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CRM

INDIRECT Sell Strategies to Keep Customers LOYALTY

It requires a clear focus on the service attributes that represent value to the customer and that create loyalty.

What is CRM ?

It is the process of Acquiring, Retaining and Growing profitable customers.

What is CRM ?

ITS 1631 Customer Relationship Management


LECTURE II CRM: Customer Acquisition, Retention and Strategic Customer Care

Yuku Ng 15 September, 2010

Learning Objectives
Classify customers into three categories in the stage

of service evolution. Apply the five strategic activities for implementing Strategic Customer Care.

teaching plan of

Customer Relationship Management


Basic concept and definition
Customers

Relationship Management of relationship

Information

Process

Technology

People

Implementation of CRM

Strategic Customer Care An Evolutionary Approach To Increasing Customer Value And Profitability
Stanley A. Brown John Wiley & Sons, Toronto, 1999, ISBN 0-471-64342-4

Strategic Customer Care An Evolutionary Approach To Increasing Customer Value And Profitability

Stage I Customer Acquisition:


Promotions, Customer referrals, Copying strategies from competitors

Stage II Customer Retention:


Focus on maximizing relationship with customers, Segment customers into groups of different strategic values Different service + products to different groups of customers

Stage III Strategic Customer Care:


Strengthen services on potentially profitable customers Grow with customers (e.g. Citibank Black Platinum Visa Card)

1.

progressive stages of customer care

2. The Five Strategic Activities for Implementing Strategic Customer Care


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Fig 3.1 The five strategic activities for implementing strategic customer care.

2.1 Profiling Customers


Define your customers characteristics in a

meaningful way best to understand the attributes they value most.

Video at seminar
Spending amount Frequency of spending Regency of spending

Classify customers into groups of common

characteristics.

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2. The Five Strategic Activities for Implementing Strategic Customer Care

Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.2 Segmenting Customers into Natural Groupings


Profile of Good

Customers
Contribute the highest

Willingness to become a partner

proportion of gross profit Have potential to add further to gross profit Are profitable organizations themselves Customers who have permitted you to achieve a dominant share in the category Are savvy and intelligent Conscious of the need to be flexible and show adaptability

Trend of increased revenues


generated for your organization Your current share of customers business Significance of your companys product or service to the customers business Customers current gross profit and its potential Potential to cross-sell and upsell

Observe that they are not segmented by demographics


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2. The Five Strategic Activities for Implementing Strategic Customer Care

Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.3 Researching Customers Industries and Concerns

Going beyond loyalty, enterprise needs to obtain

a rich knowledge of their customers worlds in order to achieve meaningful service niche for the customers E-Cards and Octopus

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Understand Your Customer


(Not in your notes)
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Knowing the Political, Social,


Economic, Technology environment The homework required for preparing a sales call Knowing the industry

Knowing the company


Knowing the department Knowing the dialogue environment

The communication skill

Knowing your product Selling Skills

The Point of Interaction

2. The Five Strategic Activities for Implementing Strategic Customer Care


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Fig 3.1 The five strategic activities for implementing strategic customer care.

2.4 Investing in Technology to Provide Solutions to Customers


Different customers deserve different levels

of service Technology and efficiency will drive success Strategic alliances are needed Satisfied customers lead to higher profits

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2.4 Investing in Technology to Provide Solutions to Customers

Best practices in the use of technology Proactive database marketing Developed models to analyze profitability Use intranet and extranet for information sharing Executive Information System (EIS) Apply help desk, quality assurance and customer intelligenceetc.

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2. The Five Strategic Activities for Implementing Strategic Customer Care

Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.5 Managing Customers through Consistency of Treatment


Systematically apply a streamlined account

management process to all important customers Involve senior management in the account management process

In the video at seminar, the CEO of Oriental Mandarin Hotel write letters to his key account customers every week.

Provide operational objective to the strategic

account team as well as the objective measurement criteria

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End of Lecture 2

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