Professional Documents
Culture Documents
Managing Customer
Relationship
Developing
&
enhancing
the
Supporter
relationship
Client
Customer
Prospect
Customer
attraction
Relationship Building
Strategies
Communicate Frequently
ZERO CUSTOMER
DEFECTIONS
Customer Defections are the loss of clients or
customers.
Customer defection is the rate at which customers
defect or stop the usage of products of a
company. Business with high defection rate,
would be losing their existing customers.
In order to overcome this they use another term of
customer retention, in simple words its to retain
or prevent the existing customers to defect the
product.
ZERO CUSTOMER
DEFECTIONS
NPV of
Profits
from a
Customer
Defection Rate
AVG Customer Life
50%
2yr
40%
2.5yr
30%
3.3yr
20%
5yr
10%
10yr
5%
20yr
Categories of Customer
Defect
Price
defectors
Product defectors
Service defectors
Market defectors
Technology defectors
Organisational defectors
customer retention
Interview former customers
Analyse complaint and service
data
Identify switching barriers
Marketing
practice and
philosophy
1960s
1980s
1990s
vs.
Needs Satisfied
Needs Satisfied
Market share
Customer Share
1980s
Customers Reached
Customers Reached
Acquisition cost
Base profit
Profits from revenue growth
Cost savings
Referrals
Price premium
16
Customer Retention
Strategies
Welcome
Reliability
Responsiveness
Recognition
Personalization
Reward
Strategies
17
A welcome strategy
The organizations appreciation for the initiation
of a relationship.
18
Reliability
The organization can repeat the exchange
time and time again with the same
satisfying results.
Keep promise
Ensure consistent quality
Continuous promotion is still the key.
19
Responsiveness
The
20
Recognition
Special
21
Personalization
Use CRM system to tailor promotions and
products to the specific customers.
Offer engine: take customer data after it is
analyzed and applies it to create the offer or
message that is appropriate to the individual
customer. Ex., My site, Click stream analysis,
free ride, etc.
22
Reward strategies
Frequent,
best customers
Partnership Management Program
Switching costs: financial penalty, time
loss, psychological barrier
Termination Penalty
Customer Retention
Strategies
Customer ValueConcept
and Characteristic
Customer value is the customers
perception of what outcome he expects
in a specific use situation with the help
of a product or service offering in order
to accomplish a desired purpose/goal.
The
Planning Phase :
Planning Phase:
Plan to approach the customers
Plan for making new campaigns
This phase includes
Marketing tools
Various Software's
Marketing & Sales personnel are
involved in this phase
Assessment Phase :
Execution Phase :
Execution
Phase
Customer interaction
Executes campaigns
Track customer feedback
This phase uses
Internet
Call centers
Direct mails etc.
CRM Process:
CRM
CRM Process:
CRM Process:
Gathering information:
gather information aboutcustomer.
Perform data aggregation:
data is merged &compressed into a complete view of the customer.
Create exploration warehouses:
are extracts ofcustomer data needed to support specific
analysis(like customerprofitability etc.).
These are engines for analytical applicationsthat support
identification of opportunities & developingstrategies.
Execution of strategies:
execute these strategies bydeveloping & launching marketing
campaigns across targetedcustomer segment.
CUSTOMER INTERACTION