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CRM & Creating Customer

This document discusses customer relationship management and loyalty. It defines loyalty as a commitment to rebuy a preferred product or service despite other options. It lists top brands in customer loyalty like Google, Samsung, and Amazon. It discusses measuring customer satisfaction through surveys, customer loss rates, and mystery shoppers. It defines quality as features that satisfy customer needs. Maximizing customer lifetime value includes analyzing customer profitability, equity, and lifetime worth. Customer relationship management aims to build loyalty by managing customer information and interactions to customize the experience.

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Puneet Srivastav
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44 views17 pages

CRM & Creating Customer

This document discusses customer relationship management and loyalty. It defines loyalty as a commitment to rebuy a preferred product or service despite other options. It lists top brands in customer loyalty like Google, Samsung, and Amazon. It discusses measuring customer satisfaction through surveys, customer loss rates, and mystery shoppers. It defines quality as features that satisfy customer needs. Maximizing customer lifetime value includes analyzing customer profitability, equity, and lifetime worth. Customer relationship management aims to build loyalty by managing customer information and interactions to customize the experience.

Uploaded by

Puneet Srivastav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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UNIT-2

Creating Customer Value, Satisfaction, and Loyalty Customer Relationship Management

HDFC Offers an Assortment of Services to Satisfy its Customers

Figure 5.1 Organizational Charts

What is Loyalty?
Loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Top Brands in Customer Loyalty


Google Samsung (mobile phones) Yahoo! Canon (office copiers) Hyatt Marriott Amazon

The Value Proposition

The whole cluster of benefits the company promises to deliver

Measuring Satisfaction
Periodic Surveys

Customer Loss Rate

Mystery Shoppers

Monitor Competitive Performance

What is Quality?

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Maximizing Customer Lifetime Value

Customer Profitability

Customer Equity

Lifetime Value

Figure 5.4 Customer-Product Profitability Analysis

What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touchpoints to maximize customer loyalty.

Framework for CRM


Identify prospects and customers
Differentiate customers by needs and value to company Interact to improve knowledge Customize for each customer

Building a Relationship with Rural Consumers


Challenges due to lack of technology and resources Personal relationship between buyer and seller for ages SBI Tiny initiative was aimed at starting a relationship with an eye on future profits Aadhaar offers home delivery of agri-inputs to villagers in busy sowing season

CRM Strategies
Reduce the rate of defection Increase longevity Enhance share of wallet Terminate low-profit customers Focus more effort on high-profit customers

Focus on CRM

Customer Retention
Acquisition of customers can cost five times more than retaining current customers. The average customer loses 10% of its customers each year. A 5% reduction to the customer defection rate can increase profits by 25% to 85%. The customer profit rate increases over the life of a retained customer.

Figure 5.5 The Customer Development Process


Suspects

Prospects First-time customers

Disqualified Repeat customers

Clients

Members

Partners Ex-customers

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