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    After The Sale Is Over Final

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    Veethi Singh
    Relationship management is a strategic approach that focuses on keeping and improving relationships with current customers rather than acquiring new ones. The primary goal is to build a base of committed, profitable customers by moving them from being strangers to high-value customers. Benefits for buyers include value, confidence, and social benefits while sellers see economic benefits from increased revenue and reduced costs as well as customer behavior benefits from word-of-mouth promotion. Companies segment customers based on profitability, with the most profitable 20% producing 80% of sales. Developing relationships requires financial, social, customization, and structural bonds to provide customer and firm benefits like confidence, social ties, special treatment, and economic returns.

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    After The Sale Is Over Final

    Uploaded by

    Veethi Singh
    9 views11 pages
    Relationship management is a strategic approach that focuses on keeping and improving relationships with current customers rather than acquiring new ones. The primary goal is to build a base of committed, profitable customers by moving them from being strangers to high-value customers. Benefits for buyers include value, confidence, and social benefits while sellers see economic benefits from increased revenue and reduced costs as well as customer behavior benefits from word-of-mouth promotion. Companies segment customers based on profitability, with the most profitable 20% producing 80% of sales. Developing relationships requires financial, social, customization, and structural bonds to provide customer and firm benefits like confidence, social ties, special treatment, and economic returns.

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    Relationship management is a strategic approach that focuses on keeping and improving relationships with current customers rather than acquiring new ones. The primary goal is to build a base of committed, profitable customers by moving them from being strangers to high-value customers. Benefits for buyers include value, confidence, and social benefits while sellers see economic benefits from increased revenue and reduced costs as well as customer behavior benefits from word-of-mouth promotion. Companies segment customers based on profitability, with the most profitable 20% producing 80% of sales. Developing relationships requires financial, social, customization, and structural bonds to provide customer and firm benefits like confidence, social ties, special treatment, and economic returns.

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    9 views11 pages

    After The Sale Is Over Final

    Uploaded by

    Veethi Singh
    Relationship management is a strategic approach that focuses on keeping and improving relationships with current customers rather than acquiring new ones. The primary goal is to build a base of committed, profitable customers by moving them from being strangers to high-value customers. Benefits for buyers include value, confidence, and social benefits while sellers see economic benefits from increased revenue and reduced costs as well as customer behavior benefits from word-of-mouth promotion. Companies segment customers based on profitability, with the most profitable 20% producing 80% of sales. Developing relationships requires financial, social, customization, and structural bonds to provide customer and firm benefits like confidence, social ties, special treatment, and economic returns.

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    of 11

    AFTER THE SALE IS OVER

    GROUP 4 : ARTICLE PRESENTATION

    Submitted By : Group 4 1.Ankur Tunaak 2.Gagandeep Singh 3.Kamal Malik 4.Modak Priy 5.Rupane Sharma 6.Sudeep Kumar Kundu 7.Vineet Dixit
    GROUP NO. 4 1

    WHAT IS RELATIONSHIP MANAGEMENT

    Relationship management is a philosophy of doing business, a strategic orientation, that focuses on keeping and improving relationships with current customers rather then on acquiring new customers.

    GROUP NO. 4

    GOAL OF RELATIONSHIP MANAGEMENT


    The primary goal of Relationship Management is to build and maintain a base of committed customers who are profitable for the organization.

    The goal is to move the customer up the ladder i.e; from the point they are strangers to the point where they become high valued customer.

    Enhancing Retaining Satisfying Acquiring

    GROUP NO. 4

    BENEFIT FOR BUYERS AND SELLERS


    BENEFITS FOR BUYERS Value Benefits - Customer remains loyal to a firm if they receive greater value relative to the competitors. Value can be classified in terms of quality, services, special benefits, etc. Confidence Benefits - This provides the feeling of trust and confidence along with a sense of reduce anxiety and comfort in knowing what to expect. Social Benefits - Customer develop a sense of familiarity and even a social relationship between the service provider and the customer. These ties make them less likely that they may switch.
    GROUP NO. 4 4

    BENEFITS FOR SELLERS


    Economic Benefits - Long time relationship recieves high overall returns on investments which includes increased revenue, redused marketing and administration cost and the ability to maintain high margins without reducing prices. Customer behavior Benefits - These benefits can be in the form of word of mouth communication. Loyal customer may provide social benefits to other customers and they can serves as mentors to others in terms of purchase.

    GROUP NO. 4

    CUSTOMER PROFITABILITY SEGMENT


    Company may want to treat all customers with excellent service, but the relationship value differs and it would not be profitable to meet all customers expectation 80/20 Rule : 20% of the customers produce 80% of sales / profit.
    Most Profitable customer

    Platinum
    Gold Iron

    Least Profitable customer

    Lead

    The customer pyramid


    6

    GROUP NO. 4

    RELATIONSHIP DEVELOPMENT MODEL


    Relationship Drivers Relationship Bonds
    Financial Bonds Social Bonds Customization Bonds Structural Bonds

    Outcomes Customer Benefits


    Confidence Benefits Social Benefits Special treatment Benefits

    Customer Relationship Firm Benefits


    Economic Benefits Customer behavior benefits Human resource management benefits

    Core Service Provision


    Satisfaction

    GROUP NO. 4

    Perceived service Quality Perceived Value

    CUSTOMER RELATIONSHIP MANAGEMENT SATISFACTION


    A comprehensive set of relationship programs includes : 1.Customer service (Touch Points) 2.Frequency/Loyalty Programs 3.Customization 4.Rewards Programs 5.Community Building
    Customization Frequency /Loyalty Programs Customer Service

    Customer Service

    Customer Relationship Management Satisfaction Rewards Programs

    GROUP NO. 4

    RELATIONSHIP CHALLENGES
    The assumption that all customers are good customers is very compatible with the belief that The customer is always right yet the statement is not always true and it may be preferred for a firm to discontinue their relationship. Wrong segment : A company can not target its services to all customers, it would not be beneficial to either the company or the customers for a company establish its relationship with a customer whose needs the company can not meet Net profitability in long term : Organizations should prefer not to have relationship with unprofitable customers. Difficult customers : These are customers who intentionally or unintentionally act in a manner that in some way disrupts otherwise functional service encounters.
    GROUP NO. 4 9

    When a purchase cycle is long - People in the organization change, and in all livelihood the entire upper level management also changes but the idea of building relationship bonds lasts forever.

    GROUP NO. 4

    10

    THANK YOU

    GROUP NO. 4

    11

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