Customer relationship management is currently at the core of profitable business. this ppt. presentation gives an insight into key aspects that help create a customer company bond.

1. CCUUSSTTOOMMEERR LLOOYYAALLTTYY
DDEEVVEELLOOPPMMEENNTT PPRROOCCEESSSS
UNIVERSE
PROSPECTS
FIRST TIME
CUSTOMERS
REPEAT
CUSTOMERS
CLIENTS
MEMBERS
ADVOCATES
PARTNERS
UNSUITABLE
PROSPECTS
DORMANT
OR
EX-CUSTOMER
AL 2004/3A 9 0 COPY

2. Retention
is
3 times more
profitable
than
acquisition
CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER ACQUISITION / PROSPECTING
CUSTOMER SERVICING
CUSTOMER RETENTION
CUSTOMER WINBCAK
Marketing
Value
WHAT IS YOUR TURNOVER GOAL 2004 - 2005 :
WHAT IS YOUR TURNOVER GOAL 2004 - 2005 :
(IN RS ‘000)
(IN RS ‘000)
HOW MANY CUSTOMERS YOU NEED FOR ABOVE GOAL :(IN NOS.)
HOW MANY DO YOU HAVE CURRENTLY :
HOW MANY CUSTOMERS YOU NEED FOR ABOVE GOAL :(IN NOS.)
HOW MANY DO YOU HAVE CURRENTLY :
(IN NOS)
(IN NOS)
HOW ARE YOU ALLOCATING YOU RESOURCE NOW (%) NEAR FUTURE (%)
HOW ARE YOU ALLOCATING YOU RESOURCE NOW (%) NEAR FUTURE (%)
ACQUISITION
ACQUISITION
CUSTOMER SERVICING
CUSTOMER SERVICING
CUSTOMER RETENTION
CUSTOMER RETENTION
CUSTOMER WINBACK
CUSTOMER WINBACK
100 %
100 %
100 %
100 % AL 2004/3B PA GE : 2 10 COPY

3. CUSTOMER RELATIONSHIP MANAGEMENT
COUSTOMER PYRAMID
Platinum
Gold
Iron
Lead
What segment spends more with
us over time, costs less to
maintain, and spreads
positive work of mouth
What segment costs us us in time
effort, and money yet does not
provided the return we want?
What segment is difficult to do
business with~
Most profitable
customers
Least profitable
customers
1. The Platinum tier describes the company’s most profitable customers, typically those who are heavy users of the product,
are not overly price sensitive, are willing to invest in and try new offerings and are committed customers of the firm.
2. The gold tier differs from the platinum tier in that profitability levels are not as high, perhaps because the customers want
price discounts that limit margins or are not as loyal. They may be heavy users who minimize risk by working with multiple
vendors rather than just the focal company.
3. The iron tier contains essential customers who provide the volume needed to utilize the firm’s capacity, but their spending
levels, loyalty, and profitability are not substantial enough for special treatment
4. The lead tier consists of customers who are costing the company money. They demand more attention than they are due
given their spending and profitability and are sometimes problem customers - complaining about the firm to others and
tying up the firm’s resources.
AL 2004/3B PAGE : 3 0 COPY

4. EXAMPLES OF DIFFERENT TYPES OF BUSINESS AND
ORGANIZATIONAL CUSTOMER
All business
and
organizational
customers
Middlemen
Govt. Units
Non-Profit
Organizations
Manufacturers
Farms, fisheries, forestry, mining
operations, Construction firms
Financial institutions- insurance,
banks, real estates
Other service providers –
transportation firms, utilities , hotels,
Lawyers, doctors
Wholesalers
Retailers
Federal agencies
(U.S. and other countries)
State and local governments
National Organizations
(such as Red Cross, Girl Scouts)
Local organizations (such as churches,
colleges, museums)
Producers of
goods and
services

5. CUSTOMER RELATIONSHIP MANAGEMENT
Identify leads
(Suspected interests)
THE SALES PIPELINE
Qualify leads
(Value estimates)
Contact buying centers
(recognize key players)
Re-contact
(Win-back interest)
NNoo Develop relationships
(cultivate interest / desires)
YYeess
Close
(ask for the sale)
Negotiate terms
(long-term view)
AL 2004/3B 0 COPY

6. : Pm In =
: (, Stability Type, nature, Dependence, Strength, Weakness
Value, Growth
ASPECTS : Forces Behind, Stage, Stability , Rate, Number
ASPECTS : Position, Strength, Weakness, Strategy,
Commitment
: Margin trend, volume trend
Syndicate Work :
PPRROODDUUCCTT -- IINNDDUUSSTTRRYY SSEEGGMMEENNTT DDRRIILLLL DDOOWWNN
AL 2004/3A 20 COPY
IN
: Why , How How many
: KSF, when, how much how.

7. GGRROOWWTTHH SSTTRRAATTEEGGYY
• FOCUS ON PROFITABLE PRODUCT - INDUSTRY SEGMENT
IN DIMINISHING ORDER
• Improve coverage to hither to non covered customers;
use T.O per customer criteria as a measure of volume T.O.
• Sell a wider same A.G. Mix ( colour, life, base, wattage etc.)
in the same segment
• Preemption through prior missionary selling
• Develop net work to service smaller size industry in
same segment
• High Alert for prime market in the segment
• FOCUS ON SELLING AS MANY AG AS POSSIBLE IN THE
INDUSTRIES WHERE PRESENCE IS A MUST i.e, FULL RANGE
FOCUS FOR CHOSEN INDUSTRIES. BOARD BAND INDUSTRY
SPECIFIC SEMINAR.
• IMPROVE PRICE IN MARGINAL PRODUCT - MARGINAL
INDUSTRY SEGMENT TRANSFER TO NETWORK WHERE
EVER FEASIBLE
AL 2004/3A 0 COPY

8. AL 2003
GGRROOWWTTHH SSTTRRAATTEEGGIIEESS
PRESENT PRODUCTS NEW PRODUCTS
I GROWTH IN EXISTING
PRODUCT MARKETS
• INCREASE MARKET
SHARE
• INCREASE
PRODUCT USAGE
* INCREASE THE
FREQUENCY USED
* INCREASE THE
QUANTITY USED
* FIND NEW
APPLICATION FOR
CURRENT USERS
II PRODUCT
DEVELOPMENT
• ADD PRODUCT
FEATURES,
PRODUCT
REFINEMENT
• DEVELOP A NEW
GENERATION
PRODUCT
• DEVELOP NEW
PRODUCTS FOR
THE SAME MARKET
III MARKET
DEVELOPMENT
• EXPAND
GEOGRAPHICALLY
• TARGET NEW
SEGMENTS
* CURRENT USERS
IV DIVERSIFICATION I
NVOLVING
NEW PRODUCTS
AND NEW
MARKETS
• RELATED
• UNRELATED
IV VERTICAL INTEGRATION STRATEGIES
• FORWARD INTEGRATION
• BACKWARD INTEGRATION
PRESENT
MARKETS
NEW
MARKETS
VERTICAL
INTEGRATION

9. PERFORMANCE DDIIMMEENNSSIIOONNSS
A )TASK AND ACHIEVEMENT TREND
Area :
INDIVIDUAL SCORING :
(Value in Rs. ‘000)
(Quantity in Nos)
AL 2004/3A 15 COPY
Sl.
no.
Year 01 -02 02 - 03 03 - 04
1 Rupee value of task
2 Achievement in value
3 Achievement in %
4 Total outstanding
5 Average D.S.O.
6. No. of customers (Universe)
7. No. of customers registered
8. No. of active customers
9. New customers this year
10. Share of new customers
11. T.O. per active customer
12. T.O. per piece of DS sold in Rupees
13. Average price Erosion in %
14. Gross contribution %

10. PERFORMANCE DDIIMMEENNSSIIOONNSS
B)RESOURCE DEPLOYMENT VIS-A-VIS BUYING
SCENARIO
Buying Scenario
Straight Re-buy
Modified Re-buy
New Task
Total
C)RESOURCE DEPLOYMENT VIS-A-VIS PRIME
NON PRIME MARKET
Market
Prime
Non Prime
Total
INDIVIDUAL SCORING :
Turnover
In Rs.'000 In %
Resource
used in %
Remarks
Total
Achieveme
nt
100% 10% —
Turnover
Resource
used in %
In Rs.'000 In %
Remarks
Total
Achieveme
nt
100%100%—
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11. PERFORMANCE DDIIMMEENNSSIIOONNSS
E) ORDER SUCCESS DIMENSIONS
1. Customer Level ( per year)
a) Customers not competed for but won = Nos
b) Customers competed for Won = Nos
c) Customers Competed for Lost = Nos
d) Customers not covered = Nos
Share of Market = a + b =
Winning Ratio = b =
2. Tender Level (per Quarter in Nos. Value)
a) Tenders competed for = Nos
b) Tenders competed for won = Nos
c) Tenders competed for Lost = Nos
d) Tenders yet undecided = Nos
Winning Ratio = b =
3. Average Tender Maturity time = days
4. Average business value per tender (in Rs.’000) =
INDIVIDUAL SCORING :
b + c
b + c
AL 2004/3A 15 COPY

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CORE ISSUES AND DEPLOYMENT FOR DEVELOPMENT
QUANTITATIVE MEASURES FOR SALES PERFORMANCE :
CALLS
Number of Calls per period
Number of Calls per customer or customer type
on potential new accounts
on existing accounts
Prospecting success ratio :
(Number of new customers)
Number of potential new customers visited
SALES
Sales Volume
Sales volume by product or product line
Sales volume by customer or customer type
Sales volume per order
Sales volume by outlet or outlet type
Sales volume per call
Market share
ACCOUNTS
Number of new accounts gained
Number of accounts lost
Amount of new account sales
Number of accounts on which payment overdue
Proportion/ number of accounts buying
full product line
PROFITS
Gross profit generated
Net profit generated
Gross profit as a percentage of sales volume
Net profit as a percentage of sales volume
Return on investment
Profit per call ratio
AL 2005/8.1

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CORE ISSUES AND DEPLOYMENT FOR DEVELOPMENT
QUALITATIVE MEASURES OF PERFORMANCE :
SKILLS
Selling skills
Communication skills
Leadership Skills
KNOWLEDGE
Product Knowledge
Knowledge of competition
Knowledge of company policies
SELF MANAGEMENT
Planning ability
Time Management
Judgement/ decision - making ability
Repot preparation and submission
PERSONAL CHARACTERISTICS
Attitudes
Initiative
Appearance and manner
Aggressiveness
Creativity.
AL 2005/8.1

14. THE PERSONAL SELLING PROCESS
Prospecting
Identifying :
Profiles
Leads
Records
Qualifying :
Capability
Willingness
Pre-approach
Information
Habits
Preferences
Presentation
AIDA
Attention
Interest
Desire
Action
Post-sale services
Reduce
dissonance
Build
Goodwill
AL 2004/3B 10 COPY

15. THE PERSONAL SELLING PROCESS
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DEVELOPING PERSONAL SELLING SKILLS
NEED AND PROBLEM NEED AND PROBLEM I DIDEENNTTIFIFICICAATTIOIONN
PPRREESSEENNTTAATTIOIONN A ANNDD D DEEMMOONNSSTTRRAATTIOIONN
DDEEAALLININGG W WITITHH O OBBJJEECCTTIOIONNSS
NNEEGGOOTTIAIATTIOIONN
FFOOLLLLOOWW - -U UPP
TTHHEE O OPPEENNININGG
CCLLOOSSININGG T THHEE S SAALLEE
AL-07/ 2006/ 12

16. 0 COPY
DEVELOPING PERSONAL SELLING SKILLS
THE OPENING
A GOOD INITIAL IMPRESSION IS ESSENTIAL
Personal Appearance
Behaviour : (Consider Customer a busy person, Demonstrate Respect)
Open with : A smile, Namaste / Hand Shake (if not well known, introduce yourself first There after
common courtesies to follow
Opening Remarks : Should be business related. Can be of a more social matter if customer is well known
or customer’s remark indicate his willingness to talk about the same . Avoid to much
diversion from the core purpose, e.g. “ you have an attractive display of CFL-I Lamps.
Has it Attracted more customers?”
NEED AND PROBLEM IDENTIFICATION
DISCOVER THE NEEDS AND PROBLEMS OF THE CUSTOMER
Understand the customer’s circumstances well by adopting a ‘Question - and listen’ posture.
Use open questions rather than closed questions ( open questions require more than one word answer e.g
“What are the main reasons that T12 B. P. Is selling well in your counter?)
Various types of questions with various objectives can be used at this stage and other stages. (Ref. Page -5)
At the end of this process summarise the points that has been raised, to confirm an understanding
with the customer.
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17. DEVELOPING PERSONAL SELLING SKILLS
TYPE OF QUESTION OBJECTIVE EXAMPLE
1) Tie down Question Used for confirmation or to
commit a prospect to a position
You want to stock reputed brands,
Don’t you ?
2) Leading Questions To Direct or Guide, a prospect’s
PAGE : 6 0 COPY
Thinking
How does colours look under
LUMILUX light ?
3) Alternative question Forcing selection from Alternatives You sell more T 12 or T8?
4) Statement / Question A statement is followed by Question,
Forcing prospect to reflect upon statement
OSRAM DEL 15W lasts over 7000 Hrs.
What do you think of that long life?
5) Opinion Gathering Question Used to Gather opinion Do you think cheaper Del lamps are
short in life?
6) Sharp angle question Used to commit a prospect to a position If we can get it in colour 41 you would
want 100 Nos. DD 13W Lamps?
7) Clarification Question To reduce ambiguities, generalities
and noncommittal words to specifics
When you say HAVELS is cheaper,
exactly what do you mean?
8) Confirmation Question Used to elicit agreement or
Disagreement about a topic
Do you recommend OSRAM MHL
Lamps when high CRI is needed?
9) Transitioning Used to link end of one phase to
the next phase of sales process
In Addition to that, is there anything
else that you want to know. (No). What
I would like to do now is talk about...
10) Information gathering
question
Used to gather facts On an average How many CFLI 15W
you sell per month ?
AL-07/ 2006/ 12

18. DEVELOPING PERSONAL SELLING SKILLS
THE PRESENTATION AND DEMONSTRATION
CONNECT CUSTOMER’S NEED/ REQUIREMENT WITH THE
BENEFITS OF YOUR PRODUCT/ SERVICE
Convert product features to customer benefits with the help of phrases like “which means that .” “which results in”,
e.g. OSRAM CFL-I lamps have longer life( product feature), which results in cost savings by customers
( customer Benefit) less hassle for you ( Retailer Benefit)
Continue to ask relevant questions during presentation to ensure:
I) The Benefit presented are what the customer exactly / Mostly wants
II) Customer clearly understands what has been said.
III) If the customer has any more questions at this stage.
EVEN AFTER A GOOD CONNECTION BETWEEN CUSTOMERS NEED AND PRODUCT
BENEFITS, CUSTOMER MAY NOT BE FULLY CONVINCED TO BUY , (LOT OF SALES
ARE LOST HERE!!) SINCE HE STILL MAY HAVE SOME PERCEIVED RISK AND HENCE
WANTS TO PLAY SAFE!! PROBE FURTHER TO UNDERSTAND NATURE
OF RISK AND THEN USE ONE OF THE FOLLOW IN METHODS TO SELL
I) Reference selling : Use of satisfied customers ( List, order, Letter etc).
II) Demonstration : First Describe features Benefits - then actually demonstrate how benefits
occur to customer - involve the customer in demonstration .
III) Guarantees : Delivery - after sales service - product reliability - returns.
IV) Trial Order : To demonstrate product/ company capabilities.
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DEVELOPING PERSONAL SELLING SKILLS
DEALING WITH OBJECTIONS
DEALING WITH
OBJECTIONS
AGREE AND
COUNTER
AGREE AND
COUNTER
QUESTION THE
OBJECTION
QUESTION THE
OBJECTION
TTRRIAIALL C CLLOOSSEE
THE STRAIGHT
THE STRAIGHT
FORESTALL THE
OBJECTION
FORESTALL THE
OBJECTION
HIDDEN
OBJECTIONS
HIDDEN
OBJECTIONS
DENIAL
DENIAL
LISTEN AND DO
NOT INTERRUPT
LISTEN AND DO
NOT INTERRUPT
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20. 0 COPY
DEVELOPING PERSONAL SELLING SKILLS
DEALING WITH OBJECTIONS
DEALING WITH
OBJECTIONS
AGREE AND
COUNTER
AGREE AND
COUNTER
QUESTION THE
OBJECTION
QUESTION THE
OBJECTION
TTRRIAIALL C CLLOOSSEE
THE STRAIGHT
THE STRAIGHT
FORESTALL THE
OBJECTION
FORESTALL THE
OBJECTION
HIDDEN
OBJECTIONS
HIDDEN
OBJECTIONS
DENIAL
DENIAL
LISTEN AND DO
NOT INTERRUPT
LISTEN AND DO
NOT INTERRUPT
AL-07/ 2006/12