This presentation on CRM

2. RELATIONSH
IP
MARKETING
PRESENTER:
Zainab Naveed
FA21-BBA-012

3. What is
"Relationship
Marketing?"
Relationship marketing is a
strategy focused on building long-
term relationships with customers
rather than just focusing on one-
time transactions.

5. Key Points
does not necessarily
emphasize acquiring
new customers
the focus is less on
attraction, and more
on retention and
enhancement of
customer
relationships
is usually
cheaper (for the
firm)
As keeping a current
customer costs less
than attracting a new
one
01 02 03

8. The “Bucket Theory
of Marketing”

9. Relationship Development
Model

10. Relationship Drivers
Switching
Barriers
Core Service
Provision
Relationship
bonds

11. Switching Barriers
Consumer inertia is the
tendency of some
customers to buy or
continue buying a product,
even when superior
options exist.
Customer Inertia Switching cost
Switching costs are the
costs that a consumer
incurs as a result of
changing brands,
suppliers, or products.

12. Core Service Provisions
Satisfaction
a measurement that
determines how
happy customers
are with a
company's
products, services,
and capabilities.
Perceived Value
the customers' evaluation of
the merits of a product or
service, and its ability to
meet their needs and
expectations, especially
in comparison with its
peers.
Perceived
Service Quality
Perceived service
quality is defined
as the customer's
assessment of the
overall superiority
or excellence of
the service.

13. Relationship bonds
Financial bonds
Discounts and loyalty
programs.
Social bonds
Community Events,
Online Forums or
Groups.
Customized
bonds
Customizable Products,
Personalized
Communication.
Structural bonds
Membership Programs,
Subscription Services.

14. Benefits

15. Benefits for Customers:
Social benefits:
• familiarity
• social support
Confidence
benefits
• Reduce anxiety
• confidence in provider
Special treatment
benefits:
• price breaks
• Special deals

17. Benefits for Firms:
increased revenues reduced marketing and
administrative costs
strong word-of-mouth
endorsements
mentors to other
customers
regular revenue stream
employee retention

18. The Customer Pyramid

19. Platinum customers are the
most valuable and loyal
customers to a business.
They are highly engaged,
make frequent
purchases, and contribute
significantly to the
company's revenue.
The Customer Pyramid
Gold customers are also
valuable and loyal to the
business but may not be as
high-spending or frequent
as Platinum customers.
They still contribute
significantly to the
company's revenue and
often receive special
treatment and rewards.
Platinum Tier Gold Tier

20. Iron customers are mid-tier
customers who make
occasional purchases and
may show some loyalty to
the brand, but their
spending levels are lower
compared to Platinum and
Gold customers.
The Customer Pyramid
Lead customers are the least
engaged and least profitable
segment for the business. They
may make infrequent purchases
or only buy discounted or low-
margin items.
Iron Tier Lead Tier

21. THE SLIDE TITLE GOES HERE!

22. ○ wrong segment
○ not profitable in the long term
○ difficult customers
Not all customers are good relationship customers

23. Should firms fire their customers?