Customer Retention Equity - CRM
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This tutorial on Customer Retention Equity gives you a brief introduction to one of the CRM type. This tutorial covers the following topics: 1. What is Customer Retention Equity? 2. What are Customer Retention Strategies? 3. Some of Past Researches. Additional Notes of Past Researches: 1. Long-term customers are less sensitive to price - Because they tend to buy more, provide positive word of mouth, and require less time from the company to sell them new products/services in comparison to new customers. 2. Customer retention equity is an essential element for business strategy - Researchers have noted that customer retention equity is an essential element for business strategy to enhance customer retention and maintain strong relationships with customers.
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Customer Retention Equity - CRM
- 2. MEMBERS SRV SINGHANIA MANSI JOSHI RACHIT VARSHNEY (15030122031) (15030122036) (15030122019)
- 3. Customer retention equity indicates the ability of the customers to remain loyal to the company .
- 4. What is Customer Retention Equity ??
- 5. ABOUT “CRE” Important Business Priority: Customer retention is an important business priority, as it has a positive effect on company value. One percent improvement in customer retention equity has almost five times’ greater impact on firm value. 1 Positive Impact on Brand Value: Customer retention equity has positive and significant impact on brand value and its dimensions – brand loyalty, brand association and brand awareness. 2
- 6. ABOUT “CRE” Profitable Business Tool: Customer retention equity is a cost-effective and profitable business tool that is crucial in today’s competitive environment. The increasing tendency of customer retention ensures the marketing and financial success of the organization. Key driver of customer equity: It is a key driver of customer equity to build, maintain, and create strong, long-term relationships with customers. 3 4
- 7. What are Customer Retention Strategies ??
- 8. Customer Retention Strategies Loyalty Schemes Affinity Schemes Content Marketing • Marketing action that make affiliated customers more loyal • Aim of making an emotional connection with customers • To attract and retain target audiences
- 9. Customer Retention Strategies Special treatment Benefits • Providing high services beyond the standard value to customers. Brand Value • Influences how customers perceive the value of a company’s products. Courtesy System • Influential technique which improves the interpersonal skills
- 10. Some of past Researches ..
- 11. Researches • Long-term customers are less sensitive to price Rauyruen and Miller (2007) & Reichheld and Sasser (1990) • Customer retention equity is an essential element for business strategy Vogel et al., 2008
- 14. Thank You !!
Editor's Notes
- For example, airlines company has the scheme of Frequent Flyers. It also provides special offers and deals to their loyal customers.
- 1. Loyalty schemes refer to all those marketing actions that make affiliated customers more loyal and influence them to remain with the particular brand. These schemes reimburse the customers for their specific behaviors with some substantial benefits, such as rebates, discounts, annual gifts, card points, and extraordinary or additional services. 2. Affinity schemes are designed and delivered with the aim of making an emotional connection with customers. It is believed that affinity programs such as giving celebrity treatments, talking politely and pleasantly, interacting with a smile, etc., are useful in attracting customers and affecting their emotional and psychological responses. 3. Content marketing is the art of communicating useful, educational, and entertaining information from the company to attract and retain target audiences
- 4. Special or preferential treatment is the practice of providing high social status, recognition, and enhanced service beyond the standard firm value proposition to special customers. 5. Brand value is defined as the financial value of a brand. A good brand value is essential to the success of the company. 6. The courtesy system is an influential technique which improves the interpersonal skills of the business team and also changes the spirit of the organization. It usually involves speaking pleasantly and politely to customers and treating them well, so that they can feel comfortable and happy when opting to stay with a particular brand
- 1. Because they tend to buy more, provide positive word of mouth, and require less time from the company to sell them new products/services in comparison to new customers. 2. researchers have noted that customer retention equity is an essential element for business strategy to enhance customer retention and maintain strong relationships with customers