CHAPTER 2

CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE

Lesson 1:
Relationship Marketing
 RELATIONSHIP MARKETING

According to Serrano, Relationship Marketing includes activities

aimed at developing and managing trusting and long-term
relationships with larger customers. (Customer profile, buying
patterns and history of contacts are kept in a sales database)

Relationship marketing is a strategy designed for customer loyalty,

interaction, and long-term engagement to be fostered. Customer
Relationship focuses more on long-term customer retention than
acquiring large numbers of new and potentially single-transaction
customers.
 Relationship Marketing is designed to develop strong connections
with customers by providing them with information directly suited
to their needs and interests by promoting open communication.

Characteristics of RelationshipMarketing:

1.It focuses on the long-term rather than the short-term.

2.It focuses on partners and customers rather than on the company’s
products.
3. It puts more emphasis on customer retention and growth than on
customer acquisition.
4.It relies on cross-functional teams rather than on departmental-level
work.
5. It relies more on listening and learning than on talking.
Relationship marketing calls for
new practices within the 4p’s.
THIS IS A SLIDE t i t l e

▹Here you have a list of items

▹And some text
▹But remember not to overload your slides with
content

Your audience will listen to you or read the content,

but won’t do both.
▹More products are customized to the customers’
preferences.
▹New products are developed and designed
cooperatively with suppliers and distributors.
 PRICE
▹The company will set a price based on the relationship
with the customer and the bundle of features and
services ordered by the customer.
▹In business-to-business marketing, there is more
negotiation because products are often designed for
each customer.
 PLACE
▹RM favors more direct marketing to the customer, thus
reducing the role of middlemen.
▹RM favors offering alternatives to customers to choose
the way they want to order, pay for, receive, install, and
even repair the product.
 PROMOTION
▹RM favors more individual communication and dialogue
with customers.
▹RM favors more integrated marketing communications
to deliver the same promise and image to the customer.
▹RM sets up extranets with large customers to facilitate
information exchange, joint planning, ordering, and
payments
BENEFITS OF RELATIONSHIP MARKETING

In the business world,

retaining customers has a
lesser cost at least eight
times compared to acquiring
new ones. Thus, this
marketing capitalizes on the
same fact and is beneficial to
thecompany in several ways.
.
 BENEFITS OF RELATIONSHIP MARKETING

1. Understanding customer 2. Delivery and meeting

characteristics expectations
the company can segregate its if the company knows what its
customers into groups based on customers’ needs are, it willhelp
their characteristics like reduce wastage due to trial and
purchasing power, frequency and error methods. It is easier to
volume of sale transactions. It create a product if the features
also helps the company get and specifications of the product
valuable feedback from its are known.
customers and understand their
needs and expectations.
 BENEFITS OF RELATIONSHIP MARKETING

3. Repeat Business 4. Prevents negative 5. Word-of-mouth

transition marketing
Sellers should
maintain good trust and loyalty go a happy customer
attitude to the hand in hand and it is will always promote
buyers. By doing super beneficial forall business by telling
this, buyers will business. It will help ten other people
feel that they do prevent customers about the amazing
not need toswitch from turning to services or
sellers. competitors. performance
received from a
company.
 BENEFITS OF RELATIONSHIP MARKETING

6. Increasing customer base 7. Reduced marketing cost

satisfied existing customer is 100% Benefits also include lesser

more likely to recommend a marketing costs and more value
product/service to a prospective creation. This can be explained by
customer. Apart from customer, stating the following statistics:
referrals, there are several other every 5% increase in customer
ways to increase customer retention can increase a
satisfaction by employing methods company’s annual profits from at
of utilizing social networking least 25% to as much as 125%,
websites, blogs, informal surveys, while simultaneously leading to a
benefits on loyalty cards, timely reduction of 10% in marketing
response to complaints and costs. An existing customer will
requests as a constant reminder of spend 33% more than a new
its presence around and retention customer to buy a company’s
equity is improved by enhancing product/service.
customer satisfaction.
 BENEFITS OF RELATIONSHIP MARKETING

8. Minimization of 9. Identification withthe 10. Product Market

customer price company Expansion
sensitivity
the benefits are reaped the company’s
a happy customer both by the company and employees must be
will be willing to the customers. It helps ready to deliver
pay more for a customers identify more beyond the
product if there is a with the company. Keeping company’s
guaranteed your communication lines boundaries on
satisfaction of open and keeping in touch customer demand.
products and after with the customers makes
sales services them feel like they are
attached to the being valued. It will keep
price. customers coming in and
. build brand equity for the
company in the long run.
▹Examples of companies using
relationship marketing
▹Ikea
▹Direct recruitment
▹American airlines
▹Dell
▹Vyvanse
CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE

Lesson 2:
Customer Value
 CUSTOMER VALUE

Customer Value is the relationship

between benefits and the costs including money,
stress, and time to sacrifice that is necessary to
get those benefits.

Or simply stated in a mathematical equation:

Benefits – Cost = Customer Value
CUSTOMER VALUE
 In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:

SERVICE the intangible value offered to customers.

 In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:

QUALITY customer’s perception of how well a company’s

products and services meet expectations
 In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:

IMAGE customers’ perception of the company or business

they interact with
 In essence, customer value entails extraordinary delivery of four
value-points or components known also as SQIP:

PRICE the price a company can command for its products

and services that its customers are able and willing to pay.
DELIVERING
CUSTOMER
1.Provide consumer with
VALUE
the best cost.

2. Provide the consumer

Three ways a with the best product.
company can
establish
customer 3. Provide the consumer
value to its with the best service.
customer
base:
 Importance of Customer Value

1.Designing and 2. Value reigns 3. Customers will not

providing superior supreme in today’s pay more than a
customer value are the marketplace and product is worth and
keys to successful market-space. will reward excellence.
business strategy inthe
21st century.

4. A customer-centric 5. Designing and 6. Providing

culture provides focus delivering superior outstanding customer
and direction for the customer value propels value has become a
organization, ensuring organizations to market mandate for
that exceptional value leadership positions in management.
will be offered to today’s highly
customers. competitive global
markets – absolute
advantage
Importance of Customer Value

7. In choice-filled 8. Managing customer

arenas, the balance of value is even more
power has shifted from critical to organizations
companies to value- in the new service and
seeking customers. information-based
economy

10. Today’s customers are quite

9. Firms not providing smart and sophisticated and are
adequate value to looking for companies that::
customers will struggle
or disappear – a.Create maximum value forthem
customer value is a key based on their needs and wants,
ingredient in building and
competitive advantage. b.Demonstrate that they value
their business.
 thanks!
CREATING MORE CUSTOMER VALUE?
▹Understand what drives value for customers
▹Understand value proposition
▹Identify the customers and segments where the
company can create more value relative to
competitors
▹Create a win-win price
▹Focus investments on the most valuable
customers
CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE

Lesson 3:
Customer Relationship
Development Strategies
 Benefits of Developing Customer Relationship

Customer Relationship is a marketing

approach that focuses on creating an
ongoing and long-term relationship with
customers.
Benefits in developing and implementing
customer relationship

1. Consistent customer experience

Customer Lifecycle Journey

Benefits in developing and implementing
customer relationship

2.Customer
feedback
Benefits in developing and implementing
customer relationship

3.Customer Profitability
Benefits in developing and implementing
customer relationship

4.Customer advocate
 Benefits in developing and implementing
customer relationship
5. Innovation
 Benefits in developing and implementing
customer relationship

1. Consistent customer experience

2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation
 Strategies in Developing Customer Relationship

1. Make every customer interaction count

 Strategies in Developing Customer Relationship

2. Follow-through on commitments and claims

about products or services.
 Strategies in Developing Customer Relationship

3. Develop Employees.
 Strategies in Developing Customer Relationship

4. Offer benefits and product value that responds

to the customer’s desires.
 Strategies in Developing Customer Relationship

5. Treat customers as individual who are respected

and valued.
 Strategies in Developing Customer Relationship

6. Listen to customer.
 Strategies in Developing Customer Relationship

7. Build a strong brand identity.

 Strategies in Developing Customer Relationship

8. Surround customers with valuable information by using emails,

websites, content, social media, and other methods of outreach but do
not be invasive.
 Strategies in Developing Customer Relationship

9. The business must have a website.

 Strategies in Developing Customer Relationship

10. Reward loyal customers.

 Strategies in Developing Customer Relationship

11. Nothing strengthens a bond morethat

appreciation.
 Strategies in Developing Customer Relationship

12. Create a blog about the business where discuss

is more casual and inviting.
 Benefits in developing and implementing
customer relationship

1. Make every customer interaction count

2.Follow-through on commitments and
claims about products or services.
3. Develop Employees.
4.Offer benefits and product value that
responds to thecustomer’s desires.
5. Treat customers as individual who are
respected and valued.
6. Listen to customer.
 Benefits in developing and implementing
customer relationship

7. Build a strong brand identity.

8.Surround customers with valuable
information by using emails, websites, content,
social media, and other methods of outreach
but do not be invasive.
9. The business must have awebsite.
10. Reward loyal customers.
11.Nothing strengthens a bond more that
appreciation.
12.Create a blog about the business where
discuss is more casual and inviting.
CHAPTER 2
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE

Lesson 4: Customer Service

Strategy in the Philippine
Business Enterprise
Customer Service Strategy
 Customer Service Strategy

CUSTOMER SERVICE is the act of taking care of

the customer’s needs by providing and delivering
professional, helpful, high quality service and
assistance before, during, and after the customer’s
requirements are met.
Elements of the Customer Service strategy:

1. A vision for customer service

Elements of the Customer Service strategy:

2. Assessing customer needs

Elements of the Customer Service strategy:

3. Hiring for Service

Elements of the Customer Service strategy:

4. Organizational goals for customerservice

Elements of the Customer Service strategy:

5. Customer Service Training

Elements of the Customer Service strategy:

6. Employee Accountability
Elements of the Customer Service strategy:

7. Rewarding Good Service

THE SUKI SYSTEM IN THEPHILIPPINES
 Benefits in developing and implementing
customer relationship

SUKI SYSTEM system of

patronage in which a customer
regularly buys their
merchandise from a certain
client.
THE SUKI SYSTEM IN THEPHILIPPINES
 Benefits in developing and implementing
customer relationship

SUKI – a partner system of doing

business in the Philippines, wherein a
customer buys certain products from a
particular vendor, who in turn offers
discounts and other perks for such
exclusivity. Filipinos use the word suki to
refer to both buyers and sellers,
indicating their equal roles and
obligations in an eponymousrelationship.
Thanks!