CUL1IVA1ING CUS1CMLk kLLA1ICNSnIS

Maxlmlslng cusLomer value means culLlvaLlng longLerm

relaLlonshlps Companles are now movlng away from
wasLeful mass markeLlng Lo preclslon markeLlng deslgned Lo
bulld sLrong cusLomer relaLlonshlps 1be lofotmotloo
ovolloble toJoy bos tbe oJvootoqes of beloq eosy to
Jlffeteotlote costomlze petsooollze ooJ Jlspotcb ovet
oetwotks ot locteJlble speeJ
JebslLes llke Lplnlonscom and Amazoncom enable
cusLomers Lo share lnformaLlon abouL Lhelr experlences
wlLh varlous producLs and servlces
nowadays cusLomer empowermenL has become a way of llfe
for many companles LhaL have Lo ad[usL Lo a shlfL ln Lhe
power wlLh Lhelr cusLomer relaLlonshlps

CuS1CML8 8LLA1lCnSPl MAnACLMLn1
CkM ls Lhe process of carefully managlng deLalled
lnformaLlon abouL lndlvldual cusLomers and all cusLomer
"Louch polnLs" Lo maxlmlse cusLomer loyalLy
A cusLomer Louch polnL ls any occaslon on whlch a
cusLomer encounLers Lhe brand and Lhe producL from
Lhe acLual experlence Lo personal or mass
communlcaLlon lor eg lor a hoLel Lhe Louch polnLs
lnclude reservaLlons checkln and checkouL frequenL
sLay programs room servlce buslness servlce exerclse
faclllLles laundry servlce resLauranL and bars

Lg nlke promoLed oqo 8oolto (play beauLlful" ln
orLuguese) for Lhelr Jorld Cup sponsorshlp caughL Lhe
llmellghL and was a huge success eople from all across Lhe
globe slgned up for Lhls and downloaded vldeo cllps of Lhelr
favourlLe fooLball players Many fan communlLles were
formed and Lhe blog was acLlvely followed by bllllons of
people 1hls glves us and ldeal example how Louch polnLs can
be uLlllsed Lo a company's advanLage
C8M ls lmporLanL because a ma[or drlver of Lhe
company's proflLablllLy ls Lhe aggregaLe value of Lhe
company's cusLomer base

CNL1CCNL MAkkL1ING
1here ls baslcally a four sLep framework for one2one
markeLlng whlch are as follows
1ldenLlfy your prospecLs and cusLomers
2ulfferenLlaLe cusLomers ln Lerms of Lhelr needs and Lhelr
value Lo your company
lnLeracL wlLh lndlvldual cusLomers Lo lmprove your
knowledge abouL Lhelr lndlvldual needs and Lo bulld
sLronger relaLlonshlps
4CusLomlze producLs servlces and messages Lo each
cusLomer
1bls ptocess wotks best fot compooles tbot ootmolly
collect o qteot Jeol of loJlvlJool costomet lofotmotloo
cotty o lot of ptoJocts tbot coo be ctoss solJ cotty
ptoJoct tbot oeeJ petloJlc teplocemeot ooJ sell
ptoJocts of blqb voloe

INCkLASING VALUL CI CUS1CMLk 8ASL
A key drlver of shareholder value ls Lhe aggregaLe value of
Lhe cusLomer base Jlnnlng companles lmprove Lhe value of
Lhelr cusLomer base by excelllng aL sLraLegles as follows
keduc|ng the rate of customer defect|on 1hls baslcally
emphaslses on Lralnlng Lhe employees ln such a way
LhaL Lhe normal lnevlLable shopplng quesLlons can be
answered saLlsfacLorlly by Lhe employees
Increas|ng the |ongev|ty of the customer re|at|onsh|p
1hls baslcally keeps Lhe cusLomer lnLeresLed ln a
producL or a servlce for a long span of Llme varlous
aLLracLlve offers are placed for Lhe cusLomers Lo keep
hlm/her saLlsfled
Lnhanc|ng the growth potent|a| of each customer
through "shareofwa||et" cross se|||ng and up se|||ng
new offerlngs and opporLunlLles lncrease sales from
exlsLlng cusLomers lor eg Parley uavldson sells more
accessorles Lhan moLorcycles
Mak|ng |owprof|t customers more prof|tab|e or
term|nat|ng them 1o avold dlrecL need for LermlnaLlon
markeLers can encourage unproflLable cusLomers Lo buy
more or ln larger quanLlLles or pay hlgher amounL of
money Lg 8anks
Iocus|ng d|sproport|onate effort on h|gh va|ue
customers 1houghLful gesLures such as blrLhday
greeLlngs small glfLs or lnvlLaLlons Lo speclal sporLs or
arLs evenLs can send a sLrong poslLlve slgnal Lo Lhe
cusLomer