CONTEN
PRINCIPLES OF MODULE 4 The Value of Customer Relations
T
MARKETING QUARTER 3 WEEK 4
Learning Competencies:
1. Understand and explain the value of customers.
Code: ABM_PM11-Icd-5
Customer Relations
Customer relations describes the ways that a company will engage with its
customers to improve the customer experience. This includes providing answers
to short-term roadblocks as well as proactively creating long-term solutions that
are geared towards customer success. Customer relations aims to create a
mutually beneficial relationship with the customer that extends beyond the initial
purchase.
Customer relations is present in all aspects of a business, but it's most prevalent
in the customer service department. Customer service teams, customer support,
customer success, and product development all play important roles in building a
healthy customer relationship. Customer relations also extend to marketing and
sales teams as well since these departments have a significant influence over
the company's interactions with the customer.
Functions of Customer Relations
Customer relations include both the reactive and proactive functions performed
by your customer service teams.
1. Reactive functions are the efforts made by your team to solve issues that
are reported by customers. This includes tasks like responding to customer
complaints and solving problems with the support team. Being able to solve
unexpected customer roadblocks is essential for brands that are looking to build
strong customer relationships.
2. Proactive functions are the measures taken to ensure a long-term
relationship with customers. These efforts are aimed towards fostering customer
success by consistently satisfying evolving customer needs. Customer success
teams do this by providing information about products and updates as well as by
promoting discounts and exclusive offers. This type of long-term customer
relationship management helps companies create lasting impressions on
customers who eventually become loyal to the brand.
Positive customer relations are long-term, mutually beneficial relationships
between a customer and a company. These relationships are built by creating a
stable environment of trust that results in the continued growth of both the
CONTEN
PRINCIPLES OF MODULE 4 The Value of Customer Relations
T
MARKETING QUARTER 3 WEEK 4
customer and the organization. Positive customer relations include consistent
quality of what the business is offering as well as how they are offering it the
customer.
Benefits of Positive Customer Relations
1. Customer Retention
Companies that do a better job of managing customer relations are more likely
to see higher customer retention rates. In fact, studies show that 61% of
customers stop buying from a company if they have a poor customer experience.
Customers know when your company is being genuine and are willing to
overlook your mistakes so long as you demonstrate a dedication to their success.
That type of transparency is essential when reducing churn as well as when
you're building a positive customer relationship. It can also be financially
beneficial too, as studies show increasing customer retention rates by just 5%
can increase your profits by 25% to 95%. 2. Customer Loyalty
When you have a good history with your customers, it makes it more difficult for
your competitors to lure people away from your brand. Customers loyalty is
highly valuable for businesses as repeat customers are more likely to buy from
you than leads that have not yet converted. Building positive customer relations
drives customer loyalty because it creates an intangible incentive for the
customer to return to the same business. Research even shows that 55% of
consumers will pay more money for a product or service if it's a guaranteed good
experience. While it may cost more for companies to invest in building positive
customer relations, the payoff in customer loyalty can be instrumental for
generating consistent revenue over time.
3. Customer Satisfaction
Often times it can be hard to tell whether your customers are truly happy with
your business or not. In fact, 91% of unhappy customers who don't complain
simply don't return to a company for another purchase. Having strong customer
relations can act as your insurance policy for preventing these unidentified
customers from churning without warning.
Positive customer relations give companies more insight into their customer's
problems because it creates an open channel of communication for relaying
CONTEN
PRINCIPLES OF MODULE 4 The Value of Customer Relations
T
MARKETING QUARTER 3 WEEK 4
customer feedback. This leads to better individual interactions with customers
which builds up trust over time and influences their buying decisions. Studies
have even found that consumers believe that a good experience with a company
has more influence over their purchase decision than advertising does. So while
the commercial of the cute dog may get a smile or two from your target
audience, customer satisfaction actually is the result of your brand creating
memorable customer experiences.
Performance Task:
Instructions
1. Choose one (1) business or organization that you are familiar with (local or
national).
2. In your own words, answer the following guide questions in paragraph
form:
1. What is customer relations?
2. Explain two (2) functions of customer relations (reactive and
proactive) used by the business.
3. Identify and explain three (3) benefits of positive customer relations
shown by the business (customer retention, loyalty, satisfaction).
4. Explain why customers are valuable to the success of the business.
3. Write 3–5 sentences per question.
4. Use clear, organized, and grammatically correct sentences.
Output Requirements:
Individual work (Written/Printed)
Properly Labeled
Subject: _____________________
Content: ____________________
Quarter: ____________________
Week: ______________________
Name: ______________________
Grade & Section: ____________
Submit on:
CONTEN
PRINCIPLES OF MODULE 4 The Value of Customer Relations
T
MARKETING QUARTER 3 WEEK 4
SCORING RUBRIC
Needs
Point
Criteria Excellent (5) Good (4) Fair (3) Improveme
s
nt (2–1)
Mostly
Understandin Clear, accurate,
correct Basic Incorrect or
g of Customer and well- /5
with minor understanding unclear
Relations explained
lapses
Correctly
Explanation One
explained both
of Customer function Limited Incorrect or
reactive and /5
Relations clearly explanation missing
proactive
Functions explained
functions
Identification
Clearly Explained
of Benefits of Explained one Incorrect or
explained all two /5
Customer benefit none
three benefits benefits
Relations
Insightful
Explanation
explanation Clear but Limited Incorrect or
of the Value /5
showing strong lacks depth explanation unclear
of Customers
understanding
Very well- Organized
Organization Some Poorly written
organized, neat, with minor /5
& Clarity disorganization and unclear
and clear errors
TOTAL /25