Building Crm

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BUILDING CRM




OBJECTIVES OF THE MODULE At the end of this module, you will be able to explain Input for

acquisition, Prerequisites for effective acquisition, attention on

adoption process, Customer Interaction Management (CIM),

Routes to CIM, Online Interaction Tools, Offline Interaction

Tools, Stages in Customer Lifecycle, Status of Customers in

the Relationship Chain, Factors influencing CIM, EffectiveCustomer Relationship Building, Organisation, Inherent benefits

of Retaining Customers, Customer, Approach to Retention

Process, Stages of Retention In Customer Lifecycle, Sequences

in Retention Process, Perceptual Gaps in Retention, Gaps inCustomer Retention, Meeting Customer needs and its Impact

on Retention, Needs Determination Process for Customers,

Role of Satisfaction in the Retention Process, Customer

Satisfaction Expectations from Business,




OBJECTIVES OF THE MODULE CONTDCustomer Dissatisfaction, Retention centered Organisations,

Relationship through Loyalty, Loyalty Continuum, Process of

Brand Choice, Internal and External Factors, Customer

Loyalty and its types, Brand Switching Behaviour, Towards

Reaching Loyal Customers, Market Identification, Market

Expansion, Segmented and Target Market, ProspectiveCustomers, Customers, Market Identification, Market

Expansion, Segmented and Target Market, Prospective

Customers, Customers, Loyal Customer Ladder, Loyal

Customer, Lost Customer, Why do Customers need LoyalCustomers?, Recovery of Lost Customer, Why do Customers

defect?, Strategies to Prevent defection and recover lapsed

customers, Developing Barriers to Exit.




INPUT FOR AQUISITION The suspects.

The enquiries.

The lapsed customers.

The former customers.

The competitor¶s customers.

The competitor¶s lapsed customers.

The competitor¶s enquiries.

The competitor¶s former customer.

The referrals.

The existing buyers.




REQUISITES FOR EFFECTIVE ACQUISTION

Focussed Approach.

Providing a Win-Win Platform.

Initiate Forum for Communication Attempt to Minimise µFUD¶.

Projection of Benefits and not Products.

Contextual Application. Focus on Decision Process.




ATTENTION ON ADOPTION PROCESS

Focus on Options of Prospective

Customers.

Building up Publicity and Public Relations.

Concentration on existing Customers.

Process of Acquisition.

Influences of Acquisition.




CUSTOMER INTERACTION

MANAGEMENT(CIM) Customer Interaction Management constitutes

the customer relationship technologies with

additions of technology based interactive

solutions.

The interactive channels that are currently

available enable very effective customer

interactive communications which leads tocustomer interaction management which

further leads to relationship building.




CUSTOMER INTERACTION

MANAGEMENT CONTD

In view of the technology growth, the

interaction management is facilitated by

communication in terms of media, message,

speed, accuracy, distance, content, reach,repetition etc.

The customer interaction management stands

for intensive interaction between customers

and the organisation, which is supported bytechnology enabled mechanisms such as

internet.




ROUTES TO CIM

Online Route.

Offline Route.

Outsourcing.




ONLINE INTERACTION TOOLS

Interactive Website.

E-mails.

Web Communities.

Chat Rooms.




OFFLINE INTERACTION TOOLS Telephones.

Facsimile (Fax).

Face to Face interaction.

Interactive Television Network.

Mails and So on.




STAGES IN CUSTOMER LIFECYCLE

Acquisition.

Retention.

Attrition.

Defection.

Reacquisition.




STATUS OF CUSTOMERS IN

THE RELATIONSHIP CHAIN Stage 1

Strangers.

Stage 2 Prospects.

Stage 3.

Inactive Customers.

Stage 4

Active Customers.




FACTORS INFLUENCING CIM

Nature of Business.

Size of the Organisation.

Number of Customers.

Types of Customers.

Geographical Spread of Customers.

Frequency of Contact. Type of Product.




FACTORS INFLUENCING CIM CONTD

Technical Support Available.

Presales Interaction Required.

After sales Interaction required. Competitor¶s practice of interaction.

Extent of loyalty.

Status of Customers in the relationshipprocess.

Lifestyle of Customers.




EFFECTIVE CUSTOMER RELATIONSHIP

BUILDING

Key aspects needed for CIM.

Customer Database.

Customer Profiling.

Audit of Internal system and resources.

Electronic Data Interchange (EDI).

Application of Right Technology.

Active listening Mechanism.

Effective Networking.

Permission Approach. Building Virtual Relationship.

Focussing from Customer perspective.




UNDERSTANDING THE CIM

Who Buys?

How they Buy?

Where They Buy?

How frequently they buy?

When they buy? What is their profile?

What lifecycle they are in?

What is their perception?

What is their expectation?

What are frequently asked questions?

What is their value for money?

What is their value for time and so on?




INHERENT BENEFITS OF RETAINING CUSTOMERS

Customer by Chance.

Customer by Occasion.

Customer by Choice.

Customer by Repetition.

Customer by Loyalty.




A CUSTOMER IS An asset.

An ambassador.

An experience shaper.

A winning edge. A knowledge provider.

A spokesperson.

A driving force.

A caretaker. A resource provider.

A partner .




IMPORTANCE OF CUSTOMERRETENTION

Top 20% of the customers deliver 80% of the revenue.

Existing customers contributes upto 90% of the

revenue.

Top 20% of the customers deliver more than 100% of the profit.

The bulk of marketing benefit is often spent on people

other than customers.

Between 5% and 30% of all customers have the

potential for moving upward the loyalty ladder.

2% upward migration in the loyalty ladder means 10%

more revenue and 50% more profits.




APPROACH TO RETENTION PROCESS At the acquisition the focus is on acquiring relationships

whereas at the retention, it is on nurturing the relationship.

At the acquisition the focus is on demographic,psychographic profile of customers , whereas at the

retention process the focus is more on past and presenttransactional profiles in addition to demographic andpsychographic profiles , etc.

While at the acquisition process the customer is mainlydriven by offer and incentives, at the retention process

the customer is driven by the type and extent of relationship maintained by the organisation for furtheringtheir relationship.




STAGES OF RETENTION IN THE

CUSTOMER LIFE CYCLE

ACQUISITION.

RETENTION.

ATTRITION.

DEFECTION.

REACQUISITION.




SEQUENCES IN RETENTION PROCESS

EXPLORING.

EVALUATING.

ESTABLISHING STRATEGIES.

EXAMINING FEEDBACK.

ATTRITION ± THE NEGATIVE SIGNAL TO RETENTION.

HANDLING COMPLAINTS TOWARDS IMPROVING

RETENTION.




PERCEPTUAL GAPS AND RETENTION

PERCEPTUAL.

PROCEDURAL.

PROMOTIONAL.

POSITIONAL.




GAPS IN CUSTOMER RETENTION

BUSINESS CUSTOMER

What the business thinks the

customer wants?

What the customer actually

wants?

What the business thinks a

Customer has bought ?

What the Customer has perceived

that he/she has received ?

What the business provides ?What the customer actually

received?

The expected service whichthe business provides.

The delivered service receivedby the customer.

The marketing promises of the

business.The actual delivery to the customer.




GAPS IN CUSTOMER RETENTION CONTD

CUSTOMER BUSINESS

What the business perceives as

a suitable method for distribution.What the customer receives.

What the business perceives in its

positional strategy.What is reached to the customer.

What the business communicates What is communicated to thecustomer.




MEETING CUSTOMER NEEDS AND ITS

IMPACT ON RETENTION BASIC NEEDS.

ARTICULATED NEEDS.

EXCITING NEEDS.

BASED ON LIFE STATUS.

LIFE MAINTAING NEEDS.

LIFE ENHANCING NEEDS.

LIFE CHANGING NEEDS.

BASED ON TIME.

EXISTING NEEDS.

FUTURE NEEDS.

BASED ON CONDITIONS.

EMOTIONAL NEEDS.

RATIONAL NEEDS.




NEED DETERMINATION PROCESS FOR

CUSTOMERS

CAPTURING.

CLARIFYING.

CODIFYING.

CONDENSING.

CONTINUING.




ROLE OF SATISFACTION IN THE

RETENTION PROCESS PRODUCT SATISFACTION.

PERIPHERAL SATISFACTION.

AMBIENCE SATISFACTION.

PSYCHIC SATISFACTION.




CUSTOMER SATIFACTION

EXPECTATIONS FROM BUSINESS

EXPECTED SATISFACTION.

DESIRED SATISFACTION.

EXCITING SATISFACTION.




CUSTOMER DISSATISFACTION

REJECTION.

POSTPONEMENT.

SUBSTITUTION.




RETENTION CENTRED ORGANISATIONS

CONTD

ORGANISATIONS MUST HAVE THE MECHANISM TO TRACK

ATTRITION SIGNALS.

ORGANISATIONS SHOULD FOCUS ATTENTION ON FORMER

CUSTOMERS AND LOST CUSTOMERS.

ORGANISATIONS SHOULD PRACTICE TOTAL QUALITY

MARKETING WITH EMPHASIS ON INTERNAL MARKETING.

ORGANISATIONS SHOULD ENCOURAGE ALL EMPLOYEES

TOWARDS ACTIVE LISTENING TO CUSTOMERS

GRIEVANCES.





CONTD

ORGANISATIONS IN ADDITION TO REGULAR RESEARCH

SHOULD ENCOURAGE HANDS ON RESEARCH ON CUSTOMER

RELATED PROBLEMS.

ORGANISATIONS SHOULD ENCOURAGE REGULAR

CUSTOMER CONTACT PROGRAMMES.

ORGANISATIONS SHOULD DEVELOP EFFECTIVECOMMUNICATION SYSTEMS WITH INTERNAL CUSTOMERS

( EMPLOYEE), INTERMEDIATE CUSTOMERS ( MIDDLEMEN),

AND EXTERNAL CUSTOMERS(END USERS).





CONTD

ORGANISATIONS SHOULD EMPOWER EMPLOYEES AT

VARIOUS LEVELSSO AS TO ARRIVE AT APPROPRIATE

ACTIONS IN TERMS OF IMPROVING THE LEVEL OF

CUSTOMER SATISFACTION.

ORGANISATIONS SHOULD FOCUS ON EFFECTIVE TEAM

WORK , WITH THE OBJECTIVE OF CUSTOMER RETENTION.

ORGANISATIONS SHOULD FURTHER EMERGE INTO A

MARKET INTELLIGENT ENTERPRISE.





LEARNING ORGANISATION.

CHARACTERISTICS OF A MARKET LEADER.

INNOVATIVE ORGANISATION.

EFFECTIVE CUSTOMER CARE PROGRAM ± ORGANISATIONS.

EFFECTIVE COMPLAINT MANAGEMENT SYSTEMS FOR

CUSTOMERS.

TOTAL EMPLOYEE INVOLVEMENT IN CUSTOMER CARE.

BUSINESS STRATEGIES WHICH ARE CUSTOMER CENTRIC.




RELATIONSHIP THROUGH LOYALTY UNDERSTANDING BRAND.

THE PROCESS OF BRAND CHOICE.

CUSTOMER LOYALTY AND THEIR TYPES.

LOYALTY TOWARDS BRANDS.

THE BRAND SWITCHING BEHAVIOUR.

TOWARDS REACHING LOYAL CUSTOMERS.

THE LOYAL CUSTOMER LADDER.




PROCESS OF BRAND CHOICE

TOTAL BRANDS

AWARENESS BRANDS

CONSIDERED BRANDS

CHOICE BRANDS

DECIDED BRAND




INTERNAL AND EXTERNAL FACTORS INTERNAL FACTORS

Perception.

Motives.

Personality.

Self-Image.

Attitude.

Learning etc. EXTERNAL FACTORS

Culture.

Group Behaviour.

Family.

Role Relationship.

Economic Status.

Lifestyle.

Communication etc.




CUSTOMER LOYALTY AND THE TYPES

LOYALTY TOWARDS BRANDS.

LOYALTY TOWARDS STORES.

LOYALTY TOWARDS ORGANISATION.

LOYALTY TOWARDS SALESPERSONS.

LOYALTY TOWARDS ANY OTHER RELATED ASPECT IN THE PROCESS OF PURCHASE AND

CONSUMPTION.




BRAND SWITCHING BEHAVIOUR

DISSATISFACTION WITH THE PRESENTBRAND.

CHANGES IN FASHION.

PROMISES MADE BY COMPETITORS. CHANGES IN THE PERCEIVED BENEFITS.

PERSONAL CHARACTERISTICS OF THECUSTOMER CONCERNED.

PRESSURE OF SALESPERSONS. PERSONAL REASONS.




TOWARDS REACHING LOYAL CUSTOMERS

MARKET IDENTIFICATION

SEGMENTED AND TARGETED MARKET

PROSPECTIVE CUSTOMERS

CUSTOMERS

LOYAL CUSTOMERS




MARKET IDENTIFICATION MARKET IDENTIFICATION.

MARKET ENTRY.

MARKET EXISTENCE AND

MARKET EXPANSION.

MARKET SHARE.

MAR

KET LEADER.

MARKET CHALLENGER.

MARKET FOLLOWER.

MARKET NICHER.




MARKET EXPANSION MARKET PENETRATION.

PRODUCT DEVELOPMENT.

MARKET DEVELOPMENT AND

DIVERSIFICATION.




SEGMENTED AND TARGET MARKET

AGE.

MARITAL STATUS.

INCOME.

GENDER.

LOCATION.

VOLUME OF PURCHASE.

TYPE OF CUSTOMERS.

BUYING HABITS.

LIFESTYLE. BENEFIT EXPECTED.

EXTENT OF LOYALTY.




PROSPECTIVE CUSTOMERS

REFERRAL LETTERS.

THROUGH FRIENDS AND RELATIVES.

VARIOUS DIRECTORIES.

THROUGH TRADE DIRECTORIES.

ADVERTISEMENTS.

BLIND TELEPHONE CALLS.

DEVELOPING DATABASE.

COLD CANVASSING.

FOLLOW UP OF THE COMPETITOR¶S CUSTOMERS. CUSTOMERS OF RELATED PRODUCTS ETC.




CUSTOMERS

IDENTIFICATION OF PROSPECTS

CATEGORISATION OF PROSPECTS

CONVERSION OF PROSPECTS INTO CUSTOMERS

CONVERSION OF CUSTOMERS TO LOYAL CUSTOMERS




LOYAL CUSTOMER LADDER CUSTOMER BY CHANCE.

CUSTOMER BY OCCASION.

CUSTOMER BY CHOICE.

CUSTOMER BY REPETITION.

CUSTOMER BY INSISTENCE.

CUSTOMER BY LOYALTY.




LOYAL CUSTOMER NEW CUSTOMER BY CHANCE.

CUSTOMER BY OCCASION.

CUSTOMER BY CHOICE.

CUSTOMER BY INSISITENCE.

CUSTOMER BY LOYALTY.




LOST CUSTOMER

NEW CUSTOMER BY CHANCE.

DISAPPOINTED CUSTOMER.

DISSATISFIED CUSTOMER.

LAPSED CUSTOMER.

LOST CUSTOMER.

WHY DO ORGANISATIONS NEED




WHY DO ORGANISATIONS NEED

LOYAL CUSTOMERS? THE PARTNER.

THE ADVISOR.

THE CUSTODIAN.

THE RESOURCE PROVIDER.

THE CHANGE DRIVER.

THE EXPERIENCE SHAPER.




RECOVERY OF LAPSED CUSTOMERS

STABLE CUSTOMERS.

GROOMING CUSTOMERS.

SEASONAL CUSTOMERS.

LAPSED CUSTOMERS.




WHY DO CUSTOMERS DEFECT?

THE CUSTOMERS¶ SPECIFIC NEED HAS NOT BEENFULFILLED.

THEY MOVED OVER TO THE DIFFERENT PRODUCT

CATEGORY.

DISSATISFIED WITH THE ELEMENTS OF MARKETING MIX.

PERCEIVED BETTER VALUE FOR MONEY FROM THE

COMPETITOR¶S OFFERINGS.

DEVELOPED MISUNDERSTANDING WITH THE VALUEDELIVERY SYSTEM.




WHY DO CUSTOMERS DEFECT?

DISPLEASURE AT THE POINT OF PURCHASE. DISSATISFIED WITH THE PERFORMANCE OF

AFTER SALES SERVICES.

INHERENT FEELINGS OF INDIVIDUALS TO TRY

NEW PRODUCTS. COMPULSION DUE TO TECHNOLOGICAL AND

ENVIRONMENT FORMS

INDUCED BY CHANGING LIFESTYLE AND

STAGES IN THE LIFECYCLE.

DEMOGRAPHICALLY MOVED AWAY FROM THE

MARKET PLACE.

PERSONAL REASONS.

STRATEGIES TO PREVENT DEFECTION AND





RECOVER LAPSED CUSTOMERS

TOTAL KNOWLEDGE ABOUT CUSTOMER

BEHAVIOUR.

INTERACTIVE COMMUNICATION SYSTEM.

SPECIAL PROMOTION CAMPAIGN.

DEVELOPING BARRIERS TO EXIT.

KNOWLEDGE ABOUT LIFESTYLE AND LIFECYCLE.

ESTABLISH MEASUREMENT SYSTEM.

ATTEMPT TO TRACK LOSSES.




RECOVER LAPSED CUSTOMERS CONTD

CUSTOMERS SPECIFIC APPROACH.

CUSTOMER WIN-BACK PROGRAMMES.

BUILDING CUSTOMER CARE TEAM.

DEVELOPING BONDAGE WITH CUSTOMERS.

IMPROVEMENT OF VALUE DELIVERY SYSTEM.

PRACTICE OF EXPERIENTIAL MARKETING.

BENCHMARKING OF PRACTICES.

CONTINUOUS IMPROVEMENT.





DEVELOPING BARRIERS TO EXIT EMOTIONAL APPEAL.

CONFORMATION TO SPECIFICATION. DURABILITY.

LIFETIME UTILITY.

SOCIAL RELATIONSHIP.

FLEXIBILITY.

ADDED VALUE.

CONCESSIONAL PRICE SCHEMES.

COMMITMENT.

INNOVATIVE APPROACH.

REDUCING RIS

K.

AVOIDING THREAT.

HOLISTIC CARE.



SUMMING UP After completion of the module, you will be able to explain Input for

Acquisition, Prerequisites for effective acquisition, attention on adoption

process, Customer Interaction Management (CIM), Routes to CIM, Online

Interaction Tools, Offline Interaction Tools, Stages in Customer Lifecycle,

Status of Customers in the Relationship Chain, Factors influencing CIM,

Effective Customer Relationship Building, Organisation, Inherent benefits

of Retaining Customers, Customer, Approach to Retention Process,

Stages of Retention In Customer Lifecycle, Sequences in Retention

Process, Perceptual Gaps in Retention, Gaps in Customer Retention,

Meeting Customer needs and its Impact on Retention, NeedsDetermination Process for Customers, Role of Satisfaction in the

Retention Process, Customer Satisfaction Expectations from Business,




SUMMING UP CONTDCustomer Dissatisfaction, Retention centered Organisations,

Relationship through Loyalty, Loyalty Continuum, Process of Brand

Choice, Internal and External Factors, Customer Loyalty and its

types, Brand Switching Behaviour, Towards Reaching Loyal

Customers, Market Identification, Market Expansion, Segmented and

Target Market, Prospective Customers, Customers, Market

Identification, Market Expansion, Segmented and Target Market,

Prospective Customers, Customers, Loyal Customer Ladder, Loyal

Customer, Lost Customer, Why do Customers need Loyal

Customers?, Recovery of Lost Customer, Why do Customersdefect?, Strategies to prevent defection and recover lapsed

customers, Developing Barriers to Exit.





QUESTIONS ??




THANK YOU

Building Crm

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