MKT610 Official Handouts

ABLE OF CONTENTS · CUSTOMER SERVICES · HISTORY OF CUSTOMER SERVICE · CUSTOMER COMPLAINTS · IMPLEMENTING CRM

HOW TO CONSTRUCT CRM PROGRAM?

HOW TO CONSTRUCT CRM PROGRAM?

IMPROVING CUSTOMER RELATIONSHIPS · GENERAL TIPS TO KEEP YOUR CUSTOMERS SATISFIED · CUSTOMER SERVICE TRAINING WORKSHOP · CUSTOMER SERVICE TRAINING WORKSHOP · STRATEGIC MANAGEMENT · STRATEGY IMPLEMENTATION INVOLVES

REASONS WHY STRATEGIC PLANS FAIL?

SPECIFIC SKILLS FOR CRM · CUSTOMER RETENTION · CUSTOMER LOYALTY AND ITS TYPES · CUSTOMER LOYALTY

WHY DO CUSTOMERS DEFECT?

PUBLIC RELATIONS · PUBLIC RELATIONS · CRM- ONE- TO-ONE MARKETING TO THE NEXT LEVEL · APPLYING CUSTOMER RELATIONSHIP MANAGEMENT · CRM CONCEPTS · CRM FUNCTIONS · CRM-Based Marketing and Sales · PERSONALIZING WEB SITE · AN INSIGHT INTO CRM AND ECRM · WHAT IS ECRM · CRM APPLICATIONS AND OBJECTIVES · INTRODUCTION AND OBJECTIVES OF A CRM PROCESS

Marketing is one of the new discoveries in business management. Of late, marketing has come to occupy significant position in the overall strategic studies. Various challenges are emerging in marketing as well as new approaches are being made in its study to view its different aspects Of the many things it has been recently realized that customer is the most important elements in marketing and its sustenance and retention is far more important than any other marketing functions The approaches in marketing functions are constantly changing in tune to the challenges at the marketing fronts. At one time acquiring new c customers was the challenge before marketers. New markets, new areas, new world was the name of the game. Today, marketers are faced with retaining customers as much as challenging as acquiring. Thus traditional approach is insufficient to achieve marketing goals. New approach to marketing was desired. Hence the focus was shifted to customers from markets. The entire importance is now given to customers rather than other things. Indeed, other things are important but focus shifts to customer as a unit. Hence customer relationship was introduced as a tool to run business profitably and smoothly.

Today, Customer Relationship has evolved as a separate discipline and termed after its name. We must first draw difference between the two: Traditional marketing approach Customer Relationship Marketing approach (CRM)

CRM is different from Traditional marketing approach in the following ways:

The focus of Traditional Marketing approach is on individual transaction and does not concern continuous relationship with customers. The thrust of TM is on gaining new and more customers and not on retaining existing ones. Whereas CRM focuses on continuous multiple transactions, rather than individuals ones. CRM focuses more widely on customers and entire functions connected with value creation and delivery of chain of organization. CRM attracts, maintains and enhances relationship as viewed by various thinkers. CRM is sel ing by using psychology rather than economic inducements to attract and retaining customers.

Defined:

Customer Relationship Management (CRM) acquiring customers by understanding and fulfilling their requirements more than expectations and attracting customers through specific strategic marketing approach --- it is a process of total commitment on the part of organization--- It includes the Methodologies and Strategies and Capabilities that help an enterprise organize and manage Customer Relationships. It is the col ection and distribution of all data to all areas of the business. From above definition, it is clear that CRM is one step ahead of traditional marketing approach. CRM infect, focuses all direction to retention of the customer –once the customer has been acquired

The General Purpose of CRM is to enable:

Organizations to better manage their customers through the introduction of reliable systems and methods. This enables organizations to service their existing customers more emphatically and more forcefully Develop processes and procedures for interacting with those customers. So that the customer is provided services under the framework of systems and regulations. We will study all these systems to ensure a continuous system to keep our customers wel –serviced.

Major Areas of CRM focus on:

Generation and servicing more loyal customers. Expansion of customer base Reduction of advertising costs Increase in profitable customers Ease in introduction of new products Personal Information Gathering and Processing, Self-Service. Let us briefly review each one of the above to get to know on what areas we will concentrate. Categories the customers into at least three categories, the casual customers, regular customers and loyal customers. Customers are those who would not switch over to competitors, no matter what. Casual and regular customers are relatively vulnerable. Organizations must identify these loyal customers and service them meticulously. Also organizations must make special efforts to shift more and more regular customers into loyal its, so that list can be enhanced to assure volumes. This will lead to enhancing customer base and customer bank. Then advertising cost will be reduced. Because, each customer would be publicity house it. That would make a reputation in the market and community It attempts to integrate and automate the various customer serving processes within a company.

Why organizations lose their customers?

Price related reasons Product related reasons Service-related reasons Benefit –related reasons Competitor reasons Personal reasons Price is one of the most important reasons of losing a customer, all around the world. Discounts offered, special price, rebate incentives are the offerings which comes often. Take an example of mobile phone companies in Pakistan. Offering lower rates on per call basis is the most attractive things for customers. Yes, we all do need good service as wel . But then how many different services are or can be offered. Customers tend to economies, even if they have to compromise little bit on product price or offering. Similarly, product related difference. Product and service offerings attract customers and they would switch over to other products or brands if product offered is of better quality and has some extra benefits and services. We notice now that most products show special benefits to customers, even it means an image. And they very strongly advertise that. Of course we cannot rule out personal reasons for defecting. Contacts, group decisions, or prestige carries a lot of weight in switch over Indeed, in some cases, competitors are very closely fol owing up the offering. They come up with a better quality product or service package to combat competition and to better their own brand and image in the market. Take the case of cel ular phones in Pakistan again. Intense warfare is going on with offerings and counter-offerings of price and service package, including billing.