MKT517
Customer Relationship
Management
What it’s all about?
Learning Outcome
Students will become familiar with the nature,
characteristics and formulation of customer strategy
A variety of supplemental classifications have been created to further clarify the
differences between the parties involved in customer–supplier relationships.
These classifications indicate (including Payne, 1995; Peelen et al., 1989; Schijns,
1998):
● whether or not a transaction has already been completed: from prospect to
customer;
● if a long-term orientation is present which extends further than that one
transaction: from customer to client;
● to what degree the relationship is felt by both parties: from supporter to
ambassador;
● to what degree both parties take an active position in the relationship: from
ambassador to partner.
Recapitulate
“You want to learn their reasons why they might consider stopping the
relationship, so you can do something to avoid it.”
Which of the following stage in Relationship Life Cycle?
A. Exploration
B. Maturity
C. Growth
D. Decline
Identify the customer-supplier relationship?
A. whether or not a transaction has already (i)From customer to client
been completed
B. if a long-term orientation is present which (ii) From prospect to customer
extends further than that one transaction (iii) From ambassador to partner
C. to what degree the relationship is felt by
(iv)From supporter to ambassador
both parties
D. to what degree both parties take an active
position in the relationship
A.(ii),(iii),(iv),(i)
B. (ii),(i),(iv),(iii)
C. (i), (iv),(iii),(ii)
Contents of CRM
Strategy and organisation of CRM (I)
CRM Marketing aspects (II)
Analytical CRM (III)
Operational CRM (IV)
CRM Systems and their implementation (V)
Misconceptions about CRM
1. CRM is a database marketing
2. CRM is a marketing process
3. CRM is an IT issue
4. CRM is about loyalty scheme
5. CRM can be implemented by any company
Customer
retention
Customer
acquisition
Functionally
Cross- Functionally based
based
marketing
marketing
Significance of CRM
Increased sales revenue and reduced cost of sales
Increased customer satisfaction
Lower costs of recruiting customers
Increased customer retention
Evaluation of customer profitability
Excellent customer service
What CRM can do for your company?
To get closer to your consumers CRM can:
• Improve the services
• Improve customer satisfaction
• Identify your customers (worst or best)
• Reduce cost
• Create new customers
Source:[Link]
can-do-for-your-company
What CRM is all about from industry insights?
• CRM stands for Customer Relationship Management. Generally, it is a
set of strategies, tools, techniques, and technologies that enterprises
use to develop, retain as well as acquire customers.
• CRM, or customer relationship management, is a company-wide
business strategy designed to reduce costs and increase profitability
by solidifying customer satisfaction, loyalty, and advocacy
Analyse
Q.1 Why dissatisfied customer remains stay with their supplier?
Q.2 In which industry, long term seller-buyer relationship is not
advisable?
Case:
Working with Salespeople
Salespeople are part of an overall team. When a salesperson tries to work independently, the results are not
always very effective. This activity highlights an ineffective situation for a mobile home loan salesman for a bank.
Review the situation – what can you recommend to improve the firm’s current sales appointment practices?
Case
ACTIVITY/TASK
• When customers phone the bank’s call center and inquire about a home loan they are always offered an
appointment the mobile home loan salesperson (who will come out and visit them).
• If they are interested, the appointment is then immediately booked in the mobile lender’s electronic diary.
Each day the mobile lender checks his electronic diary and goes to the scheduled appointment/s.
• However, the mobile lender has become very unhappy that the call centre is making appointments with people
who are not ready to buy yet (many just want information).
• He is complaining that the call centre “is wasting his time” and wants something done about it!
Let’s Discuss…….
• Why is the salesperson unhappy in this situation?
• Would the call center staff be happy in always passing the sales inquiry to the
salesperson? Why?
• How did this disorganized situation occur? (Who’s at fault?)
• What would you recommend to improve this situation/practice?
Case Let
• Berkley -The IELTS coaching institute has always been on the forefront of new digital technologies.
In 2018, they found themselves betting on a new strategy for lead generation and nurturing.
• At the core of that strategy was content designed for their target market. They are producing
content around digital marketing, but it wasn’t reaching out to the right target customers, or
producing the high-quality leads they need.
• They were piecing together many different tools to service both themselves and their clients. This
included tools like MailChimp for email, Hootsuite for social media, Moz for SEO, and Google
Analytics for web analytics.
• There was no effective way to tie these tools together to see all of a prospect's interactions across
different channels. The owner explains that they had no idea who the people looking at those
posts were. Essentially, they knew there had to be a better way to identify and segment our
leads.
Case Let
• Mr. Prakash, who heads Berkley Marketer’s inbound strategy explains the challenge, “If we had
talked to prospects in the past and they re-engaged with our services or trainings, our current set
of tools didn’t give us that information.
• Our sales reps had to go through the entire qualification process again, which was almost like cold
calling, because there was no actual context once a rep got on the phone with someone.
• We were hungry for a technical solution that integrated all our customer data, and helped our
marketing and sales teams utilize that information for more personalized services.”
• Without a complete view of the customer and all their digital touch points, the team struggled to
align their efforts around one goal.
Tell……
Q.1 What is the problem in the case?
Q.2 What is inbound and outbound strategy?
Q.3 What is the solution for this problem?
Q.4 How can we increase customer experience?
MKT517
Customer Relationship
Management
What it’s all about?
Learning Outcome
Students will know about role of CRM systems in relationship
management and culture and structure of a relationship oriented
organisation
Recapitulate
• Winning and keeping profitable customer is a __________type of
CRM
A. Strategic
B. Analytical
C. Operational
D. All of the above
Tell
Organisations transforms customer related data into actionable insights
is _________type of CRM.
A. Strategic
B. Analytical
C. Operational
D. All of the above
According to your opinion, what are the key benefits of CRM?
Few Question….
• What characterizes the mission of the relationship-oriented
organisation applying a CRM strategy?
• What is characteristic for the culture of a relationship-oriented
organisation?
• What is the structure of a relationship-oriented organisation?
• What is the customer pyramid and how does it relate to the
organisation of relationship management?
• What is the role of CRM systems in relationship management?
Let’s Discuss
According to your opinion what is the relevance and benefits of a
relationship-oriented culture in a travel agency?
Here a few tips for your travel agency to become more relationship-oriented:
• Meet in person. Nothing beats face-to-face interactions. It is worth the extra time
and money.
• Choose your team according to those who adapt and are good at building
relationships.
• Always cooperate on a face-to-face basis to fasten the relationship-building
process.
• Help the same customer each time to demonstrate you want to engage in a long-
term relationship.
• Use the telephone, rather than e-mail, if you cannot meet in person. If necessary,
summarize the conversation in an e-mail.
• Send e-mails in a conversational manner, rather than just making use of bullet
points.
• Avoid rushing into decisions if the customer is not sure yet.
Source: ([Link], 2017)
Answer
• The supply chain becomes more effective, modernised and alert to rapidly
changing markets, technology, and customer needs.
• As trust and confidence within the working atmosphere growth, employees do
not simply propose improvements in on-going processes; they rather actively
reach out to their environment with new improvement options and plans that
make the company more market competitive.
• Even at the economic level, a well-organised culture leads to growth in
productivity and performance. A culture that intensely engages people is
understandably a lot more productive (Phegan, 2013).
The relationship-oriented culture
• ‘People dare to show their true selves.’
• People with ‘well-developed right brain hemispheres’
are deployed.
• Overtures are made in the proper manner; a
sufficient level of empathy is shown in the other.
• People come across as sincere.
Structure: organising around customers
The customer pyramid
People
Social competencies:
• the capacity for empathy;
• the ability to create congruence;
• the ability to use an unconditionally positive approach
to the other person.
From strategy to critical success factors
Balanced scorecard for a Japanese restaurant
10-47