How can companies attract and retain the right customers and cultivate strong customer relationships?
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Based on the chapters from A South Asian Perspective by Philip Kotler Learn how companies attract and retain their customers. Learn how companies personalize the market, how they empower the customer and how the customer reviews affect the companies growth, how companies reduce defection rates, the retention dynamics
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How can companies attract and retain the right customers and cultivate strong customer relationships?
- 2. Successful use customer information to build strong long-term relationship.
- 5. Companies need to keep a check on the customer satisfaction… Internet allowed marketers to abandon old mass market practices and formulate new personalized marketing.
- 6. Personalizing the market is making sure brand and its market are relevant to the customers A Challenge, given no two customers are identical
- 7. To adapt to customer’s desire for personalization, marketers embraced ideas of permission and one-one marketing Customer may be nameless but clients cannot be… Thoughtful companies turn their customers to clients.
- 8. Permission marketing- Marketing only after getting expressed permission of the customer
- 9. Permission marketing- Marketing only after getting expressed permission of the customer But, many a times customers may have conflicting needs or undefined or ambiguous preferences.
- 10. Permission marketing- Marketing only after getting expressed permission of the customer But, many a times customers may have conflicting needs or undefined or ambiguous preferences.
- 11. • Identify your prospects and customers • Differentiate them in terms of • Value to company • Their needs • Interact with customers and to know their needs • Customize the product to each customer
- 12. Customers play a key role in setting direction of the brand and deciding on how it is marketed “ Poweriswiththeconsumerandmarketersand retailersarescramblingtokeepupwithher. Consumersarebeginninginaveryrealsenseto ownourbrandandparticipateintheircreation. Weneedtolearntoletgo.“ - A.G Lafley Former Chairman, P&G
- 13. With increasing mistrust of some advertising, online customer ratings and reviews are playing vital role for internet retailers such as Amazon and Ebay Negative reviews also can be helpful, as consumer can better learn the advantage and disadvantage through negative reviews, resulting fewer product return, cutting on cost
- 14. Companies seeking to expand their profit and sales : • Develop ads and place them in media • Send direct emails to possible new prospects • Send salespeople to participate in tradeshows where they might get new leads • Purchase names from list brokers etc…
- 15. Its not enough to attract new customers; the company must also keep them and increase business. Too many company suffer from customer churn off or defection. Adding customers here is like adding water to a leaky bucket.
- 16. To reduce customer churn off companies must : • Define and measure retention rate • Distinguish the causes of customer attrition and manage them • Compare the lost customer’s life time value to cost of reducing defection. spend money on retaining customer only if : Lose profit > retention cost
- 17. Market funnel identifies the potential target market at each stage in the decision process, from merely aware to highly loyal Target Market Aware Open to trial Recent user Regular user Most often used LoyalTrier The percentage of customers going from one stage to the next in the funnel allows markets to identify any barriers in building a loyal customer franchise RETENTION DYNAMICS
- 18. Interesting numbers: Acquiring new customer can cost 5 times as retaining current ones Average company loses 10% customers every year 5% reduction in defection rate can increase profit up to 85% Profit rate tend to increase over the customer lifetime due to increased purchases ,referrals ,reduced operating costs to services Satisfied customers are company’s customer capital
- 19. A key driver of shareholder value is aggregate value of the customer base. Companies improve their customer base with strategies as follows : • Reduce customer defection rate • Increasing the longevity of customer relationships • Enhancing the growth potential of each customer through “Share of wallet” , cross-selling, and up-selling. • Sales from existing customers can be increased with new opportunities and offerings • Making low-profit customers more profitable or terminating them • To avoid direct termination, encourage customers to buy more • Forego certain feature • Pay higher amounts or fees • Focusing efforts on high profit customers • The most profitable ones can be treated in a special way.
- 20. Building loyalty and creating strong customer relationship is the dream of every marketer Listening to the customer needs is crucial to relationship management. Many companies have ongoing mechanisms that keep their marketers permanently plugged in to frontline customer feedback
- 21. Building loyalty and creating strong customer relationship is the dream of every marketer Listening to the customer needs is crucial to relationship management. Many companies have ongoing mechanisms that keep their marketers permanently plugged in to frontline customer feedback Developing loyalty programs, that reward high profit customers can help build strong relations. Usually, companies create Frequency programs in a way that locks customer in and creates significant loss switching .
- 22. Building loyalty and creating strong customer relationship is the dream of every marketer Listening to the customer needs is crucial to relationship management. Many companies have ongoing mechanisms that keep their marketers permanently plugged in to frontline customer feedback Developing loyalty programs, that reward high profit customers can help build strong relations. Usually, companies create Frequency programs in a way that locks customer in and creates significant loss switching . Limited member clubs help build long term loyal customers. Fees and membership conditions wards of people with fleeting interest.
- 23. Creating institutional ties to provide customers with special supplies or equipment Win- Back ex-customers reviewing and resolving exit interviews and lost customer surveys.
- 24. Special thanks • https://www.flickr.com/photos/sean-b/ • https://www.flickr.com/photos/danielygo/ • https://www.flickr.com/photos/68751915@N05/ • ttps://www.flickr.com/photos/griddlecakes/ • https://www.flickr.com/photos/59937401@N07/ • https://www.flickr.com/photos/61278574@N06/ • https://www.flickr.com/photos/jordanfischer/ • https://www.flickr.com/photos/stormkatt/ • https://www.flickr.com/photos/jenumfamily/ • https://www.flickr.com/photos/alancleaver/
- 25. Thank you!
- 26. Created by : Ashwin Sasikumar Govt. Model Engineering College, Kochi Prof. Sameer Mathur IIM Lucknow www.IIMinternship.com During an internship under :