Group No.

5
• Abhinav Awasthi
• Asma Khan
• Girish Jain
• Nisheeth B.
• Preeti Banoudha
• Ram Sharma
• Shreekanth B.
• Tenzin Dolkar
•
•
CUSTOMER SATISFACTION
And RELATIONSHIP
MARKETING
CUSTOMER SATISFACTION

• The most important asset of any

organization is its customers
•
• Satisfied customers pay their bills
promptly which greatly improves cash
flow – the lifeblood of any organization
ORGANIZATIONAL HIERARCHIAL
DIAGRAM
 Contd…
• Customers experience of a product or a
service is multifaceted so hard to
determine


• It needs to be measured individually to get

an accurate total picture of customer
satisfaction
Contd..

• Customer satisfaction should not be

viewed in a vacuum.
•

For example, a customer may be satisfied
with a product or service and therefore rate
the product or service highly in a survey
and yet same customer may buy another
product.
Contd…
• Similarly customer’s view about a product
or service are useless if customer’s view
about competitors products are not
understood.
Contd..

• The value customers places on the product

compared to another may be a better
indication of customer loyalty.
Customerisation
Customerisation :Meaning

• The next stage of evolution of mass

customization is CUSTOMERISATION- A
buyer –centric company strategy that
combines mass customization with
customized marketing.
Customerisation
• Customerisation= Mass customisation +
personalisation + 1 to 1 Marketing +
customer control all delivered + build-to-
order (typically) in a web environment.
• Customerization begins with customers and
offers them more control in the exchange
process.
Mass Customization

Using flexible processes and organizational
structures to produce varied and often
individually customized products and services
at the price of standardized mass-produced
alternatives.
One to One Marketing
Marketing based on the idea of the firm


knowing the customer. Through interactions

with the customer, the firm learns how he or
she wants to be treated. The firm is then able
to treat this customer differently than other
customers.

Personalisation

Customization of a some feature of a product



or service so that the customer enjoys more

convenience, lower costs, or some other
benefit.
 PERSONALISA 1 TO 1 CUSTOMERISA
TION MARKETING TION
Locus of control Customer/firm Firm Customer
Customer Co- Low Low High
design
Prior data about Low High Moderate
customers
Links to Low Low/Moderate High
production/
supply systems
Link to customer Low Moderate High
systems
(Especially B2B)
Does it require No No Yes
build-to-order
system
 Pathways to Customerisation

M Lo
rk w
tg Hi
gh
C
us
to
m
is
at
io
n
Low High

Operational Customisation
Working Towards Enhancing
Customer Satisfaction

• Identify new prospects based on the

attributes of current, profitable
customers
• Prioritize them – can use other criteria
besides profitability
• Develop a relationship plan
▫ Direct mail/email
▫ Personal meetings
▫ Speaking engagements/thought leadership
Continue…

• Assign top prospects to specific people

• Provide tools to help them keep in touch
▫ Invitations to events (charity events,
lunches, conferences, tours)
▫ Thought leadership (white papers, CMEs)
▫ Direct mail/email materials (newsletters,
surveys, blogs)
• Enter them into CRM system as prospects
and track ongoing communication

CUSTOMER PERCEPTION OF
QUALITY

ASQ survey shows that important factors



that influence purchasing are

1.Performance
2.Features
3.Service
4.Warranty
5.Price
6.Reputation
 Customer perceived value

Total customer benefit Total cost of customer

Product benefits Monitory cost

Service benefit Time cost

Personal benefit Energy cost

Image benefit
Psychological cost
Four Essential to enhance customer
satisfaction
1.Reduce defect
2.
3.Improve productivity
4.
5.Improve customer relation
6.
7.Innovate
Five principles to enhance customer
satisfaction
1.Focus on customer
2.
3.Do it right
4.
5.Communicate and Educate
6.
7.Measure and record
8.
9.Do it together
Feedback

• Comment Card.
• Customer Questionnaire.
• Focus Groups.
• Toll Free Telephone No.
• Customer Visits.
• Report Card.
• Internet & Computer.
• Employee Feedback.
• Customer complaints
Comment Card
• Comment card can be attached to the
warranty card & included with the
product at the time of the purchase.


• Intent of this card is to get simple

information such as name , age, address,
occupation & what made the customer
buy that product.
COMMENT CARD
• For customer there is little or no incentive
to comment
•
• Customers do respond when there is
something very good or very bad
•
• Used in hospitality industry(hotels,
restaurants)
CUSTOMER QUESTIONNAIRE
• Popular tool for obtaining opinion &
perceptions about an org./product/svs
• Costly & time consuming
• Most surveys ask the customer to grade
the question on a 1-5 or 1-10. Eg likert
scale
 Teaching Methodology of a Teacher

Parameter Highly Satisfied

Neutral Highly
Dissatisfied

Communication Skills 5 4 3 2 1
Grip on the Subject 5 4 3 2 1
Answer to the Question 5 4 3 2 1
Whole class participation 5 4 3 2 1
Do you feel any value addition 5 4 3 2 1
Do you go home satisfied after 5 4 3 2 1
the lectures
CUSTOMER QUESTIONNAIRE
• Does not tell about the importance of individual
question relative to others
• Nor does it tell what customers expect from
organization
• Results are not representative of the normal
population
• Those who feel very good or very bad respond
only
TO MAKE SURVEY MORE USEFUL
REMEMBER

1.Clients & customers are not same

2.Survey raise customer expectation
3.How u ask a question will determine how
the question is answered
4.The more specific the question, the better
the answer
TO MAKE SURVEY MORE USEFUL REMEMBER

5.

You have only one chance & 15 min.( max.
time a customer will give to respond a survey)

6. More time u spend in survey development, less
time u get in data analysis & interpretation

7. Whom you ask is as important as what you ask

8. Before data are collected , you should know
how you want to analyse & use the data
•
FOCUS GROUPS
• Popular way to obtain feedback
• Surveying a focus group is a research method used to
find out what customers are really expecting
• Group of customers is assembled in the meeting room
to collect information
• Carefully prepared answers r asked by skilled moderator
• Who probes into participants ideas, thoughts
perceptions & comments
• Focus groups are sometimes used within two
organization to address internal issues
FOCUS GROUPS( IMPRINT ANALYSIS)
• Imprint analysis is an emerging technique used in the focus
groups
• Good way to obtain intrinsic feeling about the
product/service
• Feeling are not easily obtained from the customers
• Customers often holdback information's on survey

FOCUS GROUPS (IMPRINT ANALYSIS)
• Word association, discussions & relaxation
techniques can identify a customers emerging
needs
• Imprint analysis helps to understand the human
emotions involved in the purchase decision
•
•
TOLL FREE PHONE NO.
• EFFECTIVE TECHNIQUE FOR COMPLAINT
FEEDBACK
• ORGANIZATION CAN RESPOND FASTER &
CHEAPLY TO THE COMPLAINTS
•
CUSTOMER VISITS
• Visit to a customers place of business is an
effective way to gather information
• Accurate information obtained –people can
see first hand how the product is
performing
Customer Dissatisfaction
Meaning:
• Customer being unsatisfied
• Feeling or exhibiting a lack of contentment
• condition or feeling of being displeased with the
product or services.
 Reasons for dissatisfaction
• Faulty product
• Delivery
• Bad service
• Complications
• Ineffective customer service
• Delays in problem solving
• Costs
• unknown
 example
 CUSTOMER SATIFACTION SURVEY 2005
AUSTRALIAN MEDIA AND COMMUNICATION


AUTHORITY.
• Fault restoration and correction of service
• Reasons for dissatisfaction with the connection service given
by customers who had an on-site visit from a technician
• The connection/transfer performed faultily or not as
requested,
• The long time to connect/transfer the phone,.
• The poor provision of information regarding the
connection/transfer
• A long time until appointment
• Long delays even after having an appointment
• Bad technicians
•
Implications of CD
• Loss of business:4% of dissatisfied customers
don’t bother to complain
• Losing out on important feedback
• Burying of customer loyalty
• Scare away prospective customers
Methods to solve customer
dissatisfaction
• Corrective actions : Problem solving
• Preventive actions : Quality management system
• Improved business process: Align people and
process
• Root cause analysis
• Complaint handling team/cell
• Set up policy and guidelines
 Lodging dissatisfaction complaint
Either verbal or written:


• Concise: can be understood quickly.

• Authoritative: letters that are well written or presented
professionally - have more credibility and are taken more
seriously.
• Factual: enable the reader to see immediately the relevant
details, dates, requirements, etc., and to justify action to
resolve the complaint.
• Constructive : with positive statements, suggesting positive
actions - encourage action and quicker decisions.
• Friendly: with a considerate, cooperative and
complimentary tone - are prioritised because the reader
responds positively to the writer and wants to help.



RELATIONSHIPS
Some Examples of Relationships:
• Friendship
• Parent-child
• Boss-worker
• Lover
• Sibling
• Acquaintance
• Roommate
Relationship Marketing
What Is Relationship
Marketing?

• Marketing designed to create, maintain,

and enhance strong relationships with
customers and other stakeholders.
Why Is It Important?

• It costs five times as much to attract a

new customer as it does to keep a
current one satisfied.
• It is claimed that a 5% improvement in
customer retention can cause an increase
in profitability of between 25 and 85
percent depending on the industry.
• Likewise, it is easier to deliver additional
products and services to an existing
customer than to a first-time “buyer.”

Customer Lifetime Value
• Losing an existing customer means losing
the entire revenue stream that customer
represents – not just that single
encounter or sale.
Attracting, Retaining And
Growing Customers
• Customer delivered value – the difference
between total customer value and total
customer cost.
▫ Value includes product, services,
personnel and image value.
▫ Cost includes monetary, time, energy and
psychic costs.
Customer Loyalty & Retention
• Highly satisfied customers are:
▫ Less price sensitive
▫ More likely to talk favorably about you
▫ More likely to refer you to others
▫ Remain loyal for longer
Growing “Share Of Customer”
• Increasing the share of the customer’s
purchasing in your product category.
• Best way is through cross-selling
▫ Getting more business from current
customers by selling them additional or
complementary services
Managing your customers
• Relationship marketing is designed to
create, maintain, and enhance strong
relationships with profitable customers
and other stakeholders.
• First need to define what your profit is on
specific services.
Referral Sources
• How do you communicate with them?
•
• Who communicates with them?
•
• Do you get feedback from them?
•
• Do you get feedback to them?

So what is CRM software?
• Customer Relationship Management
software allows tracking and analysis of
each customer's purchases, preferences,
activities, tastes, likes, dislikes, and
complaints.
Three Aspects Of CRM Systems

• Operational
•
• Collaborative
•
• Analytical
Operational CRM
• Provides support to "front office" business
processes, including sales, marketing and
service. Each interaction with a customer is
generally added to a customer's contact
history, and staff can retrieve information on
customers from the database when
necessary.
•
• Main benefits is that customers can interact
with different people in a company over time
without having to describe the history of
their interaction each time.
Collaborative CRM
• Covers the direct interaction with customers, for
a variety of different purposes, including
feedback and issue-reporting. Interaction can
be through a variety of channels, such as web
pages, email, automated phone systems.
Analytical CRM
Analyzes customer data for a variety of


purposes:
•
• Design and execution of targeted
marketing campaigns to optimize
marketing effectiveness
•
• Design and execution of specific customer
campaigns, including customer
acquisition, cross-selling, up-selling,
retention.
Contd…

• Analysis of customer behavior to aid

product and service decision making
(e.g. pricing, new product development
etc.)
•
• Management decisions, e.g. financial
forecasting and customer profitability
analysis
•
• Prediction of the probability of customer
defection (churn).
Relationship Marketing
vA form of marketing(emphasizes customer
retention & satisfaction)
vDiffer from other form of Marketing(Recognize
long term customer relationship)
vGrowing with technology
vBroadly recognized ,widely implemented
strategy(for managing & nurturing interaction
with clients & sales prospects).
v


•
 What is CRM ?
vCRM is “the development and maintenance of mutually
beneficial long-term relationships with strategically
significant customers” (Buttle, 2000)

vCRM is “an IT enhanced value process, which i

dentifies, develops, integrates and focuses the various
competencies of the firm to the‘voice’ of the customer in
order to deliver long-term superior customer value, at a
profit to well identified existing and potential
customers”.
Development of Relationship Marketing
Liam Alvey “Relationship Marketing can be applied
when there are competitive product alternative
for customer to choose and when there is ongoing
and periodic desire for product and service”
 In 1950 &60- Traditional concept sell low value
products to masses
 Over decade new marketing concept came one of
them is Relationship Marketing
•
 A Relationship Life Cycle Model

High cooperation
Low competition Pre- Development Maturity Decline
relationship stage stage stage
stage

Low cooperation
High competition

Time
(Wilkinson and Young, 1997)
Customer Retention efforts involve
consideration such as…
vCustomer Valuation
(According to Financial and strategic value)
vCustomer Retention Measurement (Percentage
at beginning of year and end of the year)
vDetermine reason for defection
(Look for root cause)
vDevelopment and implementation a corrective
plan
•
 Managing Customer Relationships

Qualifying prospects for relationship building

High
Use a non Build a strong
customized and lasting
approach relationship

Opportunities
for adding value

Seek better Focus on

opportunities loyalty-building
elsewhere program

Low
Low Potential profitability of customer High
Economics of Customer Retention
vKeeping customer drives profitability
vCustomer Retention makes
 less cost to reach
 less cost to sell
 less vulnerable to attack from competitors
 Customer buy more over the long term
•
Overall Goals of Relationship Marketing
vAttract and win new client
vNurture and retain those which company
already have
vEntice former clients back into
vReduce cost of marketing and client service
•
 Thanks
 •
•
•

QUESTIONS?
Thank You!!