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Customer Relationship: Customer Service

OBJECTIVES
Define “relationship marketing”
Explain the value of customers
Identify and describe “relationship development
strategies”
Illustrate successful customer service strategy in
the Philippine business enterprise
Relationship Marketing

- Is a set of activities designed to develop


and manage customer loyalty and long-
term customer relationship.

Customer Relationship Management (CRM)


- Is the overall process of building and
maintaining profitable customer relationship
by delivering superior customer value and
satisfaction. (Kotler & Armstrong)
CUSTOMER CUSTOMER
VALUE SATISFACTION

CRM

Important Elements of CRM (Kotler & Armstrong )


Advantages of Having a Strong
Relationship Marketing
1. Maintain long-term customer relationship.

2. Receive referrals from potential customers.

3. Provides feedback mechanism.

4. Gives competitive edge.


Different Strategies in developing relationship
with their customers (Kotler & Armstrong)
According to levels
Basic relationship- No lasting or face to face connection between the company and
customer
Full-part partnership- With lasting connection between the company and customer
According to marketing tools
Frequency marketing program
Promotional program aimed at encouraging repeat sales by rewarding
customers on buy frequently or on regular basis.

Club marketing programs

A marketing program designed specifically for regular and frequent


purchasers of a company's product or for those who have a special interest,
these consumers, who may be automatically enrolled or invited to apply for
club membership, are usually offered special prices or other incentives to
reward them for their loyalty.
Strategic Customer
Satisfaction

any member of
your Internal External
organization who an individual
relies on Customer Customer who enters your
assistance from store and buys
another to fulfill merchandise.
her job duties

CUSTOMER SATISFACTION FRAMEWORK (Go & Escareal-Go)


Classification of Customers according to the
Market:
The consumers markets
Pertains to buyers who purchase goods and services for consumption rather than
resale. 
The business markets
Are generally made up of businesses which buy products and raw materials for their
own operation.
The reseller markets
Buyers who purchase with the intent of selling those products to others includes
wholesalers, retailers, and distributors  

The government markets


A group of consumers that consists of local, state and federal authorities

The international markets


Any geographical region where a company conducts business that is outside the
territorial boundaries of a company's home country
Consumer Markets

International
Business Markets
Markets

Government
Reseller Markets
Markets

Types of Customers According to Markets


is the process of dividing an entire market up into
Market different customer segments. 
Segmentation

Strategic
Customer
Satisfaction
Mgt.

Feedback
and Reward Leadership
System

Elements of Strategic Customer Satisfaction Management


Steps in Assuring the delivery of excellent
customer service culture:
1. Provide product knowledge.
2. Train of employees

3. Establish system

4. Attend the issue

5. Empower Employees
Customer service strategy in the Philippine
business enterprise
They Create a Customer Service Vision
They Assess Customer Needs
They Hire the Right Employees
Set Goals for Customer Service 
Train on Service Skills
Hold People Accountable
Reward and Recognize Good Service
Activity
• The group will be divided into 7 teams and each team will be having a role playing
on how to approach the assigned type of customers including the presentation
Type of customers are;
• The Negotiator
• The well-informed
• The annoyed one
• The suspicious one
• The one who agree everything
• The indecisive
• The questionnaire
 
• This activity will be done within 15 minutes including the presentation per group.
To gauge their understanding, a rubric will be followed to wit: Creativity-20%
Delivery – 20%, Teamwork-20%, Mastery/expertise – 40%
Evaluation
• What do you understand about the quote “The
customer is always right”?
• Given the scenario that one customer is
complaining about your service offering, which
option will you do - Attend the customers
complain immediately or let the customer wait
you until your free time. Explain?
Assignment:
Aqua Cure Water Station is a newly established water refilling
company that offers clean and safe drinking water by using quality
purification process. They provide the customers with drinking
water that has C.A.S.H. (Clean- free from any impurities, Affordable
– the price of water is P7 per gallon. It is P1 peso lower than the
usual price per gallon in the market, Safe – the purification process
is tried and tested in producing pure and safe drinking water, and
Healthy – drinking water produced by the company can maintain a
low acid environment in the body that makes customer less prone
to diseases). The water station is open from 8:00 am to 8:00 pm,
every day with no holidays. The delivery is free. The company
provides customer service seminar and workshop to the employees
to maintain efficient delivery of service. The company is open for
business partners who want to franchise and/or distribute the
produced bottled drinking water in their community.
Based on the given case, provide answer for the following:
Using the CRM principles, identify the customers value and
customer satisfaction elements using the table.
CRM
CUSTOMER VALUE CUSTOMER SATISFACTION
1 1
2 2
3 3
4 4

a) Identify the different customers of the company.


b) What type of markets does the company is serving?
c) Using the concept of relationship marketing, how will you
improve the customers service of the company to
maintain long-term relationship with the customers.
d) Present to the class your customer service plan for the
company.

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