P2 Customer Acquisition Retention and Care

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CRM

INDIRECT

Sell Strategies to

Keep Customers

LOYALTY


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It requires a clear focus on theservice attributes that represent

value to the customer and thatcreate

What is CRM ?

loyalty.


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It is the process of

profitable customers.

What is CRM ?

Acquiring,Retaining and

Growing


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ITS 1631 Customer Relationship Management

LECTURE IICRM: Customer Acquisition, Retention and StrategicCustomer Care

Yuku Ng15 September, 2010


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Learning Objectives

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Classify customers into three categories in the stageof service evolution.

Apply the five strategic activities for implementing

Strategic Customer Care.


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Basic concept and

definition

Customers

Relationship

Management ofrelationship

Information Process Technology People

Implementation of CRM

Customer Relationship Management

teaching plan of


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Strategic Customer Care An Evolutionary

Approach To Increasing Customer Value AndProfitability

Stanley A. BrownJohn Wiley & Sons, Toronto, 1999, ISBN 0-471-64342-4


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Strategic Customer Care An Evolutionary Approach To Increasing Customer Value And Profitability

1.

3progressive stages of customer care

Stage I Customer Acquisition:

Promotions, Customer referrals, Copying strategies from competitors

Stage II Customer Retention:

Focus on maximizing relationship with customers, Segment customers into groups of different strategic values Different service + products to different groups of customers

Stage III Strategic Customer Care: Strengthen services on potentially profitable customers Grow with customers (e.g. Citibank Black Platinum Visa Card)


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2. The Five Strategic Activities for Implementing

Strategic Customer Care9

Fig 3.1 The five strategic activities for implementing strategic customer care.


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2.1 Profiling Customers

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Define your customers characteristics in ameaningful way best to understand the attributesthey value most.

Video at seminar

Spending amount

Frequency of spending

Regency of spending

Classify customers into groups of commoncharacteristics.


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Strategic Customer Care

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2.2 Segmenting Customers intoNatural Groupings

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Profile of GoodCustomers

Contribute the highestproportion of gross profit

Have potential to add further togross profit

Are profitable organizationsthemselves

Customers who have permittedyou to achieve a dominant sharein the category

Are savvy and intelligent Conscious of the need to be

flexible and show adaptability

Willingness to become a partner

Trend of increased revenuesgenerated for your organization

Your current share ofcustomers business

Significance of your companysproduct or service to thecustomers business

Customers current gross profitand its potential

Potential to cross-sell and up-sell

Observe that they are not segmented by demographics


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Strategic Customer Care

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2.3 Researching CustomersIndustries and Concerns

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Going beyondloyalty, enterpriseneeds toobtain

a rich knowledge of theircustomersworldsin

order to achieve meaningfulserviceniche for the

customers E-Cards and Octopus


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Understand Your Customer(Not in your notes)

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Knowing your product

Knowing the dialogue environment

Knowing the department

Knowing the company

Knowing the industry

Knowing the Political, Social,

Economic, Technology environment

The Point of Interaction

Selling Skills

Thehomeworkrequired forpreparing asales call

Thecommunicationskill


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2. The Five Strategic Activities for

Implementing Strategic Customer Care16



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2.4 Investing in Technology to ProvideSolutions to Customers

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Different customers deserve different levelsof service

Technology and efficiency will drive success

Strategic alliances are needed Satisfied customers lead to higher profits


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2.4 Investing in Technology to ProvideSolutions to Customers

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Best practices in the use of technology Proactive database marketing Developed models to analyze profitability Use intranet and extranet for information sharing Executive Information System (EIS) Apply help desk, quality assurance and customer intelligenceetc.


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2. The Five Strategic Activities for

Implementing Strategic Customer Care

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2.5 Managing Customers throughConsistency of Treatment

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Systematically apply a streamlined accountmanagement process to all important customers

Involve senior management in the account

management process In the video at seminar, the CEO of Oriental Mandarin Hotel

write letters to his key account customers every week.

Provide operational objective to the strategicaccount team as well as the objective measurement

criteria


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End of Lecture 2

P2 Customer Acquisition Retention and Care

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