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At the end of this module, you will be able to explain Input for
acquisition, Prerequisites for effective acquisition, attention on
adoption process, Customer Interaction Management (CIM),
Routes to CIM, Online Interaction Tools, Offline Interaction
Tools, Stages in Customer Lifecycle, Status of Customers in
the Relationship Chain, Factors influencing CIM, Effective
Customer Relationship Building, Organisation, Inherent benefits
of Retaining Customers, Customer, Approach to Retention
Process, Stages of Retention In Customer Lifecycle, Sequences
in Retention Process, Perceptual Gaps in Retention, Gaps in
Customer Retention, Meeting Customer needs and its Impact
on Retention, Needs Determination Process for Customers,
Role of Satisfaction in the Retention Process, Customer
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Satisfaction Expectations
  

from Business,

 !"# $ 
Customer Dissatisfaction, Retention centered Organisations,
Relationship through Loyalty, Loyalty Continuum, Process of
Brand Choice, Internal and External Factors, Customer
Loyalty and its types, Brand Switching Behaviour, Towards
Reaching Loyal Customers, Market Identification, Market
Expansion, Segmented and Target Market, Prospective
Customers, Customers, Market Identification, Market
Expansion, Segmented and Target Market, Prospective
Customers, Customers, Loyal Customer Ladder, Loyal
Customer, Lost Customer, Why do Customers need Loyal
Customers?, Recovery of Lost Customer, Why do Customers
defect?, Strategies to Prevent defection and recover lapsed
customers, Developing Barriers to Exit.
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 & #'(" 
' The suspects.

' The enquiries.

' The lapsed customers.
' The former customers.
' The competitor¶s customers.
' The competitor¶s lapsed customers.
' The competitor¶s enquiries.
' The competitor¶s former customer.
' The referrals.
' The existing buyers.

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REQUISITES FOR EFFECTIVE ACQUISTION
' Focussed Approach.

' Providing a Win-Win Platform.

' Initiate Forum for Communication
' Attempt to Minimise µFUD¶.
' Projection of Benefits and not Products.
' Contextual Application.
' Focus on Decision Process.

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ATTENTION ON ADOPTION PROCESS

' Focus on Options of Prospective

Customers.
' Building up Publicity and Public Relations.
' Concentration on existing Customers.
' Process of Acquisition.
' Influences of Acquisition.

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 CUSTOMER INTERACTION
MANAGEMENT(CIM)
' Customer Interaction Management constitutes
the customer relationship technologies with
additions of technology based interactive
solutions.
' The interactive channels that are currently
available enable very effective customer
interactive communications which leads to
customer interaction management which
further leads to relationship building.

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 CUSTOMER INTERACTION
MANAGEMENT CONTD

' In view of the technology growth, the

interaction management is facilitated by
communication in terms of media, message,
speed, accuracy, distance, content, reach,
repetition etc.
' The customer interaction management stands
for intensive interaction between customers
and the organisation, which is supported by
technology enabled mechanisms such as
internet.
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 ROUTES TO CIM

' Online Route.

' Offline Route.

' Outsourcing.
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  '  "
' Interactive Website.

' E-mails.

' Web Communities.

' Chat Rooms.

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## '  "
' Telephones.

' Facsimile (Fax).

' Face to Face interaction.

' Interactive Television Network.

' Mails and So on.

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 " '"" #.
' Acquisition.

' Retention.

' Attrition.

' Defection.

' Reacquisition.

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 STATUS OF CUSTOMERS IN
THE RELATIONSHIP CHAIN
' Stage 1
' Strangers.
' Stage 2
' Prospects.
' Stage 3.
' Inactive Customers.
' Stage 4
' Active Customers.
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 #' "#
' Nature of Business.

' Size of the Organisation.

' Number of Customers.
' Types of Customers.
' Geographical Spread of Customers.
' Frequency of Contact.
' Type of Product.

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#' "# 

' Technical Support Available.

' Presales Interaction Required.
' After sales Interaction required.
' Competitor¶s practice of interaction.
' Extent of loyalty.
' Status of Customers in the relationship
process.
' Lifestyle of Customers.

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 EFFECTIVE CUSTOMER RELATIONSHIP
BUILDING
' åey aspects needed for CIM.

' Customer Database.

' Customer Profiling.
' Audit of Internal system and resources.
' Electronic Data Interchange (EDI).
' Application of Right Technology.
' Active listening Mechanism.
' Effective Networking.
' Permission Approach.
' Building Virtual Relationship.
' Focussing from Customer perspective.

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 " ' $
' Who Buys?

' How they Buy?

' Where They Buy?
' How frequently they buy?
' When they buy?
' What is their profile?
' What lifecycle they are in?
' What is their perception?
' What is their expectation?
' What are frequently asked questions?
' What is their value for money?
' What is their value for time and so on?

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INHERENT BENEFITS OF RETAINING CUSTOMERS

' Customer by Chance.

' Customer by Occasion.

' Customer by Choice.

' Customer by Repetition.

' Customer by Loyalty.

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 '" "
' An asset.
' An ambassador.
' An experience shaper.
' A winning edge.
' A knowledge provider.
' A spokesperson.
' A driving force.
' A caretaker.
' A resource provider.
' A partner.

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 & '#" 
  
' Top 20% of the customers deliver 80% of the revenue.
' Existing customers contributes upto 90% of the
revenue.
' Top 20% of the customers deliver more than 100% of
the profit.
' The bulk of marketing benefit is often spent on people
other than customers.
' Between 5% and 30% of all customers have the
potential for moving upward the loyalty ladder.
' 2% upward migration in the loyalty ladder means 10%
more revenue and 50% more profits.
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'&&'$   &""
' At the acquisition the focus is on acquiring relationships

whereas at the retention, it is on nurturing the relationship.

' At the acquisition the focus is on demographic,
psychographic profile of customers , whereas at the
retention process the focus is more on past and present
transactional profiles in addition to demographic and
psychographic profiles , etc.
' While at the acquisition process the customer is mainly
driven by offer and incentives, at the retention process
the customer is driven by the type and extent of
relationship maintained by the organisation for furthering
their relationship.

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 STAGES OF RETENTION IN THE
CUSTOMER LIFE CYCLE

' ACQUISITION.

' RETENTION.

' ATTRITION.

' DEFECTION.

' REACQUISITION.

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SEQUENCES IN RETENTION PROCESS

' EXPLORING.

' EVALUATING.

' ESTABLISHING STRATEGIES.

' EXAMINING FEEDBACå.

' ATTRITION ± THE NEGATIVE SIGNAL TO RETENTION.

' HANDLING COMPLAINTS TOWARDS IMPROVING

RETENTION.

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 PERCEPTUAL GAPS AND RETENTION

' PERCEPTUAL.

' PROCEDURAL.

' PROMOTIONAL.

' POSITIONAL.

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 GAPS IN CUSTOMER RETENTION
BUSINESS CUSTOMER

What the business thinks the What the customer actually

customer wants? wants?

What the business thinks a What the Customer has perceived

Customer has bought ? that he/she has received ?

What the customer actually

What the business provides ?
received?

The expected service which The delivered service received

the business provides. by the customer.

The marketing promises of the

The actual delivery to the customer.
business.
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 GAPS IN CUSTOMER RETENTION CONTD
CUSTOMER BUSINESS

What the business perceives as

What the customer receives.
a suitable method for distribution.

What the business perceives in its

What is reached to the customer.
positional strategy.

What is communicated to the

What the business communicates
customer.

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MEETING CUSTOMER NEEDS AND ITS
IMPACT ON RETENTION
' BASIC NEEDS.
' ARTICULATED NEEDS.

' EXCITING NEEDS.

' BASED ON LIFE STATUS.

LIFE MAINTAING NEEDS.
LIFE ENHANCING NEEDS.
LIFE CHANGING NEEDS.

' BASED ON TIME.

EXISTING NEEDS.
FUTURE NEEDS.

' BASED ON CONDITIONS.

EMOTIONAL NEEDS.
RATIONAL NEEDS.
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NEED DETERMINATION PROCESS FOR
CUSTOMERS

' CAPTURING.

' CLARIFYING.

' CODIFYING.

' CONDENSING.

' CONTINUING.

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 ROLE OF SATISFACTION IN THE
RETENTION PROCESS
' PRODUCT SATISFACTION.

' PERIPHERAL SATISFACTION.

' AMBIENCE SATISFACTION.

' PSYCHIC SATISFACTION.

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 CUSTOMER SATIFACTION
EXPECTATIONS FROM BUSINESS

' EXPECTED SATISFACTION.

' DESIRED SATISFACTION.

' EXCITING SATISFACTION.

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 CUSTOMER DISSATISFACTION

'  /

' &" & /

' ""   /

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 RETENTION CENTRED ORGANISATIONS
CONTD

' ORGANISATIONS MUST HAVE THE MECHANISM TO TRACå

ATTRITION SIGNALS.

' ORGANISATIONS SHOULD FOCUS ATTENTION ON FORMER

CUSTOMERS AND LOST CUSTOMERS.

' ORGANISATIONS SHOULD PRACTICE TOTAL QUALITY

MARåETING WITH EMPHASIS ON INTERNAL MARåETING.

' ORGANISATIONS SHOULD ENCOURAGE ALL EMPLOYEES

TOWARDS ACTIVE LISTENING TO CUSTOMERS
GRIEVANCES.

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RETENTION CENTRED ORGANISATIONS
CONTD

' ORGANISATIONS IN ADDITION TO REGULAR RESEARCH

SHOULD ENCOURAGE HANDS ON RESEARCH ON CUSTOMER
RELATED PROBLEMS.

' ORGANISATIONS SHOULD ENCOURAGE REGULAR

CUSTOMER CONTACT PROGRAMMES.

' ORGANISATIONS SHOULD DEVELOP EFFECTIVE

COMMUNICATION SYSTEMS WITH INTERNAL CUSTOMERS
( EMPLOYEE), INTERMEDIATE CUSTOMERS ( MIDDLEMEN),
AND EXTERNAL CUSTOMERS(END USERS).

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RETENTION CENTRED ORGANISATIONS
CONTD
' ORGANISATIONS SHOULD EMPOWER EMPLOYEES AT
VARIOUS LEVELSSO AS TO ARRIVE AT APPROPRIATE
ACTIONS IN TERMS OF IMPROVING THE LEVEL OF
CUSTOMER SATISFACTION.

' ORGANISATIONS SHOULD FOCUS ON EFFECTIVE TEAM

WORå , WITH THE OBJECTIVE OF CUSTOMER RETENTION.

' ORGANISATIONS SHOULD FURTHER EMERGE INTO A

MARåET INTELLIGENT ENTERPRISE.

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RETENTION CENTRED ORGANISATIONS
' LEARNING ORGANISATION.

' CHARACTERISTICS OF A MARåET LEADER.

' INNOVATIVE ORGANISATION.

' EFFECTIVE CUSTOMER CARE PROGRAM ± ORGANISATIONS.

' EFFECTIVE COMPLAINT MANAGEMENT SYSTEMS FOR

CUSTOMERS.

' TOTAL EMPLOYEE INVOLVEMENT IN CUSTOMER CARE.

' BUSINESS STRATEGIES WHICH ARE CUSTOMER CENTRIC.

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' "$& $$.' .
' UNDERSTANDING BRAND.

' THE PROCESS OF BRAND CHOICE.

' CUSTOMER LOYALTY AND THEIR TYPES.

' LOYALTY TOWARDS BRANDS.

' THE BRAND SWITCHING BEHAVIOUR.

' TOWARDS REACHING LOYAL CUSTOMERS.

' THE LOYAL CUSTOMER LADDER.

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 LOYALTY CONTINUUM
' Organisations must focus on conversion of switchers into software
loyalists and soft core loyalists to hardcore loyal customers.

' Loyalty towards the stores refers to the loyalty developed with
reference to point of purchase.

' A customer who develops loyalty towards an organisation might

wilfully offer to accept whatever product or service is offered by the
organisation.

' It is also possible that customers would build loyalty towards

salesperson of a store or an organisation. This is in view of the
total customer satisfaction enjoyed by the customer from the
salespersons concerned.

' In addition to the above the loyalty may be built up based on other
characteristics, which are perceived as important by the customers
concerned about their brand selection and consumption process.
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 PROCESS OF BRAND CHOICE

TOTAL BRANDS

AWARENESS BRANDS

CONSIDERED BRANDS

CHOICE BRANDS

DECIDED BRAND

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 INTERNAL AND EXTERNAL FACTORS
' j
 


Perception.
Motives.
Personality.
Self-Image.
Attitude.
Learning etc.
' 
 


Culture.
Group Behaviour.
Family.
Role Relationship.
Economic Status.
Lifestyle.
Communication etc.
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" .' .' $ .&"
' LOYALTY TOWARDS BRANDS.

' LOYALTY TOWARDS STORES.

' LOYALTY TOWARDS ORGANISATION.

' LOYALTY TOWARDS SALESPERSONS.

' LOYALTY TOWARDS ANY OTHER RELATED

ASPECT IN THE PROCESS OF PURCHASE AND
CONSUMPTION.

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 BRAND SWITCHING BEHAVIOUR

' DISSATISFACTION WITH THE PRESENT

BRAND.
' CHANGES IN FASHION.
' PROMISES MADE BY COMPETITORS.
' CHANGES IN THE PERCEIVED BENEFITS.
' PERSONAL CHARACTERISTICS OF THE
CUSTOMER CONCERNED.
' PRESSURE OF SALESPERSONS.
' PERSONAL REASONS.

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 TOWARDS REACHING LOYAL CUSTOMERS

MARåET IDENTIFICATION

SEGMENTED AND TARGETED MARåET

PROSPECTIVE CUSTOMERS

CUSTOMERS

LOYAL CUSTOMERS

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 '0  #' 
' MARåET IDENTIFICATION.

MARåET ENTRY.
MARåET EXISTENCE AND
MARåET EXPANSION.

' MARåET SHARE.

MARåET LEADER.
MARåET CHALLENGER.
MARåET FOLLOWER.
MARåET NICHER.
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 '0 1&'"
' MARåET PENETRATION.

' PRODUCT DEVELOPMENT.

' MARåET DEVELOPMENT AND

' DIVERSIFICATION.
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" ' ' '0
' AGE.
' MARITAL STATUS.
' INCOME.
' GENDER.
' LOCATION.
' VOLUME OF PURCHASE.
' TYPE OF CUSTOMERS.
' BUYING HABITS.
' LIFESTYLE.
' BENEFIT EXPECTED.
' EXTENT OF LOYALTY.

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 &"& !" "
' REFERRAL LETTERS.
' THROUGH FRIENDS AND RELATIVES.
' VARIOUS DIRECTORIES.
' THROUGH TRADE DIRECTORIES.
' ADVERTISEMENTS.
' BLIND TELEPHONE CALLS.
' DEVELOPING DATABASE.
' COLD CANVASSING.
' FOLLOW UP OF THE COMPETITOR¶S CUSTOMERS.
' CUSTOMERS OF RELATED PRODUCTS ETC.

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 " "

IDENTIFICATION OF PROSPECTS

CATEGORISATION OF PROSPECTS

CONVERSION OF PROSPECTS INTO CUSTOMERS

CONVERSION OF CUSTOMERS TO LOYAL CUSTOMERS

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 .'" '
' CUSTOMER BY CHANCE.

' CUSTOMER BY OCCASION.

' CUSTOMER BY CHOICE.

' CUSTOMER BY REPETITION.

' CUSTOMER BY INSISTENCE.

' CUSTOMER BY LOYALTY.

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 .'" 
' NEW CUSTOMER BY CHANCE.

' CUSTOMER BY OCCASION.

' CUSTOMER BY CHOICE.

' CUSTOMER BY INSISITENCE.

' CUSTOMER BY LOYALTY.

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 " " 

' NEW CUSTOMER BY CHANCE.

' DISAPPOINTED CUSTOMER.

' DISSATISFIED CUSTOMER.

' LAPSED CUSTOMER.

' LOST CUSTOMER.

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WHY DO ORGANISATIONS NEED
LOYAL CUSTOMERS?
' THE PARTNER.

' THE ADVISOR.

' THE CUSTODIAN.

' THE RESOURCE PROVIDER.

' THE CHANGE DRIVER.

' THE EXPERIENCE SHAPER.

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!.#'&"" "

' STABLE CUSTOMERS.

' GROOMING CUSTOMERS.

' SEASONAL CUSTOMERS.

' LAPSED CUSTOMERS.

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2$." "# 3
' THE CUSTOMERS¶ SPECIFIC NEED HAS NOT BEEN
FULFILLED.

' THEY MOVED OVER TO THE DIFFERENT PRODUCT

CATEGORY.

' DISSATISFIED WITH THE ELEMENTS OF MARåETING MIX.

' PERCEIVED BETTER VALUE FOR MONEY FROM THE

COMPETITOR¶S OFFERINGS.

' DEVELOPED MISUNDERSTANDING WITH THE VALUE

DELIVERY SYSTEM.

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2$." "# 3
' DISPLEASURE AT THE POINT OF PURCHASE.
' DISSATISFIED WITH THE PERFORMANCE OF
AFTER SALES SERVICES.
' INHERENT FEELINGS OF INDIVIDUALS TO TRY
NEW PRODUCTS.
' COMPULSION DUE TO TECHNOLOGICAL AND
ENVIRONMENT FORMS
' INDUCED BY CHANGING LIFESTYLE AND
STAGES IN THE LIFECYCLE.
' DEMOGRAPHICALLY MOVED AWAY FROM THE
MARåET PLACE.
' PERSONAL REASONS.
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 STRATEGIES TO PREVENT DEFECTION AND
RECOVER LAPSED CUSTOMERS

' TOTAL åNOWLEDGE ABOUT CUSTOMER

BEHAVIOUR.
' INTERACTIVE COMMUNICATION SYSTEM.
' SPECIAL PROMOTION CAMPAIGN.
' DEVELOPING BARRIERS TO EXIT.
' åNOWLEDGE ABOUT LIFESTYLE AND LIFECYCLE.
' ESTABLISH MEASUREMENT SYSTEM.
' ATTEMPT TO TRACå LOSSES.

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STRATEGIES TO PREVENT DEFECTION AND
RECOVER LAPSED CUSTOMERS CONTD

' CUSTOMERS SPECIFIC APPROACH.

' CUSTOMER WIN-BACå PROGRAMMES.
' BUILDING CUSTOMER CARE TEAM.
' DEVELOPING BONDAGE WITH CUSTOMERS.
' IMPROVEMENT OF VALUE DELIVERY SYSTEM.
' PRACTICE OF EXPERIENTIAL MARåETING.
' BENCHMARåING OF PRACTICES.
' CONTINUOUS IMPROVEMENT.

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 !&'" 1
' EMOTIONAL APPEAL.
' CONFORMATION TO SPECIFICATION.
' DURABILITY.
' LIFETIME UTILITY.
' SOCIAL RELATIONSHIP.
' FLEXIBILITY.
' ADDED VALUE.
' CONCESSIONAL PRICE SCHEMES.
' COMMITMENT.
' INNOVATIVE APPROACH.
' REDUCING RISå.
' AVOIDING THREAT.
' HOLISTIC CARE.

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 "&
After completion of the module, you will be able to explain Input for

Acquisition, Prerequisites for effective acquisition, attention on adoption

process, Customer Interaction Management (CIM), Routes to CIM, Online
Interaction Tools, Offline Interaction Tools, Stages in Customer Lifecycle,
Status of Customers in the Relationship Chain, Factors influencing CIM,
Effective Customer Relationship Building, Organisation, Inherent benefits
of Retaining Customers, Customer, Approach to Retention Process,
Stages of Retention In Customer Lifecycle, Sequences in Retention
Process, Perceptual Gaps in Retention, Gaps in Customer Retention,
Meeting Customer needs and its Impact on Retention, Needs
Determination Process for Customers, Role of Satisfaction in the
Retention Process, Customer Satisfaction Expectations from Business,

p


 
  
 ),
 "& 
Customer Dissatisfaction, Retention centered Organisations,

Relationship through Loyalty, Loyalty Continuum, Process of Brand

Choice, Internal and External Factors, Customer Loyalty and its
types, Brand Switching Behaviour, Towards Reaching Loyal
Customers, Market Identification, Market Expansion, Segmented and
Target Market, Prospective Customers, Customers, Market
Identification, Market Expansion, Segmented and Target Market,
Prospective Customers, Customers, Loyal Customer Ladder, Loyal
Customer, Lost Customer, Why do Customers need Loyal
Customers?, Recovery of Lost Customer, Why do Customers
defect?, Strategies to prevent defection and recover lapsed
customers, Developing Barriers to Exit.

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QUESTIONS ??

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 THANå YOU

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