C R M Unit II

UNDERSTANDING & DEFINING THE INTERNAL

CUSTOMER

HOLISTIC MARKETING

INTERNAL MARKETING

Marketing Department

Senior management

Other Departments

HOLISTIC MARKETING

INTEGRATEDMARKETING

Communications Products & Services

Channels

HOLISTIC MARKETINGINTERACTIVE MARKETING

UNDERLYING CUSTOMER STRATEGY START UP GROWTH MATURITY DECLINE

Create awareness and generate quick product up take

Penetrate deeper into existing segments and create new ones

Focus on efficiently serving and retaining existing customers

Emphasize efficiency, protect critical customer relationships, exit unprofitable segments

HOLISTIC MARKETING

PERFORMANCE MARKETING

Lega

l

Cust

omer

Equ

ity

Sale

s Re

venu

e

Com

mun

ity

Envi

ronm

ent

Ethi

cs

HOLISTIC MARKETINGCOMPANY

EMPLOYEES CUSTOMERS

INTE

RNAL M

ARKET

ING EXTERNAL M

ARKETING

INTERACTIVE MARKETING

HOLISTIC MARKETING

RELATIONSHIP MARKETING

Customers Channel Partners

RELATIONSHIP LOGICCUSTOMER LOYALTY

EMPLOYEE LOYALTY

SERVICE QUALITY

CUSTOMER RETENTION

BOUNDARY SPANNERS

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

SERVICE SUPPORT

CUSTOMERS

CONFLICT SOURCES

• Person Vs. Role• Firm Vs. Client• Inter Client

EMPLOYEE INVOLVEMENT

Highly intelligent people often perform worse

when working together

COMMON TEAM GOALS

INCREASE SALES

DESIGN PRODUCTS

RECRUIT WELL

REDUCE COSTS

MAXIMIZE INVESTMENTS

MAINTAIN OFFICES

ADVERTISE PRODUCTS

EFFICIENT ADMINISTRATION

TEAM BUILDING STAGES

1. Clarify goals2. Identify barriers3. Remove barriers

NATURE OF TEAM BUILDING

TYPE SCALE CHANGEINDIVIDUAL 1 Person SKILLS & PERCEPTION

SMALL 2 – 12 Persons PEOPLE RELATIONSHIP

ISLAND 2 Or More Teams

TEAM RELATIONSHIP

ORGNZATN 15+ Persons CULTURE

PRE ACTION TEAM BUILDING

1. Goal Setting2. Role Setting3. Procedures4. Relationships

10%

TECHNICAL

90% PSYCHOLOGICAL

EMPLOYEE INVOLVEMENT

…..sharing power & decision making

authority…..

EMPOWERMENT STEPS

1. Mindset of respect & trust2. Review activities3. Transfer authority4. Transfer responsibility5. Train6. Use extrinsic rewards7. Monitor

EMPOWERMENT TRAINING

• Listen before using power• Speak customer’s language• Provide a “fair” solution

(a) distributive fairness(B) procedural fairness

• Resolution speed• Clear instructions

EMPOWERMENT BENEFITS

• Quicker on line responses to needs• Quicker on line responses to complaints• Customer delight is employee ownership• Snowball effect on performance• Improved word-of-mouth

EMPOWERMENT COSTS

• Higher investment on selection and training

• Higher labor costs• Slower service delivery

EMPOWERMENT PITFALLS

• Clearly defined authority / behavior • Benefits may not justify costs• Empowerment degree is culture sensitive• Ill mannered, poorly groomed, ignorant

employees with power to decide

INCENTIVIZING ADVANTAGES

• Increases confidence and self respect• Better chance to serve• Immediate service recovery• Higher commitment level

INCENTIVIZING DISADVANTAGES

• Non selling activities ignored• Slow moving ignored• Low commission items ignored• Customer service quality can reduce• Employee loyalty not developed

FOUR H R STRATEGIES

1. HIRE THE RIGHT PEOPLE

• Compete for the best• Be the preferred employer• Hire for service inclination• Hire for service competency

2. DEVELOP PEOPLE

• Train for technical / interactive skills• Empower• Promote teamwork

3. PROVIDE SUPPORT SYSTEMS

1. Measure quality of internal service2. Provide technology & equipment3. Develop internal processes

4. RETAIN THE BEST

• Include employees in vision• Treat employees as customers• Measure service performers• Reward strong performers

HANDLING COMPLAINTS

One of the few problems that can be prepared for in advance

BY WHOM?

• By the counter salesperson• Not by a separate complaint cell• Salesperson has information• Salesperson needs experience

FACING COMPLAINTS

• Expectation of fairness, courtesy and consideration

• Reassurance of customer faith in company• Allow customer to talk out• Use complaints to strengthen relationship

PREVENTING COMPLAINTS

1. Product / customer knowledge2. Mutual agreement on expectations, belief

and performance3. Detailed description of company routine and

policies4. Keep promises