Customer Relationship Management Class 3

8/8/2019 Customer Relationship Management Class 3

1/16

NMiMS

Customer RelationshipManagement

Sunil Joshi


2/16

CRM Lecture 3

Customer Relationship Why? How to measure

Customer Satisfaction Factors affecting How to measure How to promote / improve


3/16

Customer Relationship

Customer = ? Someone who takes a decision for goods

or services

Relationship =? Relationship is gratification of each

others needs, expectations, wants etc.


4/16

Decision Making Process of YourCustomer

Buy / No Buy

Specifications,Socio economic Segment,

Status, etc

Market Scan / Research

Deciding factorsPriceValue for moneyBrandSellers ImagePast experienceService facility

Life expectancyComplaint management systemPaying capacityFinance optionBehavior at the time of purchase

DemonstrationShort Listing

Buy / Delay

Ref: CRM - Sugandhi


5/16

Understanding your customer

ConsumerBehavior

Type

AttitudeOrient-ation

ImageDecisionProcess

Price

SensitivityBargaining

Power

Financial

Ability

IndustrialCustomer

Statutoryneeds

Flexibility

Know-ledge

Installedbase

BizVolume

Create

Competition

PayingCapacity

Market

Image

Ref: CRM - Sugandhi


6/16

Elements of Customer Relationship

History Culture Habits

Beliefs and factors affecting belief Attitude Perception Personal approach Ability to catch weak signals Analysis of the past Motivating factors Service

Ref: CRM - Sugandhi


7/16

Sensors for Customer understanding

Internal Sales Marketing Project Contracts

Engineering / Services On site staff HR

External Consultants Financiers

Competitors Customer meets Customer perception survey Wholesalers (consumer) Agents

Ref: CRM - Sugandhi


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What to measure in Customer Relationship

Satisfaction level SWOT of the organization vis--vis competitors Benchmarking against competitors Analyze self against benchmarks Price sensitivity Market share analysis Market intelligence on prospects Profitability analysis

Reasoning of customer preference Brainstorming on possible business solutions Raw data for future use Growth projections

Ref: CRM - Sugandhi


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Customer Satisfaction

Customer satisfaction

is the customers perceptionthat the vendor has met

his expectations

Fully

Efficiently

Promptly

Ref: CRM - Sugandhi


10/16

Factors affecting Customer Satisfaction

Capability fin / tech / competency Response from vendor Vendors ability to meet commitments Customer service Complaint handling Ownership of the account holder

Engineering / IT quality Product (incl efficacy, price, quality, performance) Product Appearance and ease of use Life cycle of the product Performance Requirement for regular maintenance

Ref: CRM - Sugandhi


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What to measure ?

SupplierRelated

PerformanceRelated

CompetitorRelated

CustomerRelated

BusinessRelated

CustomerSatisfactionMeasures

Ref: CRM - Sugandhi


12/16

Customer satisfaction Indices

Customer Satisfaction Index (CSI)

CSI = Total marks obtained by customer during customerfeedback / Marks expected by the customers for supplier toobtain

Excellence Index (EI) / Competitive Index (CI)

EI / CI = Total marks obtained by customer during customerfeedback / Total marks based on benchmark of excellence

Benchmarking ?


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Why ? Customer Relationship

high low

Introspect

high high

Leader

low low

Lost

high low

Trapped

sa

tisf

act

ion

Loyalty Adapted from : CRM - Sugandhi


14/16

Key Note Address Harvey Thompson

From: Who Stole my Customer?


15/16

Objective of measuring

Measure Customer Satisfaction

Evaluate Customer Loyalty

Use Both to RETAIN CUSTOMER


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Questions ? Assignment

ReadKnow Thy Customer Fostering Measurable Impact onCustomer Relationships with Enterprise BI ( Business Intelligence

Journal Sept 2009)

Case Study HPCL CRM initiative

What are the customer satisfaction parameters if you want to

measure?

Is loyalty an issue in Cylindered Gas business?

Any similar experience to share?

Next case study Will send by tonight.

Documents

Customer Relationship Management Class 3