IITB SJMSOM course slides

21. Changes Over The Years 100 10000 100000 1000000 100000000 Number of customers handled by single firm Level of Individual Customer Dialog & Service 1 2 3 5 4

27. Customer Loyalty Score (5 point scale) Average retention rate (1 year later) 5 Very Satisfied 92%-97% 4 Satisfied 80%-85% 3 Neither 60-65% 2 Dissatisfied 15-20% 1 very dissatisfied 0-5%

28. Customer Loyalty Rating Total customers out of 100,000 Customers lost Very Satisfied 20,000 600-1600 Satisfied 20,000 3000-4000 Neither 20,000 7000-8000 Dissatisfied 20,000 16000-17000 Very dissatisfied 20,000 19000-20000 TOTAL 45600-50600

29. Customer Lifecycle Profit Pattern Case of Credit Card Industry

30. Why Loyal Customers are Profitable

34. Laying the Ground for CRM To fully realise benefits from CRM it is imperative to get the core service right

38. The Service Encounter Repeatable closed loop Sequence of Moments of Truth CYCLE OF SERVICE

40. Moments Of Truth – B2C Advertisement Locating the store Parking for vehicle Baggage counter Entrance to store Signage Rest rooms Trial room Billing counter Cafeteria Alteration Exit point

41. Moments of Truth – B2C Advertisement Calling the Company Meeting the DSA Application Form Submitting Documents Verification by Company Delivery of Credit Card Using Card Across Establishments Billing by Company Payment of Bill Complaint Handling

42. Moments of Truth – B 2 Channel Sales person visits Scheme communication Promotional materials Order placement Order delivery Communication with commercial staff Phone calls to company Complaint handling & resolution (product/service related) Credit notes Damages/replacements Month end order pressure

43. Moments of Truth B 2 B Understanding customer requirement Converting requirements into deliverables Accessibility of contact person Paperwork Information about dispatch schedule Delivery as per schedule After sales support Complaint handling/resolution Damages/claims Re-order Updating on manufacturing schedule

44. Strategic Segments for an Airline

113. Customer Management Strategy Value Tier PEP Top Farmers Important Farmers Productores del Comercio No. of customers 104 2600 6500 10800 Customer Mgmt Strategy “ Belly-to-Belly”; Completely customised offer Face-to-face; Mass customised offer Group meetings; Mass customised offer Indirect; Through dealers and call centre

114. Customer Management Strategy Value Tier PEP Top Farmers Important Farmers Productores del Comercio Manageable Customers per sales rep 4 100 250 0 Frequency of contact 10+ times annually 4 times annually 1, then hand off to call centre 0 Interaction costs High Medium Low Minimal

116. Step 3: Ranking By Needs Cluster Key Personal Needs Craves leadership role, must be a winner, Needs to see ROI Needs a feeling of success, strives to win recognition from peers Wants latest technology, wants to learn more, improve abilities. Concerned about the environment. Demands high quality service, puts a premium on satisfaction, but enjoys a challenge. Needs to feel secure, wants to belong and to be sociable. Wants technical help and support, but is very loyal to current to current dealer.

127. The Business Segments Business Segment Criteria Relationship Group Global Companies with 18,000+ employees that have headquarters outside the U.S. and operations in the U.S., or have headquarters in the U.S. and significant operations in other countries. Relationship Group Enterprise Accounts Companies in the U.S. with 18,000+ employees.

128. The Business Segments Business Segment Criteria Relationship Group Large Corporate Accounts Companies with 3,500-18,000 employees. Relationship Group Preferred Accounts Division Companies with 400-3,500 employees. Relationship Group Internet Partner Division Internet Service Providers, Application Service Providers and Web Hosting Companies.

129. The Business Segments Business Segment Criteria Relationship Group Healthcare Hospitals, HMOs, medical provider groups, medical labs. Public Federal Government Federal Agencies, federal employees and APO / FPO orders Public State & Local Government State, County and Municipal agencies and organisations.

130. The Business Segments Business Segment Criteria Public Education Students, faculty, staff, K-12 & Higher Education institutional purchases. Home & Small Business Small Business Centre Cos. Based in the U.S. with fewer than 400 employees Home & Small Business Consumer (Home & Home Office) Home users, both professional & recreational.

132. Hunters and Developers Account Management Phase Status Goals Account Manager Type Acquisition Prospect, little or no current business Establish relationship with potential client; close initial sale. Hunter Development On client’s approved vendor list; client buys atleast one Dell product. Sell multiple product lines; sell into different departments. Developer

133. Hunters and Developers Account Management Phase Status Goals Account Manager Type Retention Client buys frequently; uses Premier Dell.com to compile reports, tracks history, make online purchases. Extend reach into client’s organisation; increase client’s LTV to Dell. Developer

167. Categories of CRM Solutions High Complexity Moderate Complexity Low Complexity Processes Covered – Sales, Marketing, Customer Service All of the three Two of the three One of the three Degree of Customised Applications Very High Moderate Low No. of application screens 70 + 30 – 70 30 - No. of Data Integrations 10 + 2 – 8 2 or less No. of user seats 1000 – 5000 500 – 5000 100 – 5000 Cost per user license USD 50,000 – USD 15,000 USD 30,000 – USD 10,000 USD 15,000 – USD 10,000