‘Customer Relationship Management’

When Joann idleman arrives at the airport in Las Vegas, a sleek white limousine is waiting to whisk her off to Harrah’s hotel and

She doesn’t bat an eyelash as she passes Caesar’s place and the Mirage, two showy resorts where the 67 year old entrepreneur from California was once a regular. Now, she wouldn’t dream of staying anywhere

Upon arriving at the hotel, she is greeted with a big smile by her personal host, Gary Ernest, who makes her hotel reservations and books

In her suite, she finds fresh cut flowers, cookies, chocolate covered strawberries, cold drinks in the fridge and a welcoming voice mail from

If she goes to Harrah’s on her birthday, there’s a cake in her room. “I think they know my complete life history,” says idleman. “Whether it’s a birthday or an anniversary, there’s always something in the room to acknowledge that, and that, to me,

Idleman has been gambling at the Harrah’s since 1995; in 1998 she started staying in the hotel exclusively. The year before, the company had rolled out a loyalty card program called Total rewards, which tracks customers gaming activities and gives them rewards to encourage them to spend more money at the slots and tables.

Although Idleman says it was the service and not the card that made her a Harrah devotee, the company would not have been able to provide its high caliber service

And thanks to that service idleman’s spending Increased by 72% from 1997 to the present. Now, she spends

between $5000 and $ 10,000
on gaming per visit.

Ernest and company better treat her like a


Points to Ponder
Basic needs
1.Transport 2. Bookings 3.Comfortable Stay 4.Entertainment

Delight Needs
1.Limousine 2.Personal host 3.Flowers,cookies,cold drinks, etc.

Add on’s:
The unspoken needs….  Concert Bookings  Birthday anniversary celebrations  VIP treatment

….Crm philosophy

the need Understand the need Satisfy the need Over-shoot the levels of expectation

Marketing approaches
Product centric(Mass Marketing)

Customer centric(Individual Marketing)

Relationship centric(Cross-level Marketing)

relationship marketing
…you will not be trying to sell a single product to as many customers as possible. Instead, you’ll be trying to sell a single customer as many products as possible-over a long period of time, and across different product lines. To do this, you will need to concentrate on building unique relationships with individual customers, on a 1:1 basis…

Understanding the customer

-Who is he? -Where does he belong? -Who are around him? -What does he want? -Why does he want it?

- Summarized CRM
Learning about Customers Customization of marketing mix

crm is a comprehensive strategy and process of acquiring, retaining & partnering with selective customers to create superior value for the company and the customer

…Views on crm
Mckenna (1991) presents a strategic view by putting the customer first and shifting the roles of marketing from manipulating customer (telling and selling) to genuine customer involvement (communicating and sharing the knowledge). Bickert (1992) says a narrow perspective of CRM is database marketing emphasizing promotional aspects of marketing linked to database efforts. Vavra (1992) defines CRM as customer retention process in which a variety of after marketing tactics is used for customer bonding or staying in touch

The Six markets approach to crm

Emergence of CRM
•De- intermediation process is trigger to CRM growth specially in industries such as banks, airlines, telecom, tourism, insurance •The advent of TQM right from Deming’s time (1968) in Japan giving rise to JIT processes affecting service aspects •The birth of digital technology and system of integration •The realization that customer acquisition is costly affair (The loss of financial and value of goodwill) •Rise in customers’ expectations of service as

Transaction Vs Relationship Marketing
Transaction One-time Managing Brands Mass comm. Market share Profitability of transaction Brand Equity Relationship Ongoing Managing People Individual comm. Customer share Profitability of longevity Customer share equity

Levels of investment into CRM
2. 3. 4. 5. 6. 7. Basic Marketing Reactive Marketing Accountable Marketing Proactive Marketing Partnership Marketing ,PRM Collaborative Marketing, cCRM 7. Supplier Relationship Management , SRM

Building customer relationships

Psychological steps vis-svis Relationship Stages
Prospect Switching tendencies Customer Satisfaction achieved Client Trust Supporter Conviction Advocate Loyalty Partner Ongoing empathy

Why customers move away?

Bonding for effective crm
2.Financial Bonds 3.Social bonds 4.Customization Bonds 5.Structural Bonds

Categories of defectors to crm
1.Price defectors 2.Product defectors 3.Service defectors 4.Market defectors 5.Technology defectors 6.Organizational defectors

Developing a customer retention program

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