2. Exercise
 Ask the neighbour behind you what other words they
might use to define a customer?
 Ask them the difference between a customer and a
client?

3.  Purchaser, vendee, end user, prospect, shopper, guest, buyes
 A customer is simply a recipient of products or services in exchange for
money. Even though the relationship to the provider might be long
lasting, the sense is of discrete exchanges.
 A client is engaged in a more qualitative relationship in which the
provider generally applies professional skills to offer often intangible
commodities such as legal services, insurance policies, etc.
 Another distinction is that a customer is more likely to visit a retail
establishment, whereas a client may more easily receive services
without being physically present at the place of business.

4. Definition
 “The practice of identifying, attracting and retaining the most valuable
customer to generate the profitable growth. It is the process by which
companies manage relationships with their existing customers and
new prospects.”
 “A term for methodologies, technologies and e-commerce capabilities
used by companies to manage customer relationships.”
 Recently this definition has been extended to target a broader
audience, not specifically existing customers.

5. Why?

6. Importance
 There has been a shift from transactional marketing to
relationship marketing.
 Issues such as customer loyalty, brand loyalty and customer
lifetime value have become increasingly important.
 It has been realized that it is easier and cost effective to
retain current customers rather than seeking new ones.
 Advances in technology have changed consumer buying
behavior
 Technology and the Web has changed the way companies
approach CRM strategies.

7. A loyal customer is one who…

8. Customer loyalty pays off

9. Satisfaction vs. Loyalty

10. Two Strategic Imperatives
 Image and brand management
 Non personal communication
 Customer contact management
 Personal communication/Two way dialogue
 The coordination and management of all personal
communications between organizations and it’s
customers
 Mail, telephone, email, social media, internet

11. Customer Contact Management
B2B Communications
 First line contact is with trade customers
 Very different to the contact made with end customers
 The supplying organizations needs to be able to
manage pre-purchase transaction and post-purchase
situations in order to build relationships

12. Database Marketing
 Used to focus marketing activities towards targets
 The use of accurate customer and prospect customer
information, competitor information, marketing
information and internal company information.
 Examples of database marketing:
 CASS – Computer-aided sales support
 DRM – Direct response marketing
 CIS – Customer information and service

13. 3 Components of Database
Marketing
 Computer aided sales support
 Internal support/information
 The direct access to the database via pc’s and notebooks
 Personal tools (diary/organisers), email, fax
 Direct response marketing
 Used by marketers target and contact end users
 Based on addressable communications
 Direct mail, telemarketing, email, text messaging
 Customer information and service
 Customer initiated contact
 Based on the use of free phone or local number, email or over
the internet

14. Electronic Marketing and
Telemarketing
 Electronic marketing
 The utilization of the internet to transact business
 Also known as E-commerce
 Telemarketing
 The planed and controlled use of telephone
communication to build profitable transactions and
relationships with customer groups (actual and
potential) who impact on an organizations success.
 Call centres, automated call distributor

15. Types of market segmentation
 The type of segmentation is to a large extent
determined by the product
 Traditional market segmentation
 (Geo)demographics
 Lifestage
 Behavioural segmentation
 Psychographics

VALS

16. Values, Attitudes and Lifestyle(VALS)
Western
Japan

17. Strategic Implication Of Customer
Contact Management
 Integration
 Advances in technologies provide businesses with reliable
and profitable ways of improving enhanced customer contact
management.
 Reducing costs of sales and communications
 Using traditional selling methods (sales person) is expensive
and not very effective.
 Less costly techniques and marketing functions
 Extended Communication options
 Reduce contact and transaction costs
 Allowing customers more means of contact
 Improving customer service

18. Strategic Implication Of Customer
Contact Management Cont.
 Coverage and Penetration
 Customer contact management is an effective and cost
effective way of reaching specific target markets
 Developing a mixed approach and new channels
 Customer Retention/Relationship Marketing
 Customer has more control

More available information, new market entrants, wider
choices, new channels
 New technologies allow customers to exercise their
preference for conducting