Customer orientation xp version

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How to create a sustainable business

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Customer orientation xp version

  1. 1. CUSTOMER ORIENTATION“ THE ONLY VALUE YOUR COMPANY WILL EVERCREATE IS THE VALUE THAT COMES FROM THECUSTOMERS----THE ONE’S YOU HAVE NOW ,THEONES YOU WILL HAVE IN FUTURE.BUSINESSESSUCCEED BY GETTING,KEEPING AND GROWINGCUSTOMERS.CUSTOMERS ARE THE ONLY REASONYOU BUILD FACTORIES,HIRE EMPLOYEES,SCHEDULE MEETINGS, LAY FIBER OPTIC CABLES orENGAGE IN ANY BUSINESS ACTIVITY.WITHOUTCUSTOMER’s YOU DON’T HAVE A BUSINESS.” – PhilipKotler
  2. 2. EVOLUTION CustomerMarketing centric Segment Practice marketing centric Product marketing centric marketing 1960 1980’s 1990’s Time
  3. 3. WHY CRM• It is 5 times MORE costly to generate a new Customer than Retaining a CUSTOMER• To build a Long term Business by attracting , Maintaining and Growing customers
  4. 4. Traditional Modern Customer CentricOrganisation Chart Organisation Chart Customer Top Frontline people Mgmt. ER CU Middle Mgmt. Middle Mgmt. OM ST Top OM ST Frontline people Mgmt. CU ER Customer
  5. 5. Transaction vs. Relationship Marketing TRANSACTION MARKETING RELATIONSHIP MARKETING Focus on Single Sale Focus on Repeat Purchase or reference Orientation of Product Orientation of Product features benefits Little emphasis on cust.service Highest emphasis on customer service Moderate customer contact High customer contact Short Time scale Long time scale Quality is concept of Quality is for all production
  6. 6. WHAT IS CRMCRM is the process of carefully managingdetailed information about individualcustomers and as a group and all “customerTouch points “to maximum customer loyalty.
  7. 7. • CUSTOMER KNOWLEDGE• RELATIONSHIP STRATEGY• COMMUNICATION• MAXIMIZE CUSTOMERS VALUE PROPOSITION
  8. 8. CUSTOMER’s PERCIEVED VALUE• THE DIFFERENCE BETWEEN TOTAL BENEFITS AND TOTAL COSTCPV = “What I Get” – “What I give” TOTAL BENEFIT TOTAL COST • PRODUCT BENEFIT • MONETARY COST • SERVICE BENEFITS • TIME COST • PERSONNEL BENEFITS • ENERGY COST • IMAGE BENEFITS • PSYCHOLOGICAL COST
  9. 9. CUSTOMER’s LIFE TIME VALUE• A PROFITABLE CUSTOMER IS A PERSON , HOUSEHOLD , BUSINESS BUYER, THAT OVERTIME YIELDS A REVENUE STREAM THAT EXCEEDS BY AN ACCEPTABLE AMOUNT THE COMPANY’s COST STREAM FOR ATTRACTING , SELLING AND SERVICING THAT CUSTOMER
  10. 10. • ACTIVITY BASED ACCOUNTING (ABC) WHERE A COMPANY CALCULATES ALL REVENUE COMING FROM A CUSTOMER IN A FORSEEABLE PERIOD MINUS TOTAL COST INCURRED TO SERVICE THAT CUSTOMER FOR THE SAME PERIOD.THIS IS THE METHOD OF CLV.
  11. 11. PROFITABILITY OF CUSTOMERSPLATINUM CUSTOMERSGOLD CUSTOMERSIRON CUSTOMERSLEAD CUSTOMERS
  12. 12. CUSTOMER PYRAMID 65% TEAM BASED 5% SINGLE 15% 15% ACCOUNT MANAGER 80 % 20% PERSONAL SELLING, MASS COMMUNICATIO N,INTERMEDIARIENUMBER (%) SALES or Profit S share (%)
  13. 13. HOW TO IMPLEMENT CRM• PEOPLE• COMMUNICATION• SYSTEMS
  14. 14. Growth Employee Turnover Retention QUALITY Employee Value CustomerINTERNAL Customer satisfaction External Satisfactio SERVICE Loyalty service n Employee Productivity Profitability Source: Harvard Business Review,1994
  15. 15. PEOPLE SHOULD BE> Open> Empathetic> Committed> Genuine> Competent> Good Listeners
  16. 16. COMMUNICATIONINTERNAL COMMUNICATION:FROM MANAGEMENT TO ALL EMPLOYEESEXTERNAL COMMUNICATION:WITH CUSTOMERSCOMMUNICATION MUST BEOPEN MUTUALLY AGREED UPON SOLUTION ORIENTED POSITIVE AVOIDING BLAME GAME
  17. 17. SYSTEMS• IT SPPORT SYSTEMS• PERFORMANCE TRACKING SYSTEM• REWARD SYSTEM FOR EMPLOYEES AND CUSTOMERS• TRAINING
  18. 18. CUSTOMER RELATIONSHIP PROGRAMMES
  19. 19. APPLICATION OF IT in CRM• DATA STORAGE• DATA ANALYSIS• DATA WAREHOUSING• DATA MINING
  20. 20. IT has been extensively used in• Market Segmentation and Selection• Customer analysis• Relationship analysis• Customer profitability analysis

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