How can companies attract and retain right customers and cultivate strong customer relationship?

How can companies attract and retain right customers and cultivate strong customer relationship?

Companies are using information about customers to enact precision marketing to build STRONG long term relationships.

Customer Relationship Management

CRM is process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyalty.

A customer TOUCH POINT is any occasion on which a customer encounters the brand and product from actual experiences to personal or mass communications to casual observation

Personalizing Marketing is about making sure the brand and its marketing are as relevant as possible to as many customers as possible---- a challenge given that NO TWO CUSTOMERS ARE IDENTICAL.

Companies use social media, call centers, database softwares to develop strong relationships.

TURN Customers

CLIENTS

into

Permission marketing:

Practise of marketing to consumers only after gaining their expressed permission.

One-to-one marketing:● Identify

prospects and customers

● differentiate in terms of needs and wants

● interact with individual customer

● customise services to each customer.

CUSTOMER EMPOWERMENT

The POWER is with CUSTOMERS.

Customer Reviews.

Recommendations either from customers or given to customers.

ATTRACTING NEW CUSTOMERS…

Developing ads, sending mails or salesperson.

● Define and measure its retention rate

● Distinguish causes and manage them better

● Compare lost customer’s lifetime value to costs of reducing defection.

REDUCING DEFECTION

RETENTION DYNAMICS

MANAGING CUSTOMER BASE Reducing rate of customer

deflection.Increasing longevity of customer relationshipEnhancing growth potential through

share of wallet, cross selling and up selling.Making low

profit customer profitable or terminating them.

Focussing disproportionate effort on high profit customer.

Building Loyalty

Interacting with customers

Developing loyalty programs like frequency program or club membership programs

Applying win back strategies to reattract ex-customers

Created by:

Saumya GuptaNIT SuratInternship under Prof. Sameer MathurIIM Lucknow

www.IIMinternship.com