1. McGraw-Hill © 2000 The McGraw-Hill Companies Chapter 6 BUILDING CUSTOMER RELATIONSHIPS S M

11. Figure 6-1 Customer Goals of Relationship Marketing Getting Satisfying Retaining Enhancing

12. Figure 6-3 Underlying Logic of Customer Retention Benefits to the Organization Customer Retention & Increased Profits Employee Loyalty Quality Service Customer Satisfaction

13. Figure 6-5 Steps in Market Segmentation and Targeting for Services Identify Bases for Segmenting the Market STEP 1: Develop Profiles of Resulting Segments STEP 2: Develop Measures of Segment Attractive- ness STEP 3: Select the Target Segments STEP4: Ensure that Segments Are Compatible STEP 5:

14. Excellent Quality and Value Figure 6-6 Levels of Retention Strategies I. Financial Bonds II. Social Bonds IV. Structural Bonds III. Customization Bonds Volume and Frequency Rewards Bundling and Cross Selling Stable Pricing Social Bonds Among Customers Personal Relationships Continuous Relationships Customer Intimacy Mass Customization Anticipation/ Innovation Shared Processes and Equipment Joint Investments Integrated Information Systems