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Customer Centric Organisations

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    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

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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

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    Dangers of being Customer Lead

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    Customer

    Satisfaction

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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?

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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

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    Outcomes of Customer Satisfaction/Dissatisfaction

    Repeat Purchases

    Word of mouth

    Customer RetentionCustomer Loyalty

    Higher the satisfaction levels, higher thechancesof customer retention & loyalty

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    Customer Development Process

    SuspectFirst time

    Customer

    DisqualifiedProspect

    Prospect

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    Customer Development Process

    First time

    Customer

    MemberPartner Advocate

    ClientRepeat

    Customer

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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 ifcomplaint is resolved quickly

    On resolving of complaints, consumers tell on

    an average 5 people about the good treatment

    they received

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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

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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

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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

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