CONNECTING WITH CUSTOMERSTraditional orgn chart Modern orgn chart Customer To p Front-line Middle Middle er Management management om Cu Top st st om Front-line people manage Cu - er s ment s Customers
Customer is king CONNECTING Customer perceived value(CPV) Difference B/W prospective customer evaluation of all benefits& all costs of an offering & perceived alternativesCUSTOMER Delivering customer valueVALUE Loyalty-commitment to re-buySATISFACTION Value Proposition-co. promises toLOYALITY deliver Value Delivery System Customer delivered valueTotal Customer Total CustomerCostValueProduct Value Monetary CostServices value Time CostPersonnal value Energy costImage value Psychic cost
Customer is king CONNECTING Total Customer Satisfaction Is A Person Feelings Resulting From Comparing Pdt PerceivedCUSTOMER Performance With ExpectationsVALUE Measuring satisfactionSATISFACTION Product & service QualityLOYALITY Total quality managementSatisfaction Scale • Level 1 – Abondon company – Spread bad mouth • Level 2-4 – Fairly satisfied – Easy to switch • Level 5 – Likely to repurchase – Spread good mouth – Emotional bond
Customer is king CONNECTING CRM Attract, Retaining Strategies To produce delighted & loyal customersCUSTOMER Erect high switching barriersVALUE Easy for customer to complain Respond quickly & constructivelySATISFACTION Building loyalityLOYALITY Basic marketing, reactive mktng. ,proactive mktng Partnership marketing CRM • Process of managing detailed information about individual customers & carefully managing all customers “Touch Points” to max. customer loyalty. – Touch Points: occasion on which a customer encounters the brand & product. – CRM enables companies to provide excellent real time services – CRM is major driver in profitability.
Suspects Disqualified Prospects customers First time Repeat Clients Inactive Members Advocates CRM PROCESS Partners INTERESTING FACTS• Acquiring new customers costs 5 times more• Average company loses 10% customers each year• 5% defection= 25 % in profits