5. The main objective of this
presentation to highlight the
techniques that how to retain
existing customers and how to
attract the new customers to
the organizations.
Prepared by M.Derwaish D T&H 5
6. Introduction
Why Is This?
Loyalty And Incentives Schemes
Pros & Cons
SWOT Analysis
o Strength
o Weaknesses
o Opportunities
o Threats
Prepared by M.Derwaish D T&H 6
7. How To Develop An Ongoing Business
Relationship With Customer
o Building Relationship During A Service
Contract
o Building Customer Relationships For All
Managers In C.Care
Referrals; The Active Reference Principle
Effectiveness Of Corporate Activities In
Building Long-term Customer-care
Relationships
Prepared by M.Derwaish D T&H 7
9. Too many organizations make a sale and
walk.
As a manager responsible for customer care
you might not directly have power to
implement incentives or loyalty schemes
that are setup by either the sales department
or corporately.
The simple is it is easier and less expensive
to retain existing customers and keep key
customers than to attract new ones.
Prepared by M.Derwaish D T&H 9
10. Its all about the way your organization
positions itself.
You are what you are in the mind of your
customers. Or, to put it another way from
the customers perspective….But of course
you have to attract customers in the first
place, and one of the devices used is some
from discount or incentive scheme.
Prepared by M.Derwaish D T&H 10
11. Action
Belief
Understanding
Awareness
Prepared by M.Derwaish D T&H 11
13. An incentive scheme –’Buy one, get one free,’
‘have your car washed here three times and
fourth time is free’_ can seem genuinely
exciting.
But fly to Berlin for $5 plus taxes’ seem less
enticing and frankly rather annoying to a
customer when the go on to the airline
website and find that additional taxes and
surcharges wreck the low price promise.
Prepared by M.Derwaish D T&H 13
15. Telecom organizations love to talk about
increasing retention rates but then recruit
new customers via price promotions and
free sampling- techniques that draw out of
woodwork precisely those customer hardest
to keep.
Suppliers know they will experience
customer loss once the promotion period
ends.
Prepared by M.Derwaish D T&H 15
16. Blanket customer marketing doesn’t work.
It’s inherently wasteful since this approach
draws off resources that should be used to
retained and, importantly, reward just those
customers who are actually or highly likely
to be loyal customers even without the
magnet of special offer.
Their magnet will be the six satisfaction
elements and confidence that their
individual needs will be met.
Prepared by M.Derwaish D T&H 16
18. Satisfied customers feel good only as long as
their current needs are met and only as long
as they perceive that supplier is giving value.
They want to develop a long-term
relationship with an organization that
understand and responds to their individual
needs, and discriminates between
customers who have been genuinely loyal
over a period and newcomers who have yet
to demonstrate such an allegiance.
Prepared by M.Derwaish D T&H 18
19. Incentives are just one of the factors from
just one of the six satisfaction elements.
They alone will not guarantee
loyalty, particularly if a competitor offers a
bigger and better incentives and if it is a
prime purchase motivator .
An incentive scheme can be powerful
attracter , but can you put your hand on your
heart and say, "People came to us originally
for the price offered during the promotion
but stayed because of the service”?
Prepared by M.Derwaish D T&H 19
21. Pros Cons
An incentive to the customer Are they target customers you
to purchase from you should be attracting?
Chance to build up long-term Set-up costs
relationships
Marketing opportunities On-cost they must be covered
by attracting increased sales
Competitive edge Reward (s) that might not be
sufficiently motivating to win
long-term loyalty
Prepared by M.Derwaish D T&H 21
22. Increased sales Redemption process that
might be too complex for
customers
Customer research data The time and money it
would take an average
customers to accumulate
sufficient points for
worthwhile reward
Foundation for tie-ins Loyalty can be to the
to additional offers incentive rather than the
supplier which could mean
loss of business once the
program ceases
Prepared by M.Derwaish D T&H 22
24. Despite the potential downsides of establishing
a loyalty scheme, many schemes are immensely
successful.
You could do a SWOT analysis to find out the
strength and weaknesses of what you offer the
market place, be it a product or service.
Strength
Weaknesses
Opportunities
Threats
Prepared by M.Derwaish D T&H 24
25. Strength:
What do we as company do well with
regard to the products or services we offer
the market place? How about our
department-what do we do well?
Weaknesses:
Where is the room for improvement?
Once again, start at corporate level and then
focus on our own department.
Prepared by M.Derwaish D T&H 25
26. Opportunities:
Could you suggest any other companies
that might be inserted in our products or
services? With regard to the service that our
department offers, are there any
recommendations that you can make to
improve the standard of care we offer them?
Prepared by M.Derwaish D T&H 26
27. Threats:
Are there any changes that might be
occurring in our customer’s environment
that might have an impact on the budget
they are currently spending with our
company? Are there any new competitors
for us to be aware of that might impact on
our business?
Prepared by M.Derwaish D T&H 27
29. What we can do it to develop rapport
with the customer and encourage them
to continue doing business with your
organization?
Customer service dep’t will engage with
regular purchasers or customers on a
service contract that dep’t is
responsible for implementing or it may
simply deal with customers making a
complaints
Prepared by M.Derwaish D T&H 29
30. Sales personnel and Business Development
department will have immediate and
ongoing relationships with clients.
A manager’s role in customer care can be
Prepared by M.Derwaish D T&H 30
32. Research the customer's business.
One-to-one relationship building.
Seminars (small scale).
Articles in customer-oriented
(sector) press.
Speeches at customer industry
meetings.
33. Community or civic
activities.
Networking with potential
referral source.
Newsletters.
34. Public relation.
Broachers.
Seminars (ballroom scale).
Direct mail.
Cold calls.
Sponsorship of cultural or sporting
events.
Advertising.
Video brochures.
