Module 4: Customer Relationship Management Flashcards
Is a strategy that concentrates on keeping and improving relationships with existing customers.
Relationship Marketing
Is the ratio between the customer’s perceived benefits and the resources to obtain those benefits.
Customer Value
Is the evaluation of the product’s performance in relation to the expectations set by the customer.
Customer Satisfaction
Is an effort made by companies in order to keep customers happy and loyal.
Customer Retention
There are many reasons why companies want loyal customers. Among which are as
follows:
*Loyal customers buy more products.
*They are less price—sensitive.
*They spread positive word of mouth.
Includes service foundations that are built upon delivery of excellent service.
Core Service Provision
The loyalty of customers are affected.
Switching Barriers
Refers to the retention strategies that keep the customer buying the same brand.
Relationship Bond
4 Retention Strategies
Financial Bond
Social Bond
Customization Bond
Structural Bond
at this level, the customer patronizes a brand because of the financial incentives that he or she may receive from the company.
Financial Bond
this type of bond focuses on the social and interpersonal relationship between the company and the customer
Social Bond
customer loyalty may be encouraged when customers are allowed to avail of tailored services to fit their individual needs
Customization Bond
at this level, financial, social, and customization bonds are all combined in order to deliver services that fit the need of the client of customer
Structural Bond
Its marketing goal is to acquire customers and earn their confidence.
Customer As Strangers
Goal of the company is to satisfy these new customers.
Customers As Acquaintances
Goal is to retain the customers and keep them close through different marketing activities.
Customers As Friends
Enhance their relationship to ensure that the customer will always choose to buy from them and not from competitors.
Customers As Partners
The process of building and maintaining profitable customer relationship by delivering customer value and satisfaction.
Customer Relationship Management
Customer Profitability-focused Marketing Pyramid
- Platinum ^
- Gold
- Iron
- Lead
Spread negative word of mouth
Lead
customers may be regular customers, but their purchase volume may not merit special
Iron
customers are heavy users but are price-sensitive
customers are heavy users but are price-sensitive
customers are heavy users and are not price-sensitive
Platinum
companies have to be more discerning in creating and managing relationships with their customers
Relating with Carefully Selected Customers
Mobile applications and Web sites now encourage consumers to generate their own content.
Consumer-generated Marketing
