Building Customer Relationships
Session Coverag ge
Bonding g with Customer CRM Process Framewor rk
Goal of CRM
Enhancing g
Retaining g Satisfying g
Attracting g
The CRM Process s
Learning about Customers 1. Knowledge Acquisition 2. Customer Differentiation
Customization of the Marketing Mix 1. Product / Services 2 Communications 2. 3. Channels 4. Price
IDIC Framework
IDIC framework ex xplains the process of converting existing customers into loyal customers. Identify Differentiate Interact Customize
The Ladder of Lo oyalty
Partner r Advocate e Supporter r Client t Customer r Prospect t
Customer Bonds
Integrated Information Systems Volume & Frequency Awards
Joint Investments Shared Processes & Equipment
Bundling & Cross Selling S bl Pricing Stable Pi i
4. Structural Bonds
1. Financial Bonds
Excellen nt Q Quality y & Value V
Involvement
3. Customization Bonds
Mass Customization Customer Intimacy
2. Social Bonds
Personal Relationship Social Bonds among customers
Continuous Relationship
Source : Berry & Parasuraman, 1991
Bonding for Customer Relati ionship
(Berry & Parasuraman)
Financial Bonds
Volume & Frequency q y Rewards Bundle & Cross selling Stable Pricing
Social Bonds
Personal Relationships p Continuous relationships Social Bonds among customers
Customisation Bonds
Customer intimacy Mass customisation A ti i ti /I Anticipation/Innovation ti
Structural Bonds
Integrated information systems Joint investments Sh d processes and Shared d equipment i t
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Customer Defection
Customers are profitable over a period of time. The e longer they stay t with ith an organisation, i ti the th more profitable fit bl th they are likely lik l to t be. Across industries profits can increase by 35 to 85 % by increasing customer retention by only 5%. About 70% customers switch to competitor offering gs because of perceived indifference of current provider. W hy customers defect?
C t Customers who h d defect f t can be categorised asPrice Defectors Product Defectors Service defectors Market defectors Technology defectors Organisational defectors
M e away Mov O Other friendships C Competition p product dissatisfaction P Perceived indifference
Customer Retention program
Measure Customer Retention
Interview former customers
Analyse com mplaint and servic ce data
Identify y switching g barriers
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Psychological steps across relationship sta ages
Relationship Stages
Prospect
Customer
Clien nt
Supporter
Advocate
Partner
Psychological steps
Initiation
Development
Maintenance/Enhancement
Switching
Satisfaction Trust
Commitment
Loyalty
Major role
Minor role
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Switching g
A prospect becomes a cust tomer
Satisfaction
Emotional state which occurs when product performance exceeds expectations
Trust
Satisfaction over multiple interactions, faith in offering o &consistency in performance performance, confidence in partner partners s reliability & integrity
Commitment
Loyalty
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Commitment
An enduring desire to maintain a relationship.
K variables Key i bl
Trust and commitment are key variables Preserve relationship investments with ith partners t Resist short term gains (lesser than expected benefits of staying on in a long term relationship) View potentially high risk actions p y expect p that as acceptable.They partners will not act opportunistic.
Attitude towards interacting with each other
Formation of bonds (legal,planning,knowledge, , , ) social,technical,structural)
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ICICI-khayal ICICI khayal aa apka series
ICICI Bank celebrates a customers birthday y ICICI Bank Representative tells an old lady that her papers regarding i her pension i would reach home ICICI prudential life insurance ad-where the soldier puts vermillion on his wifes head before leaving for work
ICICI retirement solutionssuraksha zindagi g ke har kadam par
The ICICI mission : When you bank with us we do realize that sometimes you do need to get your loved ones along We take great pride in making them feel as along. comfortable as possible. Apart from your banking needs, we understand your human needs too
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