Cultivating strong customer relationships is at the core of customer relationship management systems. Companies empower customers by demonstrating how they address customer needs, wants, and demands. Personalized marketing uses customer data and technology to deliver individualized messages. Building loyalty requires creating superior experiences, integrating customer feedback, and developing programs that reward frequent customers. Maintaining a customer database allows analyzing transactions to better understand customers, though building such systems requires significant resources.

1. Presented by :
Shujaat Ali
Muhammad Faiq
Tariq Zaman

2. CULTIVATING CUSTOMER RELATIONSHIPS
•Cultivating customer relationships is at the very heart of every
customer relationship management (CRM) system of businesses
today.
•Customer empowerment has become a way of life for many
companies.
A mental state usually accompanied by a physical act which enables a consumer
or a group of consumers to put into effect their own choices through
demonstrating their needs, wants and demands in their decision-making with
other individuals or organisational bodies in the marketplace.

3. Customer Touch Points
A customer touch point
is any occasion on which a
customer encounters the brand
and product— from actual
experience to personal or mass
communications to casual
observation

4. PERSONALIZING MARKETING
Personalized marketing, also known
as one-to-one marketing or
individual marketing, is a marketing
strategy by which companies leverage
data analysis and digital technology to
deliver individualized messages and
product offerings to current or
prospective customers.

5. Personalize Marketing
• Employees can create strong bonds with customers by individualizing and
personalizing relationships
• Thoughtful companies turn their customers into clients.
• Channels of Personalize marketing are e-mail, Web sites ,call centers,
Messages etc.

6. Customers and clients
Customers
• Dealt as a part of larger segment.
• Less attention paid
• Short term interaction
• Company focus on selling.
Clients
• Served on individual bases.
• Higher Attention paid
• Long term interaction
• Company focus on serving

7. Permission Marketing
Permission marketing is an approach to selling goods and services in which a
prospect explicitly agrees in advance to receive marketing information.

8. Participating Marketing
Marketers and consumers need
to work together to find out
how the firm can best satisfy
consumers.
Brand Customers

9. FOUR STEP FRAMEWORK FOR ONE-TO-ONE
MARKETING
• Identify your prospects and customers.
• Differentiate customers by their needs and value to the customer.
• Interact with individual customers to improve your knowledge about their
individual needs and to build stronger relationships.
• Customize products, services, and messages to each customer.

10. CUSTOMER REVIEWS AND
RECOMMENDATIONS
• The strongest influence on consumer choice remains “recommended by
relative/friend,”
• An increasingly important decision factor is “recommendations from
consumers.”
• Some sites offer summaries of reviews to provide a range of product
evaluations
• Bloggers who review products or services have become important because
they may have thousands of followers

11. ATTRACTING AND RETAINING
CUSTOMERS
• Companies seeking to expand
their profits and sales must spend
considerable time and resources
searching for new customers.
• Customer retention refers to the
activities and actions companies
and organizations take to reduce
the number of customer
defections.

12. Reducing Customer Defection
• It is not enough to attract new customer but also to retain current customers
and also increase their business.
1. Define and measure its retention rate.
2. Distinguish the causes of customer attrition and identify those that can be
managed better.
3. Compare the lost customer’s lifetime value to the costs of reducing the
defection rate

13. RETENTION DYNAMICS
• Customer dynamics is an emerging theory on customer-business
relationships that describes. Future Considerations into the
Service Retention Decision.

14. Consider this data about customer
retention
• Acquiring new customers can cost five times more than satisfying and
retaining current ones.
• The average company loses 10 percent of its customers each year.
• Profit rate tends to increase over the life of the retained customer due to
increased purchases, referrals, price premiums, and reduced operating costs
to service.

15. MANAGINF THE CUSTOMER BASE
STRATEGIES
• Reducing the rate of customer defection
• Increasing the longevity of the customer relationship
• Enhancing the growth potential of each customer through “share of
wallet”, cross-selling, and up-selling
• Making low-profit customers more profitable or terminating them
• Focusing disproportionate effort on high-profit customers

16. Share of wallet
• Share of wallet (SOW) is a marketing metric used to calculate
the percentage of a customer's spending for a type of product or service
that goes to a particular company.

17. Cross Selling and Up Selling
Cross selling
• Cross-selling is a sales technique
used to get a customer to spend
more by purchasing a product that's
related to what's being bought
already.
Up selling
• Upselling is a sales technique where
a seller induces the customer to
purchase more expensive items,
upgrades or other add-ons in an
attempt to make a more profitable
sale

18. BUILDING LOYALTY
Creating a strong, tight connection to customers is the dream of any marketer and
often the key to long-term marketing success.
• Create superior products, services, and experiences for the target market.
• Get cross-departmental participation in planning and managing the customer
satisfaction and retention process.
• Integrate the “Voice of the Customer” to capture their stated and unstated needs
or requirements in all business decisions.

19. • Organize and make accessible a database of information on
individual customer needs, preferences, contacts, purchase
frequency, and satisfaction.
• Make it easy for customers to reach appropriate company staff and
express their needs, perceptions, and complaints.
• Run award programs recognizing outstanding employees

20. DEVELOPING LOYALTY PROGRAMS
• Frequency programs (FPs) are designed to reward customers who buy
frequently and in substantial amounts. They can help build long-term loyalty
with high CLV customers, creating cross-selling opportunities in the process.

21. CREATING INSTITUTIONAL TIES
• The company may supply customers with special
equipment or computer links that help them
manage orders, payroll, and inventory. Customers
are less inclined to switch to another supplier
when it means high capital costs, high search costs,
or the loss of loyal-customer discount.
• Example: To provide dispenser to all those who
refill their bottles from you.

22. WIN-BACKS
• Regardless of how hard companies
may try, some customers inevitably
become inactive or drop out. The
challenge is to reactivate them
through win-back strategies. It’s
often easier to reattract ex-customers
(because the company knows their
names and histories) than to find
new ones

23. Customer database and database marketing.
• A customer database is the collection of information that is gathered from
each person. The database may include contact information, like the
person's name, address, phone number, and e-mail address.
• Database marketing is a form of direct marketing using databases of
customers or potential customers to generate personalized communications
in order to promote a product or service for marketing purposes.

24. Business Data Base.
A business database may contains
• Customers’ past purchases; past volumes, prices, and profits
• Status of current contracts.
• Competitive suppliers assessment.
• Competitive strengths and weaknesses in selling and servicing.
• Customer buying practices, patterns, and policies.

25. DATA WAREHOUSES AND DATA
MINING
• Companies have a great deal of information about their customers, including
not only addresses and phone numbers, but also transactions and enhanced
data on age, family size, income, and other demographic information These
data are collected by the company’s contact center and organized into a data
warehouse where marketers can capture, query and analyze them to draw
inferences about an individual customer’s needs and responses.

26. DOWNSIDE OF DATABASE
MARKETING AND CRM
Building a customer database may not be worthwhile when
(1) The product is a once-in-a-lifetime purchase (a grand piano)
(2) Customers show little loyalty to a brand .
(3) The unit sale is very small (a candy bar) so CLV is low.
(4) The cost of gathering information is too high.
(5) There is no direct contact between the seller and ultimate buyer

27. • Building and maintaining a customer database requires a large, well-
placed investment in computer hardware, database software, analytical
programs, communication links, and skilled staff
•It may be difficult to get everyone in the company to be customer
oriented and use the available information
•Not all customers want a relationship with the company
• The assumptions behind CRM may not always hold true

28. Thank you for listening.
Any query?