final ppt for cbcopy

8/8/2019 Final PPT for CBcopy

1/71

Group No. 5Abhinav Awasthi

Asma Khan

Girish Jain Nisheeth B.

Preeti Banoudha

Ram Sharma Shreekanth B.

Tenzin Dolkar


2/71

CUSTOMER SATISFACTION

And RELATIONSHIP

MARKETING


3/71

CUSTOMER SATISFACTION

The most important asset of anyorganization is its customers

Satisfied customers pay their billspromptly which greatly improves cash

flow the lifeblood of any organization


4/71

ORGANIZATIONAL HIERARCHIAL

DIAGRAM


5/71

Contd

Customers experience of a product or aservice is multifaceted so hard todetermine

It needs to be measured individually to getan accurate total picture of customer

satisfaction


6/71

Contd..

Customer satisfaction should not be

viewed in a vacuum.For example, a customer may be satisfied

with a product or service and therefore ratethe product or service highly in a surveyand yet same customer may buy anotherproduct.


7/71

Contd

Similarly customers view about a product

or service are useless if customers viewabout competitors products are notunderstood.


8/71

Contd..

The value customers places on the product

compared to another may be a betterindication of customer loyalty.


9/71

Customerisation


10/71

Customerisation :Meaning

The next stage of evolution of masscustomization is CUSTOMERISATION- Abuyer centric company strategy thatcombines mass customization with

customized marketing.


11/71

Customerisation

Customerisation= Mass customisation +

personalisation + 1 to 1 Marketing +customer control all delivered + build-to-order (typically) in a web environment.

Customerization begins with customers and

offers them more control in the exchangeprocess.


12/71

Mass CustomizationUsing flexible processes and organizationalstructures to produce varied and often

individually customized products and servicesat the price of standardized mass-producedalternatives.


13/71

One to One Marketing

Marketing based on the idea of the firm

knowing the customer. Through interactionswith the customer, the firm learns how he orshe wants to be treated. The firm is then ableto treat this customer differently than other

customers.


14/71

Personalisation

Customization of a some feature of a productor service so that the customer enjoys moreconvenience, lower costs, or some otherbenefit.


15/71

PERSONALISATION

1 TO 1MARKETING

CUSTOMERISATION

Locus of control Customer/firm Firm Customer

Customer Co-design

Low Low High

Prior data aboutcustomers

Low High Moderate

Links toproduction/supply systems

Low Low/Moderate High

Link to customer

systems(Especially B2B)

Low Moderate High

Does it requirebuild-to-ordersystem

No No Yes


16/71

MrktgC

ustomisat

ion

Operational Customisation

Low High

LowHigh

Pathways to CustomerisationPathways to Customerisation


17/71

Working Towards Enhancing

Customer Satisfaction

Identify new prospects based on theattributes of current, profitable

customers Prioritize them can use other criteria

besides profitability

Develop a relationship plan Direct mail/email Personal meetings

Speaking engagements/thought leadership


18/71

Continue

Assign top prospects to specific people Provide tools to help them keep in touch

Invitations to events (charity events,lunches, conferences, tours)

Thought leadership (white papers, CMEs) Direct mail/email materials (newsletters,

surveys, blogs) Enter them into CRM system as prospects

and track ongoing communication


19/71

CUSTOMER PERCEPTION OF

QUALITYASQ survey shows that important factorsthat influence purchasing are

1.Performance

2.Features

3.Service

4.Warranty5.Price

6.Reputation


20/71

Customer perceived value

Total customer benefit

Product benefits

Personal benefit

Service benefit

Image benefit

Total cost of customer

Monitory cost

Time cost

Energy cost

Psychological cost


21/71

1.Reduce defect2.

3.Improve productivity

4.5.Improve customer relation

6.

7.Innovate

Four Essential to enhance customersatisfaction


22/71

1.Focus on customer

2.3.Do it right

4.5.Communicate and Educate

6.7.Measure and record

8.9.Do it together

Five principles to enhance customersatisfaction


23/71

Feedback

Comment Card. Customer Questionnaire.

Focus Groups. Toll Free Telephone No. Customer Visits. Report Card.

Internet & Computer. Employee Feedback. Customer complaints


24/71

Comment Card Comment card can be attached to the

warranty card & included with the

product at the time of the purchase.

Intent of this card is to get simpleinformation such as name , age, address,

occupation & what made the customerbuy that product.


25/71

COMMENT CARD

For customer there is little or no incentiveto comment

Customers do respond when there issomething very good or very bad

Used in hospitality industry(hotels,restaurants)


26/71

CUSTOMER QUESTIONNAIRE Popular tool for obtaining opinion &

perceptions about an org./product/svs

Costly & time consuming Most surveys ask the customer to grade

the question on a 1-5 or 1-10. Eg likert

scale


27/71

Teaching Methodology of a Teacher

Parameter Highly SatisfiedNeutral HighlyDissatisfied

Communication Skills 5 4 3 2 1

Grip on the Subject 5 4 3 2 1

Answer to the Question 5 4 3 2 1

Whole class participation 5 4 3 2 1

Do you feel any value addition 5 4 3 2 1

Do you go home satisfied afterthe lectures

5 4 3 2 1


28/71

CUSTOMER QUESTIONNAIRE Does not tell about the importance of individual

question relative to others

Nor does it tell what customers expect fromorganization

Results are not representative of the normalpopulation

Those who feel very good or very bad respondonly


29/71

TO MAKE SURVEY MORE USEFULREMEMBER

1.Clients & customers are not same

2.Survey raise customer expectation

3.How u ask a question will determine howthe question is answered

4.The more specific the question, the better

the answer


30/71

TO MAKE SURVEY MORE USEFUL REMEMBER

5. You have only one chance & 15 min.( max.time a customer will give to respond a survey)

6. More time u spend in survey development, lesstime u get in data analysis & interpretation7. Whom you ask is as important as what you ask8. Before data are collected , you should know

how you want to analyse & use the data


31/71

FOCUS GROUPS Popular way to obtain feedback Surveying a focus group is a research method used to

find out what customers are really expecting Group of customers is assembled in the meeting room

to collect information Carefully prepared answers r asked by skilled moderator Who probes into participants ideas, thoughts

perceptions & comments Focus groups are sometimes used within two

organization to address internal issues


32/71

FOCUS GROUPS( IMPRINT ANALYSIS)

Imprint analysis is an emerging technique used in the focusgroups

Good way to obtain intrinsic feeling about the

product/service

Feeling are not easily obtained from the customers

Customers often holdback information's on survey


33/71

FOCUS GROUPS (IMPRINT ANALYSIS)

Word association, discussions & relaxationtechniques can identify a customers emerging

needs Imprint analysis helps to understand the human

emotions involved in the purchase decision


34/71


35/71

CUSTOMER VISITS Visit to a customers place of business is an

effective way to gather information

Accurate information obtained people cansee first hand how the product isperforming


36/71

Customer Dissatisfaction


37/71

Meaning: Customer being unsatisfied

Feeling or exhibiting a lack of contentment

condition or feeling of being displeased with theproduct or services.


38/71

Reasons for dissatisfaction

Faulty product Delivery

Bad service

Complications Ineffective customer service

Delays in problem solving

Costs

unknown


39/71

example

CUSTOMER SATIFACTION SURVEY 2005

AUSTRALIAN MEDIA AND COMMUNICATIONAUTHORITY.

Fault restoration and correction of service Reasons for dissatisfaction with the connection service given

by customers who had an on-site visit from a technician

The connection/transfer performed faultily or not asrequested,

The long time to connect/transfer the phone,. The poor provision of information regarding the

connection/transfer A long time until appointment Long delays even after having an appointment Bad technicians


40/71

Implications of CD Loss of business:4% of dissatisfied customers

dont bother to complain

Losing out on important feedback Burying of customer loyalty

Scare away prospective customers


41/71

Methods to solve customerdissatisfaction

Corrective actions : Problem solving

Preventive actions : Quality management system

Improved business process: Align people andprocess

Root cause analysis

Complaint handling team/cell

Set up policy and guidelines


42/71

Lodging dissatisfaction complaint

Either verbal or written: Concise: can be understood quickly. Authoritative: letters that are well written or presented

professionally - have more credibility and are taken moreseriously. Factual: enable the reader to see immediately the relevant

details, dates, requirements, etc., and to justify action toresolve the complaint.

Constructive : with positive statements, suggesting positive

actions - encourage action and quicker decisions. Friendly: with a considerate, cooperative and

complimentary tone - are prioritised because the readerresponds positively to the writer and wants to help.


43/71

RELATIONSHIPS


44/71

Some Examples of Relationships: Friendship

Parent-child

Boss-worker Lover

Sibling

Acquaintance

Roommate


45/71

Relationship Marketing


46/71


47/71

What Is Relationship

Marketing?

Marketing designed to create, maintain,

and enhance strong relationships withcustomers and other stakeholders.


48/71

Why Is It Important?

It costs five times as much to attract anew customer as it does to keep a

current one satisfied. It is claimed that a 5% improvement in

customer retention can cause an increasein profitability of between 25 and 85

percent depending on the industry. Likewise, it is easier to deliver additional

products and services to an existingcustomer than to a first-time buyer.


49/71

Customer Lifetime Value

Losing an existing customer means losing

the entire revenue stream that customerrepresents not just that singleencounter or sale.


50/71

Attracting, Retaining AndGrowing Customers

Customer delivered value the difference

between total customer value and totalcustomer cost. Value includes product, services,

personnel and image value.

Cost includes monetary, time, energy andpsychic costs.


51/71

Customer Loyalty & Retention Highly satisfied customers are:

Less price sensitive

More likely to talk favorably about you More likely to refer you to others

Remain loyal for longer


52/71

Growing Share Of Customer Increasing the share of the customers

purchasing in your product category.

Best way is through cross-selling Getting more business from current

customers by selling them additional or

complementary services


53/71

Managing your customers Relationship marketing is designed to

create, maintain, and enhance strong

relationships with profitable customersand other stakeholders.

First need to define what your profit is onspecific services.


54/71

Referral Sources How do you communicate with them?

Who communicates with them?

Do you get feedback from them?

Do you get feedback to them?


55/71

So what is CRM software? Customer Relationship Management

software allows tracking and analysis of

each customer's purchases, preferences,activities, tastes, likes, dislikes, andcomplaints.


56/71

Three Aspects Of CRM Systems

Operational

Collaborative

Analytical


57/71

Operational CRM

Provides support to "front office" businessprocesses, including sales, marketing andservice. Each interaction with a customer isgenerally added to a customer's contacthistory, and staff can retrieve information oncustomers from the database whennecessary.

Main benefits is that customers can interactwith different people in a company over timewithout having to describe the history oftheir interaction each time.


58/71

Collaborative CRM Covers the direct interaction with customers, for

a variety of different purposes, including

feedback and issue-reporting. Interaction canbe through a variety of channels, such as webpages, email, automated phone systems.


59/71

Analytical CRM

Analyzes customer data for a variety ofpurposes:

Design and execution of targetedmarketing campaigns to optimizemarketing effectiveness

Design and execution of specific customer

campaigns, including customeracquisition, cross-selling, up-selling,retention.


60/71

Contd

Analysis of customer behavior to aidproduct and service decision making

(e.g. pricing, new product developmentetc.)

Management decisions, e.g. financial

forecasting and customer profitabilityanalysis

Prediction of the probability of customer

defection (churn).


61/71

Relationship MarketingvA form of marketing(emphasizes customer

retention & satisfaction)

vDiffer from other form of Marketing(Recognizelong term customer relationship)

vGrowing with technologyvBroadly recognized ,widely implemented

strategy(for managing & nurturing interactionwith clients & sales prospects).

v


62/71

What is CRM ?

vCRM is the development and maintenance ofmutuallybeneficiallong-term relationships with strategicallysignificant customers (Buttle, 2000)

vCRM is an IT enhanced value process, which i

dentifies, develops, integrates and focuses the variouscompetencies of the firm to thevoice of the customer inorder to deliver long-term superior customer value, at aprofit towell identified existing and potentialcustomers.


63/71

Development of Relationship MarketingLiam Alvey Relationship Marketing can be appliedwhen there are competitive product alternative

for customer to choose and when there is ongoingand periodic desire for product and service

In 1950 &60- Traditional concept sell low valueproducts to masses

Over decade new marketing concept came one ofthem is Relationship Marketing


64/71

A Relationship Life Cycle Model

High cooperationLow competition

Low cooperationHigh competition

Time

Pre-relationship

stage

Developmentstage

Maturitystage

Declinestage

(Wilkinson and Young, 1997)


65/71

Customer Retention efforts involveconsideration such asvCustomer Valuation

(According to Financial and strategic value)

vCustomer Retention Measurement (Percentageat beginning of year and end of the year)

vDetermine reason for defection(Look for root cause)

vDevelopment and implementation a correctiveplan


66/71

Managing Customer Relationships

Qualifying prospects for relationship building

Opportunitiesfor adding value

Potential profitability of customer

High

Low

Low High

Use a noncustomizedapproach

Seek betteropportunities

elsewhere

Build a strongand lasting

relationship

Focus onloyalty-building

program


67/71

Economics of Customer RetentionvKeeping customer drives profitabilityvCustomer Retention makes

less cost to reach less cost to sell less vulnerable to attack from competitors Customer buy more over the long term


68/71

Overall Goals of Relationship MarketingvAttract and win new clientvNurture and retain those which company

already havevEntice former clients back intovReduce cost of marketing and client service


69/71

Thanks


70/71

QUESTIONS?


71/71

Thank You!!

final ppt for cbcopy

Documents