Customers and Customer’s Exjkgugpectations

7/28/2019 Customers and Customer’s Exjkgugpectations

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RW TOPIC 4 1

Customers and Customer’s Expectations

Some examples of “customer” definition

1. “Recipient of a product provided by the supplier” and “thecustomer can be either internal or external to the

organization” * internal refers to functional levels of the org vs.

individuals (AS/NZS ISO 8402:1994,p2) – GENERIC definition

2. “ The term (customer) applies in both the internal and

external sense and means the recipient of an item or

service” (Stebbing 1990: 172) – GENERIC definition

3. “Any person or enterprise who has valid expectations

about the final outcomes of a building or construction

project such as the building owner, building

manager,tenants,.” (CIDA 1993:172) CONSTRUCTION definition



RW TOPIC 4 2

Customers and Customer’s Expectations Some examples of “customer” contd…

4. “The customer may be: (project management definition)

-the sponsor, or owner of the facility

-the operators of the facility, or users of the services it

provides

-the consumers of the eventual product it produces

-the media, or local community, or politicians” (Turner :

151)

Other views:

Customer as ultimate consumer, user beneficiary or

purchases links the ISO definition to the previous 3

and this wider view of customers is similar to the

concept of stakeholders



• Customers are:

• The most imp. People for any company

• - The imp. Stakeholder

• - Not dependent on us, we are dependent on them• - Not an interruption in our work, but are purpose of it

• - Doing us a favor by coming to us

• - A part of our business not outsiders

• - They are flesh and blood creatures with feeling and

emotions like us

• - People who come to us with needs and wants, it is our duty

to fulfil them

• - People deserving of the most courteous and attentive

treatment

• - The lifeblood of every business, without them we will have

to close our office

• - Quality begins with customers and also end with them



• Customer satisfaction

• Customer satisfaction, a term frequently used in marketing, is a measure of howproducts and services supplied by a company meet or surpass customerexpectation. Customer satisfaction is defined as "the number of customers, orpercentage of total customers, whose reported experience with a firm, its

products, or its services (ratings) exceeds specified satisfaction goals."[1] In asurvey of nearly 200 senior marketing managers, 71 percent responded that theyfound a customer satisfaction metric very useful in managing and monitoringtheir businesses.

• Customer Delight The very favorable experience of the client of a business when they have received

a good or service that significantly surpasses what they had initially anticipated. Amarketing department can use instances of customer delight to a company'sadvantage by requesting referrals and obtaining testimonials from delightedcustomers that can help attract new customers.

• Customer Intimacy

• Customer intimacy is a concept from marketing, which describes the ability of a

supplier to become accepted and known as the regular partner with its customer.Customer intimacy creates a virtuous circle: the better the supplier knows thecustomer company with its objectives and difficulties, the better able he is toprovide an optimal solution.

• The more adapted the supplier's product or service is, the happier the customerwill be, and the stronger the "intimacy" between the two parties.



What is CRM?• CRM “is a business strategy that aims to understand,

anticipate and manage the needs of an organisation’scurrent and potential customers” (1).

• It is a “comprehensive approach which providesseamless integration of every area of business that

touches the customer- namely marketing, sales,customer services and field support through theintegration of people, process and technology” (1)

• CRM is a shift from traditional marketing as it focuseson the retention of customers in addition to theacquisition of new customers (2)

• “The expression Customer Relationship Management(CRM) is becoming standard terminology, replacingwhat is widely perceived to be a misleadingly narrow

term, relationship marketing (RM)” (3).



Definition of CRM

“CRM is concerned with the creation, development

and enhancement of individualised customer

relationships with carefully targeted customers and

customer groups resulting in maximizing their total

customer life-time value” (2).



What is Customer Relationship Management (CRM)?

CRM is “the development and maintenance of mutually beneficial

long-term relationships with strategically significant customers”

(Buttle, 2000)

CRM is “an IT enhanced value process, which identifies, develops,

integrates and focuses the various competencies of the firm to the

‘voice’ of the customer in order to deliver long-term superior

customer value, at a profit to well identified existing and potentialcustomers”.

(Plakoyiannaki and Tzokas, 2001)



Why is CRM important?

•“Today’s businesses compete with multi-product offerings created and deliveredby networks, alliances and partnershipsof many kinds. Both retaining customers

and building relationships with othervalue-adding allies is critical to corporateperformance” (3).

• “The adoption of C.R.M. is being fuelledby a recognition that long-termrelationships with customers are one of the most important assets of an

organisation” (2)



Determinants of CRM

Trust

The willingness to rely on the ability, integrity, and motivation of

one company to serve the needs of the other company as agreed

upon implicitly and explicitly.

Value

The ability of a selling organisation to satisfy the needs of thecustomer at a comparatively lower cost or higher benefit than

that offered by competitors and measured in monetary,

temporal, functional and psychological terms.



Determinants of CRM

In addition to trust and value, salespeople must :

Understand customer needs and problems;

Meet their commitments;

Provide superior after sales support;

Make sure that the customer is always told the truth(must be honest); and

Have a passionate interest in establishing and retaining a long-

term relationship (e.g., have long-term perspective).



Potential Benefits Of CRM

• Customer retention

• Share of customer or share of wallet

•

Cross-selling• Up-selling



Advantages of CRM

• While company is quickly growing, customers are more

satisfied as well• Service provided in a better way, and a quicker way

• Sales force automated

• Integrated customer information

•

Certain processes eliminated• Operation cost cut, and time efficient

• Brand names more quickly established

• A central database so that everyone in your company cankeep track of customer contacts

• Sales and marketing teams can benefit from having all thisinside knowledge about customers

• Lets you set up rules for distributing work throughout yourcompany

• Lets you pick and choose the functionality that you want



Benefits of CRM

Benefits of CRM include (8):

• reduced costs, because the right things are being done (ie.,effective and efficient operation)

• increased customer satisfaction, because they are getting

exactly what they want (ie. meeting and exceedingexpectations)

• ensuring that the focus of the organisation is external

• growth in numbers of customers

• maximisation of opportunities (eg. increased services,referrals, etc.)

• increased access to a source of market and competitorinformation

• highlighting poor operational processes

•

long term profitability and sustainability



Customer Feedback

Must be continually solicited and monitored

Customers change all the time, as do theirminds, expectations, and suppliers

Customer feedback is an ongoing and active

probing of customer’s mind



Feedback enables the company to

- discover customer dissatisfaction

- discover the relative priorities of quality- compare its performance with competition- identify customer needs- determine opportunities for improvement



-Survey

A questionnaire is used on Likert scaleQuestions about the product featuresTo make survey more useful pl. remember1) Surveys raise the expectation of

customers2) Question should be clear and in simplelanguage

3) More specific the question, answer is

better4) It should not too lengthy5) You should know how to analyze the

data



-Focus GroupsA small group of customers is

assembled in meeting room- Moderator ask structuredquestions- questions focused on current,proposed and future products andservices

-Toll free telephone numbers- Customer visitsVisit customer’s place is another

way of gathering information



-Report cards

Sent to each customer on a quarterlybasis

Data is analysed to determine areas forimprovement

- Internet

- Employee feedback



E-CRM – a definition

E-CRM is:

• Applying – Internet and other digital technology…

(web, e-mail, wireless, iTV, databases)

• To – acquire and retain customers(through a multi-channel buying process

and customer lifecycle)

• By – Improving customer knowledge, targeting,

service delivery and satisfaction.



Benefits of e-CRM

• Targeting more cost-effectively

• Achieve mass customization of the marketing

messages

• Increase depth, breadth and nature of

relationship

• A learning relationship can be achieved

• Lower cost



E-CRM• A subset of CRM that focuses on enabling customer

interactions via e-channels (The web, email and wireless)• Electronic Customer Relationship Management (e-CRM) is

based on some basic principles such as, 80% of your business

comes from 20% of your customers and it is less expensive to

retain an existing customer than get a new customer. Asatisfied customer tells 2 other people of your services while

an unsatisfied customer tells 10 others of your shortcomings.

e-CRM uses the latest Web-technologies to read, manage and

analyze customer databases to provide you with detailed

information you require for effective customer acquisition and

retention.



• The basic features of e-CRM therefore are:

• Enables a personalized relationship with customers

• Offers integrated customer information from all departments

into one centralized knowledge base• Has a totally integrated, customer-centric approach

• Employs e-business technologies to extend customer serviceand offers a variety of solutions tailored to your specificneeds

• What exactly can e-CRM do for you?• Today your customers want access to your company 24 hours

a day. They want to know when their orders were shipped,and what their account balances are. They want salespeopleand call-centre representatives who can answer their

questions right now. Today, more than ever before, it isessential for a company to excel at every single customercontact point, be it at the retail-point, in the call-centre, viathe Internet, or through sales and service agents. e-CRMmakes all this possible, and viable.



It enables:

• The company's representatives across all contact points to retrievecustomer data from anywhere, anytime

• Personalized service to each customer, based on individual wants

• More ways than one to reach and service customers

• Increased customer satisfaction, leading to higher customer

retention• Customized solution for your customers business requirements

• Hence e-CRM can lead to enhances customer experience,identification and retention of the most profitable customers,increased market share, reduced costs of customer servicing . and

ultimately a greater return on your e-CRM investment. E-CRM isrelevant across the entire spectrum of businesses, where customersatisfaction is critical.



e-CRM

• With the abundance of product and services

offerings, consumer`s loyalty can only be

commanded by providing better portfolio of services.

• speed of response and understanding eachindividual one of the major key issues CRM has

become the central focus area around which the

entire gamut of organizational activity has to revolve

round.



What is e-CRM ?

In simplest terms e-crm provides company to conduct

interactive, personalized and relevant communications across

the globe with their customers by utilizing the traditional and

electronic channels both.

It adheres to permission based practices, respecting individual's

preferences regarding how and whether they wish to

communicate with you and it focuses on the understanding

how the economics of the customers relationships affects the

business.



Why employ e-CRM ?

• To optimize the value of the interactive relationships

• Enable the business to extends its personalized reach in the

hand of customers

• Co-ordinating marketing initiatives across the all customers

channels

• Leverage the customer`s information for more effective e-

marketing and e-business

• Focus the business on improving the customers relationship

and earning a greater share of each customer`s business

through consistent measurement, assessment and actionable

customer strategy.



The six “E`s” of e-CRM

• The ‘e’ not only stands for “electronic” but

also perceived to have many other

connotations. Through the core of CRM

remains to be cross channel integration andoptimization. The six “E” of e-CRM are briefly

explained in the next slides.



E- “electronic

channels”

E- “enterprise”

E- “empowerment”

E- “Economics”

E- “Evaluation”

E-“Extern

alInforma

tion”




1) Electronic channels: new electronic channels such as web

and personalized e- messaging have become a medium for

fast and interactive , economic communication , challenging

company to keep pace with the increased velocity. E – crm

thrives on these electronic channels.

2) Enterprise : through e- CRM the company gains the mean to

touch and shape a customers experience through sales,

services and corners offices whose occupants need to

understand and assess the customers behavior.




3. Empowerment: it must be structured to

accommodate consumers who now have the

power to decide when and how to

communicate with the company. Through,which channel , at what frequency. An e- CRM

must be structured to deliver timely pertinent,

valuable information that consumers acceptsin exchange of his/her attention.




4. Economics : an e-CRM strategy ideally

should concentrate on the consumer

economics, which drives smart asset

allocation decisions, directing efforts atindividuals likely to provide the greatest

return on customer- communication

initiatives.




5.Evaluation: understanding the customers

relies on a company`s ability to attribute

customers behavior to market programs,

evaluate customer interactions along variouscustomers touch points channels and compare

anticipate ROI against actual returns through

analytic reporting.




6. EXTERNAL INFORMATION : the e-CRM solution should be able

to gain and leverage information from such sources as third

party information networks and webpage profiler application.

• Acquisition (increasing the no. of customers)

• Expansion (increasing the profitability by encouraging

customers to purchase more products and services)

• Retention (increase the amount of time in which the

customers stays with company, making a long-term

relationship)



KEY FEATURES OF e-CRM

• Regardless of an company objectives e-CRM solution

must posses certain key characteristics. It must be:

• driven by a DATA WAREHOUSE

• Focused on the consistent metrics to assescustomers actions across the channels

• Structured to identify a customer profitability or

profit potential



KEY FEATURES OF e-CRM

• To determine the effective allocation decisions accordingly, so

that most profitable customers could be indentified and

retained and the resource could be invested in the

relationships, which are more profitable.



Information Technology and CRM

• Technology plays a pivotal role in CRM (2).• Technological approaches involving the use of databases, data

mining and one-to-one marketing can assist organisations toincrease customer value and their own profitability (2)

• This type of technology can be used to keep a record of customers names and contact details in addition to theirhistory of buying products or using services (2)

• This information can be used to target customers in apersonalised way and offer them services to meet theirspecific needs (2)

• This personalised communication provides value for thecustomer and increases customers loyalty to the provider (2)



Information Technology and CRM: Examples

Here are examples of how technology can be used to createpersonalised services to increase loyalty in customers:

• Phone calls, emails, mobile phone text messages, or WAP services(2):

Having access to customers contact details and their service orpurchase preferences through databases etc can enable organisationsto alert customers to new, similar or alternative services or products

- Illustration: When tickets are purchased online via Lastminute.com,the website retains the customers details and their purchase history.

The website regularly send emails to previous customers to informthem of similar upcoming events or special discounts. This helps toensure that customers will continue to purchase tickets fromLastminute.com in the future.




• Cookies“A “cookie” is a parcel of text sent by a server to a web browserand then sent back unchanged by the browser each time itaccesses that server. HTTP cookies are used for authenticating,tracking, and maintaining specific information about users,

such as site preferences and the contents of their electronicshopping carts” (5). - Illustration: The online store, Amazon, uses “cookies” to

provide a personalised service for its customers. Amazonrequires customers to register with the service when theypurchase items. When registered customers log in to Amazon

at a later time, they are ‘greeted’ with a welcome messagewhich uses their name (for e.g. “Hello John”). In addition, theirprevious purchases are highlighted and a list of similar itemsthat the customer may wish to purchase are also highlighted.




• Loyalty cards“the primary role of a retailer loyalty card is to gather data about customers. This inturn leads to customer comprehension and cost insights (e.g. customer retentionrates at different spending levels, response rates to offers, new customer conversionrates, and where money is being wasted on circulars), followed by appropriatemarketing action and follow-up analysis” (6)

- Illustration: The supermarket chain, Tescos, offers loyalty cards to its customers.When customers use the loyalty cards during pay transactions for goods, details of the purchases are stored in a database which enables Tescos to keep track of all thepurchases that their customers make. At regular intervals, Tescos sends its customersmoney saving coupons by post for the products that the customers have bought inthe past. The aim of this is to encourage customers to continually return to Tescos todo their shopping

• CRM software- “Front office” solutions

- “Many call centres use CRM software to store all of their customer's details. When acustomer calls, the system can be used to retrieve and store information relevant tothe customer. By serving the customer quickly and efficiently, and also keeping allinformation on a customer in one place, a company aims to make cost savings, andalso encourage new customers” (7)

D li i C S i i C b CRM



13-40

Delivering Customer Service in Cyberspace: CRM

Applications and Tools

• Classifications of CRM Applications

– Customer-facing applications

– Customer-touching applications

– Customer-centric intelligence applications

– Online networking and other applications




13-41



• Customer-Facing Applications

– customer interaction center (CIC)

A comprehensive service entity in which EC

vendors address customer-service issuescommunicated through various contact channels

– telewebs

Call centers that combine Web channels withportal-like self-service




13-42



– Intelligent agents in customer service and call

centers

– Automated response to e-mail

• autorespondersAutomated e-mail reply systems (text files returned via

e-mail) that provide answers to commonly asked

questions

D li i C t S i i C b CRM



13-43



• sales force automation (SFA)

Software that automates the tasks performed

by salespeople in the field, such as data

collection and its transmission

– Field service automation




13-44



• Customer-Touching Applications

– Personalized Web Pages

– E-Commerce Applications

– Web self-service

Activities conducted by users on the Web to find

answers to their questions (e.g., tracking) or for

product configuration




13-45



– Web self-service

• Self-tracking

• Customer self-service through FAQs

– FAQ page

A Web page that lists questions that are frequently asked by

customers and the answers to those questions

• Self-configuration and customization




13-46



• Customer-Centric Applications

– Data reporting and warehousing

• Data reports

• data warehouse

A single, server-based data repository that allows

centralized analysis, security, and control over the data

– Data analysis and mining




13-47



• Online Networking

– Forums

– Chat rooms

– Usenet groups

– Blogs and Wikis

– E-mail newsletters

– Discussion lists

Delivering Customer Service in Cyberspace CRM



13-48



• mobile CRM

The delivery of CRM applications to any user,

whenever and wherever needed, by use of the

wireless infrastructure and mobile devices – Voice communication and understanding by machines

– Language translation

– The role of knowledge management and intelligent agents

in CRM



13-49

Other EC Support Services

• Consulting Services

• CRM Suites

– Directory services

– Newsletters

– Search engines and news aggregators



13-50

Other EC Support Services

• Trust services

• Trademark and domain

names

• Digital photos

• Global business

communities

•

Access to commercialdatabases

• Online consulting

• Knowledge management

• Client matching

•

E-business rating sites• Security and encryption

sites

• Web research services

•

Coupon-generating sites

More EC Support Services



51

E-commerce Systems

• Web-based systems that enable business transactions to be

conducted seamlessly twenty-four hours a day, seven days a

week

• Some classifications of E-commerce systems are:

– B2C (Business to Consumer)

– B2B (Business to Business)

– B2E (Business to Employee)

• The major components of Web-based EC are:

–Electronic storefronts

– Electronic markets

– Mobile commerce



• Electronic commerce, commonly known as e-commerce, isa type of industry where buying and selling of product orservice is conducted over electronic systems such as theInternet and other computer networks. Electroniccommerce draws on technologies such as mobilecommerce, electronic funds transfer, supply chainmanagement, Internet marketing, online transactionprocessing, electronic data interchange (EDI),inventorymanagement systems, and automated data

collection systems. Modern electronic commerce typicallyuses the World Wide Web at least at one point in thetransaction's life-cycle, although it may encompass a widerrange of technologies such as e-mail, mobile devices socialmedia, and telephones as well.

• Electronic commerce is generally considered to be the salesaspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.

E-commerce can be divided into:

http://en.wikipedia.org/wiki/Mobile_commerce


http://en.wikipedia.org/wiki/Electronic_funds_transfer

http://en.wikipedia.org/wiki/Supply_chain_management





http://en.wikipedia.org/wiki/Internet_marketing


http://en.wikipedia.org/wiki/Online_transaction_processing





http://en.wikipedia.org/wiki/Electronic_data_interchange





http://en.wikipedia.org/wiki/Inventory_management_systems






http://en.wikipedia.org/wiki/Data_collection





http://en.wikipedia.org/wiki/Mobile_devices









































E commerce can be divided into:

• E-tailing or "virtual storefronts" on websites with

online catalogs, sometimes gathered into a"virtual mall"

• The gathering and use of demographic datathrough Web contacts and social media

•

Electronic Data Interchange (EDI), the business-to-business exchange of data

• E-mail and fax and their use as media for reachingprospective and established customers (for

example, with newsletters)• Business-to-business buying and selling

• The security of business transactions

http://en.wikipedia.org/wiki/Business-to-business








• e-Commerce & CRM

• Harnessing the power of the Internet to drive a closerrelationship with customers should be the goal of

every business. Over the last several years, manycompanies who invested in CRM and e-Commercetechnology lost their way as they believed it was anelectronic panacea designed to eliminate the need to

talk to their customers and orders would just flow inbecause they had a shopping cart on their website withcolorful product images. E-Commerce and CRM aretools designed to learn more about customers, theirpreferences and a clever way to market and re-marketto them. However, most importantly, these tools areand should be a convenience for your customer, notyour company.

Understanding E Customers



Understanding E-Customers

•

The 10 Most Important WebsiteAttributes:

1. Product representation

2. Product prices

3. Product selection

4. On time delivery

5. Ease of ordering

6. Product information

7. Level and quality of consumer support

8. Product shopping and handling9. Posted privacy policy

10. Site navigation and appearance

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Customers and Customer’s Exjkgugpectations