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8/3/2019 Unit 5gsm Session Relationship Marketing
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RELATIONSHIP MARKETING
November 28th
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Relationship marketing
` Maintaining proper customer relationship management isessential to creating loyal and consistent customers.
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` The first step in managing a loyalty based businesssystem is finding and acquiring the right customers.
Frederick F Reichheld
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Rome was not built in a day
` There is an old saying, "Rome wasn't built in a day," andneither is customer loyalty. Customers become loyal to
your company and its products and services one
transaction at a time. In today's digitized world of ever-
expanding customer-touch tools, finding the right tool forthe right loyalty-building job can get downright confusing.
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Loyalty Stages
1. Suspect,
2. Prospect,
3. First-time customer,
4. Repeat customer,
5. Client and
6. Advocate.
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Suspect
` STAGE ONE - Suspects
Customer loyalty begins with a vision of the
customer. Concentrate your energy on those
prospects who can be developed into loyal
customers.
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` STAGE TWOProspects
Develop a plan for 'growing' loyal customers. You are
building a relationship and relationships take time togrow.
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` STAGE THREE
First time customers
First time customers are 'triers'.Exceed a first-time customer's
expectations and that buyer will
return
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` STAGE FOURRepeat customers.
Every customer experiences value differently.
Consistently delivering value from the customer's point ofview is the key to winning long-term loyalty.
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` STAGE FIVEClients
Partner with your clients and they will rewardyou with their loyalty. Partnering requires anintimate knowledge of where your client hasbeen and where he wants to go.
` Client - A client is a buyer who feels a real
commitment to buy from you and proves it bybuying every product or service of yours hethinks he can reasonably use. So how can youconsistently earn maximum share of wallet witha client? One way is to continually educateyour client about your full breadth of products
and services. Some savvy online merchants havedevised creative ways to reward clients fortheir willingness to try new products andservices
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` Loyalty Stage 6: Winning Advocates
and Keeping Them "Advocating"
` There is an important difference between a
client and an advocate. Advocates do more
than simply buy from you.
` Advocates are engaged customers who
demonstrate their vendor allegiance throughsuch activities as spreading positive word of
mouth, recruiting new prospects and helping
their vendors improve.
` Your best customers do not just buy fromyou...they spread the word about your
products and services! Make the most of all
referrals and appreciate them for the true
gifts they are.
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Relationship Sales: a sales process wherein you
becomes a partner" and an integral part to
the customers decision making process, adding
value at each step by helping him make a
matured buying decision by developing and
exploring options (as opposed to selling product)
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Relationship Selling
A sales practice that involves
building, maintaining, and enhancing
interactions with customers in orderto develop long-term satisfaction
through mutually beneficial
partnerships.
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Types of Sales
Channel SalesChannel Sales Relationship SalesRelationship Sales
CustomerinteractionCustomerinteraction
Non-customer facing Customer facing
Customer ProfileCustomer Profile MassHigh Net-worth
Individuals. /Niche
Operating CostOperating Cost Cost of channel Employee Cost
Type of ProductsType of ProductsFast moving products
And servicesConsultative Services
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Role of a Relationship Manager
` Adds value at each step of the decision making process ofthe client(as opposed to pushing for products)
` Help customers convert implied needs into concrete, statedneeds, which can be met by the seller with the mutuallyagreed upon "best fit" solution
` Product features/benefits are discussed later rather thansooner in the dialog
` More focus on developing client relationship that on justsales
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A Model for Relationship Selling and
Sales Management - Overview
Are customer-centricAre highly customer-oriented
Exhibit a customer mindset
Firms successful at relationship selling and
sales management:
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Customer Orientation
Focus on understanding customers requirementsGenerate an organization-wide understanding of the
marketplace
Respond effectively with innovative products and services
Firms that have a high level of customer
orientation:
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Test Your Customer Mindset
External Customer Mindset
1. I must understand the needs of my company's customers
2. It is critical to provide value to my company's customers
3. I am primarily interested in satisfying my company's customers
4. I must understand who buys my company's products/services
5. I can perform my job better if I understand the needs of mycompany's customer
6. Understanding my company's customers will help me do my jobbetter
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Test Your Customer Mindset
Internal Customer Mindset
Employees who receive my work are my customers
Meeting the needs of employees who receive my work is
critical to doing a good job
It is important to receive feedback from employees who
receive my workI focus on the requirements of the person who receives my
work
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ICICI Bank - Brand Perception
` What does the ICICI Bank brand stand for?
` What is the ICICI Bank personality?
` How do I feel when I introduce myself as part of TeamICICI Bank?
` Brand Association /Brand Expectations
` ICICI Bank Brand Promise Hum Hain Na
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Brand Expectations (Customer
expectations)
` Value me, my business,my time
` Understand me
` Be reliable
` Give me solutions, notexcuses
` Quick solution
` Prompt response
` Doing it right thefirst time
` Advise me. What are my
alternatives and
possibilities?
Customer
Service
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Identify your customer
Who does your customer resemble the most?
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A Model for Relationship Selling and
Sales Management - TheCustomer
The customer is at the center ofthe model
Return on customer investment
Lifetime value of a customer
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1. Doing ityourway, not the customers way
2. Focusing onyourobjectives, not the customers
3.
Pushing for a client meeting as though it is the endgame
4. Pushing the customer
6. Failing to listen
7. Keeping your sales strategysecret
8. Making the salethe goal
9. Giving too many or too few options
10. Writing off the customer too soon
Want to Think Like a Customer?
Mistakes to AvoidAlways
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A Model for Relationship Selling and
Sales Management ValueCreation
Valueis the bundle of benefitsthe customer derives from a
purchase
Give-get ratioValue creation - adding value for a
customer beyond an isolatedtransaction
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Time Investment in Each Stage of the Sale
Traditional selling
Value-added sellingDeveloping an understanding
of the buyers needs
Closing the sale
Presenting your solution
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A Model for Relationship Selling and
Sales Management Relationship Selling
Process elements of relationship selling:
Using information
Communicating the sales message
Negotiating for win-win solutions
Closing the sale and follow-up
Self-management
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`Attrition for first-year is more than twice due to:` Early problems that sour the relationship
` No formal servicing system
` Communication breakdowns
`Avoid the early break-up by:` Saying thank-you
` Seeking feedback early
` Responding quickly
The Importance of Follow-up
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The Firm
Components of the Internal
Environment
The
Customer
Goals, objectives, cultureGoals, objectives, culture
PersonnelPersonnel
Financial resourcesFinancial resources
Production and supply-chain capabilities
Production and supply-chain capabilities
R&D and technological
capabilities
R&D and technological
capabilities
Service capabilitiesService capabilities
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Internal Environment
Places the employee at the center of its businessmodel
Promotes funHires people by tryouts
Lends itself to a favorable service culture
Southwest Airlines' corporate environment
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The Firm
Components of the External
Environment
The
Customer
Legal and politicalLegal and political
TechnologicalTechnological
Social and culturalSocial and cultural
EconomicEconomic
NaturalNatural
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Role of technology
` Internet` Laptop, computers
` Mobile