Customer

Relationship
Management
MARCO, LYCKA R.
MBBA
 By the end of the lecture,
students should be able to:
Define the term CRM.

Learning Give & explain the benefits of

CRM.

Outcomes Give the reasons for lose of

customers by an enterprise.
Provide solutions to maintain
different customers by any
business organization.
Introduction
Customer relationship
management is a very
important concept in modern
marketing and maintaining the
value chain in Operations
Management.
Customer relationship management is defined as the
overall process of building and maintaining profitable
customer relationship by delivering superior customer
value and satisfaction.
 CUSTOMER RELATIONSHIP
EVOLUTION EXPLORATION
Relationship with
AWARENESS
customers can
EXPANSION
change from time to
time and evolves in COMMITMENT
the following DISSOLUTION
stages:
EXPLORATION AWARENESS
Investigates or tests the The customer understands the
supplier’s capabilities and motivational values of supplier
performance. or the products.

EXPANSION COMMITMENT
The supplier wins customer’s Adapting business rules and
faith and customer falls under goal to excel.
huge interdependence of the
supplier.

DISSOLUTION
End of relationship.
Essentials TRUST COMMITMENT
of customer Confidence and There exists mutual

relationship security in any

relationship built
trust and the two
parties share each
when they other’s values. In a
committed
experience flawless
relationship both the
and satisfied
supplier and customer
motives between
strive to uphold the
each other. relationship and never
want to exit which in
turn results in building
the relationship
stronger and sharper.
Customer value
Customer value is the
customer evaluation of the
difference between all the
benefits and all the cost of a
market offering relative to
those of the competitors.

Superior customer value creates

highly satisfied customers who stay
loyal and buy more.
 Focus on value
Compete on value not price.
Look through your customers
eye.
Make your customer
successful.
Reduce cost
Give them something extra.
Create customer loyalty and
retention.

Process of Grow share of customer.

Build customer equity.
Capturing value Build the right relationship

from customers with the right customer.

 Note:  Not all customers, not
even loyal customers are good
Building investments.

the right Customers are classified into

four relationship groups,
relationship according to their profitability
with the right and projected loyalty.
Strangers
customer Butterflies
True friends
Barnacles
 CUSTOMER
Four Relationship Groups

STRANGERS BUTTERFLIES
Strangers show low Butterflies are potentially
potential profitability and profitable, but not loyal.
little projected loyalty.

TRUE FRIENDS BARNACLES

True friends are both Barnacles are highly loyal,
profitable and loyal. but not profitable.
Customer Relationship
Marketing (CRM)
Identifying and establishing,
maintaining and enhancing,
and, when necessary, also
terminating relationships
with customers and other
stakeholders, at a profit,
so that the objectives of all
parties are met, through a
mutual exchange and
fulfillment of promises.
CUSTOMER
SATISFACTION
MANAGEMENT
(CSM)

A program that focuses on identifying

key performance areas to meet or
exceed the average customer’s
expectations.
TOTAL CUSTOMER
SATISFACTION
Providing a good or The long term relationship of the
service that fully and customer and the lifetime value of the
without reservation customer future purchases is threatened
conforms to the unless everyone works together to
customer’s provide customer value before, during
requirements. and after each purchase.
VALUE
Part of customer expectations,
which are a combination of cost,
time, quantity, quality, and human
factors.

The challenges for providing value

among others are:
◦ Escalating customer expectations
◦ Competitiveforces
◦ Cost pressures
CUSTOMER CARE
GOLDEN RULES
It costs far more to gain a new
customer than it does to retain
an existing one.
Unless you recover the situation
quickly, a lost customer will be
lost forever.
Dissatisfied customers have
far more friends than satisfied
ones.
The customer isnt̀ always right,
but how you tell them that they
are wrong can make all the
difference and ultimately they
do pay our wages/salaries.
Welcome complaints-they
allow for recovery.
 CUSTOMER CARE
In a free market economy never GOLDEN RULES
forget that the customer has a
choice.

If you do not believe, how can

you expect the customer to
Treat internal customers as you
believe?
would treat external ones.

If you do not look after your

You must listen to the
customers, some body else
customer  to find out what
will.
they want.
STAGES OF DEVELOPING
CUSTOMER CARE
Gain management Understand
commitment internal customers
Develop TQM (employees)
Listen to Train
customers Communicate
Establish a Recognize and
customer care reward good
program service
Engender Sustain a customer
ownership focus
Poor quality product or service.
Making it difficult to buy.
WAYS TO
Poor internal communication until
your rival body eventually decides to
LOSE A
deal with the customer. CUSTOMER
Slow response to inquiries, orders,
problems or complaints.
Slow phone answering.
Inadequate information
Rash promises
Arrogance
 “How you gather, manage
and use information will

determine whether you win

or lose. ” -Bill Gates

THANK YOU!
Keep safe and God Bless!