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  • Customer Relationship Marketing

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    Jian Hao Yang
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    Customer relationship marketing focuses on attracting, maintaining, and enhancing profitable relationships with customers over their lifetime. It involves segmenting customers based on their lifetime value and developing loyalty programs to increase customer satisfaction, retention, and equity. Effective relationship marketing considers factors like trust, commitment, fulfilling promises, mutual benefit, and establishing long-term emotional bonds between parties. It aims to target the most profitable customer segments through different levels of strategic relationships that create structural, financial, social, and customization bonds with customers.

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    Customer-Relationship-Marketing

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    Customer relationship marketing focuses on attracting, maintaining, and enhancing profitable relationships with customers over their lifetime. It involves segmenting customers based on their lifetime value and developing loyalty programs to increase customer satisfaction, retention, and equity. Effective relationship marketing considers factors like trust, commitment, fulfilling promises, mutual benefit, and establishing long-term emotional bonds between parties. It aims to target the most profitable customer segments through different levels of strategic relationships that create structural, financial, social, and customization bonds with customers.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    4 views8 pages

    Customer Relationship Marketing

    Uploaded by

    Jian Hao Yang
    Customer relationship marketing focuses on attracting, maintaining, and enhancing profitable relationships with customers over their lifetime. It involves segmenting customers based on their lifetime value and developing loyalty programs to increase customer satisfaction, retention, and equity. Effective relationship marketing considers factors like trust, commitment, fulfilling promises, mutual benefit, and establishing long-term emotional bonds between parties. It aims to target the most profitable customer segments through different levels of strategic relationships that create structural, financial, social, and customization bonds with customers.

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    of 8

    1

    Customer Relationship Marketing & Loyalty Programs


    2

    Definition: Relationship marketing: B2B or B2C


    • Customer Relationship Marketing is attracting, maintaining and
    enhancing profitable relationships with customers.

    Customer Life-time Value


    Volume x Frequency x Duration

    Customer Equity
    Sum of all CLVs
    3

    Six Markets Model


    1. Internal markets
    2. Supplier markets
    3. Recruitment markets
    4. Referral markets
    5. Influence markets
    6. Customer markets

    Internal Partners: other departments


    External Partners: agencies, suppliers, distributors
    4

    Source: eightleavesmedia.com
    5

    The Customer Satisfaction-Loyalty Relationship

    Apostle
    Loyalty 100%
    (Retention) Zone of Affection
    80
    Near Apostle
    60 Zone of Indifference

    40 Zone of Defection

    20

    Terrorist 0
    1 2 3 4 5
    Neither
    Very Very
    Dissatisfied satisfied Satisfied
    dissatisfied Satisfied
    nor dissatisfied
    Source: Jones and Sasser

    Customer Satisfaction Level


    6

    Relationship Marketing Factors


    • Trust
    • Commitment
    • Ethical practices
    • Fulfillment of promises
    • Mutual exchange
    • Emotional bonding
    • Personalization
    • Customer orientation
    • Has to be established
    • Long term – to be fruitful
    • Between parties (does the customer want relationship?)
    • Should be of mutual benefit (win-win)
    Who to target for RM?
    MOST
    Platinum
    PROFITABLE

    GOLD

    IRON

    Least LEAD
    profitable

    8
    Levels Of Relationship Strategies-creating bonds with customers

    Integrated Volume &


    Information Frequency
    Systems awards
    Joint Bundling And
    investments cross selling

    Shared (IV) (I)


    Processes STRUCTURAL FINANCIAL Stable
    And equipment BONDS BONDS pricing

    Customer
    Satisfaction&
    Anticipatio Delight Continuous
    n & (III) (II) relationships
    innovation CUSTOMIZATI SOCIAL
    ON BONDS BONDS
    Mass Personal
    customization Relationships
    Customer Social Bonds
    Intimacy Among
    customers

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