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In most of the CRM systems, hardly any efforts are put in to customisation. The focus is usually on the development of systems for CUSTOMER KNOWLEDGE. Why get customer knowledge; Basically to know as much about customer as possible The marketer therefore, after getting the knowledge about the customer, needs to study the product, service and process so that the gaps could be removed The more the company studies this and resolve the gaps, the more the company moves towards individualisation OR
Examples; Peon in office servicing individually Large hotels getting ready for regular customers
INDIVIDUALISATION Places high demand on production systems e.g. in automobiles, services, durables etc, you may offer Different variants of models
Colours
Combinations of interiors of cars Special limited variants (small quantities)
However mass customisation is only possible with limited features in certain products or categories
The examples could be Pizza Food and other dishes in hotels and restaurants Car accessories Personal computers, automobiles, durables etc, may offer
There are four Marketing Building Blocks of CRM, as under; 1. Customer knowledge 2. Channels 3. Value proposition (customisation) and 4. Relationship Policy
Relationship Policy In relationship policy various objectives play an important role. These are; 1. Create a plan to increase quality and quantity of customer database The first step would obviously be to increase the quantity i.e. the total numbers in your database Once you have done that, the next step would be to analyse the database (of customer pyramid) and make segments of the customers
SATISFACTION
ATTRACTIVENESS SWITCHING COST
ii. Growth This is commitment phase. Make sure that the customers do not leave, as the investments in developments have already been made, before becoming profitable
iii. Maturity In this phase the chances of termination of relationships are low Each party knows other party very well You break out of routine and increase product / service better and rationalise prices
iv. Decline The customer feels that the supplier is taking for granted. You therefore need to provide better attention (may be some competitor has entered the fray with better product / service / terms of supply
5. and finally What loyalty programmes are there and how these contribute for development of relations between buyer and seller
The individual relationship plays an important role when the firms discriminate between a customer and a good customer
It also shows that parties commit to each other, accommodate each other and intend for long term relationship
Loyalty programmes are of three types; Savings programme