Relationship Marketing Topic 2 PDF

CUSTOMER CUSTOMER SERVICE RELATIONSHIP: Prepared by: Irene S. Villaver, LPT  Engage STORY READING : The Tellers 1.How would you describe the two tellers? 2.Why do you think it is important to treat the customers right? 3.If you were the customer, would you do th...

CUSTOMER CUSTOMER SERVICE RELATIONSHIP: Prepared by: Irene S. Villaver, LPT  Engage STORY READING : The Tellers 1.How would you describe the two tellers? 2.Why do you think it is important to treat the customers right? 3.If you were the customer, would you do the same? 4.What does good customer service result to?  Explore Let`s check your experiences! 1.Do you have any experience, where you received a bad customer service? How did you handle it? 2.Give example/s of company where you have experienced BEST CUSTOMER SERVICE.  Explore Let`s check your experiences! 1.Do you have any experience, where you received a bad customer service? How did you handle it? 2.Give example/s of company where you have experienced BEST CUSTOMER SERVICE.  Explore Let`s check your experiences! 1.Do you have any experience, where you received a bad customer service? How did you handle it? 2.Give example/s of company where you have experienced BEST CUSTOMER SERVICE.  Explore Let`s check your experiences! 1.Do you have any experience, where you received a bad customer service? How did you handle it? 2.Give example/s of company where you have experienced BEST CUSTOMER SERVICE.  Relationshi p Marketing This approach Relationship marketing is a results: strategy that focuses on building and nurturing Relationship marketing is a 1.Increases word- strong, long-term of-mouth strategy designed to foster activity relationships with customers. 2.Repeat customer loyalty, It aims to enhance customer business interaction and long-term 3.Willingness on loyalty, brand value, and client relationships through engagement. the customer’s targeted marketing part to provide information to strategies and activities. the organization  1.BASIC LEVEL It is when a salesperson approaches a customer to sell the product or service. It is known as direct marketing 2. REACTIVE Levels of MARKETING It happens when a salesperson encourages customers who bought the Relationship product to contact the company for any concern or suggestions. Marketing 3. ACCOUNTABLE MARKETING It is when a salesperson contacts customers after sales to ensure that the customer is satisfied or has encountered any problems  4. PROACTIVE MARKETING It is when the company regularly contacts its customers for feedback to help improve performance 5. PARTNERSHIP MARKETING Levels of It is when the company continuously interacts with its customers to improve overall Relationship performance and discover ways to deliver better value. Marketing  Building Customer Value Customer Value is best defined as how much a product or service is worth to a customer. It’s a measure of all the costs and benefits associated with a product or service. Examples include price, quality, and what the product or service can do for that particular person. There are also monetary, time, energy, and emotional costs that consumers consider when evaluating the value of a purchase.  FOUR BRAND BENEFIT/COMPONENTS OF CUSTOMER VALUE Sample of Functional Benefit 1. Smartphone Battery Life: Extended battery life allows users to use their phone for longer periods without needing to recharge. Water Resistance: Provides protection against water damage, making the phone more durable and reliable. Fast Processor: Ensures smooth and quick performance for running apps and multitasking. 2. Vacuum Cleaner Powerful Suction: Effectively removes dirt and debris from carpets and hard floors. Lightweight Design: Easy to maneuver and carry around the house, making cleaning  Sample of Emotional Benefit 1. Sense of Achievement: 2. Happiness and Joy 3. Confidence and Self-Esteem 4. Security and Peace of Mind 5. Belonging and Community 6. Nostalgia and Sentimentality 7. Excitement and Adventure 8. Trust and Reliability 9. Love and Affection 10.Freedom and Independence  Sample of Social Benefit enhancing the social standing or reputation of an individual among peers, colleagues, or within the community.  Sample of Economic Benefit 1. Cost Savings – Energy Efficient Appliances 2. Value for Money – Subscription Services 3. Return on Investment (ROI) – Solar Panels 4. Affordability – Budget Friendly Smartphones 5. Bundled Savings – Internet and Cable Bundle 6. Durability and Longevity – High Quality Furniture  1. Basic and expected levels These levels include the basic requirements of conducting a business. Example: A restaurant are expected to have a spacious dining area and clean tables and utensils. Note: If these requirements are not met by the business, it cannot provide high-quality customer service value. 2. Desired Customer Value This involves what the customers want from the purchase or service experience. -This is the opportunity for a business to get ahead of the competition. Example: A retail shop can provide friendly and helpful staff who Levels Of Customer Value can assist the customer in making the right purchase. 3. Unanticipated Customer Value It pertains to an unexpected purchase or service experience that may go beyond what the customer desire. Example: In a gasoline station, the gasoline boy cleans the car windows after filling up the the customer’s gasoline tank without an extra charge.  four types of customer Strangers Butterflies True Friends Barnacles  CUSTOMER RELATIONSHIP MANAGEMENT CRM is the process of identifying and understanding customer needs, followed by meeting those needs. It involves managing interactions with existing and potential customers.  CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management (CRM) refers to the strategies, technologies, and practices that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The primary goal is to improve customer service relationships, retain customers, and drive sales growth.  Remember! Relationship marketing is the overarching strategy, while CRM refers to the software and processes used to execute that strategy. They work together to create positive customer experiences and drive business growth.  Improved Tailored Customer Service and Retention Customer Benefits of Experience Customer Relationship Management Efficient Targeted Team Marketing Performance and Sales Efforts  Enhanced Increased Customer Retention Profitability Benefits of Customer Relationship Management Strategies in Developing Customer Relationship 1.Make every customer interaction count. Follow-through on commitments and claims about products or services. 2.Develop employees. 3.Offer benefits and product value that responds to the customer’s desire. Treat customer as individuals who are respected and valued. 4.Listen to customer. 5.Build a strong brand identity. 6.Surround customers with valuable information by using emails, website content, social media, and other methods of outreach but do not be invasive. 7.Business must have a website. 8.Reward loyal customers. 9.Nothing strengthens a bond more than appreciation 10.Create a blog about the business where discussion is more casual and inviting  CUSTOMER It is the act of taking care of SERVICE the customers’ needs by providing and delivering professional, helpful, high quality service and assistance before, during, and after the customer’s requirements are met. ELEMENTS OF CUSTOMER SERVICE STRATEGY 1.A vision for customer service 2.Assessing customer needs 3.Hiring for service 4.Organizational goals for customer service 5.Customer Service Training 6.Employee accountability 7.Rewarding good service  CUSTOMER LOYALTY PROGRAM It is a program run by a company that offers benefits to frequent customers. Those benefits may be in the form of discounts, rebates, free products, or other promotions. An effective customer loyalty program rewards customers who buy from a business on a regular basis, encouraging the customer to return frequently. Loyalty programs have several goals: Loyalty programs are increase business, improve sales, structured marketing efforts strengthen the relationship between the that reward, and therefore customer and the business, and keep the encourage, loyal buying customer coming back on a regular basis. behavior — behavior which is One important element of meeting these potentially beneficial to the goals is ensuring the program has a firm benefit to the customer.  CUSTOMER LIFETIME VALUE Customer Lifetime Value is defined as the total profit of a business from the lifetime patronage of a customer. CLV= "No." of rolls a week Example: Let us consider a customer of = 3 x 52 x 35 x P2.00 toilet paper. Assuming that: = P10,920.00 -a company will have P2.00 profit/roll From the example above the CLV is -the customer uses 3 rolls a week P10,920.00 -the customer is 25years old and the lifespan is 60 years.  CUSTOMER SERVICE STRATEGY IN THE PHILIPPINES Loyalty and reward programs are already been a proven method to increase business profits. Most Philippine businesses invest on this customer service strategy. *Examples: * 1. Community Movement & Loyal to a Cause 2. Refer a Friend Customer Rewards 3. The More You Spend/Get-to-the-next- level Rewards * * Thank you