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Customer Relationship Management (CRM)

MAKETING OF SERVICES
Faculty: HARSH V VERMA

MADE BY : Gaurav Dikshit Lalit M Sharma Satender

What Is CRM
Beyond mere Contact Management Most industries have CRM software to help sales process, on-going service, and even accounting CRM is development , maintenance, establishment, optimizing a long term beneficial relationship between customers and companies. CRM is a commitment of brands to put customer experience at the centre of priorities.

The Value of CRM


Gain more control in interaction with customers Manage expectations better Increase trust Competitive advantage Provide products that better serve customers Understand what customers really want Understand the nature of customer service

Customer Definitions
External Customers - Customers we do business with outside our organization. Internal Customers - The people we work with throughout our organization. Customer Attributes - Characteristics that allow customers to be categorized according to demographic, psychographic, or firmographic information.

Demographic Information

Characteristics such as:

age income marital status education stage in the family lifecycle home ownership

sex ZIP code occupation household size mobility patterns ethnic background religion

Psychographic Information
lifestyles modes of living needs motives attitudes reference groups culture social class family influences hobbies political affiliation etc.

Firmographic Information
Characteristics about a company such as:
how many employees they have; the kind of business they are in; whether they are retail, wholesale, or a service provider; their hours of operation

Why Is Excellent Customer Service so Rare?


Customer service is rare because it requires two things that the average person and organization are unwilling to commit to:
Spending money Taking action

The Five Needs of Every Customer


1. Service 2. Price 3. Quality 4. Action

5. Appreciation

From the Customers Perspective


What Is Customer Service? - Anything we do for the customer that enhances the customer experience. What is Customer Satisfaction? - The customers overall feeling of contentment with an interaction. What is Customer Expectations? - Customers personal vision of the result that is based on their experience. What is Customer Perceptions? - The way customers see something based on their experience

Levels of Expectations
Primary expectations: the customers most basic requirements of an interaction. Secondary expectations: expectations based on our previous experiences that are enhancements to our primary expectations.

Reputation Management
The process of identifying how a company is perceived and establishing an action plan to correct, maintain, or enhance the companys reputation.

A Company with a Good Reputation


Is very responsive to customers Is a company you can trust Delivers on its promises to customers Provides excellent value to customers Has excellent communications Is ethical and honest Conducts business in a human/caring way Has excellent top management Is able to adapt to changes in the industry Is a technological leader in the industry Is committed to the environment

Techniques for Exceeding Customers Expectations


Become familiar with your customers. Ask your customers what their expectations are. Tell your customers what they can expect. Live up to their expectations. Maintain consistency.

Credibility
Made up of the combination of our current knowledge, reputation, and professionalism.

Tips for Cultivating Credibility


Practice consistency Keep your word Develop your expertise Become a teammate with your co-workers Show your dedication to customers Treat all of your customers and co-workers with the same high level of respect Apologize if you are wrong Remember that credibility is much harder to regain than it is to keep

New Trends in Customer Service


Accessibility for the customer Immediacy of response Feedback from customer to customer service provider Outsourcing of all or part of customer service functions Nontraditional examples of customer service

Cost of Losing a Customer


We lose the current dollars that our business relationship created. We lose the jobs that our clients provide. We may suffer from a loss of reputation. We may lose the intangible variable of future business.

Customer Intelligence
The process of gathering information; building a historical database; and developing an understanding of current, potential, and lapsed customers.

Sources of Customer Intelligence


Method by which customers choose to conduct business Time of day that customers have questions Depth of their expected interactions Purchasing patterns Expectations

Challenging Customers
Those customers with problems, questions, fears, and personalities that require us to work to achieve true communication.

Respect To give someone special recognition or regard. EMPATHY The ability to understand what someone is experiencing and to take action to assist in resolving the situation. RESPOSIBILITY CHECK Assessing a situation and determining who should have responsibility and who really does have the responsibility.

What to do When You Are Wrong


Review the situation. Observe the customers reaction. Admit the mistake. Apologize for your actions or error. Find a solution and implement it.

Six Super Ways to Cope with Challenging Customers


1. Listen

2. Ask questions
3. Show empathy 4. Solve the problem 5. Follow up 6. End on a positive note

Relationship Marketing
Cultivating a lasting and mutually beneficial connection with customers.

Customer Retention
The continuous attempt to satisfy and keep current customers actively involved in conducting business.

The number of customers who leave a business in a years time divided by the number of new customers in the same period.

Churn (or Churn Rate)

Defection rate
The percentage of customers who leave a business in one year.

Customer Lifetime Value


The net present value of the profits a customer generates over the average customer life.

THANK YOU