This document discusses relationship marketing and customer relationship development. It defines relationship marketing as activities aimed at developing long-term relationships with larger customers through maintaining customer profiles and purchase histories. Relationship marketing focuses on customer loyalty, interaction, and long-term engagement rather than acquiring new customers. Developing customer relationships provides benefits like consistent customer experience, obtaining customer feedback, increasing customer profitability, gaining customer advocates, and enabling innovation. Strategies for developing customer relationships include making every interaction count, following through on commitments, developing employees, offering desired value, treating customers as individuals, and listening to customers.

1. CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE
Lesson 1:
Relationship Marketing
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2. RELATIONSHIP MARKETING
According to Serrano, Relationship Marketing includes activities
aimed at developing and managing trusting and long-term
relationships with larger customers. (Customer profile, buying
patterns and history of contacts are kept in a sales database)
Relationship marketing is a strategy designed for customer loyalty,
interaction, and long-term engagement to be fostered. Customer
Relationship focuses more on long-term customer retention than
acquiring large numbers of new and potentially single-transaction
customers.

3. Characteristics of RelationshipMarketing:
1.It focuses on the long-term rather than the short-term.
2.It focuses on partners and customers rather than on the company’s
products.
3. It puts more emphasis on customer retention and growth than on
customer acquisition.
4.It relies on cross-functional teams rather than on departmental-level
work.
5.It relies more on listening and learning than on talking.
Relationship Marketing is designed to develop strong connections
with customers by providing them with information directly suited
to their needs and interests by promoting open communication.

4. Relationship marketing callsfor
new practices within the 4p’s.

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but won’t do both.

6. ▹More products are customized to the customers’
preferences.
▹New products are developed and designed
cooperatively with suppliers and distributors.

7. ▹The company will set a price based on the relationship
with the customer and the bundle of features and
services ordered by the customer.
▹In business-to-business marketing, there is more
negotiation because products are often designed for
each customer.
PRICE

8. ▹RM favors more direct marketing to the customer, thus
reducingthe role of middlemen.
▹RM favors offering alternatives to customers to choose
the way they want to order, pay for, receive, install, and
even repair theproduct.
PLACE

9. ▹RM favors more individual communication and dialogue
with customers.
▹RM favors more integrated marketing communications
to deliver the same promise and image to the customer.
▹RM sets up extranets with large customers to facilitate
information exchange, joint planning, ordering, and
payments
PROMOTION

10. In the business world,
retaining customers has a
lesser cost at least eight
times compared to acquiring
new ones. Thus, this
marketing capitalizes on the
same fact and is beneficial to
thecompany in several ways.
.
BENEFITS OF RELATIONSHIPMARKETING

11. BENEFITS OF RELATIONSHIPMARKETING
1. Understanding customer
characteristics
the company can segregate its
customers into groups based on
their characteristics like
purchasing power, frequencyand
volume of sale transactions. It
also helps the company get
valuable feedback from its
customers and understand their
needs and expectations.
2. Delivery and meeting
expectations
if the company knows what its
customers’ needs are, it willhelp
reduce wastage due to trial and
error methods. It is easier to
create a product if the features
and specifications of the product
are known.

12. BENEFITS OF RELATIONSHIPMARKETING
3. Repeat Business
Sellers should
maintain good
attitude to the
buyers. By doing
this, buyers will
feel that they do
not need toswitch
sellers.
4. Prevents negative
transition
trust and loyalty go
hand in hand and it is
super beneficial forall
business. It will help
prevent customers
from turning to
competitors.
5. Word-of-mouth
marketing
a happy customer
will always promote
business by telling
ten other people
about the amazing
services or
performance
received from a
company.

13. BENEFITS OF RELATIONSHIPMARKETING
6. Increasing customer base
satisfied existing customeris 100%
more likely to recommend a
product/service to a prospective
customer. Apart from customer,
referrals, there are several other
ways to increase customer
satisfaction by employingmethods
of utilizing social networking
websites, blogs, informal surveys,
benefits on loyalty cards, timely
response to complaints and
requests as a constant reminder of
its presence around and retention
equity is improved by enhancing
customer satisfaction.
7. Reduced marketing cost
Benefits also include lesser
marketing costs and more value
creation. This can be explained by
stating the following statistics:
every 5% increase in customer
retention can increase a
company’s annual profits from at
least 25% to as much as 125%,
while simultaneously leadingto a
reduction of 10% in marketing
costs. An existing customer will
spend 33% more than a new
customer to buy a company’s
product/service.

14. BENEFITS OF RELATIONSHIP MARKETING
8. Minimization of
customer price
sensitivity
a happy customer
will be willing to
pay more for a
product if there isa
guaranteed
satisfaction of
products and after
sales services
attached to the
price.
.
9. Identification withthe
company
the benefits are reaped
both by the company and
the customers. It helps
customers identify more
with the company.Keeping
your communication lines
open and keeping in touch
with the customers makes
them feel like they are
being valued. It will keep
customers coming in and
build brand equity for the
company in the long run.
10. Product Market
Expansion
the company’s
employees must be
ready to deliver
beyond the
company’s
boundaries on
customer demand.

15. ▹Examples of companies using
relationship marketing
▹Ikea
▹Direct recruitment
▹American airlines
▹Dell
▹Vyvanse

20. CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE
Lesson 2:
Customer Value

21. CUSTOMER VALUE
Customer Value is the relationship
between benefits and the costs including
money, stress, and time to sacrifice that is
necessary to get those benefits.
Or simply stated in a mathematical equation:
Benefits – Cost = Customer Value

22. CUSTOMER VALUE

23. In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:
SERVICE the intangible value offered to customers.

24. In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:
QUALITY customer’s perception of how well a company’s
products and services meet expectations

25. In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:
IMAGE customers’ perception of the company or business
they interact with

26. In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:
PRICE the price a company can command for its products
and services that its customers are able and willing to pay.

27. 1.Provide consumerwith
the best cost.
2.Provide the consumer
with the best product.
3.Provide the consumer
with the best service.
Three ways a
company can
establish
customer
value to its
customer
base:
DELIVERING
CUSTOMER
VALUE

28. Importance of Customer V
alue
1.Designing and
providing superior
customer value are the
keys to successful
business strategy inthe
21st century.
2.Value reigns
supreme intoday’s
marketplace and
market-space.
3.Customers will not
pay more than a
product is worth and
will reward excellence.
4.A customer-centric
culture provides focus
and direction for the
organization, ensuring
that exceptional value
will be offered to
customers.
5.Designing and
delivering superior
customer value propels
organizations to market
leadership positions in
today’s highly
competitive global
markets – absolute
advantage
6. Providing
outstanding customer
value has become a
mandate for
management.

29. Importance of Customer V
alue
7.In choice-filled
arenas, the balance of
power has shifted from
companies to value-
seeking customers.
8. Managing customer
value is even more
critical to organizations
in the new service and
information-based
economy
9. Firms not providing
adequate value to
customers willstruggle
or disappear –
customer value is a key
ingredient in building
competitive advantage.
10. Today’s customers are quite
smart and sophisticated and are
looking for companies that::
a.Create maximum value forthem
based on their needs and wants,
and
b.Demonstrate that they value
their business.

30. thanks!
CREATING MORE CUSTOMER VALUE?
▹Understand what drives value for customers
▹Understand value proposition
▹Identify the customers and segments where the
company can create more value relative to
competitors
▹Create a win-win price
▹Focus investments on the most valuable
customers

31. CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE
Lesson 3:
Customer Relationship
Development Strategies

32. Benefits of Developing Customer Relationship
Customer Relationship is a
marketing approach that focuses on
creating an ongoing and long-term
relationship with customers.

33. Benefits in developing and implementing
customer relationship
1. Consistent customer experience
Customer Lifecycle Journey

34. Benefits in developing and implementing
customer relationship
2.Customer
feedback

35. Benefits in developing and implementing
customer relationship
3.Customer Profitability

36. Benefits in developing and implementing
customer relationship
4.Customer advocate

37. Benefits in developing and implementing
customer relationship
5. Innovation

38. Benefits in developing and implementing
customer relationship
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation
1. Consistent customer experience

39. 1. Make every customer interaction count
Strategies in Developing Customer Relationship

40. Strategies in Developing Customer Relationship
2. Follow-through on commitments andclaims
about products orservices.

41. Strategies in Developing Customer Relationship
3. Develop Employees.

42. 4. Offer benefits and product value that responds
to the customer’sdesires.
Strategies in Developing Customer Relationship

43. 5. Treat customers as individual who are respected
and valued.
Strategies in Developing Customer Relationship

44. 6. Listen to customer.
Strategies in Developing Customer Relationship

45. 7. Build a strong brandidentity.
Strategies in Developing Customer Relationship

46. 8. Surround customers with valuable information by using emails,
websites, content, social media, and other methods of outreach but do
not be invasive.
Strategies in Developing Customer Relationship

47. 9. The business must have a website.
Strategies in Developing Customer Relationship

48. 10. Reward loyal customers.
Strategies in Developing Customer Relationship

49. 11. Nothing strengthens a bond morethat
appreciation.
Strategies in Developing Customer Relationship

50. 12. Create a blog about the business where discuss
is more casual and inviting.
Strategies in Developing Customer Relationship

51. Benefits in developing and implementing
customer relationship
1.Make every customer interaction count
2.Follow-through on commitmentsand
claims about products or services.
3. Develop Employees.
4.Offer benefits and product value that
responds to thecustomer’s desires.
5. Treat customers as individual who are
respected and valued.
6. Listen to customer.

52. Benefits in developing and implementing
customer relationship
7. Build a strong brandidentity.
8.Surround customers with valuable
information by using emails, websites,content,
social media, and other methods of outreach
but do not beinvasive.
9. The business must have awebsite.
10. Reward loyal customers.
11.Nothing strengthens a bond more that
appreciation.
12.Create a blog about the business where
discuss is more casual and inviting.

53. CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE
Lesson 4: Customer Service
Strategy in the Philippine
Business Enterprise

54. Customer Service Strategy

55. Customer Service Strategy
CUSTOMER SERVICE is the act of taking care of
the customer’s needs by providing and delivering
professional, helpful, high quality service and
assistance before, during, and after the customer’s
requirements are met.

56. Elements of the Customer Service strategy:
1.Avision for customer service

57. Elements of the Customer Service strategy:
2. Assessing customer needs

58. Elements of the Customer Service strategy:
3. Hiring for Service

59. Elements of the Customer Service strategy:
4. Organizational goals for customerservice

60. Elements of the Customer Service strategy:
5. Customer Service Training

61. Elements of the Customer Service strategy:
6. Employee Accountability

62. Elements of the Customer Service strategy:
7. Rewarding GoodService

63. THE SUKI SYSTEM IN THEPHILIPPINES

64. Benefits in developing and implementing
customer relationship
SUKI SYSTEM system of
patronage in which acustomer
regularly buys their
merchandise from a certain
client.

65. THE SUKI SYSTEM IN THEPHILIPPINES

66. Benefits in developing and implementing
customer relationship
SUKI – a partner system of doing
business in the Philippines, wherein a
customer buys certain products from a
particular vendor, who in turn offers
discounts and other perks for such
exclusivity. Filipinos use the word suki to
refer to both buyers and sellers,
indicating their equal roles and
obligations in an eponymousrelationship.

67. Thanks!