CUSTOMER RELATIONSHIP

Like any committed relationship, the relationship between a business and it’s customer
needs nurturing. Customer Relationships are very important in a business and if your business
doesn't have a good relationship with your customers you don’t have a good business also.

Why are customer relationships important? In Business there are only two situations,
Business rise and fall and those two situations depend on customer relationship. Bad customer
relationships may lead your business to failure because “word of mouth is going to get out no
matter what.” if the customer is not happy with her experience in your business, they will tell
directly to their friends and family that he/she is not satisfied with your product or service and
we know that we people will trust our friends more than they trust a marketing ad, so if you're
not having a good customer relationship people will not recommend your business and you lose
a free marketing ad. On the other side if you have a great relationship with your customers you
have open lines of communication, you're letting them know in advance of changes and policies
and updates sales and because of that it will boost the confidence of the business and the
business will get a marketing ad because the customers will recommend about their satisfactory
experience with your business.

SUKI MARKETING

The suki involves attitudes, the sense of a special relationship, or even an intent to
develop a special relationship. Suki Marketing is like Relational marketing that will result in
customer satisfaction and loyalty. suki, as I later learned, is not simply a popular moniker among
market folk. It is essentially a buddy 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 eponymous relationship.

RELATIONAL MARKETING

Relational marketing attempts to create a relationship between the customer and the
salesperson or business. Because of the relationship, customers will feel a loyalty to the business
and return for future purchases. Relational marketing is important for large purchases like
purchasing a car or home, but pure relational marketing runs the risk of building a relationship
without closing the sale.

CUSTOMER SATISFACTION AND LOYALTY

Customer satisfaction is a measurement of a customer's attitude toward a product, a

service, or a brand. It's usually measured by a customer satisfaction survey on a numerical scale.

Customer Satisfaction not only makes customer do repeat purchase but endorse the
product to other customer.

It also refers to the sentiment of the customer after completing a transaction with your
business. You can use it to understand whether or not the customer experience met expectations.
It's also a great way to let upset customers vent, giving them a private channel to express their
feedback, rather than expressing an angry opinion publicly on social media or in a review.

The most straightforward customer experience metric, customer satisfaction score

(CSAT) can help you understand if your store is performing its most fundamental tasks. A high
CSAT tells you that your shopper's journey to buy something in your store is smooth,
predictable, and doable. A low CSAT may indicate you're losing customers before they're ready
to check out.

Customer Loyalty means the customer sticks to the product regardless of new product or
product stock out.

Customer Loyalty consists of loyalty behavior (also referred to as customer retention)

which is the act of customers making repeat purchases of current brands, rather than choosing
competitor brands. Secondly, Customer Loyalty encompasses loyalty attitudes which are
opinions and feelings about products, services, brands, or businesses that are associated with
repeat purchases.

If customer satisfaction is a short term win, customer loyalty is the long term goal. Loyal
customers will spend more with your company over their lifetime. They will recommend you to
family and friends. They will stick with you because they want to, not because they have to.
Loyal customers are the ultimate goal of any company that wants to stay in business.
 Customer Service: Expectations of Customers on How to be Treated
Companies place a great deal of importance on meeting customer expectations.
According to Forrester, nearly 95% of leaders say that providing a good customer
experience is a top strategic priority, and 75% want to use customer experience as a
competitive advantage.
1. Customers want to feel known
Customers want to feel like you know them: their preferences, their
orders, their future needs. They insist on a personalized experience
2. Customers want to give feedback and have you take action on it
90% of customers report that they view brands more favorably if they feel
like they have a voice (1). But that’s not enough. Customers want to see you act
on the feedback.
3. Customers want proactive solutions
Immediate and real-time customer service is no longer fast enough.
Customers expect you to be ahead of the game: predicting issues and solving
them before they happen. With robust customer data and technology, you can
solve problems and prevent further ones.
4. Customers want to reach you through their preferred channel
Customers want to be able to contact you with ease. Some prefer mobile
chat, while others want to post on social media. Having a multichannel platform
gives customers options for connecting with you. Remember that your customer
experience should be consistent across all channels.
5. Customers want to know you care
With many companies vying for their attention, customers gravitate
toward where they feel taken care of. They want customer representatives who
show genuine concern and ultra-easy returns for jeans that don’t fit.
6. Customers want a seamless experience
Clunky, time-consuming websites don’t stay in business long. Customers
want intuitive experiences. From placing orders to making returns, your
customers should feel like it’s “frictionless”
7. Customers want prompt responses
 In our fast-paced, highly-competitive world, customers have a need for
speed. When asked about the most important aspect of customer service, the
number one response was that the issue gets resolved in the first interaction.
8. Customers want to feel valued
It is important that consumers feel as though they matter and are cared for
throughout the entirety of their journey with a brand. When a brand prioritizes
their customers every step of the way, customers will feel valued

Source

https://blog.hubspot.com/service/whats-the-difference-between-customer-satisfaction-and-
customer-loyalty

https://www.nicereply.com/blog/customer-satisfaction-vs-customer-loyalty/

https://www.snapsurveys.com/blog/customer-satisfaction-customer-loyalty/

https://www.thankful.ai/blog/what-customers-expect

https://fonolo.com/blog/2014/07/5-things-customers-want-and-expect-when-it-comes-to-
customer-service/

BARRIERS TO EXIT OF CUSTOMER SERVICE

What are ‘barriers to exit’?

Barriers to exit are recognized as hindrance that prevents your clients from spending.

In today's uber-competitive, multi-channel, instant-access environment, the most

effective marketing is paired with an in-store experience that creates barriers to exit.

With the barriers to exit definition in mind, it is easy to see how marketing takes on a
more comprehensive role than merely bringing customers

Where do I start creating barriers to exit?

1. Connect Your In-Store Experience with Consumer Trends

 It is important to know your customers interest, it’s a safe bet they’ll be drawn to
it in your store.

For example, you are selling women's clothes, make up and more. In order to get
the more customer, it is better to sell what is trending.

2. Customer Service

There is a direct link between great customer service and increased revenue.

For example, you are a business owner and your store has many regular customers
because of the great quality of your customer service and if they have any inquiries, it is
answered as soon as possible. That is why they always like to buy things from your store
than any other stores.

3. Excel in One Area (rather than being all things to all people)
Marketing your expertise, it is significantly easier when you know what your
strengths are and who is your target audience.

FOUR BRAND BENEFITS

1. Functional
What do consumers get?
This benefit explores which kind of benefits your product or service features have.
For example, Convenience. The product is comfortable to use and easy to transport. Also,
Economical. The service helps to save money or perhaps is the cheapest on market yet
providing same features as competitors.
2. Emotional
How does that make them feel?
This benefit considers how the consumers feels about your brand.
For example, a beauty brand that doesn’t test on animals and is fully organic – consumers
will feel good about themselves for using it.
3. Self-expressive
What does it express about the users of the brand?
 This benefit explores what does the users think that it expresses about themselves for
being associated with your brand.
For example, Apple, Channel and Mac. it expresses that the user likes quality products,
are willing to spend more, love innovation and appreciate aesthetics.
4. Consumer benefits
What do consumers want?
This benefit examines what kind of value consumer want from your product or service.
For example, you made a chip that are healthy because it is made of real vegetables.

Source

A. (2021, March 1). Four Brand Benefits. MC Marks Consulting. Retrieved from:
https://mcmarksconsulting.com/2021/03/01/four-brand-benefits/?
fbclid=IwAR1rgpp77b8dBSSP0kc6oqMwIevmYd4NfZUsnr4ItezpH511YnQeMR1Oi-Y

Cloud, K. (2012, September 5). Use ‘Barriers To Exit’ For More Sales From Customers.
Shelby Report. Retrieved from: https://www.theshelbyreport.com/2012/07/26/use-barriers-to-
exit-for-more-sales-from-customers/?
fbclid=IwAR09_fqoygjbU8n0BYYIwpktTV01Gh__izp3LsygrK1lS89L2mgWjoJmZWA

VALUE OF CUSTOMERS

The Value of Customer can be Understand using this concepts:

 Customer Lifetime Value (CLTV) or (CLV)

 Cost of Customer Acquisition (COCA) or Customer Acquisition (CAC)

Customer Lifetimes Value (CLTV/CLV)

CLTV concepts allows enterprise to give value to the customer not on a transactional
basis but on long- term relationship.It also determines the profit of the customers will generate
during relationship with the company. CLV is also a factor to make company decisions on sales,
marketing, product development and customer support.

To compute CLV:

CLV= Profit per year x Average duration of relationship

Cost of Customer Acquisition or Customer Acquisition Cost (COCA/CAC)

COCA on the other hand illustrates the enterprises needs to spend in programs that will
bring in new customers. Simply say it is the total investment that the company spend just to gain
new customers. The importance of CAC is to know the worth of your customers and to calculate
Return on investments or ROI. In CAC we justify on how we are going to monetize the
investments on the customers.

To compute CAC:

CAC=Sales and Marketing Expenses / New Customers Acquired

THE IMPORTANCE OF CUSTOMER

A customer is the foundation for any business. A business cannot exist without a buyer
base.

Customer orientation focus on profitability rather than sales volume and emphasis on
market segmentation are gaining importance.

New trend on marketing has replaced ‘product’ and ‘services’ with “value”.

5 STRATEGIES BUILDING CUSTOMER RELATIONSHIP

Technology

Personalizing Marketing

An increasingly important ingredient here is using the right technology.

Companies are using the following to foster continuous contact between company and the
customer:

 Emails
 Websites
 Call Centers
 Databases
  Social Media

Every part of the business sector relies on technology. The company's and customers'
communication are becoming easier and faster. Customers must also have established solid
communication with the organization in order for their demands to be met appropriately. One
approach to become modern and aware of today's current trend is to use technology in
communication.

As partners, technology and CRM would result in a profitable and productive firm. It would
also assist businesses in being more up to date, allowing them to outperform the competition and
establish themselves as one of the finest. CRM can benefit from technology integration in a
variety of ways.

Value Chain Excellence

“TOUCHPOINTS IN MARKETING COMMUNICATIONS ARE THE VARYING

WAYS THAT A BRAND INTERACTS AND DISPLAYS INFORMATION TO
PROSPECTIVE CUSTOMERS AND CURRENT CUSTOMERS. TOUCHPOINTS ALLOW
CUSTOMERS TO HAVE EXPERIENCES EVERY TIME THEY “TOUCH’ ANY PART OF
THE PRODUCT, SERVICE, BRAND OR ORGANIZATION, ACROSS MULTIPLE
CHANNELS AND VARIOUS POINTS IN TIME”

Companies must constantly analyse the value they provide in order to maintain their
competitive advantage in the face of increased competition for great prices, exceptional products,
and client loyalty. A value chain can assist a corporation in identifying inefficient sections of its
business and then implementing ways to optimize its procedures for optimum efficiency and
profitability.

 A value chain is a step-by-step business model for transforming a product or service from
idea to reality.
 Value chains help increase a business's efficiency so the business can deliver the most
value for the least possible cost.
 The end goal of a value chain is to create a competitive advantage for a company by
increasing productivity while keeping costs reasonable.
  The value-chain theory analyzes a firm's five primary activities and four support
activities.

Source

Define Brand Touchpoints for a Winning Customer Experience | Canny (canny-creative.com)

Customer relationship marketing (slideshare.net)

Customer Relationship Marketing CRM (slideshare.net)

The Integration of Technology in Customer Relationship Management (CRM) (mybusiness-

crm.com)

Value Chain Definition (investopedia.com)

RELATIONSHIP DEVELOPMENT STRATEGIES

Frontline Excellence

The number one challenge within organizations today is “communication” using LASER.

Listen- first step in dealing with complaint is to probe and listen to customers

Acknowledge- apologize for customer’s inconvenience

Solve- offer solutions

Empathize- show the company’s concern

Reinforce- final step is to reinforce your action with constant follow-ups

Account

A key account strategy is a blueprint that guides all your activities within your
organization and with your clients.

Co-opetition

The act of cooperation between competing companies by forming a strategic alliance

designed to help both companies.