Ask the neighbour behind you what other words they
might use to define a customer?
Ask them the difference between a customer and a
Purchaser, vendee, end user, prospect, shopper, guest, buyes
A customer is simply a recipient of products or services in exchange for
money. Even though the relationship to the provider might be long
lasting, the sense is of discrete exchanges.
A client is engaged in a more qualitative relationship in which the
provider generally applies professional skills to offer often intangible
commodities such as legal services, insurance policies, etc.
Another distinction is that a customer is more likely to visit a retail
establishment, whereas a client may more easily receive services
without being physically present at the place of business.
“The practice of identifying, attracting and retaining the most valuable
customer to generate the profitable growth. It is the process by which
companies manage relationships with their existing customers and
“A term for methodologies, technologies and e-commerce capabilities
used by companies to manage customer relationships.”
Recently this definition has been extended to target a broader
audience, not specifically existing customers.
There has been a shift from transactional marketing to
Issues such as customer loyalty, brand loyalty and customer
lifetime value have become increasingly important.
It has been realized that it is easier and cost effective to
retain current customers rather than seeking new ones.
Advances in technology have changed consumer buying
Technology and the Web has changed the way companies
approach CRM strategies.
Two Strategic Imperatives
Image and brand management
Non personal communication
Customer contact management
Personal communication/Two way dialogue
The coordination and management of all personal
communications between organizations and it’s
Mail, telephone, email, social media, internet
Customer Contact Management
First line contact is with trade customers
Very different to the contact made with end customers
The supplying organizations needs to be able to
manage pre-purchase transaction and post-purchase
situations in order to build relationships
Used to focus marketing activities towards targets
The use of accurate customer and prospect customer
information, competitor information, marketing
information and internal company information.
Examples of database marketing:
CASS – Computer-aided sales support
DRM – Direct response marketing
CIS – Customer information and service
3 Components of Database
Computer aided sales support
The direct access to the database via pc’s and notebooks
Personal tools (diary/organisers), email, fax
Direct response marketing
Used by marketers target and contact end users
Based on addressable communications
Direct mail, telemarketing, email, text messaging
Customer information and service
Customer initiated contact
Based on the use of free phone or local number, email or over
Electronic Marketing and
The utilization of the internet to transact business
Also known as E-commerce
The planed and controlled use of telephone
communication to build profitable transactions and
relationships with customer groups (actual and
potential) who impact on an organizations success.
Call centres, automated call distributor
Types of market segmentation
The type of segmentation is to a large extent
determined by the product
Traditional market segmentation
Values, Attitudes and Lifestyle(VALS)
Strategic Implication Of Customer
Advances in technologies provide businesses with reliable
and profitable ways of improving enhanced customer contact
Reducing costs of sales and communications
Using traditional selling methods (sales person) is expensive
and not very effective.
Less costly techniques and marketing functions
Extended Communication options
Reduce contact and transaction costs
Allowing customers more means of contact
Improving customer service
Strategic Implication Of Customer
Contact Management Cont.
Coverage and Penetration
Customer contact management is an effective and cost
effective way of reaching specific target markets
Developing a mixed approach and new channels
Customer Retention/Relationship Marketing
Customer has more control
More available information, new market entrants, wider
choices, new channels
New technologies allow customers to exercise their
preference for conducting