Customer Management in Services

8/7/2019 Customer Management in Services

1/25

ON

Team 4

Lakshmi B.

Kiran Mohan

Jis Mathew


2/25

Who is a Customer?

In broader Sense Anyone who is in

need of us

In business -A person, company, or other

entity which buys goods and services

produced by another person, company, or

other entity

Today, A co-creator as well as Consumers of

Value

Active Players, not the passive audience

Meaning of the

Term Customer

INTRODUCTION


3/25

INTRODUCTION

Evolution of Customers through three stages and along several key dimensions

CUSTOMERSAS PASSIVE AUDIENCE CUSTOMERSAS ACTIVE PLAYERS

Persuading Pre-

determined group of

buyers

Transacting with

Individual

Customers

Lifetime bonds with

Individual CustomesCUSTOMESASCO-CREATORSOF VALUE

Time Frame 1970 & Early 1980Late 80s - early

90s1990s Beyond 2000

Nature of

Business

Exchange and

role of customer

Customers are seen as passive buyers with a predetermined role of

consumption

Customers are part of the enhanced network;

they co-create and extract business value.

They are collaborators, co-developers, and

competitors

Managerial

Mindset

The customer is an

average statistic, groups

of buyers are

predetermined by the

company

The Customer is

an individual

statistic in a

transaction

The Customer is a person;

cultivate trust and

relationships

The customer is not only an individual but

also part of an emergent social and cultural

fabric

Company's

Interaction with

Customers, and

develoment of

products and

services

Products and Services are

created without much

feedback

Shift from sellingto helping

customers via

help desks, call

centers and

customer service

programes

Providing for customers

through observation of

users; identify solutions

from lead users, and

reconfigure products and

services based on deep

understanding of

customers

Customers are co-developers of personalized

experiences. Companies and lead customers

have joint roles in education, shaping

expectations, and co-creating market

acceptance for products and services


4/25

Questions that are necessary pre-

conditions for customer analysis

Who?

Where?

What?

When

How?

Why?

Customer Analysis Customer Portfolio Analysis

Tools used for Studying Customers

Helps to understand the status of

the customer

High net worth or low net worth Helps to understand the

progression of the customer over a

period of time

Major Sections of CPA

Customer Measures Dimensional Analysis

Segment Descriptions

Segment Profiles

Geographic Analysis

Interpretation

INTRODUCTION


5/25

Customer is a Source of Competence

Active Engagement of Customers through an

on-going dialogue

Mobilizing Customer Communities

Managing Customer Diversity

Creating and Managing Personalized

Experiences

Shaping Customers Expectations

Customers as Competitors

Fundamental realities of

customer management

in Services

CUSTOMER MANAGEMENT IN SERVICES


6/25

Understand Customer wants Customer Motives for buying the service

Solve your Customers Problems

Treat Customers with Respect

Connect with your Customers Emotions

Set the Fairest (not the lowest) prices

Save Your Customers time

Delight the Customer with the WOW effect

Pillars of CustomerManagement



7/25

Delighters

No Penalty for not

Doing them; However,

If you do them, you get

Bonus points

Performance

Must Be

The better I do, the less

dissatisfied the

customer is.

Satisfiers

The Better we do, the

happier the customer is

Kano Model of

Customers Wants

Must Be

Satisfiers

Delighters



8/25

Finish Strong

Get the Bad Experiences Out of the Way

early

Segment the Pleasure, Combine the pain

Build Commitment Through Choice

Give People Rituals, Stick to them

Five Operating Principlesfrom Behavioral

Sciences for Service

Management

1. Sequence Effects

2. Duration Effects

3. Rationalization Effects



9/25

Its a new business philosophy based ontrust and value

The core function of CRM is the value

creation process

The basic premise of CRM is to offer

superior value to customers in an effort to

turn prospects into customers, customers

into loyal customers, and loyal customers

into partners

What is CRM?

CRM is an IT enhanced value creation

process, which identifies,

develops, integrates and focusesthe various competencies of the

firm to the voice of the customer

in order to deliver long-term

superior customer value, at a

profit to well identified existing

and potential customers.

(Plakoyiannaki and Tzokas

CUSTOMER RELATIONSHIP MANAGEMENT


10/25

Types of CRM


CRM

CollaborativeCRM

OperationalCRM

Analytical

CRM


11/25


Model of Customer

Relationship

Management

Relationship marketing inputs

1. Understanding customerexpectations

2. Building service partnerships

3. Empowering employees

4. Total quality management

Relationship marketing outcomes

1. Customer Satisfaction

2. Customer loyalty

3. Quality products

4. Increased profitability

Assessment state

1. Customer feedback

2. Integration


12/25

Four step frame work for one to one marketing

enables companies in service sector to provide

excellent real time customer service through the

effective use of individual account information

Four step frame work in CRM

Identify the prospective customer

Differentiate customer in terms of need and their

value

Interact with individual customer in order tomaintain a strong relationship

Customize service and message to each

customer

Philip Kotler

LITERATURE REVIEW


13/25

Proposed the objectives ofCRM

1. CRM acts as an enabler, capturing customer

information and delivering it to the various touch

points.

2. Helps in increasing vast service improvements.

3. CRM system allows the company to better

understand, segment and tier its customer ways,

better target promotions and cross selling.

Christopher Lovelock

LITERATURE REVIEW


14/25

Explained the Limitations ofCRM

CRM enhances differentiation among high value

and low value customers.

CRM tends to eliminate customers by theircurrent purchasing behavior. This is referred to as

redlining, where unprofitable types of customers

are identified and avoided

R. Srinivasan

LITERATURE REVIEW


15/25

Comprehensive strategy

Acquiring

Selection

Retaining

Partnering

Interactive communication

Technology & people

Mutually beneficial long-term relationship

KEY CONCEPTS OF CRM


16/25

Managing customer relations in an organized

way

Aim at managing each Moment Of Truth that

is experienced by the customer.

Touch points

An unstructured form of CRM

Broader focus of not only serving the customer

but also creating the customer and retaining him

for measurable and substantial returns

CRM in ITC Maurya

Sheraton

Implementation of CRM

ITC MAURYA SHERATON GROUPS of Hotels


17/25

Guest Recognition

Data Capture and Maintenance

Channel Integration and Consistency

Ranking and Discrimination

Two way Personalized Dialogue

Incident Tracking

Rapid Response

STRATEGIES ADOPTED




18/25

Field selling

Loyalty Programs

Distribution Points

Web

Call Centers

DATA CAPTURE

VEHICLES/Touch

points




19/25

Steps 1

Identification of all Customer Relationship

management vehicles

Create awareness

Train to Learn more about the guest and

his background

Build an excellent rapport

Form of customized and personalized

selling within the hotel

Nice to know and needs to know

CRM process at ITC

Maurya Sheraton




20/25

Step 2

Integration of these Customer Relationship

management vehicles

To get desired input back from touch points

Touch points can be organized and used as

valuable information

By

U

sing this valuable information maketouch points to offer the right product to the

right customer and that too at the right time.

Database

CRM process at ITC

Maurya Sheraton




21/25

Call Centre SecuritySales AgentCredit Agent Operations

Database

Integration Process




22/25

Welcome Award - Rewarding Relationships

Welcome Link - Bring home the rewards

Sheraton Plus - The art of fine dining with a

special edge

INCENTIVES to the

Customers




23/25

IncreasedUse of Technology and attention

to Technology Skills

Greater Emphasis on Multi Linguistic and

communication skills Cultural Adaptation

Increased emphasis on Security , both

information and physical and BCP

Emphasis Customer Retention , CustomerSLAs & Value Added Services (B2B)

New Trends in Customer

Management in

Services


CONCLUSION


24/25


25/25

THANKS.

Customer Management in Services

Documents

Transcript of Customer Management in Services