CUSTOMER RELATIONSHIP

MANAGEMENT

Submitted by: - Riya Chhabra

CUSTOMER LIFE CYCLE
In customer relationship management (CRM), customer lifecycle is a term used to describe the
progression of steps a customer goes through when considering, purchasing, using and
maintaining loyalty to a product or service.
Customer Life cycles vary for every company depending on the nature of their business, their
products, and their services. There are three key stages that every prospective customer in every
industry goes through before they become customers.

The Three Key Stages of a Customer Life cycle

The 3 Phases of the Customer Lifecycle

Now, let’s dig a little deeper in the customer lifecycle.

The customer lifecycle typically consists of 3 phases with more specific subcategories.

Awareness

Potential customers have a certain problem that they expect you to solve. They become aware
of your product through various means, such as via their own research, ads, blog articles,
videos, or software review websites like G2.

Conversion

The potential customers have shown interest in your product and have opted in to some of your
content or downloaded a whitepaper. This is where your lead nurturing efforts would come in
to help drive the customer closer to a decision. At this point, you want to provide useful and
helpful resources to the prospects to support their decision to try your product.
Purchase

Nice! The prospect has made their way down the first part of the funnel and they have decided
to try your product. But the work definitely doesn’t end there. In fact, it’s only really just
beginning. This is where you should focus on providing an excellent onboarding
experience and monitoring product engagement.

Activation

Remember, in a subscription-based economy, it’s never just about closing a deal. Customers
have the flexibility to leave at any point in time and go to a competitor if they can no longer
see the value in your product. This is why it’s so important to educate and support your
customers AT ALL TIMES, no matter the time, location, or what their current product
knowledge level is. Proactively providing resources to your customers, such as a knowledge
base, customer support team, or interactive performance support, helps overcome any
roadblocks that may lead customers to churn.

Renewal

As mentioned above, in a subscription-based model, contracts need to be renewed before

customers can continue using your product. At this point, your dedicated customer success
manager should have built a solid customer relationship and should be completely aware of
any sort of objections the customer may have that would prevent them from renewing the
contract.

Referral

Not only have your customer(s) renewed with you, but they’ve also become a customer
advocate because they are extremely confident and satisfied with your business. Whether it’s
through word of mouth, customer testimonials, or an online review, happy customers who are
willing to share their joy is great for business and is also a sign that your customer acquisition
and retention strategy is working. This is also a good time to discuss your customer loyalty
program if your company offers one.
The CRM process is that concept in action. It’s the tangible steps an organization must take to
help drive consumers through the cycle of learning about your brand and ultimately becoming
repeat customers.

Analyze Outlook with 2 of its competitors and find out the strategies it uses
to maintain customer life cycle.
Ans: The customer lifecycle is a term the describes the different steps a customer goes through
when they are considering, buying, using and remaining loyal to a particular product or service.
The steps for the same are:
i) Customer Acquisition Strategy- To acquire customers, The Outlook had come up
with offers of giving 1 Duffle Strolley by spending Rs. 8549 and above and 1
travelling bag by spending Rs. 5899 and above on taking subscription of magazines.
ii) Customer Retention Strategy- To retain customers, Outlook provides different
extended subscription plans for their respective 5 magazines ie Spend Rs.8549/- &
above: Get an extended subscription for 12 MONTHS, Spend between Rs.5899/- to
 Rs.8548/- : Get an extended subscription for 6 MONTHS, Spend between Rs.4599/-
to Rs. 5898/- : Get an extended subscription for 6 MONTHS, Spend between
Rs.2299/- to Rs.4598/- : Get an extended subscription for 3 MONTHS. Outlook even
provides various subscription plans to retain its customers for 1, 2, 3, 5 years at a
discounted price which helps the customers to stick to this magazine.

iii) Customer Development Strategy- For converting potential customers into actual
customers, Outlook sells its magazines at heavily discounted price which attracts the
customers towards buying of Outlook magazine.

Outlook Traveller Money Business

Term Hindi Fortnightly
weekly Monthly Monthly Monthly

1 year Rs.2499 Rs.1099 Rs.549 Rs.2550 Rs.549

Rs.3640 Rs.1800 Rs.600 Rs.3400 Rs.600

2 years Rs.4799 Rs.2149 Rs.1049 Rs.5100 Rs.1049

Rs.7280 Rs.3600 Rs.1200 Rs.6800 Rs.1200

3 years Rs.6649 Rs.2849 Rs.1449 Rs.7650 Rs.1449

Rs.10920 Rs.5400 Rs.1800 Rs.10200 Rs.1800

5 years Rs.9549 Rs.4449 Rs.2149 Rs.9999 Rs.2149

Rs.18200 Rs.9000 Rs.3000 Rs.17000 Rs.3000

Outlook even offers various cash discounts for different ranges of subscription value, which
helps it to develop customers.
 Strategies used by The Week

i) Customer Acquisition Strategy-To acquire customers, The Week had come up with
offers of giving gifts like Amazon E-Gift Card Worth 500, United Colors Of Benetton
Leather Wallet and Card Holder, The Week Travel Bag, Amazon E-Gift Card Worth
1000, Wildcraft Bagpack etc for different subscription plans on yearly basis.
ii) Customer Retention Strategy- To retain customers, The Week provides different
subscription plans for their respective magazines for 1 and 3 years at discounted
prices, and along with it, it gives a lot of gifts. It helps the customers to stick to the
magazine. It even provides renewal plans as well.
iii) Customer Development Strategy- For converting potential customers into actual
customers, The Week sells its magazine at heavily discounted price which attracts the
customers towards buying of The Week magazine. For different subscription plans
i.e., of 1 and 3 years, The Week provides 58% off, 56% off on cover price of magazine
provided by it.

Strategies used by The Forbes

i) Customer Acquisition Strategy- To acquire customers, The Forbes had come up

with giving access to Forbes India Events, exclusive access to Forbes India Editor's
picks. Even, Forbes India is one of the best seller books worth upto Rs.2000. All
this helps Forbes India to acquire customers towards it.
ii) Customer Retention Strategy- To retain customers, Forbes India provides
different subscription plans for their respective magazines for 1,2 and 3 years at
discounted prices. Forbes India provides both digital and print magazine for 3 years
subscription at discounted price of Rs.6434, its cover price is Rs.26,805, providing
76% discount. This helps the customers to stick to the magazine.
iii) Customer Development Strategy- For converting potential customers into actual
customers, Forbes India sells its magazine at heavily discounted price which attracts
the customers towards buying of Forbes India. Like for giving print subscription of
1, 2, 3 years, The Forbes India provides heavy discounts of ranging from 60% to
75% depending on the subscription plan taken and for giving digital subscription of
1, 2, 3 years, The Forbes India provides heavy discounts of ranging from 40% to
60% depending on the subscription plan taken.
 LOYALTY PROGRAMMES
Loyalty programmes- They are sponsored by retailers, offer rewards, discounts, and other
special incentives as a way to attract and retain customers.They are designed to encourage
repeat business.
Loyalty programmes in Outlook

a) The Outlook had come up with offers of giving 1 Duffle Strolley byspending
Rs. 8549 and above on subscription of magazine.
b) 1 travelling bag by spending Rs. 5899 and above on taking subscriptionof magazine.
c) Outlook provides different extended subscription plans for their respective 5
magazines like extended subscription for 3, 6, 12 months.
d) Outlook even provides various subscription plans to retain its customersfor 1, 2, 3, 5
years at a discounted price.
e) Outlook even offers various cash discounts for different ranges of
subscription value, which helps it to develop customers.

Loyalty programmes in The Week

a) The Week offers gifts like Amazon E-Gift Card Worth 500, United Colors Of
Benetton Leather Wallet and Card Holder, The Week Travel Bag, Amazon E-Gift
Card Worth 1000, Wildcraft Bagpack etc for different yearly subscription plans.
b) The Week provides different subscription plans for their respective magazines for 1
and 3 years at discounted prices.
c) The Week provides heavy discounts i.e. 58% off, 56% off on cover price of
magazine provided by it, for different subscription plans.
d) For print subscription of 1, 2, 3 years, The Forbes India provides heavy discounts
of ranging from 60% to 75% depending on the subscription plan taken.
e) For digital subscription of 1, 2, 3 years, The Forbes India provides heavy discounts
of ranging from 40% to 60% depending on the subscription plan taken.

The main reason behind each company going with thestrategy and how
these strategies have paid dividends
The Strategies used by all the three competitors i.e. The Outlook, TheWeek and Forbes
India for maintaining the customer lifecycle have been described above.
Reason behind each competitor going with these strategies stated above and how these
strategies have paid dividends-
The Outlook magazine-

The strategies used by this company, generate revenue (sales) as through giving
subscription, Outlook earns money. The strategies used are so effective that they have
made Outlook, one of the known magazines in India and it stands on Rank 2 which is
commendable. Therefore, even theinterns here, work with full vigour and are dedicated
towards their work. Outlook even comes up with bonanza (a sudden opportunity to make
money) offers. Here, every employee and employer work with full dedication to achieve
the forecasted target, and company earns maximumprofit through its strategies and retail
division. By earning profits, payingoff dividends becomes very easy and hence, Outlook
is able to keep its shareholders satisfied and happy.

The Week magazine -

The strategies used by this competitor, generate revenue (sales) because TheWeek magazine
provides subscription on heavy discounted price and a lot of alluring offers. This helps the
magazine to further increase the sales leading to increase in profit which makes it quite easy
for the magazine to pay off the dividends and keep its shareholders satisfied. These strategies
make the customers to stick to the magazine as they get attracted towards the magazine and
buy it. It even provides customers with renewal plans.

Forbes India -

The strategies used by Forbes India, generate revenue (sales) because it provides
subscription on heavy discounted price. The customers get attracted and buy the magazine
because of the strategies adopted by ForbesIndia. The customers even have trust on this
magazine. All this leads to more and more sales of the magazine, which generated a lot of
profit. This increase in profit, makes it quite easy for the magazine to pay off the dividends
and keep its shareholders satisfied.
So, in a nutshell the strategies of all the three competitors have helped them to generate
revenues and further paying off dividends.

Compare the NPS for each of the company and find reasons behind the
score. What do you recommend these companies and how can they
improve their scores?
A Net Promoter Score, or NPS, is a marketing tool used to measurepeople’s loyalty towards
a company or a brand and their willingness to recommend the company’s or brand’s products
to other people so as to build and strengthen relationship with customers.
To calculate NPS, I circulated these below stated three questionnaires in mynetwork and got it
filled by 30 respondents so as to conduct NPS survey.

Calculation of Net Promoter Score-

To calculate NPS, you need to count the number of Promoters, the number of Detractors
and the number of customers who participated in your survey. The customers who turned
out to be Passives are not taken into account when calculating the Net Promoter Score.
The scoring of the NPS scale lays between 0 and 10: 0 - not likely at all, 10
- extremely likely, or else it will be a normal rating scale.
• Promoters 9 - 10 These are your most loyal customers, ready to promote
your products and help other customers to implement and use your products
more effectively.
• Passives 7 - 8 These customers are loyal, but not enthusiastic about your
products. Working with this group is especially important when the number of
people in the group is relatively high.
• Detractors 0 - 6 These people are unlikely to promote your product and are
very likely to give it a negative review. They are very often unsatisfied
customers and are very sensitive to competitive offers.

The NPS calculation formula is:

Net Promoter Score (NPS) = % of Promoters - % of Detractors

Calculating NPS score for Outlook magazine:-

Promoters: 21 people gave scores of 9 and 10.The % of Promoters = 21⁄30*100% = 70%

Passives: 0%
Detractors: 9 people gave a score between 0 and 6.The % of Detractors = 9⁄30*100% =
30%
Net Promoter Score (NPS) = 70% - 30%= +40

Calculating NPS score for The Week magazine:-

Promoters: 15 people gave scores of 9 and 10.

The % of Promoters = 15⁄30*100% = 50% Passives: 3 people gave scores of 7 and 8. The
% of Passives = 3⁄30*100% = 10%
Detractors: 12 people gave a score between 0 and 6. The % of Detractors = 12⁄30*100% =
40%

Net Promoter Score (NPS) = 50% - 40%= +10

Calculating NPS score for Forbes India magazine:-

Promoters: 18 people gave scores of 9 and 10.

The % of Promoters = 18⁄30*100% = 60%

Passives: 3 people gave scores of 7 and 8. The %
of Passives = 3⁄30*100% = 10%
Detractors: 9 people gave a score between 0 and 6.The %
of Detractors = 9⁄30*100% = 30%

Net Promoter Score (NPS) = 70% - 40%= +30

NPS global standards treat +50 as ‘excellent’ and +70 as ‘world class.’ anyNPS that is
above 0 is considered to be ‘good,’ as this means that the number of loyal customers is
higher than the number of disloyal customers.

Reasons behind the score

Outlook magazine -

The NPS score of Outlook magazine is +40 i.e., above 0 which indicates that the number of
loyal customers is higher than the number of disloyal customers. As +50 is considered
excellent, so +40 score clearly states that the client perception and brand loyalty is good of
Outlook. Even, the customers encourage others in their network to take its subscription
leading to increase inOutlook’s business.

The Week magazine -

The NPS score of The Week magazine is +10 i.e., above 0 which indicates that the number
of loyal customers is higher than the number of disloyal customers,but still this score needs
a lot of improvement because when compared to its competitors, The Week magazine has
the least score. The reason for this score when surveyed was that sometimes, gifts to be given
with magazine gets out ofstock and this leads to dropping of subscription by the target market.
Even, thecustomers are not satisfied with the service provided as the magazine doesn’t reach
out to them on time.

Forbes India -

The NPS score of Forbes India is +30 i.e. above 0 which indicates that the number of loyal
customers is higher than the number of disloyal customers, butstill this score needs a lot of
improvement when compared with its competitors.The reason for this score when surveyed,
was observed that around 10 customers faced difficulty in renewing the subscription of
Forbes India magazine i.e., the renewal took lot of time than stated by them. Even sometimes,
the magazine doesn’t reach the customers on time which further leads to dissatisfaction
amongst the customers.

Recommendations for these companies as to how can they improve theNPS score-
For Outlook magazine-
• Once a customer takes a subscription plan of Outlook magazine, it takesaround 6-8
weeks for Outlook for processing the payment made by customer and then the hard copy
starts off to get delivered to them. So,Outlook should focus on reducing this gap of so
many weeks and try todeliver the magazines as soon as the subscription has been taken
by a customer.
• The Sales executive should call customers in slots on daily basis and
 take their feedback and then work on the suggestions or the difficulty their customers are
facing as quickly as possible.
For The Week magazine-
• The company should have marketing department of the Week magazine in towns for the
benefit of the subscribers as well for the company. This would lead to awareness amongst
people.
• The most important suggestion is that company should give priority to coverage by
covering towns, cities, rural areas. It would then create more magazines readers and this
would further lead to increase in the market share.
• It should focus on keeping the stock of gifts to be given along with magazine when a
customer takes subscription of magazine.
• It should concentrate on building strong relation between customer and customer
relationship manager which would lead to building of brand loyalty and further increasing
customer satisfaction.
• It should deliver the magazines on time to the customers.

For Forbes India-

• It should not delay the process of renewing the subscription of the magazines when the
customers demand for it.
• It should deliver the magazines on time to the customers.
• It should give gift vouchers along with the subscription of magazine so as to increase brand
loyalty.

lessons the Print Media Industry can take from the International Print Media companies
so as to improve the NPS?

Print Media Industry- The industry associated with the printing and distribution of news
through newspapers and magazines. Print media is one of the oldest and basic forms of mass
communication.
Lessons that Print Media Industry of India can take from International print media companies
so as to improve the NPS-
• India Print media industry is more focused on the entertainment part rather than the
information actually required by the nation because drug case are given more importance in our
country rather than the GDP or economy of our country unlike in the case of International print
media industry as they focus on printing information required by the nation.
• English is the language of elites in India and hence, print media is somewhat elitist in
nature. Most of the Indian journalists are educated in English, are from middle class and hence
don’t understand grass route issues. Farmer’s suicide is always a non-issue when compared to
what Trump said. This problem is not faced by the International Print media.
• Mostly, International magazines like New York magazine, give one month free trial of
their magazine subscription unlike in the case of Indian magazines.
• Indian Print Media should be responsible for showing the news and not
passing the judgement. Our media have expertise for passing judgement and reaching to the
conclusion even before a case is filed. This is not the case with International Print Media industry
as it doesn’t believe and like to limit its boundary only up to reporting the news.
• Indian print media is basically a business and not a profession because most of the channels
are sponsored by political parties, their leaders and influential business houses. They speak the
language of their bosses although it may be against national interests. They have little interest in
nation or masses. International print media on the other hand is always pro government and pro
national interests.