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  • CRM - Intro - Student

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    Prashant Kumar
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    Customer relationship marketing involves using formed relationships to add value for both parties in the short-term and long-term through certain practices, tools, policies, and technology. It is important as it progresses customers through initiation, activation, and maintenance stages from transactions to repurchases and brand purchases. Understanding the customer journey from awareness to action is key to convert awareness into committed customers. Measuring awareness and action ratios helps assess how well awareness is converted into actions. Creating and co-creating value through understanding customer needs, benefits, costs, and perceived value is important for customer retention and developing a customer-centric strategy focused on relentless customer focus and lifetime value.

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    IIM Kozhikode CRM ppt

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    Customer relationship marketing involves using formed relationships to add value for both parties in the short-term and long-term through certain practices, tools, policies, and technology. It is important as it progresses customers through initiation, activation, and maintenance stages from transactions to repurchases and brand purchases. Understanding the customer journey from awareness to action is key to convert awareness into committed customers. Measuring awareness and action ratios helps assess how well awareness is converted into actions. Creating and co-creating value through understanding customer needs, benefits, costs, and perceived value is important for customer retention and developing a customer-centric strategy focused on relentless customer focus and lifetime value.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    21 views27 pages

    CRM - Intro - Student

    Uploaded by

    Prashant Kumar
    Customer relationship marketing involves using formed relationships to add value for both parties in the short-term and long-term through certain practices, tools, policies, and technology. It is important as it progresses customers through initiation, activation, and maintenance stages from transactions to repurchases and brand purchases. Understanding the customer journey from awareness to action is key to convert awareness into committed customers. Measuring awareness and action ratios helps assess how well awareness is converted into actions. Creating and co-creating value through understanding customer needs, benefits, costs, and perceived value is important for customer retention and developing a customer-centric strategy focused on relentless customer focus and lifetime value.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 27

    CUSTOMER RELATIONSHIP

    MARKETING
    Want list of Buyer Want list of Seller

    Fair Pric Prompt payment


    Quick Delivery Wo
    Good Service Repurchase
    M

    RELATIONSHIP
    Transactio

    Repeat
    n

    WHAT IS RELATIONSHIP
    MARKETING?

    Using the formed relationship to add value for both in S.T and
    L.T by certain practices, tools, policies, technology etc.
    IS IT IMPORTANT?
    RELATIONSHIP STAGES

    Initiation

    Activatio

    Maintenance

    Product purchase

    Transaction Satisfaction Repurchase

    CX

    Delight Repurchase

    Brand purchase
    UNDERSTANDING JOURNEY

    Aware

    Attitude journey

    Act

    Act agai

    Act

    Very important

    Act again

    ACTION RATIO

    Aware
    Attitude

    Ac

    People Action/People awar


    Measures how well the company could convert the brand awareness into action
    t

    Awareness Ratio = People Aware/total people

    Action Ratio= People Acting/People Aware

    SOLVE

    Among 100 people in a town 90 are aware of the brand, 18


    people visit hence and 9 people visit again

    Calculate the action and awareness ratio?


    .

    Awareness Ratio = People Aware/total people

    90/100=0.

    Action Ratio= People Acting/People Awar

    18/90=0.2
    9

    IMPORTANCE OF UNDERSTANDING
    JOURNEY
    Aware

    Attraction

    Attitude

    Curious

    Act

    Commitment
    Act again

    CUSTOMER VALUE CHAIN

    Map the customer value Chai

    Identify three types of value


    Value creating -
    Value eroding-
    Value chargin
    Find the weak lin
    https://www.bigbasket.com/pd/40005882/fresho-veg-biriyani-
    pack-1-pc

    Address
    /

    Turning the pyramid

    Permanent
    Permanent
    Semi permanent
    Semi permanent
    Transaction
    Transaction
    Is turning the pyramid simple ?
    Differentiation
    CUSTOMER EXPERIENCE

    Touch point - Brand - Customer interactio

    All interaction are potential opportunity for relationship

    Pain / gain poin

    Useful, Meaningful and Pleasurable


    t

    WHAT DOES IT MEAN?

    Customer is completely understood and fully served

    Relationship is focussed on current and potential value

    Creating value

    Co creating value

    Stitch- x
    fi

    Understanding Consumers- Cont.d

    Key to success is understanding what the consumer needs- the bene ts that
    he/she is looking for and convert those bene ts into products and give the

    To understand bene t , understanding value is critica

    Customers always try to maximise the Custom Perceived Value (CPV) - i.e
    greater bene ts at lower cost

    Bene ts are (functional ,economical, psychological); Cost (Acquisition,


    usage )

    Value = Bene t - Cost


    fi

    fi
    fi
    fi

    fi
    l

    fi
    m

    CUSTOMER
    RETENTION

    LEAKY BUCKET THEORY/ ANALOGY

    

    WHY?

    5% improvement in customer retention rates will yield between


    a 25% to 100% increase in pro t

    The Loyalty Effect, Fred Reichheld 


    fi
    s

    DEVELOPING THE CUSTOMER CENTRIC


    STRATEGY

    Relentless Customer Focus

    https://www.youtube.com/watch?
    time_continue=8&v=GltlJO56S1g&feature=emb_logo- Jeff Bezos
    on customer Focus

    Customer lifetime value (CLV),

    Customer lifetime value (CLV), sometimes referred to as lifetime


    value (LTV), is the pro t margin a company expects to earn over
    the entirety of their business relationship with the average
    customer.
    fi

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