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Customer Centric Organisations

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Page 1: Customer Centric Organisations

7/30/2019 Customer Centric Organisations

http://slidepdf.com/reader/full/customer-centric-organisations 1/18

Customer Centric

Organisations

Page 2: Customer Centric Organisations

7/30/2019 Customer Centric Organisations

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Page 3: Customer Centric Organisations

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Customer Orientation

Customers buy benefits and not products.

Marketing should translate these benefits intoproducts and services that satisfy enough

customers better than competitors to make aprofit

Make key investments in customers and theirlong term satisfaction

Page 4: Customer Centric Organisations

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Alternative Perspective of BeingCustomer Driven

For a company to dominate in future, it must

lead the customers than being

‘Customer lead’ 

Eg. Walkman, Cell Phones,ATM

Page 5: Customer Centric Organisations

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Dangers of being Customer Lead

Page 6: Customer Centric Organisations

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Customer

Satisfaction

Page 7: Customer Centric Organisations

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Customer Satisfaction is a person's feelings of 

pleasure or disappointment resulting from

comparing a product's performance in relation totheir expectations

Dis- satisfied Customer Satisfied Customer 

Delighted customer 

What is Customer Satisfaction?

Page 8: Customer Centric Organisations

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Setting appropriate expectations is the key to

Customer Satisfaction

Too high expectations will lead to disappointment

&

oo low expectations will not attract enough buyers

Page 9: Customer Centric Organisations

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Outcomes of Customer Satisfaction/Dissatisfaction

Repeat Purchases

Word of mouth

Customer RetentionCustomer Loyalty

Higher the satisfaction levels, higher thechances of customer retention & loyalty 

Page 10: Customer Centric Organisations

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Customer Development Process

SuspectFirst time

Customer 

DisqualifiedProspect

Prospect

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Customer Development Process

First time

Customer 

Member Partner   Advocate

ClientRepeat

Customer 

Page 12: Customer Centric Organisations

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However many companies suffer from high

customer churn i.e. High customer defection

2 ways to strengthen customer retention:

1. Erect high switching barriers

2. Deliver higher customer satisfaction

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Is customer complaints a right indicator of 

Customer dissatisfaction?

Research shows that

96% of the dissatisfied consumers do not

complaint, they merely stop buying your product

Make i t easy for the customer to complaint ...

websi tes, tol l free numbers , e-mail Ids ...prov ide avenues for complaints 

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Of the customers who register a complaint,

54% to 70% will do business again with thecompany if complaint is resolved

95% will do business again with the company if complaint is resolved quickly

On resolving of complaints, consumers tell on

an average 5 people about the good treatment

they received

Page 15: Customer Centric Organisations

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Importance of Customer Retention

 Acquiring new customers cost 5 times more than

satisfying & retaining existing customers

On an average company loses 10% customers

every year 

5% reduction in customer defection can increase

profits 25% - 85% depending on the industry

Customer profit rate tends to increase over life

of retained customer 

Page 16: Customer Centric Organisations

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Customer Relationship Management

CRM is the process of managing detailed

information about individual customers and

carefully managing all touch points to maximizecustomer loyalty

Page 17: Customer Centric Organisations

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Investments (Effort) in CRM

Basic Marketing

Reactive Marketing

Accountable Marketing

Proactive Marketing

Partnership marketing

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Investments(Effort) in CRM

High margin Medium margin Low margin

 Accountable Reactive

Proactive Accountable Reactive

Partnership Proactive Accountable

Many

Customers /

Distributors

Basic or 

Reactive

Medium no. of 

Customers /

Distributors

Few Customers

/ Distributors