Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.
-
Upload
kendrick-soares -
Category
Documents
-
view
215 -
download
1
Transcript of Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.
![Page 1: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/1.jpg)
Relationship Marketing
MBA -2011-13-Term-3
MK1
Faculty- Salil Bhatia
![Page 2: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/2.jpg)
Out Comes
• Relationship Marketing,
• The nature of service consumption understanding customer needs and expectations,
• Strategic responses to the intangibility of service performances.
![Page 3: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/3.jpg)
What is relationship marketing?
• Marketing designed to create, maintain, and enhance strong relationships with customers and other stakeholders.
![Page 4: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/4.jpg)
Why is it important?
• It costs five times as much to attract a new customer as it does to keep a current one satisfied.
• It is claimed that a 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent depending on the industry.
• Likewise, it is easier to deliver additional products and services to an existing customer than to a first-time “buyer.”
![Page 5: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/5.jpg)
Customer Lifetime Value
• Losing an existing customer means losing the entire revenue stream that customer represents – not just that single encounter or sale.
![Page 6: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/6.jpg)
Attracting, retaining and growing customers
• Customer delivered value – the difference between total customer value and total customer cost.– Value includes product, services, personnel
and image value.– Cost includes monetary, time, energy and
psychic costs.
![Page 7: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/7.jpg)
Customer satisfaction
• The extent to which a product or service’s perceived performance matches a buyer’s expectations.
• What are expectations based on?– Past buying experiences– Friends, family and other associates– Information about the competition– Promises made in marketing materials (your
brand)
![Page 8: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/8.jpg)
Customer loyalty & retention
• Highly satisfied customers are:– Less price sensitive– More likely to talk favorably about you – More likely to refer you to others– Remain loyal for longer
![Page 9: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/9.jpg)
Growing “share of customer”
• Increasing the share of the customer’s purchasing in your product category.
• Best way is through cross-selling– Getting more business from current
customers by selling them additional or complementary services
![Page 10: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/10.jpg)
Managing your customers
• Relationship marketing is designed to create, maintain, and enhance strong relationships with profitable customers and other stakeholders.
• First need to define what your profit is on specific services…
![Page 11: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/11.jpg)
How to calculate profit
• In most business:Gross income – (cost of goods + expenses) =
net profit
• In healthcare:Reimbursement income – (cost of goods +
expenses) = net profit
![Page 12: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/12.jpg)
Calculating profit
• Reimbursement rates of 55% of dollars billed. For every $1 billed to a payer, only $.55 is collected.
• The cost to provide the service is approximately 50% of dollars billed. This cost is the sum of the cost of goods and total expense. So, for every $1 billed to a payer, it costs $.50 to provide the service.
![Page 13: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/13.jpg)
Calculating profit
• Reimbursement income ($.55) – (cost of good + expenses) ($.50) = net profit ($.05)
![Page 14: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/14.jpg)
Delivering customer value & satisfaction
• Not just the people in charge of marketing are in charge of marketing.
• Must have an effective value chain focused on serving the customer.
• Employees need to be trained and understand what expectations are for customer service – and
• Need to be empowered to address certain situations.
![Page 15: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/15.jpg)
Customer satisfaction
• Satisfaction surveys– Available at the end of the appointment or
included in the billing statement – or online – Don’t forget your referral sources
• One-on-one interviews are best
– So what do you do with the data?• Third party reports are best (don’t shoot the
messenger)• Turn the results in to meaningful changes• Follow-up on specific complaints or incidents – no
matter how trivial – especially with referral sources
![Page 16: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/16.jpg)
Referral sources
• How do you communicate with them?
• Who communicates with them?
• Do you get feedback from them?
• Do you get feedback to them?
![Page 17: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/17.jpg)
So what is CRM software?
• Customer Relationship Management software allows tracking and analysis of each customer's purchases, preferences, activities, tastes, likes, dislikes, and complaints.
![Page 18: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/18.jpg)
Personalized marketing
• How can you make the Amazon model work for you?
![Page 19: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/19.jpg)
New clients
• Identify new prospects based on the attributes of current, profitable customers
• Prioritize them – can use other criteria besides profitability
• Develop a relationship plan– Direct mail/email– Personal meetings– Speaking engagements/thought leadership
![Page 20: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/20.jpg)
New clients
• Assign top prospects to specific people• Provide tools to help them keep in touch
– Invitations to events (charity events, lunches, conferences, tours)
– Thought leadership (white papers, CMEs) – Direct mail/email materials (newsletters,
surveys, blogs)
• Enter them into CRM system as prospects and track ongoing communication
![Page 21: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/21.jpg)
Customer needs and expectations
Customer expectations are beliefs about service delivery that
serve as standards or reference points against which performance is judged. Because customers compare their perceptions of performance with these reference points when evaluating service quality, thorough knowledge about customer expectations is critical to services marketers. Knowing what the customer expects is the first and possibly most critical step in delivering good quality service. Being wrong about what customers want can mean losing a customer’s business when another company hits the target exactly. Being wrong can also mean expending money, time and other resources on things that do not count to the customer.
![Page 22: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/22.jpg)
![Page 23: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/23.jpg)
Possible Levels of Customer Expectations-Example
![Page 24: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/24.jpg)
Reliability Tangibles
Level of
Expectation
Source: L. L. Berry, A. Parasuraman, and V. A. Zeithaml, “Ten Lessons for Improving Service Quality,” Marketing Science Institute, Report No. 93-104 (May 1993).
Adequate ServiceAdequate Service
Desired ServiceDesired Service
Desired Service
Adequate Service
Zones of Tolerance for DifferentService Dimensions
Zone of
Tolerance
Zoneof
Tolerance
![Page 25: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/25.jpg)
Factors Influencing Customer Satisfaction
• Perceptions of equity or fairness
• Other consumers, family members, and coworkers
• Price
• Personal factors– the customer’s mood or emotional state– situational factors
![Page 26: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/26.jpg)
Outcomes of Customer Satisfaction
• Increased customer retention
• Positive word-of-mouth communications
• Increased revenues
![Page 27: Relationship Marketing MBA -2011-13-Term-3 MK1 Faculty- Salil Bhatia.](https://reader031.fdocuments.us/reader031/viewer/2022032702/56649cb15503460f949760a7/html5/thumbnails/27.jpg)
The bottom line…
Relationship marketing is a necessary tool for growing your business.