Building relationship with multiple

stakeholders I (Customers)
Lecture outline

1. Role of multiple stakeholders

2. Stakeholder model for relationship marketing

3. Customer markets

4. CRM

5. IDIC framework

6. CRM Softwares
Role of multiple stakeholders

• In today’s competitive business world, it is highly

required to address multiple stakeholders beyond the
customer-firm dyad.

• Top management of the organization plays a vital

role in managing relationships with the stakeholders
in order to maximize the customer value & the
shareholder’s value.
Role of multiple stakeholders
• Stakeholder management is frequently not integrated
Marketing department Customers
Purchasing department Suppliers
Finance department Financial community
Human resources department Internal staff, potential recruits, unions
Public relations and corporate Media, government
affairs

• Implementing relationship marketing strategies requires

managers to go beyond the their traditional functional
roles.
A stakeholder model for
relationship marketing
by Christopher, Payne and Ballantyne
 Customer Markets
• Customer should be the main focus.
• Includes three broad groupings as follows

Example:
Manufacturer of
LCD TVs
 Customer Markets (cont’d)
• Adopting a relationship marketing programme

Conduct a detailed market analyze

Identify the type of marketing activity they

need to direct at each channel members

Evaluate regularly
Example:
Manufacturer
of a domestic
Make adjustments if needed dishwashing
machines

P&G
 Customer Markets (cont’d)

• Focusing too heavily on marketing activities directed

at new customers is dangerous.

• Although customers are important equally, all are not

that much of desirable.

• By better understanding their customers, companies

can tailor their offering to maximize overall value.
 Customer Markets (cont’d)
• CRM
• “A holistic process of identifying, attracting,
differentiating and retaining customers”
• “CRM is concerned with the creation,
development and enhancement of individualized
customer relationships with carefully targeted
customers and customer groups resulting in
maximizing their total customer life time value”
CRM makes it possible..
1. Acquiring 2. Retaining 3.Selling more
(Get) (Keep) (Grow)

Retain profitable Upsell

customers longer

Cross sell
Acquire Win back
profitable profitable
customers customers
Referral
Eliminate
unprofitable Reduce
customers
IDIC Framework
• This explains the process of building one to one
relationships with customers.
1. Identify
• Relationships are individualistic, not with markets or
group of people
• Must be able to identify your customers individually and
recognize them when interacting
• Without identification, its difficult to know who they are
and what their needs are

Step 1 : How much customer identification does a

company already have

Step 2 : Get customers to identify themselves

2. Differentiate

• Some customers are worth more than others.

• 80/20 rule
• Want to better understand customer ‘needs’vs.
demographics

• Want to better understand thevalue of that customer

to the enterprise
The expanded Customer Pyramid
Differentiating Customers

• Segmentation Bases
• Geographic
• Demographic
• Behavioral
• Psychographic
Differentiating Customers
• Segmentation based on needs
Refers to why customer buys rather than what
they buy
• Segmentation based on profitability
• Knowing value of customer to the enterprise
allow prioritization
• Customer life time value (CLV)…. Net present
value of the stream of expected future
contributions from the customer.
• RFM Analysis
Recency, Frequency, Monetary Value-
RMF
• A marketing analysis tool used to identify a firm’s
best customers by measuring certain factors. The
RFM model is based on three quantitative factors
• Recency
• Frequency
• Monetary value
3. Interact
• Goal of interaction is ‘to get more information
directly from a customer in order to serve him in a
way that no competitor can, who doesn’t have the
information’
• Want to turn the interaction into a collaboration in
which the enterprise and customer work together to
make transactions beneficial to both parties ( A
learning relationship)
4. Customize
• Use knowledge of customer to figure out what
he/she needs

• Key term is ‘mass customization’

• Can be product based
• Or service based on standard products
• Use of information technologies key
 Successful CRM cases
• COCA-COLA CRM
• Coca-Cola uses CRM to promote collaboration and deal with
customer issues quickly and efficiently
• By using CRM software, every member of a Coca-Cola team
can identify issues, monitor customer behaviour and social
media to promote offers and promotions.
• Moreover, team members can use mobile apps on the go to
access customer history anytime and anywhere, create and
update work orders, and send out field technicians in real-
time
 Successful CRM cases
• Amazon CRM
• established in the US and is an e-commerce giant
• initially started as a books retailer but now sells an extensive array of
products
• built its own CRM software in-house, meaning it is tailored to its own
exact requirements and needs
• each customer can easily access their order history, which allows
them to see which products they have ordered, current status in the
delivery process, and how much they have spent on it
• returns policy is similarly automatic, significantly reducing their
need for customer service staff and thecosts associated with them
 Successful CRM cases
• Amazon CRM
• Data collection
• Own account

• Personal data storage

• all personal, payment and address details can be stored-
allowing for swift, quick and easy future purchases

• Recommendations
• Top selling products
• ‘customers who bought this item also bought' feature.
• Peer reviews
CRM Softwares
CRM software (customer relationship management software) is a tool
that's designed to help the organizations, offer their customers a unique
and uninterrupted experience, as well as build better relationships by
providing a complete picture of all customer interactions, keeping track
of sales, organizing and prioritizing opportunities, and facilitating
collaboration between various teams

Examples -Microsoft Dynamic 365, a cloud-based CRM and ERP

Microsoft Dynamic 365

• Microsoft Dynamic 365 is a highly collaborative cloud-

based CRM software that can help your sales team be
more efficient in an increasingly complex environment.

• analyze company’s performance to develop an effective marketing

strategy
and create a personalized customer-business relationship.

Moreover, this software can be used to:

• generate and send messages containing automatic responses based
on the customer's actions,
• customize workflows based on the requests and the needs
of the company;
• target customers before setting up an e-mailing campaign.
 Conclusion
• It is important that the top management of the organization
manage relationships with the stakeholders in order to maximize
the customer value & the shareholder’s value.
• Stakeholder management need to be integrated marketing and go
beyond the their traditional functional roles to have a significant
impact.
• The stakeholder model for relationship marketing developed by
Christopher, Payne and Ballantyne provides valuable insights
regarding how to mange relationships to yield better outcomes.
• Among the different stakeholders, customers can be considered as
one of the most important parties with whom the organization
need to manifest good relationships.
THANK YOU