RELATIONSHIP MARKETING In CRM assignment by Comsats vehari (2).pptx
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The document discusses relationship marketing, which focuses on building long-term relationships with customers rather than one-time transactions. Key points are that it emphasizes customer retention over attraction of new customers and is usually cheaper for firms. Relationship marketing relies on switching barriers, core service provisions like satisfaction and perceived value, and relationship bonds such as discounts to develop loyal customers that provide benefits like increased revenues for firms. The document outlines a customer pyramid model that segments customers into platinum, gold, iron, and lead tiers based on their value and profitability to a business.
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- 5. Key Points does not necessarily emphasize acquiring new customers the focus is less on attraction, and more on retention and enhancement of customer relationships is usually cheaper (for the firm) As keeping a current customer costs less than attracting a new one 01 02 03
- 8. The “Bucket Theory of Marketing”
- 11. Switching Barriers Consumer inertia is the tendency of some customers to buy or continue buying a product, even when superior options exist. Customer Inertia Switching cost Switching costs are the costs that a consumer incurs as a result of changing brands, suppliers, or products.
- 12. Core Service Provisions Satisfaction a measurement that determines how happy customers are with a company's products, services, and capabilities. Perceived Value the customers' evaluation of the merits of a product or service, and its ability to meet their needs and expectations, especially in comparison with its peers. Perceived Service Quality Perceived service quality is defined as the customer's assessment of the overall superiority or excellence of the service.
- 13. Relationship bonds Financial bonds Discounts and loyalty programs. Social bonds Community Events, Online Forums or Groups. Customized bonds Customizable Products, Personalized Communication. Structural bonds Membership Programs, Subscription Services.
- 14. Benefits
- 15. Benefits for Customers: Social benefits: • familiarity • social support Confidence benefits • Reduce anxiety • confidence in provider Special treatment benefits: • price breaks • Special deals
- 17. Benefits for Firms: increased revenues reduced marketing and administrative costs strong word-of-mouth endorsements mentors to other customers regular revenue stream employee retention
- 19. Platinum customers are the most valuable and loyal customers to a business. They are highly engaged, make frequent purchases, and contribute significantly to the company's revenue. The Customer Pyramid Gold customers are also valuable and loyal to the business but may not be as high-spending or frequent as Platinum customers. They still contribute significantly to the company's revenue and often receive special treatment and rewards. Platinum Tier Gold Tier
- 20. Iron customers are mid-tier customers who make occasional purchases and may show some loyalty to the brand, but their spending levels are lower compared to Platinum and Gold customers. The Customer Pyramid Lead customers are the least engaged and least profitable segment for the business. They may make infrequent purchases or only buy discounted or low- margin items. Iron Tier Lead Tier
- 21. THE SLIDE TITLE GOES HERE!
- 22. ○ wrong segment ○ not profitable in the long term ○ difficult customers Not all customers are good relationship customers
- 23. Should firms fire their customers?