Customer Relationship Management-8 (2)

8/3/2019 Customer Relationship Management-8 (2)

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Customer Relationship Management(CRM)


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What Is CRM

Customer Relationship Management

Becoming a common and important concept inmany industries

Beyond mere Contact Management

Knowing the customer and the Touch points

Single undertaking view of customers Most industries have CRM software to help sales

process, on-going service, and even accounting


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The Value of CRM

Gain more control in interaction with customers

Manage expectations better

Increase trust

Competitive advantage

Provide products that better serve customers

Understand what customers really want

Understand the nature of customer service


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Customer Definitions

External Customers

- Customers we do business with outside our organization.

Internal Customers

- The people we work with throughout our organization.

Customer Attributes- Characteristics that allow customers to be categorizedaccording to demographic, psychographic, or firmographicinformation.


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Demographic Information

age income

marital status

education

stage in the family life-cycle

home ownership

sex

ZIP code

occupation

household size

mobility patterns ethnic background

religion

Characteristics such as:


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Psychographic Information

lifestyles

modes of living

needs

motives

attitudes

reference groups

culture

social class

family influences

hobbies

political affiliation

etc.


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Firmographic Information

Characteristics about a company such as:

how many employees they have; the kind of business they are in;

whether they are retail, wholesale, or a service

provider;

their hours of operation


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Why Is Excellent Customer

Service so Rare?

Customer service is rare because it requires

two things that the average person andorganization are unwilling to commit to:

Spending money

Taking action


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TheF

ive Needs of Every Customer

1. Service

2. Price

3. Quality

4.Action

5. Appreciation


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F

rom the Customers Perspective

What Is Customer Service?

- Anything we do for the customer that enhances the customerexperience.

What is Customer Satisfaction?

- The customers overall feeling of contentment with an interaction.

What is Customer Expectations?

- Customers personal vision of the result that is based on theirexperience.

What is Customer Perceptions?

- The way customers see something based on their experience


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Levels of Expectations

Primary expectations: the customers most

basic requirements of an interaction. Secondary expectations: expectations based

on our previous experiences that are

enhancements to our primary expectations.


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Reputation Management

The process of identifying how a company is

perceived and establishing an action plan tocorrect, maintain, or enhance the companys

reputation.


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A Company with a Good Reputation

Is very responsive to customers

Is a company you can trust

Delivers on its promises to customers

Provides excellent value to customers

Has excellent communications

Is ethical and honest

Conducts business in a human/caring way Has excellent top management

Is able to adapt to changes in the industry

Is a technological leader in the industry

Is committed to the environment


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Techniques for Exceeding

Customers Expectations

Become familiar with your customers.

Ask your customers what their expectationsare.

Tell your customers what they can expect.

Live up to their expectations. Maintain consistency.


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Credibility

Made up of the combination of our current

knowledge, reputation, and professionalism.


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Tips for Cultivating Credibility

Practice consistency

Keep your word

Develop your expertise

Become a teammate with your co-workers

Show your dedication to customers

Treat all of your customers and co-workers with thesame high level of respect

Apologize if you are wrong

Remember that credibility is much harder to regainthan it is to keep


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Discussion

What are some examples of customer

service?What are some issues about customer

service?


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New Trends in Customer Service

Accessibility for the customer

Immediacy of response

Feedback from customer to customer serviceprovider

Outsourcing of all or part of customer servicefunctions

Nontraditional examples of customer service


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Cost ofL

osing a Customer

We lose the current dollars that our business

relationship created.We lose the jobs that our clients provide.

We may suffer from a loss of reputation.

We may lose the intangible variable offuture business.


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Customer Intelligence

The process of gathering information;

building a historical database; anddeveloping an understanding of current,

potential, and lapsed customers.


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Sources of

Customer Intelligence

Method by which customers choose to

conduct business Time of day that customers have questions

Depth of their expected interactions

Purchasing patterns Expectations


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Methods of Communication Listening: The ability to hear and understand what the

speaker is saying.

Writing: Communicating by using the written word so

that others can understand the intended message. Talking: Speaking, using words and terminology that

others can comprehend.

Reading: The ability to look at and comprehend thewritten word.

Nonverbal communication: Tone and inflection ofvoice, facial expressions, posture, and eye contact.

Nonverbal communication can contradict the messageconveyed through another method of communication.


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Challenging Customers

Those customers with problems, questions,

fears, and personalities that require us towork to achieve true communication.


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Discussion Question

What are some characteristics of challengingcustomers?

How do avoid creating challenging

customers?


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Respect

To give someone special recognition or

regard.


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Empathy

The ability to understand what someone is

experiencing and to take action to assist inresolving the situation.


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Responsibility Check

Assessing a situation and determining who

shouldhave responsibility and who reallydoes have the responsibility.


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What to do When You Are Wrong

Review the situation.

Observe the customers reaction. Admit the mistake.

Apologize for your actions or error.

Find a solution and implement it.


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Six SuperWays to Cope with


1. Listen

2. Ask questions3. Show empathy

4. Solve the problem

5. Follow up

6. End on a positive note


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Payoffs of Coping with


By learning to cope with challenging

customers, we become more effective andefficient assets to our company and the job

that we were hired to perform!


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Relationship Marketing

Cultivating a lasting and mutually beneficial

connection with customers.


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Customer Retention

The continuous attempt to satisfy and keep

current customers actively involved inconducting business.


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Churn (or Churn Rate)

The number of customers who leave a

business in a years time divided by thenumber of new customers in the same period.


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Defection Rate

The percentage of customers who leave a

business in one year.


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CustomerLifetime Value

The net present value of the profits a

customer generates over the averagecustomer life.


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Determining the Need for

Customer Relationship Program Is customer retention your primary management objective?

Is customer satisfaction measured and assessed regularly?

Is there a constant effort to enhance customer satisfaction?

Do you measure quality standards and communicate results withyour employees?

Do you train and retrain your customer service providers?

Do you have employee turnover problems?

How much do you spend to keep current customers?

What is your current cost for acquiring a customer?

What is your average annual customer monetary value? What is your current customer defection rate?

How do you get lost customers back?

Do you constantly deliver what you promise to your customers?


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Guidelines for Establishing a

Customer-Relationship Program

1. Examine who your customers are and whatspecific needs they have.

2. Identify specific objectives to be realized by theprogram.

3. Create a manageable program of customerretention.

4. Create a culture that stimulates customer interest.

5. Determine a timetable for evaluation.


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Sources of Information to

Measure Customer Satisfaction

Informal surveys

Comment cards

Verbal comments Historical data (point of sale)

Sales

Corporate generated surveys

Discussions with internal customers Focus groups

Toll-free phone numbers

Customer intelligence information


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What Measurement of Satisfaction

Means to Your Business

Customer relationships are deepened

Customers know that we are interested inthem and their wants

Improved product and service offerings

Customer retention


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What Todays Customers

Expect

Availability: Services designed to meet the

customers schedule. Accessibility: When the customer needs to

talk, the provider can be reached.

Accountability: Customers prefer quick andaccurate answers to service questions.


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Steps for Introducing New

Technologies

Prepare your staff.

Train supervisors and team leaders first and get

them to buy in. Develop a group of change champions.

Sell your vision.

Praise successful use of the new technology.

Resist the temptation to complain. Celebrate small successes.

Avoid the shelfware syndrome.


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A Working Definition

The Plan and Practice of managing the lifetime

relationship with your customer.

The Plan: Every successful endeavor requires

proper planning. Successful CRM rarely happens

by chance. Many organizations jump to

implementation w/o proper planning. The Practice: Systematic implementation of

your plans. Should produce measurable results.

Should be evaluated and refined over time.


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A Few Basic CRM Concepts

Touch Points

Each time your company interacts with acustomer is a touch point.

Can we name a few Guest Touch Points?


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Guest Touch Points

First Call/Internet Visit

Pre-arrival Check-In/Check-Out

Post stay thank you

Newsletters, Interest Lists All marketing materials


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Touch Points

Are they planned? Managed? Documented?

Are all touchers properly trained? Enrollyour complete staff in the vision.

Any way to increase the effectiveness of the

touch? Any way to increase the number of touches?


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General Statistics

The averagebusinessnever hears from 96% ofitsunhappy customers,

91% never come back

Those people will tell a minimum of 4 other people,

Getting a repeat customer from this group is 1 in 11,

Dissatisfied customers may tell 9-10people about their experience,

For every positive they tell 4-5 people,

For every complaint received the average business in fact has 26 customers

with the similar concern,


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General Statistics

Of the customers who register a complaint, as many as 70% will do

business again with your organization if the complaint is resolved

effectively,

This figure goes up to 95% if the complaint has been resolved quickly,

40% of complaints are the result from customer mistakes or incorrect

expectations,

A complaint that is handled efficiently is actually better than no

complaint at all,

Customers who complain and get satisfactory results are 8% more loyal than

if no complaint at all,


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Why customers quit-how to win

customers and keep them for life

1% die

3% move away

5% develop other friendships

9% leave for competitive reasons

14% are dissatisfied

68% quit because of an attitude of

indifference


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Operational and Analytical

CRM

Operational CRM: effective and efficient use and

management of people, process and technology

Analytical CRM: the measurement of people, process andtechnology


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People, Process and

TechnologyStart with People


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Add Customer Attrition


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Customer Dissatisfaction

is Expensive


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Customer Disloyalty vs.

Service


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Customer Relationships


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Thinking Outside the Box:

Role Models Like Einstein


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Changing the Paradigm

From

To


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CRM means Dealing with the

People Aspect of the Project


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Customers Are People, Too!

They Have Needs


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Reactive vs. Proactive Thinkers


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Customer Differentiation


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R = annual revenue received from a loyal customer

i = the relevant interest rate or opportunity cost of money per period

N = the number of periods in which a customer makes purchases


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Process of Performance

Enhancement


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CRM Misconceptions

CRM is the solution that will solve a

companys customer problems CRM is the Internet

CRM means scoring and measuring customer

value

CRM is a sales person productivity tool


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Thank You

Customer Relationship Management-8 (2)

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