Chapter Ten
Case Study Six
Relationship Marketing
Company Overview
• Supplier to CPG industry
• Few competitors
–
–
–
–
fierce competition
highly specialized expertise
timing is critical
small # of customers but very profitable
• Value-laden exchanges within the
marketing definition
• Company’s current position
– based on survey results
• Higher than expected
dissatisfaction
• Higher than expected switching
• Customers had above average
technology readiness scores
– description of the construct
• Customers’ preferences for
services
Three Types of Marketing
Company
Internal
Marketing
Employees
technology
Interactive
Marketing
External
Marketing
Customers
Service Culture…
“a culture where an appreciation for
good service exists, and where
giving good service to internal as
well as ultimate, external
customers is considered a natural
way of life and one of the most
important norms by everyone”
Christian Gronroos “Managing Internal
Marketing-a Prerequisite for Successful
External Marketing”
Service Profit Chain Success
• 8 causal links (Service Mgmt Trinity)
– customer loyalty drives profit and
growth
– customer satisfaction drives customer
loyalty
– value drives customer satisfaction
– employee productivity drives value
– employee loyalty drives productivity
– employee satisfaction drives loyalty
– internal quality drives employee
satisfaction
– top management leadership underlies
the chain’s success
Underlying Logic of Relationship
Customer Satisfaction
Customer
retention &
increased
profits
Quality
Services
Employee Satisfaction & Loyalty
Why Focus on Employees?
• They are the service
• They are the organization in the
customer’s eyes
• They are the marketers
• This is the same for the web site
E-Business Marketing Goals
• E-Commerce
– providing quality online services
– payment may not be electronic but
service delivery is
• CRM
– meeting and exceeding customers’
needs
• ERP
– Lower cost of doing business (!)
• BI
– continual input from CSRs and
customers
Value Bubble
• Site needs work
– Strategies and implementation
differences
• Attract
– none--why?
• Engage
– customized services
• Retain
– research library updates with email
notification
• Relating
– dynamic site configuration
• Prototype
• www.buzzsaw.com
– evolution of site
– where it is now…unfortunately