Customer Relationship Management Providence University 靜宜大學 Customer Relationship Management What is CRM? What is the root of CRM? What does CRM represent for practitioners? What is CRM? CRM is a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers. It includes the activities of marketing, sales, financial and technical support departments. What is the root of CRM? The root of CRM is relationship marketing, which has the objective of improving the longterm relationship and hence profitability. What does CRM represent for practitioners? CRM represents an enterprise approach to developing full-knowledge about customer behavior and preferences. CRM is not possible without a marketing database. Database is the main tool to move from company orientation to service/product. Why do customers defect? Providence University 靜宜大學 Why do customers defect? Ignore them Lie them Fail to return calls or answer letters or e-mails Fail to deliver on promises Miss expectations Be rude to them https://www.scmp.com/comment/insight-opinion/article/1296672/hong-kong-customer-no-longer-king Au N., Buhalis D., Law R. (2009) Complaints on the Online Environment — The Case of Hong Kong Hotels. In: Höpken W., Gretzel U., Law R. (eds) Information and Communication Technologies in Tourism 2009. Springer, Vienna Why do customers defect? Fail to open on time or be available at the right times Not listening to them Poor follow up Incompetent staff Poor product quality Confusing pricing Treating them as if they were in the wrong. Why are customer lost? Less common reason: Price: Important in attracting new customers, but a minor issue in developing loyalty. Physical factors: A more convenient location is also a minor issue if there is a service/product advantage (innovation). Why are customer lost? More common reasons: Indifference: When problems are encountered. Poor service: The roots of complaints. Why are customer lost? Human behavior is dynamic. https://brightside.me/creativity-art/10-illustrations-that-show-just-how-much-the-internet-has-changed-our-lives-190355/ Why are customer lost? Purchasing behavior is dynamic. Customer sophistication: Customers are always expecting and demanding more than before. Complexity: The interaction between a product and the level of service behind it. Why are customer lost? Complexity: The interaction between a product and the level of service behind it. https://www.tutorialspoint.com/consumer_behavior/pre_and_post_purchase_behavior.htm Why are customer lost? Competition: The advanced manufacturing technology and other factors (faster, higher quality, quicker to innovate, being more pricecompetitive). Costs: Getting greater value for the money when purchasing and choosing suppliers. Complacency, not competition, kills customers Having a feeling of satisfaction with what organizations have achieved, so that organizations stop trying to improve. Harraf, A., Soltwisch, B. W. and Talbott. K. (2014), “Antecedents of Organizational Complacency: Identifying and Preventing Complacency in the Work Environment”, Managing Global Transitions, 14(4), 385-401. Complacency, not competition, kills customers Organizations become victims of their own success: Fail to adjust to changes in their environment. Complacency is not an option for 21st century: technological and business process innovations, global expansion and interconnectivity and growing market pressures. Complacency, not competition, kills customers Companies lose the plot in their relationship with their customers. https://www.customerfaithful.com/what-we-say/has-customer-journey-mapping-lost-the-plot Complacency, not competition, kills customers Putting the things right: Reinforce relationship with customers, including more accurate segmentation; more frequent interaction and attention to innovation and service standards. Complacency is what gives opportunity to competitors. The service Economy The service economy in developing countries is mostly concentrated in financial services, hospitality, retail, health, human services, information technology and education. What happen when there are too many homogeneous business? The service economy Priority of service The case of British Airways: A successful global airline differentiating on customer service. Colin Marshall (chief executive) He made customer service issues a regular boardroom discussion He would insist on travelling as the mystery customer He would often arrive unannounced at airport check-in desks He would also spend periods working with staff to understand the service issues The service economy Method of service Is your company’s based on company policy, preferences and procedures – or customer driven measures and standards? Does your organization do the minimum required to solve a customer’s problem, or look to solve the problem and maintain goodwill and a positive relationship? The service economy Customer requirements Detailed knowledge and understanding of customer requirements. Decisions must be based on such information. It is important that the varying requirements of different customers, both individually or by segment, are fully understood and delivered. The service economy Strategies and systems Tom Peters: The procedures on Total Quality Management (TQM) Spend the time and energy preventing problems and complaints rather than solving them.
