CHAPTER 2
Customer
Relationship
CUSTOMER SERVICE
Sarah Mae R. Lacostales
Subject Teacher
TABLE OF CONTENT
01 02 03
RELATIONSHIP KEY ASPECTS OF BUILDING STRONG
MARKETING CUSTOMER CUSTOMER
RELATIONSHIP RELATIONSHIP
04 05 06
PERSONALIZATION IN BUILDING A CUSTOMER- TECHNOLOGY AND
CUSTOMER SERVICE CENTRIC CULTURE CUSTOMER EXPERIENCE
REVIEW
Can you cite some popular
customer service practices in
the Philippines?
SOME POPULAR CUSTOMER
SERVICE PRACTICES IN THE
PHILIPPINES HELP DESKS, 24/7
CUSTOMER HOTLINE
FREE DELIVERY
FREE APPLIANCE
INSTALLATION
FREE GIFT WRAPPING /
PLASTIC BOOK JACKET FREE ALTERATION ON
GARMENTS
COMPLIMENTARY
REFRESHMENTS, WAITING COMPLIMENTARY
LOUNGE MASSAGE
FREE PARKING VALET PARKING
CUSTOMER it is a company-wide business
strategy designed to optimize
RELATIONSHIP profitability, revenue, and
MANAGEMENT customer satisfaction by
focusing a highly defined and
precise customer groups.
CRM is a ccomplished by:
1. ORGANIZING THE COMPANY AROUND CUSTOMER
SEGMENTS
2. ESTABLISHING AND TRACKING CUSTOMER
INTERACTIONS WITH THE COMPANY
3. FOSTERING CUSTOMER-SATISFYING BEHAVIORS
4. LINKING ALL PROCESSES OF THE COMPANY FROM
ITS CUSTOMER THROUGH ITS SUPPLIERS
CUSTOMER RELATIONSHIP
MANAGEMENT CYCLE
IDENTIFY CUSTOMER
RELATIONSHIP
UNDERSTANDING
LEVERAGE CUSTOMER INTERACTIONS WITH
INFORMATION CURRENT CUSTOMER BASE
IDENTIFY BEST CAPTURE CUSTOMER DATA
CUSTOMER BASED ON INTERACTIONS
STORE AND INTEGRATE
CUSTOMER DATA USING
INFORMATION TECHNOLOGY
1ST STEP : IDENTIFY CUSTOMER
RELATIONSHIP
Customer-centric
is a philosophy under which the company
customizes its goods and services offering
based on data generated through
interactions between the customer and
the company.
the company builds long-lasting
relationships by focusing on what
satisfies and retains valuable customers.
1ST STEP : IDENTIFY CUSTOMER
RELATIONSHIP
Learning
is an informal process of collecting
customer data through customer comments
and feedback on product or service
performance.
Knowledge Management
is the process by which learned information
from customers is centralized and shared in
order to enhance the relationship between
customers.
1ST STEP : IDENTIFY CUSTOMER
RELATIONSHIP
Empowerment
delegation of authority to solve customer’s
problems quickly - usually by the first
person the customer notifies regarding the
problem
Interaction
the point at which a customer and a company
representative exchange information and
develop learning relationship
2 ND
STEP UNDERSTAND INTERACTIONS OF
THE CURRENT CUSTOMER BASE
Companies accomplish this by collecting
data on all types of communications with
current customers.
Touch Points
all areas of business where customers have
contact with the company and data might
be gathered
TOUCH POINT
Customer registering for a particular service
Customer communicating with a customer service
representative about product information
A customer completing and returning the warranty
information card for a product
A customer talking with salespeople, delivery
personnel, and the product installers.
POINT-OF SALE INTERACTIONS (POS)
Another touch point is through POS interactions
in stores and kiosks
Data collected at POS interaction are used to
increase customer satisfaction through
development of in-store services and customer
recognition promotions.
RD
3 STEP: CAPTURE CUSTOMER DATA
Information technology is used to
implement the CRM system
Companies not only obtain simple
information (name, address, contact
number, etc.) but also data
pertaining to the customer’s current
relationship with the company.
4 TH
STEP: STORE AND INTEGRATE
CUSTOMER DATA
Data Warehouse is a central
repository for data from various
functional areas that are stored
and inventoried on a centralized
computer system so that the
information can be shared across
all functional departments of the
business.
4 TH
STEP: STORE AND INTEGRATE
CUSTOMER DATA
Database the core of the data
warehouse
a collection of data, especially one that
can be accessed and manipulated by
computer software (FB Group Page,
Website, Portal, etc.)
focuses on collecting vital statistics on
consumers, their purchasing habits,
transaction methods, and product usage.
4 TH
STEP: STORE AND INTEGRATE
CUSTOMER DATA
Compiled List - general information
gathered from sources such as yellow
pages, directories, census, and other
public domains.
Response List -consist of individuals who
have taken some specific action to show
interest in a product or service as
previous buying history, surveys,
attendance registration in events, etc.
TH
4 TH 4
STEP:STEP: Through the database, past
behavior may help predict the
STORE AND future behavior of the market
INTEGRATE
CUSTOMER DATA May help in
cross-selling and
find new
prospects.
TH
5 STEP: IDENTIFY THE BEST CUSTOMER
Data Mining- analyzing large database
in order to generate new information
Companies must analyze the data to
identify and profile the best
customers, calculate their lifetime
value, and predict purchasing
behavior through statistics.
ANALYSIS OF DATABASE
CUSTOMER SEGMENTATION
Process of breaking large groups of customers into smaller, more
homogenous groups
can be according to:
A. DEMOGRAPHIC TRAITS
age, gender, occupation
B. GEOGRAPHIC TRAITS
country, municipality, city
C. PSYCHOGRAPHIC TRAITS
lifestyle, social status, personality
ANALYSIS OF DATABASE
LIFETIME VALUE ANALYSIS (LTV) OR
CUSTOMER LIFETIME VALUE (CLV)
forecasted sales profits that a company
can be derived from the entire span of
the future relationship with a particular
customer.
ILLUSTRATION OF CLV
IMPLICATION OF CLV
it considers a longer-term perspective of
a company’s relationship with customers
in contrast to a short-term view of “take
the customer’s money and run”
it calculates and compares acquisition
costs versus retention costs
highlights importance of market
segmentation, recognizing the profitable
customers.
ANALYSIS OF DATABASE
PREDICTIVE MODELLING
process of using known results to create,
process, and validate a model that can be
used to forecast future outcomes
a data mining technique that attempts to
answer the question “what might possibly
happen in the future?”
BUILDING A
CUSTOMER-
CENTRIC
CULTURE
A true customer-centric strategy requires a cultural shift
within the organization. Every employee should EMPLOYEE TRAINING
understand the importance of the customer and strive to
deliver exceptional service. A true customer-centric
LEADERSHIP COMMITMENT
strategy necessitates a cultural shift within the
organization. Every employee must comprehend the
importance of the customer and strive to provide CUSTOMER FEEDBACK LOOP
exceptional service.
HANDLING
Even the best businesses face complaints. However, how you
handle those complaints can make or break customer loyalty.
CUSTOMER Viewing complaints as opportunities to improve will
strengthen customer relationships. Despite being the best
COMPLAINTS businesses, complaints still occur. The way you handle those
complaints can have a significant impact on customer loyalty.
THANK YOU
Thank you for your attention today. I hope you gained valuable
insights into how a customer-centric approach can drive loyalty
and success for your business