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CRM PPT 3-PGDM-RM
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Transcript of CRM PPT 3-PGDM-RM
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CUSTOMER
RELATIONSHIPMANAGEMENT
Prof. Manju Lamba
ITS, Mohan Nagar, Ghaziabad.
E-mail: [email protected]
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WHY ORGANIZATION LOSE THEIR
CUSTOMER
1. Price Related Issues: match of price & value.
If mismatch occurs than switch over of brand
2. Product Related Reasons: technological
advancements results- new brands of newcompany offers better performance as compared
to existing brand
3. Service Related Reasons: service can be given
at three diff. levels- pre-sales, during sales &
after sales. Any dissatisfaction regards to
service result in brand switch over
4. Benefit Related Reasons: various augmented
benefits offered by competitors
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5. Competitors Related Reasons: technological
advancements, attractive offers, value added
services etc offered by competitors6.Personal Reasons: a customer can become a
brand defector due to:
He moved away from market area where brand is
sold Role changes in life cycle
Anger, disgust, distress developed within the
process of delivery
Sentimental reasons Influence of other members of family
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WINNING STRATEGIES & PROCESS FOR
EFFECTIVE CRM
1. People: People within the org. have basic role in
developing & maintaining relationship with the
customer. Everyones work in the org. is towards,
SatisfyingC
ustomer
2. Process: Involves logical sequence of activities from
the following- Need Requirement Need
Fulfillment. This requires manufacture of
products with desired attributes.
Process has to be derived from customers viewpoint
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3. Product: Product must provide value addition.
A customer with a given product may become
dissatisfied customer due to change in this
expectation.4. Organization: An Org. should be aware of
technological advancements & provide quality
service with customer expectation. It should
concentrate on total customer expectation
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5. Setting Satisfactory Service Standard:
Customer Expects Quality Product With
Quality Service.Pre Sales Customer develops expectation.
So in that case org. must ensures quality &
availability of product at right time .
During Sales Customer experiences the
sales process. So org. must provide customer an
opportunity to inspect, reply promptly.
After Sales Org. must provide supporting
services such as speedy replacement, simplified
complaint procedure, efficient maintenance &
repair service.
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6. Concentration On Competitor: Concentration
must be on competitors performance, their strategy &
style of operations & comparisons with their own.
Customer always make this comparison & decide
their future purchase pattern
7. Customer Analysis:
Present Customer Of Ours
Customer
Prospective Customer (Competitors)
Periodical Customer Audit Program must be done.
Org. may use external agencies & customer &
competitors analysis can be done.
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8. Cost Analysis: Attention must also be on cost of
product.
Sincere efforts towards cost reduction withoutcompromising quality.
Org. must do value analysis.
9. Concentration On Paying Abilities:
Before fixing price, the paying ability of customermust be viewed
Prices are to adjusted within the paying ability of
customer
Org. may have to sacrifice small portion of profits
There exist benefit of long term relationship &
future opportunities
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10. Knowledge On Purchase Behavior Pattern:
Outcome of purchase decision:
1. Purchase2. Rejection
3. Postponement
4. Search for substitute
Org. must have an idea about what % of customerarrive at what decision
11. Differentiation In Price & Quality Standards:
Org. may provide variety of brands with price
variationsTo meet a particular need, 3 or 4 brands of varied
quality & at differing price level must be available
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12. Focus On Reducing Dissatisfaction:An Org.
must be pro-active to a situation where customer
becomes dissatisfied & need remedial actions
Cause of dissatisfaction has to be identified & solved well
If complaints are well attended then:
Dissatisfied Customer Loyal Customer
13.Attention on changing requirement of customer14. Concentration on performance
15. Training to supply chain employees
16. Empowerment to service provider
17. Incentivizing service providers18. Augmenting intangible benefits
19. Visit to the point of usage of the product
20. Develop partnership with customers
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21. Organizing customer clubs
22. Relationship based pricing schemes
23. Identifying with social events & concern for social
problems
24. Effective customer communication system
25. Customer complaint monitoring cell
26. Focus on preventive actions
27. Concentration on customer satisfaction research
28. Focus on focus group
29. Building switching barriers
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CHARACTERISTICS OF GOOD CUSTOMER
SATISFACTION SURVEY
Growth Strategies International (GSI) performed
a statistical analysis of customer satisfaction
data
Encompassing the findings of over 20,000customer surveys conducted in 40 countries
Conclusion of the study:
1. Totally satisfied customer contributes 2.6 times
as much revenue to a company as a somewhat
satisfied customer
2. Totally satisfied customer contributes 17 times
as much revenue as a somewhat dissatisfied
customer
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3. Totally dissatisfied customer decreases revenue
at a rate equal to 1.8 times what a totally
satisfied customer contributes to a business
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SITUATION 1
A large international hotel chain wanted toattract more business travelers. They decide to
conduct a customer satisfaction survey to find out
what they need to improve their services for this
type of guest.
A written survey was placed in each room andguest were asked to fill it out. However, when the
survey period was complete, the hotel found that
the only people who had filled in the surveys
were children and their grandparents
Why??????
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REASON
Business travelers dont have time& interest in participating this
kind of survey!
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SITUATION 2
A large manufacturing company conducted the
first year of what was designed to be an annual
customer satisfaction survey. The first year, the
satisfaction score was 94%. The second year, with
the same basic survey topics, but using another
survey vendor, the satisfaction score dropped to
64%. Ironically, at the same time, their overall
revenues doubled!
Why???????
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REASON
Different survey designs, methodologies and
population characteristics dramatically alter the
results of the survey
1. The questions were simpler & phraseddifferently
2. The order of the question was different
3. The targeted respondents were at a different
management level
4. The overall satisfaction question was placed at
the end of the survey
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QUESTION TYPE
Survey questions can be categorized into three
types:
1. Overall satisfaction question: How satisfied
are you with XYZ company?2. Key attributes: satisfaction with key areas of
business e.g., sales, marketing and operation
etc.
3. Drill down: satisfaction with issues that are
unique to each attribute and upon which the
actions may be taken to directly remedy that
key attributes issues.
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PYRAMID STRUCTURE OF OVERALL
SATISFACTION QUESTION
Overall
Satisfaction
Key Attributes
Drill Down
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QUESTION DESIGN
1. The survey must keep to a reasonable length.
Over 60 question in a written survey will be
tiring. Anything over 8-12 questions begins
taxing the patience, of participants in a phone
survey.
2. The question should utilize simple sentenceswith short words
3. Questions should ask for an opinion on only one
topic at a time. E.g., how satisfied are you with
our products and services?4. Superlatives such as excellent or very should
not be very used in questions. Such words tend
to lead a respondent toward an opinion
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5. Feel good question yield subjective answers on
which little specific action can be taken. E.g.,
how do you feel about XYZ companys industry
position?
It will produce responses that are of no practical
value in terms of improving an operation.
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THE PERILS OF PAPER
Fill in the dots format was one of the most
common types of survey.
But there were flaws in it
For example: all prior answers were visiblewhich leads to comparison with current questions
Respondent subconsciously tend to look for
symmetry in their responses become guided by
the pattern of their responses, not their true
feelings
Example: In a survey conducted by Xerox
corporation, over 1/3rd of the respondent were
discarded
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TELEPHONE SURVEY
Yield more accurate response than a paper
survey
But it too has flaws
1. When a respondents identity is clearly known,possibility of being challenged or negative
response at a later date produces a strong
positive bias in their replies. This is called as
Cassandra Phenomenon
2. People becomes friendlier as a conversation
grows longer, thus influencing question
responses
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3. Human nature says that people like to be liked.
Therefore gender biases, accent, perceived
intelligence, or comparison all influenceresponses
4. Telephone surveys are intrusive on a senior
managers time.
An unannounced phone call may create an initialnegative impression of the survey.
Many respondent may be partially focused on
clocks instead of questions
Optimum responses are dependent upon arespondents clear mind and free time, two things
that senior manager often lacks
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NEED FOR A HIGH RESPONSE RATE
Negative people tend to answer a survey more
often than positive because human nature
encourages venting negative emotions.
A low response rate generally produces negativeresults
Smaller percentage of a population is less
representative of the whole
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THE ACCURACY OF TERMS
totally satisfied customer is between 3 and 10times more likely to initiate a repurchase, and
measuring this top-box category is significantly
more precise than any other means
Survey which measures % of totally satisfied
yields more accurate results
Many surveys offer a Neutral choice on a five-
point scale for those who might not want to
answer the question, or those who are unable to
make decisions This bail out option decreases the quantity of
information that is we get Insufficient
Information
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THANK YOU