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BuildBuild ing Customer
ing Customer
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Session CoveraSession Covera
Bondin with Customer
CRM Process Framewo
ee
k
2
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Enhancin
Retainin
Satisfyin
Attractin
3
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1. Knowledge Acquisition
2. Customer Differentiation
Marketing Mix
1. Product / Services.
3. Channels
4. Price
4
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IDIC FrameworkIDIC Framework
IDIC framework e
converting existingcustomers.
Identify
Interact
Customize
plains the process of
customers into loyal
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The Ladder of LThe Ladder of L
Partner
Advocate
Supporter
Customer
Client
Prospect
yaltyyalty
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Integrated
4. Structural
Joint
Investments
Systems
Excelle
Bonds
Processes &
Equipment
&
3. CustomizationInvolvement
BondsMass
Customization
Customer
Intimacy
Volume &
1. Financial
Awards
Bundling &
Cross Selling
t Quality
Bonds Sta e Pricing
alue
Continuous
Relationship
BondsPersonal
Relationship
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Social Bonds
among customersSource : Berry & Parasuraman, 1991
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Bonding for Customer RelatiBerr & Parasuraman
Bonding for Customer RelatiBerr & Parasuraman
Financial BondsVolume & Fre uenc Rewards
Financial BondsVolume & Fre uenc Rewards
Bundle & Cross selling
Stable Pricing
Bundle & Cross selling
Stable Pricing
Customisation BondsCustomer intimacy
Mass customisation
Customisation BondsCustomer intimacy
Mass customisation
n c pa on nnova onn c pa on nnova on
onshiponship
Social BondsPersonal Relationshi s
Social BondsPersonal Relationshi s
Continuous relationships
Social Bonds among customers
Continuous relationships
Social Bonds among customers
Structural BondsIntegrated information systems
Joint investments
Structural BondsIntegrated information systems
Joint investments
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are processes an equ pmenare processes an equ pmen
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Customer DefectionCustomer Defection
Customers are profitable over a period of time. Th
s ay w an organ sa on, e more pro a e ey
be.
Across industries profits can increase by 35 to 85
About 70% customers switch to competitor offerin
perceived indifference of current provider.
Why customers defect?
longer they
are e y o
by
us omers w o e ec
can be categorised as-
Price Defectors
us omers w o e ec
can be categorised as-
Price Defectors
s because ofProduct Defectors
Service defectors
Market defectors
Product Defectors
Service defectors
Market defectors
ove away
Organisational defectors
Organisational defectors
ther friendships
ompetition
roduct dissatisfaction
erceived indifference
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Customer Retention
Measure CustomerRetention
Measure CustomerRetention
Analyse coAnalyse co
ro ram
Interview formercustomers
Interview formercustomers
plaintplaintIdentify switchingIdentify switching
barriersbarriers
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Psychological steps across relationship stPsychological steps across relationship st
Relationship Stages Prospect Customer Clie
Psychological
steps
Initiation
Switching
Satisfaction
Trust
Loyalty
Major role
gesges
t Supporter Advocate Partner
Development Maintenance/Enhancement
11Minor role
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SwitchinA prospect becomes a cust
Satisfaction
Emotional state which occurs when proexceeds expectations
Trust
Satisfaction over multiple interactions, faith in,
Loyalty
omer
duct performance
ffering &consistency
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CommitmentAn endur in des ire to maintain a relat ionsh
CommitmentAn endur in des ire to maintain a relat ionsh
ey var a es
Attitude towards interacting
with each other
Attitude towards interacting
with each other
Formation of bonds
(legal,planning,knowledge,
social,technical,structural
Formation of bonds
(legal,planning,knowledge,
social,technical,structural
i .i .
variables- Preserve relationship investments
w par ners
Resist short term gains (lesser
than expected benefits of stayingon in a long term relationship)
View potentially high risk actions
as acceptable.They expect that
partners will not actopportunistic.
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.
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--
ICICI Bank celebrates a
customers birthday
ICICI Bank Representative
tells an old lady that herpapers regard ng her pens on
would reach home
insurance ad-where the soldier
puts vermillion on his wifes
head before leaving for work
ICICI retirement solutions-
suraksha zinda i ke har
kadam par
The ICICI mission : When you bank with us we do realize
that sometimes you do need to get your loved ones
a ong. e a e grea pr e n ma ng em ee as
comfortable as possible. Apart from your banking needs,
we understand your human needs too
15