CUSTOMER RELATIONSHIP MANAGEMENT

ASSIGNMENT- 5%
Submit in about 300 words the following about your organization Brief policy of CRM ( e.g. where is it placed in the org structure, designation of the head, KRA of the head, how is it linked with other departments and processes.) What are the different metrics measured about the customer? How are these utilized? What is the process of capturing data to arrive at these metrics. Give one specific example.

06/14/11

GOALS OF CRM
Build long-term and profitable relationships (Acquire and Retain and Prune customers) Learn: customer contact point; customize to differentiate

SIX MARKETS (Payne, 2000)

Recruitment markets - for attracting the right employees to the organization Supplier markets - suppliers of raw materials, components, services, etc Internal markets - the organization including internal departments and staff.

SIX MARKETS (Payne, 2000) Customer markets - existing and prospective customers as well as intermediaries, Referral markets - existing customers who recommend to other prospects, and referral sources or multipliers such as doctors who refer patients to a hospital. Influence markets government, consumer groups, business press and financial analysts,

Seven Questions of Customer Analysis

1. Who are they? 2. What do they do with our product? 3. Why and how do they buy? 4. When do they buy? 5. Where do they buy? 6. Will current customers buy again? 7. Why do potential customers not buy?

Four Stages of Brand Loyalty in a Consumer

Cognitive loyalty perception from brand attribute information that one brand is preferable to its alternatives Affective loyalty developing a liking for the brand based on cumulatively satisfying usage occasions Conative loyalty commitment to rebuying the same brand Action loyalty exhibiting consistent repurchase behavior

REFLECT
What are the important attributes? How are you performing on them. SATISFACTION and LOYALTY

CUSTOMER SATISFACTION TARGET

Customer Satisfaction target is Only 100%

TOTAL CUSTOMER SATSFACTION

Mercenaries
Satisfaction
High

Apostle

Terrorist
Low

Hostage

Low

High

Loyalty

III HYGIENE
STATED IMPORTANCE
High

I MOTIVATORS

IV POTENTIAL SAVERS
Low

II HIDDEN OPPORTUNITY

Low

High

IMPACT ON RETENTION

SERVICE EXCELLENCE WILL LEAD TO CUSTOMER LOYALTY

First two Steps- Customer attraction Rest of Steps- Developing and Enhancing Relationship

THE LADDER OF LOYALTY

PROSPECT: fulfills the requirement of the marketers definition of target CUSTOMER: Gets attracted by the offering and buys the product /service CLIENT: Purchases more than once-repeat purchase. Need to differentiate cases of sheer inertia SUPPORTER: Satisfied and recommends it to his friends and relatives, positive word of mouth

THE LADDER OF LOYALTY

ADVOCATE: Sharing of vital information and the comfort level and confidence between the parties is high. PARTNER: Actively involved in the decisions of a company. Proctor and Gamble and Wal-Mart- genuine partnership.

THE MANTRA
MEASURE MANAGE MONITOR

Value
Products Services Relationships- can be absued

ORGANIZATIONS EXIST TO SERVE

PEOPLE
INTERNAL AND EXTERNAL MARKETING

Customer Relationship Management

Is it needed? Why Who is your customer? Does he have a choice? Who is your Competitor?

Why should we bother for the Customer?

Relationship Management
Basis of a Relationship Your expectations from stakeholders Learned Helplessness--- but for how long?