Customer focus and Relationship management ppt

customer relationship management case study ppt and customer relationship management examples ppt
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Published Date:18-07-2017
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Customer relationship management MB-104 By Mayank Kumar Pandey Assistant Professor at Noida Institute of Engineering and TechnologyUniversity Syllabus UNIT-1 • Customer Relationship Management- Introduction • CRM- Fundamentals • Evolution of relationship marketing, Stages of relationship • Issues of relationship, Purpose of relationship marketing • CRM & Marketing: Historical Perspectives • Emergence of CRM practice, CRM cycle, Stakeholders in CRM • Significance of CRM, Types of CRM • Success Factors in CRM • CRM Comprehension, CRM Implementation • Student Group Presentation-1 Customer Relationship Management By: Mayank PandeyCustomer Relationship Management CRM • Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. • It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. Customer Relationship Management By: Mayank PandeyCRM CUSTOMER RELATIONSHIP MANAGEMENT A customer is the Relationship has recipient of a goods, services, product, or To get the job been subject idea, obtained from matter of done through a seller, vendor, or supplier for a individual’s others. monetary or other personal feeling. valuable consideration. Customer Relationship Management By: Mayank PandeyRelationship: Theoretical Perspective I- Social Penetration Theory – Stages of Social Penetration AFFECTIVE ORIENTATION EXPLORATORY AFFETIVE STAGE STAGE STAGE STABLE DEPENETRATION STAGE Customer Relationship Management By: Mayank PandeyRelationship: Theoretical Perspective Contd….. II- Social Exchange Theory: Social Exchange Theory has cost, benefit, outcome, comparison level, satisfaction and dependence as important components. Few Calculations in Relationship: 1. Outcome = Benefits – Cost 2. Satisfaction= Outcome – Comparison Level 3. Dependence= Outcome – Comparison Level Option Customer Relationship Management By: Mayank PandeyRelationship: Theoretical Perspective Contd….. III- Equity Theory: This theory states that individual who perceive themselves as either under-rewarded or over- rewarded will experience distress and this distress leads to restore equity within the relationship. It focuses on determining whether the distribution of resources is fair for both relational partner. Customer Relationship Management By: Mayank PandeyRelationship: Theoretical Perspective Contd….. • This theory postulate that one is attracted to other on the basis of four major factors: 1. Attractiveness 2. Proximity 3. Reinforcement 4. Similarity Customer Relationship Management By: Mayank PandeyTypes of Relationship • Depends on Situation Customer Relationship Management By: Mayank PandeyStages of Relationship Contact Walking away from relationship Increased frequency of Contact Involvement Depth of Relationship Intimacy Dissolution Deterioration Repair Customer Relationship Management By: Mayank PandeyRelationship marketing • Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions. • As a practice, relationship marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages Customer Relationship Management By: Mayank PandeyContd…. • Relationship marketing refers to a short-term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. • This approach tries to disambiguiously transcend the simple post purchase- exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalized purchase, and uses the experience to create stronger ties. Customer Relationship Management By: Mayank PandeyMass Markets • Historically large-scale mass production and distribution methods adopted. • Cost-efficiencies drove prices lower. • However, products became standardized. • Customers had to find the best option that fulfilled their needs. • Customers grouped into mass markets and were communicated through mass media- TV, Print etc. • Suited well for a supplier’s economy Customer Relationship Management By: Mayank PandeyToday’s Markets • Foreign suppliers and competition from non traditional suppliers has increased competition. • This increases supply, and so the need for better service. • Technology has made the reach of companies global. • Technology has enabled large scale customized production : called mass- customization. Customer Relationship Management By: Mayank PandeyToday’s Markets • Stagnation of growth in customer base. • Too much competition for customer’s free time. • Customers are increasingly convenience shopping as opposed to price driven shopping. • Consumers now prefer suppliers that provide good quality at a fair price. • They find such a supplier and stay with them for a long time. Customer Relationship Management By: Mayank PandeyCustomer Retention+ Share of Customer • Basic premise: • Retain customers over a long term and satisfy the largest portion of their needs with your products and services. • The“leakybucket” concept is out. • Today’s consumers want companies to • Understand their needs and wants • Adapt their products and services to these needs and wants • The company takes partial responsibility for the Customer Relationship Management By: Mayank Pandey customer’s choice of product.Developing Relationship Marketing Capabilities • Initial steps include: • Data collection • Data access and marketing tools • Product and service customization • Customer service procedures • Customer access channels • Key measures: • Customer satisfaction • Share of Wallet • Stability of relationship Customer Relationship Management By: Mayank PandeyDeveloping Relationship Marketing Capabilities • If implemented properly customers are locked in due to satisfaction, ease of service, and value. • This increases the cost on the customer’s part when they have to switch suppliers. • Customer service should be interactive, personalized. • Communication is through multiple channels. Customer Relationship Management By: Mayank PandeyDeveloping Relationship Marketing Capabilities • Use customer service opportunities to – Verify if needs and preferences have been addressed – Measure levels of satisfaction – Find any other questions that need to be answered – Additional customer information such as change in status – Verify if presenting new products or options is appropriate Customer Relationship Management By: Mayank PandeyCustomer Information • Requires more information than traditional direct marketing. • Optimal types of customer information will vary by industry, company market positioning, and marketing programs. • Building a customer information base is an iterative long term process. Customer Relationship Management By: Mayank Pandey