Based on the chapters from A South Asian Perspective by Philip Kotler Learn how companies attract and retain their customers. Learn how companies personalize the market, how they empower the customer and how the customer reviews affect the companies growth, how companies reduce defection rates, the retention dynamics

1. Cultivating Customer
Relationship

2. Successful use
customer information to build
strong long-term relationship.

5. Companies
need to keep a
check on the
customer
satisfaction…
Internet allowed marketers
to abandon old mass
market practices and
formulate new
personalized marketing.

6. Personalizing the
market is making
sure brand and its
market are relevant
to the customers
A Challenge, given no two customers are identical

7. To adapt to
customer’s desire for
personalization,
marketers embraced
ideas of
permission and
one-one marketing
Customer may be
nameless but
clients cannot be…
Thoughtful companies
turn their customers
to clients.

8. Permission marketing-
Marketing only after
getting expressed
permission of the
customer

9. Permission marketing-
Marketing only after
getting expressed
permission of the
customer
But, many a times
customers may have
conflicting needs or
undefined or ambiguous
preferences.

10. Permission marketing-
Marketing only after
getting expressed
permission of the
customer
But, many a times
customers may have
conflicting needs or
undefined or ambiguous
preferences.

11. • Identify your prospects and customers
• Differentiate them in terms of
• Value to company
• Their needs
• Interact with customers and to know their needs
• Customize the product to each customer

12. Customers play a
key role in
setting direction
of the brand and
deciding on
how it is marketed
“ Poweriswiththeconsumerandmarketersand
retailersarescramblingtokeepupwithher.
Consumersarebeginninginaveryrealsenseto
ownourbrandandparticipateintheircreation.
Weneedtolearntoletgo.“
- A.G Lafley
Former Chairman, P&G

13. With increasing mistrust
of some advertising,
online customer ratings
and reviews are playing
vital role for internet
retailers such as
Amazon and Ebay
Negative reviews also can
be helpful, as consumer
can better learn the
advantage and
disadvantage through
negative reviews, resulting
fewer product return,
cutting on cost

14. Companies seeking to
expand their profit and sales :
• Develop ads and place
them in media
• Send direct emails to
possible new prospects
• Send salespeople to
participate in tradeshows
where they might get new
leads
• Purchase names from list
brokers etc…

15. Its not enough to
attract new
customers; the
company must also
keep them and
increase business.
Too many company
suffer from
customer churn off or
defection. Adding
customers here is like
adding water to a leaky
bucket.

16. To reduce customer churn off
companies must :
• Define and measure retention rate
• Distinguish the causes of customer attrition
and manage them
• Compare the lost customer’s life time value
to cost of reducing defection.
spend money on retaining customer only if :
Lose profit > retention cost

17. Market funnel
identifies the potential target
market at each stage in the
decision process, from merely
aware to highly loyal
Target
Market
Aware Open
to trial
Recent
user
Regular
user
Most
often
used
LoyalTrier
The percentage of customers going from one stage to the next
in the funnel allows markets to identify any barriers in building a
loyal customer franchise
RETENTION
DYNAMICS

18. Interesting numbers:
Acquiring new customer can
cost 5 times as retaining
current ones
Average company
loses 10% customers
every year 5% reduction in defection
rate can increase profit up
to 85%
Profit rate tend to increase over
the customer lifetime due to
increased purchases ,referrals
,reduced operating costs to services
Satisfied customers are company’s
customer capital

19. A key driver of
shareholder value is
aggregate value of the
customer base.
Companies improve their customer base with
strategies as follows :
• Reduce customer defection rate
• Increasing the longevity of customer relationships
• Enhancing the growth potential of each customer through
“Share of wallet” , cross-selling, and up-selling.
• Sales from existing customers can be increased with new
opportunities and offerings
• Making low-profit customers more profitable or terminating them
• To avoid direct termination, encourage customers to buy more
• Forego certain feature
• Pay higher amounts or fees
• Focusing efforts on high profit customers
• The most profitable ones can be treated in a special way.

20. Building loyalty and
creating strong
customer relationship
is the dream of every
marketer
Listening to the customer needs is
crucial to relationship
management. Many companies
have ongoing mechanisms that
keep their marketers permanently
plugged in to frontline customer
feedback

21. Building loyalty and
creating strong
customer relationship
is the dream of every
marketer
Listening to the customer needs is
crucial to relationship
management. Many companies
have ongoing mechanisms that
keep their marketers permanently
plugged in to frontline customer
feedback
Developing loyalty programs, that reward
high profit customers can help build strong
relations. Usually, companies create
Frequency programs in a way that locks
customer in and creates significant loss
switching .

22. Building loyalty and
creating strong
customer relationship
is the dream of every
marketer
Listening to the customer needs is
crucial to relationship
management. Many companies
have ongoing mechanisms that
keep their marketers permanently
plugged in to frontline customer
feedback
Developing loyalty programs, that reward
high profit customers can help build strong
relations. Usually, companies create
Frequency programs in a way that locks
customer in and creates significant loss
switching .
Limited member clubs help build
long term loyal customers. Fees
and membership conditions wards
of people with fleeting interest.

23. Creating
institutional ties
to provide
customers with
special supplies or
equipment
Win- Back
ex-customers reviewing
and resolving exit
interviews and lost
customer surveys.

24. Special thanks
• https://www.flickr.com/photos/sean-b/
• https://www.flickr.com/photos/danielygo/
• https://www.flickr.com/photos/68751915@N05/
• ttps://www.flickr.com/photos/griddlecakes/
• https://www.flickr.com/photos/59937401@N07/
• https://www.flickr.com/photos/61278574@N06/
• https://www.flickr.com/photos/jordanfischer/
• https://www.flickr.com/photos/stormkatt/
• https://www.flickr.com/photos/jenumfamily/
• https://www.flickr.com/photos/alancleaver/

25. Thank you!

26. Created by :
Ashwin Sasikumar
Govt. Model Engineering College, Kochi
Prof. Sameer Mathur
IIM Lucknow
www.IIMinternship.com
During an internship under :