INTRODUCTION TO

CUSTOMER RELATIONS
OFAD 5 – CUSTOMER RELATIONS
BY: ISMAELA M. BAWICA
 “WHAT IS A CUSTOMER?

• A customer is the most important visitor on our premises.

• He is not dependent on us, we are dependent on him.
• He is not an interruption on our work. He is the purpose of it.
• He is not an outsider on our business. He is a part of it.
• We are not doing a favor by serving him. He is doing us a favor by giving us an opportunity to do so.
 HISTORICAL EVOLUTION OF CRM

Barter Age : There was a stage when consumers started

producing more of a specific product. They had one or more
commodity in a surplus amount than their requirement. They
exchanged this surplus commodity for the other amongst
themselves. One commodity for the other
CUSTOMIZED PRODUCT AGE

This was a stage when skilled craftsmen created goods that were
customized for buyers and were delivered personally so there
was direct contact with them. During this contact the needs of
the buyer /customer were studied and accordingly the product
was modified if required. Thus the customer relations developed
further.
MASS PRODUCTION AGE

With industrial revolution came mass production capabilities

enabling large volumes of production and bringing down costs
and servicing of buyers across geographical boundaries. As the
markets spread far and wide, the end consumers got separated
from the manufacturer. Thus 1 to 1 contact was difficult leading
to emergence of differentiation between customer and
consumer.
CUSTOMIZATION AGE

Similar concepts evolved in ‘service’ industry where the

consumer defined service specification on the web. E.g. if a
bicycle of a specific design was needed by a customer he could
specify the design on the web and a bicycle catering to the
specific requirements could be produced. This age addressed
individualized needs in a mass production environment – closer
to building a 1:1 relationship with consumers.
 DIFFERENCE OF CUSTOMER TO CONSUMER

CUSTOMER: purchaser of CONSUMER: One who utilizes the

goods/services and not necessarily the goods/services to fulfill his need.
one consuming them e.g. dealer/
stockiest /retailer/wholesaler. Thus
though customers they were not
necessarily consumers but customer
relations applied to them too.
 EVOLUTION OF CRM THINKING

DIRECT MARKETING: leading to focused and accurate marketing.

VALUE CREATION: which can also act as a differentiator for the firm as
well as gain a competitive advantage in the competition.
MASS MARKETING TO CUSTOMER MARKETING: using technology
as an enabler. The link with the customer which was broken for sometime was
reestablished with the internet.
MASS COSTUMIZATION: introduced by then bringing into the picture
customer relations and their importance to a business and its survival and
growth.
 RELEVANCE OF CRM TODAY(WHY DOES CRM
NEEDED?)

• The customer is becoming more and more untamed and will not stick
to one brand alone.
• Wherever there is a better value for money offered they will switch
over without any questions or guilt.
• They are exposed to a plethora of products that he can see over the
television channels, Internet marketing, teleshopping.
• The customer today is described as a shameless bargain seeker who
seeks better and better bargains.
• They like to be pampered by marketers.
 TRENDS IN THE NEW MILLENNIUM:

• The Internet has reduced the gap between societies which was due to physical distance and gaps in
knowledge and information.
• Customers want value for money .Thus the products will have to be globally competitive.
• Business will be carried out at the speed of thought with online help and interactive technology that
will enable the marketer to creatively customize the product for the buyer
• The customer will be the co producer of products and services
 FOLLOWING EXAMPLES SUPPORT THE TRENDS
SEEN IN THE MARKET TODAY:
• A Toyota car is assembled in13 hours but an assembled car is not kept ready just to ensure
customization. Hence a customer can a get a car with all the four doors of different colors.
• Interactive technologies like call centers, toll free numbers have made the customer the co
producer of products and services.
• In the internet age customer has access to wide variety of information from various national
and global sources. The marketer will have to use this information for developing its marketing
mix.
• Innovation and the speed of response hold the key to survival in this highly turbulent Asian
markets. • E.g.(a) Intel is the largest selling microprocessor firm only because of its innovation
and speed of response.
• (b) HDFC Bank has emerged as the best bank because of its continuing thrust on customer
centric innovations. e.g. Using IT to make banking a pleasurable experience and responding to
customers even before the competition gets prepared.
CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) IS THEREFORE
INDISPENSABLE TODAY..!!

THANK YOU FOR LISTENING..!!