Customer Relationship
Management
Customer
• Entity that receives or consumes products (
goods or services) and has the ability to
choose between different products and
suppliers
• The slogan "customer is king" or "customer is
God" or "the customer is always right"
indicate the importance of customers to
businesses
ACTIVITY - 1
Who is a customer?
Define in your terms
Customer
• Who is the Customer?
– Customer is someone with a problem or a
need and he comes to you for a resolution of
his problem or fulfillment of his need and is
willing to pay the price for your solution.
• What solution is provided and how it is
provided determines the value for
customer
ACTIVITY - 2
What determines value for customer?
Value for Customer
What solution is provided and how it is provided
determines the value for customer
Importance of Customer?
• the most important person in any business.
• the ultimate boss who can fire anyone by not coming to us
• is not an interruption of work. He is the purpose of the
organizational existence.
• aren't doing him a favor by waiting on him.
He is doing a favor by visiting
• is a stakeholder of business - not an outsider.
• is not just money in the cash register. He is a human being
with feelings and deserves to be treated with respect.
ACTIVITY - 3
Define What?
Define How? (at the end)
ACTIVITY - 3
The What for following
• Automobile servicing
• School (Play and Primary)
• Restaurant - Any
• Security Services
• Shopping Mall
• Beauty parlor
• Sports Club
• Property broker
• Travel Agent
• Gym
•
So what customer Service is?
ACTIVITY - 4
What according to you is Customer
Service?
Customer Service is ……….
• "the ability to provide a service or product in the way
that it has been promised“
• “about treating others as you would like to be
treated yourself”
• “an organization's ability to supply their customers'
wants and needs”
• “a phrase that is used to describe the process of
taking care of our customers in a positive manner"
Is customer Service Concerned
about
Quality
What is Quality
Quality = Performance / Expectation
Criteria of Quality?
Quality in a service or product is not what you
put into it. It is what the client or customer
gets out of it.
ACTIVITY - 5
What are Customer’s Expectations for
Customer Service?
The Measures
Customer Loyalty Vs. Satisfaction
Customer Customer Customer
Expectations Satisfaction Loyalty
Not meeting
Dissatisfaction Defection
expectations
Meeting Satisfaction, but
Variety Seeking
expectations “taken for granted”
Exceeding Enthusiasm & Customer Loyalty
expectation Surprise
The FRIES of Customer Service
• F is for Friendliness
• R is for Reassurance
• I is for Information
• E is for Extra mile
• S is for Sincerity
Impact of Good and Bad
Customer Services on a
Business
Cost of a Negative Experience…
Some facts
96% of the customers who have had a bad experience will not
complain… 90% of these customers will not return.
On average, customers who have had a bad experience will tell at
least 9 other people.
For every customer who complains, there are 26 other customers
who have had similar problems.
Are we Leading the
Customer Services or just
Managing the Customer?
Service Quality Culture
• Where serving customer is primary business
objective
• Where everyone takes personal responsibility and
initiative for providing quality services
• Where managers ensure that the staff gives
customers more importance than their bosses
• Where staff support each other and depts.
collaborate rather than compete.
• Where customer complaints are considered as
opportunities to improve
How does a customer perceive
a caring Organization?
• Customer-focused Organization
• Convenient
• Respons
• Appreciates/ • Transparent
• Values • Take • (fees, rates,
• Ownership • policies)
• Customers
So based on Services and
Customer let’s understand
Customer Relationship Management
Customer Relationship Management (CRM)?
CRM is
the development and maintenance of
1. Mutually beneficial long-term relationships with
2. strategically significant customers
which identifies, develops, integrates and focuses
various competencies of the firm to the
3. ‘Voice’ of the customer in order to deliver
4. Long-term superior customer value, at a profit to
5. Well identified existing and potential customers
The Understanding
Business philosophy based on individual customers and customised
products and services supported by open lines of communication and
feedback that mutually benefit both buyer and Seller .
The buyer and seller enter into a “learning relationship”
• Customer being willing to collaborate with the seller and grow as a
loyal customer.
• In return,, the seller works to maximize the value of the
relationship for the customer’s benefit.
SO WHAT CRM PROVIDES?
CRM provides selling organisations with the
platform to obtain a competitive advantage
by embracing customer needs and building
value-driven long-term relationships.
Determinants of CRM
Trust
The willingness to rely on the ability, integrity, and motivation of the
company to serve the needs of the customer as agreed upon
implicitly and explicitly.
Value
The ability of a selling organisation to satisfy the needs of the customer
at a comparatively lower cost or higher benefit than that offered by
competitors and measured in monetary, temporal, functional and
psychological terms.
Determinants of CRM 2
In addition to trust and value, organisation
must:
• Understand customer needs and problems;
• Meet their commitments;
• Provide superior after sales support;
• Make sure that the customer is always told the truth
(must be honest); and
• Have a passionate interest in establishing and retaining a
long-term relationship (e.g., have long-term perspective).
Stages in the development of a Customer Relationship
The Pre-relationship Stage
The event that triggers a buyer to seek a new seller.
The Early Stage
Experience is accumulated between the buyer and seller although
a great degree of uncertainty and distance exists.
The Development Stage
Increased levels of transactions lead to a higher degree of
commitment and the distance is reduced to a social exchange.
The Long-term Stage
Characterised by the buyer and seller’s mutual importance to each
other.
3 Important Points
• The Most Important Goal is – CREATE & KEEP THE
CUSTOMER
• Not To sell – Help Them To buy
• People love to buy – Hate to be sold
Why customer Buy?
• Good feeling
• Solution to problem;
Problem = What they want – What
they Have
The right touch
• Should ensure that customer get the
values of money
• The problem solving approach –Pay
attention to the customer then the
goods
Remember ACTIVITY - 3
where you Define What?
Can you define what as a Solution to
Problem? for
• Automobile servicing
• School (Play and Primary)
• Restaurant - Any
• Security Services
• Shopping Mall
• Beauty parlor
• Sports Club
• Property broker
• Travel Agent
• Gym
ACTIVITY – 3 -continue
How?
Define as CRM perspective
