Customer Satisfaction, Loyalty, and Retention

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Customer Satisfaction, Loyalty, and

Retention



` Segmentation, Firm-level classification, product-service levelclassification.

` Customer Satisfaction Module (CSM) and ABC Analysis.

` Need for customer satisfaction measurement.

` Customer relationship management (CRM)

` Process of identifying and maintaining customer, dealers and

large individual buyer-user.



Reason for Non- Achievement of CRM

` Lack of relevant market knowledge.

` Internal strengths and weakness.

` Failure to be flexible



Aspects of Customer Satisfaction

` Rational issues.

` Non-rational issues.

` Image and attitude-oriented issues.



Achieving Customer Satisfaction

` Classification of customer and prospects.

` Listing of important customer and their executives.

` Qualitative assessments of the perception of service level.

` Segmental optimum criteria set (OCS)

` Comparative evaluation of the major suppliers

` Computation of dissatisfaction/satisfaction gaps (DSS)



Customer Retention

` Identify relevant prospects.

` Convert them to customers.

` Maintenance marketing ensure

` Retention

` Brand loyalty

` Technical, commercial and managerial comparisons.

` 4 Ps (Products, price, place, promotion)

` P5 (internal, inter-department cohesive process of the effective

markets)

` P6 (quality of trained professionals, especially, effective problem

solver)



Industrial Marketing Research



` Present demand

` Future potential

` Derived demand



Nature of Marketing Research

` Content : what the researcher attempts to study and why.

` Method : the conceptual basis.

` The Methodology for investigation.

` Technique : procedures or tactics



Scope of industrial marketing research

` Assessment of the demand

` Potential for existing products and services.

` Identifying the future scope.



Marketing Research Process

` Situational factor

` The economic status.

` Technical and technological

factor

` The political and legal status

` Specific scope

` Geographical coverage

` Types of end-users to be

studies number

` Depth of research needed

` Types and quality of

investigators

` Sampling Frame

` Sample size

` Research instruments

` Structured

` Unstructured

` Quantitative (rational) scales

` Qualitative (subjective)scales



Industrial Marketing Intelligence System

` Internal, External or a combination.

` Collect relevant data

` Identify source

` Organize Industrial research

` Marketing Research Design

` Basis for research design

` Product/service type

` Level of competition

` Stage of product life cycle (PLC)



Applications of Marketing Research

` Quantitative studies quantify

` Total market demand and potential assessment

` Impact of changing governmental rules and regulations.

` Projection of probable market share and growth rates.

` Total market studies.

` Other types of studies

` Image studies

` New product/service introduction studies

` Qualitative studies to find out the need

` Futuristic studies.



Standard Industrial Products and

Services



` Marketing-mix parameters (6Ps) are standardized

` Product specifications (P1)

` Commercial terms (P2)

` Methods of distribution (P3)

` Promotion (P4)

` Internal process (P5)

` People (P6)

Relevant marketing Organization

o People

o Process



Major Problem Areas

` Technological constraints and competition` Low customer preference

` Distribution channel problems

` Purchase criteria of buyers

` Changes required in pricing system

` Types of costs

` Method of costing

` Full costing

` Marginal costing

` Relative contribution approach



Basic Steps for Marketing

` Industrial buyers behavior` Situational aspects

` Assessment of the buyers· relevant background

` Product-specific factor (PSF)

` Company-specific factor (CSF)

` Information handling habits of buyers



Assessment of the industrial buying process

` Identify relevant members of the decision making unit (DMU)` Assess their needs and wants

` Assess the strengths and weaknesses of the existing

established vendor

` Perception on the present service levels

` Existing gaps

` Decide whether it should try to enter this market.



` Achieving Customer Satisfaction` Targeted end-users·

` Product-service strategy

` Product line performance evaluation

` Organizational structuring



Fabricated Industrial Products



` Designed to cater to the specific needs and wants of specificclients

` Marketing Aspects

` Product classification

` Need organizational structure need for an integratedapproach.



Effective business strategy (annual or even long-tem business strategy

Effective marketing strategy

Relevant marketing-mix parameters (6 Ps)

Sales/marketing organization : needed structuring

Actual operations through field-level control and direction

Timely internal audit (management control system)

Follow-up, feedback, and re-planning (a never-ending process)

STEPS FOR A SYNERGISTIC APPROACH

annual sales plan (ASP)



` Effective strategy formulation` Design a research proposal

` Assess the buying firm·s work environment

` Repeated meeting with buyers, assess

` Symptoms

` Probable alternative

` Assess the competitors strengths and weaknesses.

` Assess the aims of the buying firm·s DMU

` Assess which members have the decision making powers

` How can each of the key members be influenced



` Systems Marketing

` Marketing Strategies for Industrial Service Firms

` Marketing Strategies and tactical and positioning issues



Capital Equipment and Services



` Centralized firm

` Mixed decentralized private group

` Profit-conscious private firm

Capital Item

Categorization

`

Miracle·s product classification` A very high purchase unit value

` Very high purchase significance to buyers and users

` Need for considerable effort on the part of the buyer in locating the

right supply source, equipment, model, or service



` Complexity in technical usage, calling for meticuloustraining of all operating personnel

` Very high need for after-sales service

` Before purchase decision are taken

` During the process of purchase decision making and` After purchase decision have been taken

` The information handling of the buyers and other

concerned DMU members which depend on the buying

company·s ¶culture· and decision making process and thesize of the buying firm.



` The new product concept` Prospective buyer segments for the new system.

` Competition

` Actual market opportunities



Business-to-Business Marketing



` E-commerce` E-commerce is an effective medium for selling products,

services and contents over the Internet.

` E-Procurement increases a company·s effectiveness

` Lowering the procurement costs` Minimizing the paper work

` Improving the supplier relationships

` Reducing unauthorized purchasing and

` Providing employee-level empowerment by eliminating paperand the labor-intensive process associated with the current

system.



Models of B2B MarketingOnline catalogues

Credit card

processing

Company

electronic

catalogs

Company

Warehouse

ManufactureWarehouse

Third party

e-fulfillmentcompany

BusinessBusiness

Business pay electronically through

credit card or PO

Distribution is through UPS/FedEx/USPS

trucking, or ships



B to B internet

auction site

(i.e., trade out)

Business

Business

Business

Business

Business

Business

Highest bidder at closing pays

through credit card or PO

Distribution is through UPS/FedEx/USPS

trucking, or ships

Bid

Bid

Bid

THEAUCTION MODEL



Community Market Makers

B 2 B

marketplace

Suppliers

Suppliers

Business A

Business B

Businesses place

product and services in

the marketplace

Businesses look at the

marketplace to find products and

services in a virtual industry

THE COMMUNITY MARKET-MAKER MODEL



Exchanges or digital marketplaces

Exchange

Suppliers

Suppliers

Business A

Business B

Suppliers receive

request and bid for

REP

Businesses place RFP in

the exchange, requesting

product pricing

THE EXCHANGE MODEL



Why Use E-Commerce

` Quality, service, and value are the backbone of e-commerce` Ease of use

` Privacy

` Responsiveness

` Online Marketing

` E-CRM



Benefits of CRM

` CRM implementation in business-to-business marketing` Significant increase in customer profitability due to

improvements in the processes of customer acquisition and

customer value maximization through cross selling and up

selling, credit and risk recovery, debt recovery, and customer

retention.

` The ability to deliver the improves levels of services

demanded by customers, now and in the future, through the

delivery of more relevant communication to customers.



` The technology (both hardware and software) available candeliver significant benefits, if driven by well-focused business

objectives. E-CRM can bring substantial benefits to an

organization by threading these interaction and linking them

to the organization.

` Eliminating slip-through of customer interaction.

` Improved response time.

` Increased customer referrals.

` Higher revenues through cross selling and up selling

` Reduced customer queries through web self-help resolution.

` Increased user productivity

` Savings from automated routing, automated reporting and

the use of auto responses.



` E-Business

` E-marketplace

E-business

(E-commerce+

e-service +e-government)

Revenue model

Sale of good/service

Advertising

Industry consortium

Pricing

Buyer dominatedSeller dominated

Market oriented

Business models

Fixed price

AuctionsTender

Consortia

Tar get market

Niche

Broad

Pr oduct

Sales of goods/service

Information

Advertisement banners

Agent/brokerage service

R&D

Pr oduct delivery

Physical

Virtual

Business scope

B2B

B2CB2G

C2B

Payment modesPhysical

Virtual

The dimensions of e-business



Support activities

Firm infrastructure

Human resource management

Technology development

ProcurementInbound

logisticsOperations

Outbound

logisticsMarketing

and salesServices

PURCHASING AND THE VALUE CHAIN



Models of e-marketplace

` Supplier-oriented marketplace` Buyer-oriented marketplace

` Intermediary ²oriented marketplace (hubs)

` Functional hubs or horizontal exchanges

` Vertical hubs : This exchange-specific industry or market



E-procurement

` Corporate procurement involves the purchasing of materials,services and equipment used for operation.

` Three stages namely-

` Information gathering

`

Negotiation` Order processing



Traditional procurement processes

drawbacks

` Wastage of time due to` Lengthy approval processes

` Paper flow

` Repetition of labor because of

` Incorrect/insufficient information,` Manual mistake and

` Inefficient communication

` Increased expenditure in terms of

` Paper costs

` Administrative costs

` Operational costs and

` Maverick/ off-contract buying



` E- procurement applications` Lower procurement costs

` Less paperwork

` Improved supplier relationship

` Reduction in unauthorized purchasing

` Employee empowerment



Key requirements in an-e- procurement

system

` Configuration` Easy-to-use process

` Security

` The advantages of e- procurement are as follows-

` Saving in purchase (a saving of 1% in purchase because of e- procurement isequivalent to increasing the sales by 5%.)

` Reduced purchase order processing cycle time (by 70%)

` Improved order accuracy

` Enhanced user satisfaction

` Deployment of resources for strategic activities rather than for managing

transaction

` Supplier benefits in the form of improved processes

` Contract compliance



Reverse auction

` A strategic relationship is less important` Price is the main decision factor

` Many qualified suppliers

`

Standard (but not pure commodity) product` Low to medium strategic importance

` Purchase can be ¶lotted·

` benchmarks



Benefits to buyers

`

Reduced costs` Maximized value

` Increased efficiency

Benefits to vendors

` Additional channels` Mean of unloading surplus inventory

` Means of comparing

` Price discrimination by market segment

` Reduced credit risks

` Lower collection costs

` Lower marketing cost per unit sold

` Test prices without risk



` Enterprise marketing automation (EMA)` EMA functionality

` Campaign Management

` Identification of the prospect

`

Generation of the lead` Prospect and customer information capture

` Lead qualification

` Distribution of leads to appropriate segments

` Campaign execution (promotions, event planning)

` Response management

` Refinement

` Channel management



` Promotions management` Event management

` Loyalty and retention programmes

` Partner relationship management (PRM)

` Response management

` Analytic

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Customer Satisfaction, Loyalty, and Retention

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