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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 thechances of 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
Member Partner 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 if complaint 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