unit 5gsm session relationship marketing

8/3/2019 Unit 5gsm Session Relationship Marketing

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RELATIONSHIP MARKETING

November 28th


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Relationship marketing

` Maintaining proper customer relationship management isessential to creating loyal and consistent customers.


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` The first step in managing a loyalty based businesssystem is finding and acquiring the right customers.

Frederick F Reichheld


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Rome was not built in a day

` There is an old saying, "Rome wasn't built in a day," andneither is customer loyalty. Customers become loyal to

your company and its products and services one

transaction at a time. In today's digitized world of ever-

expanding customer-touch tools, finding the right tool forthe right loyalty-building job can get downright confusing.


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Loyalty Stages

1. Suspect,

2. Prospect,

3. First-time customer,

4. Repeat customer,

5. Client and

6. Advocate.


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Suspect

` STAGE ONE - Suspects

Customer loyalty begins with a vision of the

customer. Concentrate your energy on those

prospects who can be developed into loyal

customers.


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` STAGE TWOProspects

Develop a plan for 'growing' loyal customers. You are

building a relationship and relationships take time togrow.


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` STAGE THREE

First time customers

First time customers are 'triers'.Exceed a first-time customer's

expectations and that buyer will

return


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` STAGE FOURRepeat customers.

Every customer experiences value differently.

Consistently delivering value from the customer's point ofview is the key to winning long-term loyalty.


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` STAGE FIVEClients

Partner with your clients and they will rewardyou with their loyalty. Partnering requires anintimate knowledge of where your client hasbeen and where he wants to go.

` Client - A client is a buyer who feels a real

commitment to buy from you and proves it bybuying every product or service of yours hethinks he can reasonably use. So how can youconsistently earn maximum share of wallet witha client? One way is to continually educateyour client about your full breadth of products

and services. Some savvy online merchants havedevised creative ways to reward clients fortheir willingness to try new products andservices


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` Loyalty Stage 6: Winning Advocates

and Keeping Them "Advocating"

` There is an important difference between a

client and an advocate. Advocates do more

than simply buy from you.

` Advocates are engaged customers who

demonstrate their vendor allegiance throughsuch activities as spreading positive word of

mouth, recruiting new prospects and helping

their vendors improve.

` Your best customers do not just buy fromyou...they spread the word about your

products and services! Make the most of all

referrals and appreciate them for the true

gifts they are.


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Relationship Sales: a sales process wherein you

becomes a partner" and an integral part to

the customers decision making process, adding

value at each step by helping him make a

matured buying decision by developing and

exploring options (as opposed to selling product)


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Relationship Selling

A sales practice that involves

building, maintaining, and enhancing

interactions with customers in orderto develop long-term satisfaction

through mutually beneficial

partnerships.


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Types of Sales

Channel SalesChannel Sales Relationship SalesRelationship Sales

CustomerinteractionCustomerinteraction

Non-customer facing Customer facing

Customer ProfileCustomer Profile MassHigh Net-worth

Individuals. /Niche

Operating CostOperating Cost Cost of channel Employee Cost

Type of ProductsType of ProductsFast moving products

And servicesConsultative Services


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Role of a Relationship Manager

` Adds value at each step of the decision making process ofthe client(as opposed to pushing for products)

` Help customers convert implied needs into concrete, statedneeds, which can be met by the seller with the mutuallyagreed upon "best fit" solution

` Product features/benefits are discussed later rather thansooner in the dialog

` More focus on developing client relationship that on justsales


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A Model for Relationship Selling and

Sales Management - Overview

Are customer-centricAre highly customer-oriented

Exhibit a customer mindset

Firms successful at relationship selling and

sales management:


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Customer Orientation

Focus on understanding customers requirementsGenerate an organization-wide understanding of the

marketplace

Respond effectively with innovative products and services

Firms that have a high level of customer

orientation:


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Test Your Customer Mindset

External Customer Mindset

1. I must understand the needs of my company's customers

2. It is critical to provide value to my company's customers

3. I am primarily interested in satisfying my company's customers

4. I must understand who buys my company's products/services

5. I can perform my job better if I understand the needs of mycompany's customer

6. Understanding my company's customers will help me do my jobbetter


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Test Your Customer Mindset

Internal Customer Mindset

Employees who receive my work are my customers

Meeting the needs of employees who receive my work is

critical to doing a good job

It is important to receive feedback from employees who

receive my workI focus on the requirements of the person who receives my

work


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ICICI Bank - Brand Perception

` What does the ICICI Bank brand stand for?

` What is the ICICI Bank personality?

` How do I feel when I introduce myself as part of TeamICICI Bank?

` Brand Association /Brand Expectations

` ICICI Bank Brand Promise Hum Hain Na


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Brand Expectations (Customer

expectations)

` Value me, my business,my time

` Understand me

` Be reliable

` Give me solutions, notexcuses

` Quick solution

` Prompt response

` Doing it right thefirst time

` Advise me. What are my

alternatives and

possibilities?

Customer

Service


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Identify your customer

Who does your customer resemble the most?


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Sales Management - TheCustomer

The customer is at the center ofthe model

Return on customer investment

Lifetime value of a customer


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1. Doing ityourway, not the customers way

2. Focusing onyourobjectives, not the customers

3.

Pushing for a client meeting as though it is the endgame

4. Pushing the customer

6. Failing to listen

7. Keeping your sales strategysecret

8. Making the salethe goal

9. Giving too many or too few options

10. Writing off the customer too soon

Want to Think Like a Customer?

Mistakes to AvoidAlways


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Sales Management ValueCreation

Valueis the bundle of benefitsthe customer derives from a

purchase

Give-get ratioValue creation - adding value for a

customer beyond an isolatedtransaction


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Time Investment in Each Stage of the Sale

Traditional selling

Value-added sellingDeveloping an understanding

of the buyers needs

Closing the sale

Presenting your solution


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Sales Management Relationship Selling

Process elements of relationship selling:

Using information

Communicating the sales message

Negotiating for win-win solutions

Closing the sale and follow-up

Self-management


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`Attrition for first-year is more than twice due to:` Early problems that sour the relationship

` No formal servicing system

` Communication breakdowns

`Avoid the early break-up by:` Saying thank-you

` Seeking feedback early

` Responding quickly

The Importance of Follow-up


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The Firm

Components of the Internal

Environment

The

Customer

Goals, objectives, cultureGoals, objectives, culture

PersonnelPersonnel

Financial resourcesFinancial resources

Production and supply-chain capabilities

Production and supply-chain capabilities

R&D and technological

capabilities

R&D and technological

capabilities

Service capabilitiesService capabilities


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Internal Environment

Places the employee at the center of its businessmodel

Promotes funHires people by tryouts

Lends itself to a favorable service culture

Southwest Airlines' corporate environment


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The Firm

Components of the External

Environment

The

Customer

Legal and politicalLegal and political

TechnologicalTechnological

Social and culturalSocial and cultural

EconomicEconomic

NaturalNatural


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Role of technology

` Internet` Laptop, computers

` Mobile

unit 5gsm session relationship marketing

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