Topic 1c [WK1]

CUSTOMER
RELATIONSHIP
MANAGEMENT
& CUSTOMER
RETENTION
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 OBJECTIVES

• Understand customer relationship management

and strategies.

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CUSTOMER RELATIONSHIP MANAGEMENT
(CRM)

Customer Relationship
Management (CRM)
“is the overall process of building and
maintaining profitable customer
relationships by delivering superior
customer
value and satisfaction.”

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CUSTOMER RELATIONSHIP MANAGEMENT
(CRM)

It costs 5 to 10
times MORE to
Marketers must be
attract a new
concerned with the
customer than it
lifetime value of
does to keep a
current customer the customer.
satisfied.

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CUSTOMER RELATIONSHIP MANAGEMENT
(CRM)
Key Concepts Customer • Perceptions are key
value/satisfaction • Meeting/exceeding expectations creates
satisfaction
Attracting,
retaining and Loyalty and
• Benefits of loyalty
• Loyalty increases as satisfaction levels
growing customers retention increase
• Delighting consumers should be the goal
Building customer
relationships and Growing share of • Cross-selling
customer equity customer

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CUSTOMER RELATIONSHIP MANAGEMENT
(CRM)
Key Concepts • The total combined customer lifetime
Customer values of all customers
equity • Measures a firm’s performance, but in a
Attracting, manner that looks to the future

retaining and • Target market typically dictates type of

growing customers relationship
• Basic relationships
Customer
Building customer relationship
• Full relationships
• Customer loyalty and retention programs
relationships and levels and tools • Adding financial benefits
• Adding social benefits
customer equity • Adding structural ties

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 CUSTOMER RETENTION

Product perceived
performance =/>
buyer, customer
satisfaction would High satisfaction leads to
result high customer loyalty

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 ACTIVITIES LEADING TO CUSTOMER
RETENTION
• CRM
• Personalizing Marketing
• Customer Empowerment
• Customer review and recommendations
• Attracting and retaining customers
• Reducing defection
• Managing customer base
• Building loyalty

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