Chapter 3 Building CRM.pdf

7/27/2019 Chapter 3 Building CRM.pdf

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BuildBuild ing Customer

ing Customer


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Session CoveraSession Covera

Bondin with Customer

CRM Process Framewo

ee

k

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Enhancin

Retainin

Satisfyin

Attractin

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1. Knowledge Acquisition

2. Customer Differentiation

Marketing Mix

1. Product / Services.

3. Channels

4. Price

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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

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Chapter 3 Building CRM.pdf

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