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AFTER THE SALE IS OVER…

GROUP 4 : ARTICLE PRESENTATION

Submitted By : Group 41.Ankur Tunaak2.Gagandeep Singh3.Kamal Malik4.Modak Priy5.Rupane Sharma6.Sudeep Kumar Kundu7.Vineet Dixit

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WHAT IS RELATIONSHIP MANAGEMENT

• Relationship management is a philosophy of doing business, a strategic orientation, that focuses on keeping and improving relationships with current customers rather then on acquiring new customers.

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GOAL OF RELATIONSHIP MANAGEMENT

• The primary goal of Relationship Management is to build and maintain a base of committed customers who are profitable for the organization.

The goal is to move the customer up the ladder i.e; from the point they are strangers to the point where they become high valued customer.

Acquiring

Satisfying

Retaining

Enhancing

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BENEFIT FOR BUYERS AND SELLERS

BENEFITS FOR BUYERS

Value Benefits - Customer remains loyal to a firm if they receive greater value relative to the competitors. Value can be classified in terms of quality, services, special benefits, etc.

Confidence Benefits - This provides the feeling of trust and confidence along with a sense of reduce anxiety and comfort in knowing what to expect.

Social Benefits - Customer develop a sense of familiarity and even a social relationship between the service provider and the customer. These ties make them less likely that they may switch.

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BENEFITS FOR SELLERS

Economic Benefits - Long time relationship recieves high overall returns on investments which includes increased revenue, redused marketing and administration cost and the ability to maintain high margins without reducing prices.

Customer behavior Benefits - These benefits can be in the form of word of mouth communication. Loyal customer may provide social benefits to other customers and they can serves as mentors to others in terms of purchase.

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CUSTOMER PROFITABILITY SEGMENT

• Company may want to treat all customers with excellent service, but the relationship value differs and it would not be profitable to meet all customers expectation

• 80/20 Rule : 20% of the customers produce 80% of sales / profit.

Most Profitable customer

Least Profitable customer

The customer pyramid

Lead

Iron

Platinum

Gold

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RELATIONSHIP DEVELOPMENT MODEL

Relationship Drivers

Outcomes

Customer Relationship

Relationship Bonds

Financial Bonds

Social Bonds

Customization Bonds

Structural Bonds

Core Service Provision

Satisfaction

Perceived service Quality

Perceived Value

Customer Benefits

Confidence Benefits

Social Benefits

Special treatment Benefits

Firm Benefits

Economic Benefits

Customer behavior benefits

Human resource management benefits

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CUSTOMER RELATIONSHIP MANAGEMENT SATISFACTION

A comprehensive set of relationship programs includes :

1.Customer service (Touch Points)

2.Frequency/Loyalty Programs

3.Customization

4.Rewards Programs

5.Community Building

CustomerRelationship Management

Satisfaction

CustomerService

Frequency/Loyalty

Programs

Customization

CustomerService

RewardsPrograms

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RELATIONSHIP CHALLENGES

The assumption that all customers are good customers is very compatible with the belief that “The customer is always right” yet the statement is not always true and it may be preferred for a firm to discontinue their relationship.

Wrong segment : A company can not target its services to all customers, it would not be beneficial to either the company or the customers for a company establish its relationship with a customer whose needs the company can not meet

Net profitability in long term : Organizations should prefer not to have relationship with unprofitable customers.

Difficult customers : These are customers who intentionally or un-intentionally act in a manner that in some way disrupts otherwise functional service encounters.

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When a purchase cycle is long - People in the organization change, and in all livelihood the entire upper level management also changes but the idea of building relationship bonds lasts forever.

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T H A N K Y O U