BUILDING CUSTOMER RELATIONSHIPS

Company fails to understand

Customers Accurately

because they fails to focus on Customer relationships

RELATIONSHIP MARKETING• Focus on Keeping & Improving Current

Customers• Customer refers to have ongoing

relationship• Focus on attracting customers but fails

in second step of follow up• Eg : Big Bucket

Goals Of Relationship Marketing• Build & Maintained a base of Committed

Customers who are profitable for the organization.

• Focus on Attraction, Retention, Enhancement of Customer Relationship.

• Once they are Attracted, they will be with org. for long time.

• Loyal customer are always better customer.• Represent Growth Potential.

Enhancing

Retaining

Satisfying

Getting

BENEFITS FOR CUSTOMERS AND FIRMSBENEFITS TO CUSTOMERS• Confidence Benefits• Social Benefits• Special treatment benefit

BENEFITS TO ORGANIZATION• Higher Return on Investment• Reduce Marketing• Increase in Revenue• Reduce administrative Cost• Free Ad – Word of Mouth• Employee Retention

RELEATIONSHIP VALUE OF CUSTOMERSFactors that Influence Relationship Value• Life time Value means life time profitability• One customer retention can increase profit.

Estimating Customer Lifetime Value• Design to retain customers• Value of retention of Each customer – More Focus

FOUNDATION OF RELATIONSHIP STRATEGIES

Quality in the core Service• Quality Service• Strategy for Retention for

Quality goods• Customer Satisfaction

FOUNDATION OF RELATIONSHIP STRATEGIES

Market segment and Targeting for Service

Step 1 Identifying bases for

segmenting the market

Step 2Develop

profiles of resulting segments

Step 3Develop

measure of segments

attractiveness

Step 4Select the

target Segments

Step 5Ensure that segments

are compatible

CUSTOMERS ARE NOT ALWAYS RIGHT• The wrong Segment• Not profitable in the Long Term• Difficult Customers• Should Firm Fire their

Customers ????

Customers Profitability SegmentsThe 80 / 20 Customer Pyramids

Most Profitable Customers

Least Profitable customers Other Customers

Best Customers

The Expanded Customer Pyramids

Most Profitable Customers

Least Profitable customers

Platinum

Gold

Iron

Lead

LEVELS OF RELATIONSHIP STRATEGIES

• Continuous Relationship• Person Relationship• Social Bonds among

customers

• Anticipation innovation• Mass Customization• Customer intimacy

• Volume & Frequency reward

• Bundling & Cross Selling

• Stable Pricing

• Integrated information system

• Joint investment• Shared process &

equipment4.

Structural Bonds

1. Financial Bonds

2. Social Bonds

3. Customization Bonds

Customer Appreciation

Thank you