special benefits to
members and form member communities.
Realizing Customer Service
Strategy
Trained and experienced sales personnel realize that customer service
does not only focus on after sales.
Strategic Customer
Satisfaction
Management
International Business
Markets Markets
Government Reseller
Markets Markets
The consumer markets are the most common of all of
these customers. For their consumption, these individuals
or households purchase products or render services to
satisfy their needs.
The business markets are customers that purchase
goods or render services for the production of their products
or services.
The international markets are customers that import
commodities for various purposes.
The government markets are customers that
purchase commodities or services to provide public services
like providing relief goods during disasters.
Strategic
Customer
Satisfaction
Feedback Management
and Reward
Leadership
System