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Marketing Lesson 3.pdf - Customer Relations Management...

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Unformatted text preview: Customer Relations Management OBJECTIVES: ● Identify the stages in Customer Relations Management. ● Distinguish the difference between Customer Service and Customer Relations ● Describe the process to be followed in creating an effective Relationship Marketing Strategy. Customer Relationship Management (CRM) ➢ is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer service relationships and assisting in customer retention and driving sales growth. Customer Lifecycle - describes the various stages a consumer goes through before, during and after they complete a transaction. Stages in the Customer Lifecyle 1. Reach - claim future customer’s attention; 2. Acquisition - bring them into a sphere of influence; 3. Conversion - turn them into a registered instead paying customer; 4. Retention - keep them as a customer 5. Loyalty/advocacy - turn them into a company advocate. What Is Customer Service? ➔ is the direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it. Basics of Good Customer Service ● Timely attention to issues raised by customers is critical. Requiring a customer to wait in line or sit on hold sours an interaction before it begins. ● Customer service should be a single-step process for the consumer. If a customer calls a helpline, the representative should whenever possible follow the problem through to its resolution. ● If a customer must be transferred to another department, the original representative should follow up with the customer to ensure that the problem was solved. What is Customer Relations? ➔ describes the ways that a company will engage with its customers to improve the customer experience. ➔ includes providing answers to short-term roadblocks as well as proactively creating long-term solutions that are geared towards customer success. ➔ aims to create a mutually beneficial relationship with the customer that extends beyond the initial purchase. Functions of Customer Relations Reactive Functions ➢ are the efforts made by your team to solve issues that are reported by customers. ➢ includes tasks like responding to customer complaints and solving problems with the support team. Being able to solve unexpected customer roadblocks is essential for brands that are looking to build strong customer relationships. Proactive Functions ➢ are the measures taken to ensure a long-term relationship with customers. ➢ aimed towards fostering customer success by consistently satisfying evolving customer needs. ➢ this can be done by providing information about products and updates as well as by promoting discounts and exclusive offers. This type of long-term customer relationship management helps companies create lasting impressions on customers who eventually become loyal to the brand. Customer Service vs. Customer Relations Customer Service ➔ ➔ ➔ is what the company provides to ensure customer success; is an inbound function that's now expected by customers at the first point of interaction with the business. are functions delivered in response to customer action. Customer Relations ➔ ➔ ➔ ➔ consists of both the inbound and outbound measures taken by the company. considers the organization's ability to react out to present issues as well as the approach to bettering future experiences. focuses on the proactive steps you're taking to engage customers and improve the customer experience. also includes the efforts made before and after customer interactions. Strategies in Developing Customer Relationship 1. Make every customer interaction count. 2. Follow through on commitment and claims about the products or services 3. Develop employees 4. Offer benefits and product value that responds to the customer’s desires. 5. Treat customers as individuals who are respected and valued. 6. Listen to customers. 7. Build a strong brand identity. 8. Surround customers with valuable information through social media and other online platform. 9. Reward loyal customers. 10. Create an interactive and up-to-date a website. What is Relationship Marketing? ➢ Includes activities aimed at developing and managing trusting and long-term relationships with larger customers. ➢ A strategy designed to foster customer loyalty, interaction and long-term engagement. ➢ Designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication. Relationship Marketing takes into consideration the following important information ● Customer profile ● Buying patterns ● History of Contacts (maintained in Sales Database) ● Assignment of account executives to major customers to fulfill their needs and maintain relationship Main Characteristics of Relationship Marketing (RM) ● Focuses on partners and customers rather than on the company’s products. ● Put more emphasis on customer retention and growth than on customer acquisition. ● Relies on cross-functional teams rather than on departmental-level work. ● Relies more on listening and learning than on talking. RM calls for new practices within the 4Ps Product ● ● More products are customized to the customer’s preferences. New products are developed and designed cooperatively with suppliers and distributors. Price ● ● Price is set based on the relationship with the customer and the bundle of features and services ordered by the customer. Business-to-business marketing, there is more negotiation because products are often designed for each customer. Place ● ● Favors more direct marketing to the customer, thus reducing the role of middlemen. Offers alternatives to customers to choose the way they want to order, pay for, receive, install and even repair the product. Promotion ● ● ● Favors more individual communication and dialogue with customers. Favors more integrated marketing communications to deliver the same promise and image to the customer. Sets up extranets with large customers to facilitate information exchange, joint planning, ordering and payments. BENEFITS OF RELATIONSHIP MARKETING ❖ Understanding customer characteristics ❖ Delivery and meeting expectations ❖ Repeat business ❖ Increasing customer base ❖ Reduced marketing costs ❖ Minimization of customer price sensitivity ❖ Prevents negative transition ❖ Identification with the company ❖ Word-of-mouth marketing ❖ Product market expansion References: ● Serrano, A.O.C. (2017). Principles of Marketing. Rm. 215 ICP ● Building, Cabildo St., Intramuros, Manila: Unlimited Books Library Services & Publishing, Inc. Online Sources: ● ● ...
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