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INTRODUCTION

Through this presentation we present a entire new perspective on customer retention for products and services industry where high value purchase occurs

By high value purchase we mean any purchase whose value in rupee terms exceed 5000/- (Five thousand only)

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INTRODUCTION

This Presentation gives the basic bare bones of our idea and is applicable for both products and services companies the only eligible criteria put forward is high value purchase

The actual implementation would take into account the industry type, customer base, type of product/service etc into consideration

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INTRODUCTION

The customizations will have to be done by the respective companies based on above mentioned parameters but the basic underlying idea is the same

The industries which need this next generation idea will ideally be operating in a B2C environment with huge numbers of customers

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INDUSTRIESPRODUCT

1. Automobile2. Appliances (FMCD)3. Furniture4. Mobile5. Computer/

Electronics6. Real Estate7. Electrical Goods8. Gems & Jewellery

SERVICES1. Aviation 2. Hotel3. Hospitals4. Insurance 5. Banking6. ISP’s And Telecom

Co’s7. Travel8. Spa Beauty Care

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INDUSTRIES

Though not an exhaustive list these are typical industries that would benefit from our approach

Every industry has to customize the approach for itself as they give varied offerings

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INTRODUCTIONThe idea can be summarized in one sentence “Make your customer fell very Important like

Emperor”Though sounding very clichéd we will in

subsequent slides show you literally how it will be done in a novel, simple and cost effective way

The idea is based upon customer retention but its benefits are not confined to customer retention but go way beyond

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Novel CRM The Customer is king and we will

exceed his expectations by our service…..

This is the common customer service motto for various companies but it remains in letter not in spirit

We will ensure that your customers are treated not like kings but like emperors

Cost of this extravagance is low but results outstanding

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INTRODUCTIONEvery Individual customer should be

treated like a key account this is the basic idea of our approach

Once you pamper your existing customers then you will have no problems retaining them and consequently you can cross-sell or up-sell them your products

These customers will then galvanize others who will then get served by you

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Relationship Marketing Programs

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IntroductionOur Approach is simple yet far reaching in its

benefits the approach is plain common sense but why organizations don’t implement it is an enigma

For treating your individual customers like a key account costs as little as 1%(or less) of the purchase value per customer per year

The approach just requires few minor process/mindset modifications and a robust IT Infrastructure

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Customer Relationship Management(CRM)

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BENEFITS Customer satisfaction is achieved Customer is treated like king hence more

brand loyalty Product improvement through customer

feedback Better and timely service to customers Simple market researches done on

customers Alternate channel for informing customers

about new products and promotions

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BENEFITS (contd) Customer preferences ,demographics for

analysis and implementation Socially Relevant messages like energy

conservation, safe driving etc communicated to customers

Loyal customers rewarded Apart from all these tangible benefits it will

enhance your brand image and improve your company’s perception among the people

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Customer Retention

Typically 68% of customers leave a company because of its service and move to its competitors

We will ensure that this number will reduce to 30% of the customers in a year because our approach ensures customer satisfaction so more retention

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Advertising

Huge amounts of money are spent on advertisements in order to make customer aware of new product/promotions being launched by the company

Our approach ensures that all the new product/promotion information reaches the target audience based on customer profiles

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Product ReviewTaking active feedback from your existing

customers about the products can reveal a lot about product drawbacks and customer preferences

These data are then analyzed and incorporated into any new product or updated version of existing products

For service companies the deficiencies in service come home and then subsequently corrective measures undertaken

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Customer Profiling

Very few companies have idea about their customers i.e. demographics, income, education, preferences etc those who have idea usually engage third parties to gather information which they do by sampling

Our approach ensures that customer profiling is done along with other functions listed above and across all customer groups

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CUSTOMER

Every other company claims that customers are part of its family but they don't have any idea about their family members i.e. who, where, how, what are they? They also do not take opinion of their family members before embarking on a new venture

Our Approach would literally help you to achieve this goal enshrined above

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Customer ProfilingAll the existing customers are profiled on the

basis of various parameters as decided by the company and arranged into groups

After logical segmentation of customers then targeted campaigns are run for various groups for cross sell and up sell campaigns

Each group will have a specific campaign for itself so as to derive maximum mileage

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Analytics

Advanced analytics will be run on the data accrued from existing customers

Based on the results loyalty schemes can be provided for regular ones while for relatively new entrants some trial schemes are provided

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ANALYTICS

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Customer PamperingOnce an enterprise pampers its

customers it will have more loyalty Whenever in doubt about any product/

promotion consult your existing customers their insights will greatly help in taking crucial decisions

Customers are always ready with advice some good some bad some ridiculous but we will select only the best and reject others

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Single Point of Contact

Many a times a customer has no idea whom to contact in case of damage/service etc

There should be a dedicated person, website, mail ,number etc for these complaints

A name is more valuable than a mail id and whom to escalate when problem doesn’t get resolved after a certain period

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Corporate Social Responsibility (CSR)

A company spends huge amounts of money for a socially relevant cause via advertising

By our approach we will ensure that these socially relevant messages are transmitted to the existing customers of the company and they are urged to participate in this change

The existing customers will whole heartedly support and participate in this venture

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ADVERTISINGOur approach will help you to get feel of how

your advertising is going vis a vis impact and visibility

The existing customers of the company will be the decision makers in choosing the brand ambassador concept etc for advertising

Our approach in fact opens up a whole new medium for advertising and assessing advertisement impact for various other mediums

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Product/Brand Experiences

Expectations of

performance

Evaluation of actual

performance

Evaluation of actual

performance

Evaluation of gap between expected and actual performance

Dissatisfaction SatisfactionExpected confirmed performance

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APPROACHPain is defined by us as the gap between

expectation and reality and the way to relieve pain is to merge expected result with actual result

We here are not talking of satisfaction but we will ensure that dissatisfaction doesn’t exist

Satisfaction will come into picture subsequently but elimination of dissatisfaction is the primary objective

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Present CRM

Companies today typically invest heavily in a crm package to manage customer relationship and this strategy itself is flawed

The CRM gets it input from various purchases that a customer has done ,complaints, queries etc

Third party surveys are uploaded into CRM for analysis

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Present ScenarioSome companies call up their customers

after purchase to enquire about product’s performance but this is one off measure rather than norm

Services companies typically use a feedback form to gather customer information and then upload it

Some companies use technology to monitor real time performance of their products

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Present ScenarioCustomer connect initiatives are run by

various companies by selecting a specified group of customers and finding out their preferences

Loyal customers are rewarded by offering them discounts , products, gifts etc

Advertising and sales promotion done through established channels and their reach measured by third parties

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Present Scenario

Rarely the existing customers bar a very few are asked for their opinions regarding new product/service offerings

Customers belonging to different life cycle phases of products are not treated differently

The point of contact for customers is dealers not company representative

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APPROACH

Obtaining feedback is an ongoing process, not a one-time event. The most successful companies change according to their customers' desires and demands

Be wary of over-analyzing the data. It's easy to lose sight of your long-term goals when you're foundering in numbers. Survey information is only a guideline for potential change

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APPROACHShow your clients you appreciate their input

and thank them for their efforts. Customers like helping out if they see changes being made per their suggestions

Use customer feedback to highlight areas for improvement, not to punish employees.

Use customer satisfaction training and policies to motivate and encourage employees, not to discourage them.

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APPROACHIn a nutshell the approach is to treat

your individual customers as key account and apply principles of account management to all your individual customers

There are two ways of accomplishing this objective i.e.

Create a dedicated team of account managers in your company to take care of customers

Outsource the account management to a vendor i.e. a third party

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APPROACH

The activities to be undertaken before this initiative can be launched are

Phone number of customers to be available

Email id and mailing address of customers

Centralized database of customers with unique identification number for each customer

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APPROACH

By now you must have a feel that our approach consists of talking/communicating to your existing customers you are spot on

We believe that a regular communication channel be available between you and your customers which would be 2 way not 1 way as practiced today

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APPROACHYou have to be proactive in communicating

to your customers not wait for mishap to occur at his end and he/she calls you

By communicating even after selling product/ service you will have top of the mind recall for existing customers

Your customers will also appreciate that you take so much of pain to call them up and take opinion about all and sundry

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APPROACHPresently we have customer care centers who

receive customer complaints and try to solve them that is just a number for many and majority don’t ever call it

Have account managers who will help customers and call them from your end periodically

These account managers will have a name, email for customer queries and escalation authority for escalation if issue is not resolved in a given time frame

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APPROACHThe Approach is simple after a sale is

done call up the customer say after 3 months just to enquire what are his feelings after buying our product Does he feel buyers remorse Does he like aesthetics, features etc Does he need any help give him a

contact name , email, mailing address of service representative for assistance

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APPROACH Identify his preferences and language etc Identify product/service advantages vis a vis

competition

After this is done upload all the details pertaining to this customer into database and then call him up regularly to feel his pulse

Under the guise of taking feedback about products/services extract demographics, usage, income and other valuable data from customers

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APPROACHAfter 2-3 calls you will have sufficient data

about your family members (Customers)You can then run analytics on the results and

then segment your customers on various parameters and then run targeted promotions on different segments taking into variances

For any pan-india promotion identify eligible customers call them up and inform them accordingly

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APPROACHFor new product launch identify the target

segment and create suitable sample from your customers and take their feedback

Inform customers about new product / promotion for those interested in any specific item and those willing to volunteer for new product testing

Ask customers about the promotion they are willing to get updated and mail details accordingly DO NOT SPAM

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APPROACHThe approach can be implemented in a

phase wise manner for example in a specific region for a specific time period in a no frills manner

By no frills we mean only contacting customers randomly to gauge whether they found our products/services satisfactory and their feed back on the same

Run this campaign for 5-6 months selecting a target group of customers

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APPROACH

Commission an independent survey to find out changes before and after the campaign both on quantitative and qualitative parameters

If the results are encouraging then undertake the full fledged implementation of the same

For this no frills approach outsource customer connect program to third party i.e. domestic call centre (BPO)

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APPROACH

The no frills approach will cost you less than .2% of the purchased value of goods/services per customer for calling him twice in 6 month period and there are no fixed expenses except consulting fees

The no frills approach will also help to identify typical problems and will help immensely in implementation of full fledged campaign

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APPROACHThe Customers would not mind our calls as

they would feel important that a company has taken pains to contact him/her even after selling and is taking their opinion

He would readily answer the call and will answer any questions put forward by our account manager and he will be ready with further suggestions and advice for us which will help in catering to tastes of all

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APPROACH

The persons who bought products or availed services from your competitors will feel cheated as your competitors would not call them this would ensure positive image for your company and word of mouth publicity

For every service given by you call up your customers and take a feedback which they would readily give and would be sincere

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APPROACHFor every inconvenience faced by your

customer apologize to him immediately on behalf of company so that he feels important

Every customer will appreciate company’s way of connecting with them even after he has no business with them

Imagine having happy customers you will get business from them and the image enhancing benefits that accrue from it

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APPROACH

For loyal customers run a different campaign reward them for their loyalty

For customers at various stages of product life cycles customize the campaign suitably to meet their requirements

For customers who are close to product replacement time call them to get top of mind recall

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APPROACH

Don’t practice it as one off approach i.e. calling him up once after a sales is done and then forget him

Always maintain communication with him and allow him to communicate with you by creating SPOC (Single Point of Contact) for all his troubles

The SPOC should be a person not a number

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APPROACH

The SPOC should be the account manager for n number of customers and will be responsible for them

He should have a mobile number which would be available from 10am to 10pm a landline number with answering machine available 24x7 a mail id for customers to reach him

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APPROACHThe company cares for its customers is a

common refrain if you really care apply this approach

The approach can be implemented in many ways but depending upon your industry we will suggest best practices

Nowhere this has been implemented and thus its benefits cant exactly be quantified but they are visible to those whose eyes are open

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APPROACH

The approach is cost effective in the sense that for high value purchases you typically spend very low percentage of sales value in retaining your customer

For a typical customer with 4 calls per year ,5-10 emails and 5-6 mails to his address you would spend very less i.e. less than 1% of the value of purchase he/she has done

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APPROACH

For this approach to succeed and prosper entire company has to own this process and the success of approach incorporated into KRA’s and KPI’s

A special cross functional team would be setup to monitor ,evaluate and improve the whole process

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APPROACH

We don’t have credentials for suggesting you how to give your customers better service but the perspective we have will be your service booster

To paraphrase “Even the worst of men can give the best of Advice” Ignore this advice at your own risk

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COSTS (Indian Rupees) Infrastructure Costs

IT Backbone Consulting Fees

Management Costs Recruitment/ Training New Division setup

Miscellaneous Cost per customer per year

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IMPLEMENTATION In House Out sourcedIn house implementation is very costly

as the entire infrastructure is set up by us but it is better that it is readily adaptable

Out sourced is very cost effective but its drawback is that it is not very adaptable and difficult to monitor

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Implementation

The implementation can be done phase wise and in a planned manner it can either be incremental or big bang depending on the enterprise

We suggest enterprises to not incur the fixed costs outright except the consulting fees and try out our recommended no frills strategy

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Implementation

The no frills strategy is implemented in a specific region on a specific population

The duration of no frills strategy is of 6 months and majority of the benefits accrue during this period

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Implementation

After the completion of no frills implementation methodology a survey is done either by company or third party to analyze the results

Once results are good then it is implemented everywhere along with the IT backbone and other prerequisites to derive long term benefit

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FUTURE SCENARIO

In coming future companies will be distinguished on the basis of those who treat their customers as part of their family and those who don’t

Then Gradually all companies will treat their customers as part of their family so for you to take advantage the time is now

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FUTURE SCENARIO

The enterprises who implement this approach will benefit more in the long run though short term benefits will be there

The long term benefits will enhance the image brand value of the companies

The benefits are measurable and persist for a long time

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AFTERWORD

Hard to believe that so much benefit can accrue from so little an investment

Approach is very simple , robust, banal and would open a window for future

It has yet not been implemented be the first to try it out if it works persist if it doesn’t leave it and let the herd follow you

FOR IT/ITES Organizations

The above presentation was for Clients who would need convincing for this initiative

For this Initiative I would like to partner with your organization to make it a reality

The next few slides will explain what is in for you if you implement this initiative

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For YOU You have clients in the target segments In house BPO for calling and receiving

calls IT Infrastructure for storing customer

data Consulting team to convince

modify/customize approach for Client Sales / Business Development team to

acquire clients65

For YOU

Utilizing these strengths you can take up this new paradigm in CRM and help your clients

You can increase your bottom line by a large distance because these are ongoing and long term projects and will be the future of all companies

This doesn’t entail any large additional expense from your side as you have all the major capabilities with you

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For YOU Your Company’s reputation will

increase Bottom line will grow First mover advantage will be yours Clients would flock near youStart this initiative before others and

enjoy monopoly and delay at your own risk somebody may just pip you

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Thank You

For further discussion and implementation contact

Syed Durez Ahmed (Freelance consultant)

+91-9658966606syed.durez.ahmed@gmail.com