CUSTOMER RELATIONSHIP

MANAGEMENT

UNIT - 2

PRESENTED BY

K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)
ASSISTANT PROFESSOR IN MANAGEMENT

VISHWA VISHWANI GROUP OF INSTITUTIONS

 Unit – II: CRM Concepts
Customer Value, Customer Expectation,
Customer Satisfaction, Customer Centricity,
Customer Acquisition, Customer Retention,
Customer Loyalty, Customer Lifetime
Value.
Customer Experience Management,
Customer Profitability, Enterprise Marketing
Management, Customer Satisfaction
Measurements, Web based Customer
Support.
 Customer Value
 CRM is the core business strategy that integrates internal processes
and functions and external networks to create and deliver value to
targeted customers at a profit.
 The task of directing the creation and delivery of value to
targeted customers at a profit falls to strategic CRM.
 Value is the customer’s perception of the balance between
benefits received from a product or service and the sacrifices
made to experience those benefits.
 It is possible to represent this definition in the form of an equation:

* Value = Benefits / Sacrifices *

 Companies can increase the customer’s perceived value in two
main ways: increase the benefits they experience, or decrease
the sacrifices they make.
Customers make several types of sacrifices :
Money : The price of the product or service, which may or
may not be the listed price.
 There may be additional costs such as credit card surcharges,
interest charges on extended payments or warranty costs.
 There may be discounts applied for relationship customers,
early payment or volume purchases.
Search costs: The purchasing process may include
exhaustive pre-purchase work in searching for solutions and
comparing alternatives. This can take considerable time.
Psychic costs: Purchasing can be a very stressful and
frustrating experience.
 Psychic costs can be so great for some customers that they
postpone purchases until a better time. Others cancel
purchasing completely.
Total Cost of Ownership
 TCO looks not only at the costs of acquiring products, but also at
the full costs of using, and servicing the product throughout its
life, and ultimately disposing of the product.
 ‘Consumption’ can be broken down into a number of activities or
stages, including search, purchase, ownership, use, consumption
and disposal.
 TCO is an attempt to come up with meaningful estimates of
lifetime costs across all these stages.
 When customers take a TCO view of purchasing, suppliers can
respond through a form of pricing called Economic Value to the
Customer (EVC).
 EVC computes for customers the value that the solution will
deliver over the lifetime of ownership and use.
 EVC encourages suppliers to customize price for customers on
the basis of their particular value requirements.
 Sources of customer value
 A value proposition is the explicit or implicit promise made
by a company to its customers that it will deliver a
particular bundle of value-creating benefits.
 Companies cannot be all things to all customers and need to
concentrate on one of these three value delivery strategies.
 The strategies are characterized by Operational excellence,
Product Leadership and Customer Intimacy.
 Operational excellence : Companies that pursue this strategy
do a limited number of things very efficiently, at very low
cost, and pass on those savings to customers.
 Operational excellence is underpinned by lean manufacturing
and efficient supply chains, close cooperation with suppliers,
rigorous quality and cost controls, process measurement and
improvement, and management of customer expectations.
 Product leadership : companies aligning with this value
discipline aim to provide the best products, services or
solutions to customers.
 Continuous innovation underpins this strategy.
 Product leadership is reflected in a culture that encourages
innovation, a risk-oriented management style, and
investment in research and development.
 Customer intimacy : Companies that pursue this strategy
are able to adapt their offers to meet the needs of individual
customers. Customer intimacy is based on customer insight.
 Adaptation and customization based on deep understanding
of customer requirements underpin this strategy.
 Customer Expectation
 Customer expectation encompasses everything that
a customer expects from a product, service or
organisation.
 Customer expectations are created in the minds
of customers based upon their individual experiences
and what they have learned, combined with their pre-
existing experience and knowledge.
 Customers will have both explicit and implicit
expectations regarding the product or service which they
have purchased.
 They will have performance expectations which include
a dynamic element due to anticipated changes to the
product or service over time. 
 Factors Influencing Customer Expectations
 Customer expectations are influenced by a multitude of factors but there are a
few key elements which are recognized as important influences on
customer expectations.
Previous Customer Experience
 One of the most significant factors influencing customer expectations is their
prior experience with your organisation.
 If they are highly satisfied existing customers then this sets a high level of
expectation which must be maintained.
 But if their previous experience has been suboptimal then they may lack
confidence in your business and their expectations may be quite low.
Customer Communications
 Every piece of outbound communication from your business may have
influenced your customer expectations.
 Blog posts, tweets, web pages, emails, print advertising, radio and TV
advertising all contribute to the expectations that your customers will have.
 It is essential that your communications are all honest, consistent, clear
and unambiguous.
Reviews and Word of Mouth
 The internet is a magnificent research tool so you can expect your
customer’s to have carried out research before making their
purchase.
 They will have read reviews of your product or service and they
will have potentially read reviews of your business.
 They may also have read what people are saying in forums and
on social media.
 What they derive from these sources will influence their
expectations so you need to be aware of what’s being said.
Previous Experience with Other Companies
 People’s experiences with other companies and organizations
greatly influence their expectations.
 Regardless of whether other companies are in the same niche as
yours, these days customers expect the same high levels of great
customer service from all businesses and organizations.
Customer Expectation Management Tips
Having an understanding of how customer
expectations are formed and how they change
over time provides a great foundation for effective
customer expectation management.
It should be clear that developing an understanding
of your customer expectations is vital for business
success.
It should also be clear how expectations vary.
For example, customer expectations in hotels differ
greatly from customer expectations from an
insurance provider.
Communicate Clearly and Honestly
 As noted, your customer expectations will have been influenced by
what they have read and possibly seen.
 Since you have complete control over how you communicate with
your customers you should ensure that the information you provide
is clear, consistent, complete and honest.
 Lack of clarity in communications has been widely cited as a
significant issue that negatively affects customer experience. Here
are some fundamental guidelines:
 Ensure that the information provided from your website is accurate,
complete, consistent and always up to date.
 The language used on your website and in all communications must
be appropriate for your customers. Engage them using the right
language and tone of voice.
 Your social media communications need to be responsive and
timely.
 Advertising and promotion must not be misleading or dishonest.
Cultivate Loyalty
 Fostering customer loyalty is enormously beneficial to all
businesses.
 It costs far less to retain an existing customer than it does to
create a new one. And loyal customers can be enormously
helpful in identifying and defining changing customer
expectations.
 Some basic tactics that contribute toward developing customer
loyalty include:
 Always personalizing communications by using their names.
 Ensuring that each customer is made to feel special.
 Always thanking them for their custom and their loyalty.
 Regularly and routinely communicating with them.
 Pay attention to the details which can affect customer
expectations.
Monitor Your Market and Beyond
 The expectations of your clients and customers will be
greatly influenced by what they may have experienced
from other businesses in your sector and elsewhere.
 If a customer has previously used an online ‘chat’ facility on
another website to get some customer support and they
received a response within maybe 30 seconds then they are
likely to expect the same from you when you implement an
online chat tool.
 Similarly, if a customer has previously received a fast
response via social media from an unrelated organisation or
business then they are likely to expect the same level of
response from your social media channels.
Be Expert
 Company’s people need to be recognized as experts in what they
do and what they are providing.
 Every employee involved in direct customer communications,
from front-line service personnel to switchboard operators and
sales professionals, need to be adequately trained and highly
confident in their skills and their ability to manage even the
most demanding customer expectations.
Always Follow Up
 Customer experience can be greatly influenced by whether or
not an organisation follows up after an initial contact.
 For example, if a customer has contacted a service desk, via
telephone or maybe via an online chat facility, and a resolution
to their issue was provided, this should be followed up, possibly
via email, to confirm the recommendations provided and that the
solution was successful.
Discover and Exceed
By establishing a rapport with your customers
you’re in a great position to discover their
anticipated expectations.
What are they looking forward to in the future?
What do they expect of the products or services
provided from your company?
What are they experiencing elsewhere that is
influencing what they expect from you?
 Customer Satisfaction
 Customer satisfaction is defined as a measurement that
determines how happy customers are with a company’s
products, services, and capabilities.
 Customer satisfaction information, including surveys and
ratings, can help a company determine how to best improve
or changes its products and services.
WHO ARE THE CUSTOMERS?
 Customers include anyone the organization supplies with
products or services. The table below illustrates some
supplier-customer relationships.
 Expectations–Disconfirmation model
 Satisfaction increases because customer insight allows
companies to understand their customers better, and create
improved customer value propositions and better customer
experiences.
 As customer satisfaction rises, so does customer intention to
repurchase.
 This in turn influences actual purchasing behaviour, which has an
impact on business performance.
 Customer satisfaction is the customer’s fulfillment response to a
customer experience, or some part thereof.
 The most common way of quantifying satisfaction is to compare
the customer’s perception of an experience, or some part of it,
with their expectations.
 This is known as the expectations–disconfirmation model of
customer satisfaction.
 This model suggests that if customers perceive their
expectations to be met, they are satisfied.
 If their expectations are underperformed, this is negative
disconfirmation and they will be dissatisfied.
 Positive disconfirmation occurs when perception exceeds
expectation.
 The customer might be pleasantly surprised or even
delighted.
 This model assumes that customers have expectations,
and that they are able to judge performance.
 Many companies research customer requirements and
expectations to find out what is important for customers,
and then measure customer’s perceptions of their
performance compared to the performance of
competitors.
 Customer Centricity
 Customer-Centric business relationship development is the
core foundation of CRM.
 A customer-centric way of doing business is focused on.
providing a positive customer experience before and after
the sale in order to drive repeat business, enhance
customer loyalty and improve business growth.
 However, a customer-centric company requires more than
offering good customer service.
 Customer-centric is a business strategy that’s based on putting
your customer first and at the core of your business in
order to provide a positive experience and build long-term
relationships.
 When you put your customer at the core of your business, and combine it
with Customer Relationship Management (CRM), you collect a wealth of
data, which gives you a full 360 view of the customer. This data can then
be used to enhance your customer’s experience.
 For example:
 You can use customer data to understand buying behavior, interests and
engagement
 You can identify opportunities to create products, services, and
promotions for your best customers.
 You can use customer lifetime value to segment customers based on top
spenders.
 Research by Deloitte and Touche found that customer-centric companies
were 60% more profitable compared to companies that were not
focused on the customer.
 Companies that focus on their customers are able to provide a positive
customer experience through their entire journey.
 To accomplish this, companies must undergo a massive shift in their
organization’s structure and culture.
 Best practices to becoming a customer-centric company
Hire for customer success: Employees are the
front-facing workforce that will shape many of the
experiences with customers.
Regardless of role, focus on hiring talent that can be
aligned with customer-centric thinking and the
importance of customer experience at your business.
Put relationships first: Customers are not numbers
to be measured and analyzed in a revenue
performance report.
 They are people and benefit greatly when you
establish a mutually beneficial relationship together.
 Democratize customer data: Adopting a new customer-
centric strategy requires centralized access to customer data
and insights.
 Having a CRM database can help facilitate a better
understanding of customers to provide a unified front that
delivers better customer experiences.
 Connect company culture to customer
outcomes: Employees will be motivated by a customer-
centricity strategy when actions can be linked to results.
 For example, strategies to reduce customer wait times or
making transitions easier for a customer can be captured in
real-time to highlight successful strategy implementation.
 Customer Acquisition
 Customer acquisition refers to bringing in new customers -
or convincing people to buy your products.
 It is a process used to bring consumers down the
marketing funnel from brand awareness to purchase
decision.
 The cost of acquiring a new customer is referred to as
customer acquisition cost.
 You can acquire customers through a variety of
marketing tactics, digital channels, and strategies (both
on or offline).
 The importance of customer acquisition varies according
to the specific business situation of an organization.
 Customer Acquisition process is specifically concerned with issues like
acquiring customers at less cost, acquiring as many customers as
possible, acquiring customers who are indigenous and business
oriented, acquiring customers who utilize newer business channels
etc.
 The whole process should concentrate on following considerations:
 Primarily it is important to determine and focus on psychology of
customers, like how the customers feel and think and then selecting
the product segment to be presented to them.
 Concentrating on how the customers are influenced by the
surrounding environment like the business culture, technology,
media etc.
 Analysis of customer behavior and tendency while buying specific
range of product.
 Studying the customer’s limitation of knowledge processing power
which influence the decision making power.
 Finally it’s very important to engage best strategies for effectively
convincing new customers and improving marketing campaigns.
 Acquiring a customer depends on how effectively the
organization is able to build a comprehensive
relationship with that customer.
 When companies have healthy relationship with
customers, the revenue of the organization always increases
as customers tend to buy more and more.
 There is possibility that a satisfied customer seek to buy
special category of related products apart from the regular
ones from that particular supplier. 
 For enhancing the revenue, the organization should always
balance the number of customers acquired with number
of customers who divert to different organizations.
 Failing to which will definitely effect the economic growth
of the organization.
 Customer Acquisition Process
Define the Target Prospects
 Your acquisition process begins with identifying who are the
potential or targeted customers for your business success.
 Find out who are they, how to gain them, how you can talk
with them or how you can sell your products to them.
 Finding right customers for your products will help in knowing
which individuals are interested in buying your products or using
the same type of products from your competition.
How to Reach Targets?
 After deciding who the target is, find ways how to contact them.
 Do research, survey, call, email or use analytics tools to find
right customers for your products.
 If you are able to acquire the new customers, then chances are
turning them into potential buyers.
Hire Right Staff
 Customer Acquisition process requires hard work and dedication.
 Therefore, hire right people who understand the process correctly
and implement it.
 Your employees should wear the hat of their defined responsibility
to work accordingly.
 They should be able to understand what a customer wants and
offers a relative product that customer find valuable.
Define Customer Acquisition Cost
 Before on-boarding the Customer Acquisition Process, determine
the cost you will have to bear to implement the process.
Companies have to spend more without assuming customer spend
like.
 Commonly, cost is calculated as total cost spend on acquisition
process (sales and marketing cost) divided by total new customers
acquired in the given time frame.
Create your Product Demand
 Though you know the fact, big brands already have large
number of customers who are aware of their brand.
 Acquiring new customers won’t be a big challenge for
established organization.
 However, bigger challenge bombards for the startups or
small brands where they require to inform customers about
their existence, be with them throughout the process, tell
them how much you care or how effectively your product
meets their demands.
 Customer Retention
Customer retention refers to the ability of a
company/product to retain its customers over
some specified period.
High customer retention means customers of the
product or business tend to return to, continue to
buy or in some other way not defect to another
product or business, or to non-use entirely.
The customer retention definition in marketing is the
process of engaging existing customers to
continue buying products or services from your
business.
When to focus on customer retention
1. Just starting: When you’ve just started your store
there is one thing you should be focused on: getting
customers. At this point your acquisition efforts
should completely focus on retention. Focus on
strategies and tactics that will help you grow your
customer base.
2. Gaining traction: You now have customers and
you are getting irregular sales. At this stage you can
begin to introduce retention elements to encourage
each customer to buy more. Start with retention
email campaigns that focus on encouraging a past
customer to purchase from you again.
 3. Consistent: This is the point where company should begin
to think about mixing in more retention with acquisition
efforts. company can look at starting a referral and/or
a loyalty program as well as getting more serious with
marketing automation.
4. Established: A common problem for retailers of this size is
finding ways to continue to grow. Acquisition may be
leading to a lot of one time purchases, but a retention
strategy can get customers to buy more often which
increases their lifetime value. At this stage, company should
be serious and deliberate about your retention efforts.
5. Well-established: At this stage company achieved many
early successes and have a lot of processes and automations
in place. Now is the time to focus heavily on retention.
Customer Retention Strategies
1. Use customer accounts
 Customer accounts can be a double-edged sword.
 On one hand, accounts can make repurchasing easier by
giving customers instant access to previous orders as well as
pre-filled shipping information.
 On the other hand, customer accounts are often seen as too big
of a commitment for new customers.
2. Improve your customer support
 Support systems help you effectively communicate with your
customers and provide them with the right level of support.
 A support system can help both pre- and post-sale by enabling
you, or a customer service rep, to clearly communicate with the
customer.
 3. Start a customer loyalty program
 Loyalty programs, sometimes referred to a
customer retention program, are an effective way to increase
purchase frequency because they motivate customers to
purchase more often in order to earn valuable rewards.
 This becomes a profitable exchange for both company and your
customers: they get more value each time they shop, and you benefit
from their repeat business.
4. Send engaging emails to customers
 If purchase frequency is the backbone of customer retention, email
marketing is the backbone of customer engagement and your
retention toolkit.
 Emails give you the opportunity to continue building a relationship
with your customers before and after their initial purchase.
 It’s critical that each message you send adds value to your
customer’s experience. If it doesn’t, you run the risk of losing them.
 Customer Loyalty
 Customer loyalty is the likelihood of customers to continue
purchasing from you, and recommend you to their friends
and family.
 Customers who are loyal spend more money with you, speak
highly of you and are power users of your product or
service.
 Customer loyalty is a measure of a customer’s likeliness to
do repeat business with a company or brand.
 It is the result of customer satisfaction, positive customer
experiences, and the overall value of the goods or services a
customer receives from a business.
 When a customer is loyal to a specific brand, they are not
easily influenced by availability or pricing. 
Characteristics of a loyal customer
 They are not actively searching for different suppliers;
 They are more willing to refer a brand to their family and
friends;
 They are not open to pitches from competing companies;
 They are open to other goods or services provided by a
particular business;
 They are more understanding when issues occur and trust a
business to fix them;
 They offer feedback on how a brand can improve its
products or services;
 As long as there is a need, they will keep purchasing from a
business.
How to Build Customer Loyalty
Reward loyal customers with a loyalty program
 A reward system for the most loyal customers is a great way to
keep them coming back.
 The simplest and probably the most popular loyalty programs
use a point system, that is, customers earn loyalty points every
time they buy from the brand.
 Then, these points, when accumulated, earn them a reward,
e.g., discounts, special client treatment, freebies, etc.
Make customer care a priority for the brand
 An effective client relationship management strategy translates
to more focused solutions for specific customer needs.
 First, learn all you can about the brand’s different
customer segments, including their buying habits, favorites,
feedback about products, or the brand as a whole.
Boost customer experience by introducing VIP tiers
 Social status is a great motivator and influencer of customer behavior
and can be leveraged in a business’s customer loyalty strategy.
 By adding VIP tiers for the most loyal customers, a company can
boost loyalty among existing customers and entice new and less
engaged customers to interact more with the brand.
 Start with smaller rewards for all customers who are in the program,
then encourage repeat purchases by increasing the rewards for
each step up the loyalty ladder.
Send event-based emails
 Stop sending the same email to the entire mailing list and choose
event-based marketing.
 This means that every time a user performs a specific action
interacting with your brand, you respond to their efforts with the
relevant email automatically.
Optimize the businesses’ referral program
 Consumers trust recommendations from a friend or family
member over other forms of markets when buying a product
according to several reports.
 That is why creating a program where customers can get
rewarded for recommending the brand to other people is so
important. 
Encourage customers to give feedback and act on it
 Make it easy for customers to reach the brand
and encourage them to provide feedback.
 Ask them why they prefer to buy from the brand as
opposed to competitors and areas they think the business could
improve.
 Also, set up a dedicated line of contact for customers who
have an issue to get assistance with.
 How to Measure Customer Loyalty
Lifetime value (LTV):
 Lifetime Value refers to the total amount of money shoppers
spend on a brand right from their first to their latest
purchase.
 Marketers can get this metric from various subscription payment
systems. Increasing Lifetime Value is a good indicator of
loyalty.
 To boost lifetime value, brands need to develop relationships
with customers, cross-sell, and upsell.
Churn rate: 
 This is all about customers who cancel or disengage.
 Marketers determine this metric by calculating the percentage of
customers lost based on the number of customers at the start
within a specific timeline.
 To get the user churn rate, divide the number of customers
churned by the number of customers at the beginning.
 The percentage can help marketers understand the number
of customers lost monthly or quarterly.
 Another more critical churn metric is revenue churn.
 It allows businesses determine churn in terms of lost
revenue as customers cancel.
 Revenue churn presents a more accurate picture of how
business is going.
Referrals:
 A business that runs a referral program can keep tabs on the
number of new customers who register based on
recommendations.
 By measuring referrals, a brand can track not just
new conversions but also customers who are satisfied
enough to tell others about it.

Net promoter score: 

 Net Promoter Score estimates a customer’s intent to tell
others about the brand.
 Though this metric does not tell the business if the
customer recommends the product or brand, it helps the
company to find out the general loyalty rate of its users.
 Customer Lifetime Value
Customer Lifetime Value represents a
customer’s value to a company over a
period of time. 
CLV Informs how much company Should
Spend on Customer Acquisition
CLV allows company to segment Customers
based on Value
Focusing on CLV is Key For Long-Term
Company-Wide Growth
Calculating Customer Lifetime Value(CLTV)
 There are four KPIs that determine your LTV:
 Average Order Value (AOV)
 Purchase Frequency (F)
 Gross Margin (GM) and
 Churn Rate (CR).
 It’s important to look at each of these individually to find out which
one needs the most work in terms of profit maximization.
Formula: CLTV=AOV*F*GM*(1/Churn)
 AOV = Total Sales Revenue / Total Number of Orders
 F = Total Number of Orders / Total Number of Unique Customers
 GM = Total Sales Revenue – Cost of Goods Sold (COGS) / Total Sales
Revenue
 Churn Rate = (No. of Customers at End of Time Period – No. of Customers
at Beginning of Time Period) / No. of Customers at Beginning of Time
Period
 Customer Lifetime Period = 1/Churn Rate
 Customer Experience Management
Customer experience management (CEM or CXM)
is the collection of processes a company uses to
track, oversee and organize every interaction
between a customer and the organization
throughout the customer lifecycle.
CEM defines what a company looks like to the
customer.
 CEM is a strategy that puts customers at the
center of marketing, sales and customer support
in order to drive brand loyalty and repeat
business.
 CEM programs heavily rely on voice of the customer
programs that quantify customer sentiment about their
experiences with a company.
Benefits of implementing a CXM strategy:
 Customer retention costs less than acquisition: 
Studies indicate that a 5% increase in customer retention
can result in a 25% increase in profit.
This happens mainly because a retained customer avoids
the costs of acquiring a new customer, and satisfied
customers tend to order more.
 Customer feedback drives improvement:
Voice of the customer data, in the form of web surveys
and mobile app feedback as well as phone and chat
conversations, provides a blueprint to improve
customer experiences and retain customers.
 Happy employees project a better brand experience to the
customers:
 Studies show that there is a strong link between employee experience
and customer experience.
 Companies with the best customer experience concentrate on
measuring voice of the employees data with an eye toward
improving their experience and retention.
 Contented, loyal customers voluntarily endorse a company's
brand to peers:
 Customer endorsement can often weigh more heavily in buying
decisions than advertising or marketing efforts.
 Measuring customer sentiment yields information about
competitors:
 Customers compare brands when making their decisions and offering
feedback.
 Knowing this information can help a company position itself
favorably against a rival.
 Customer Experience Management
challenges
Not enough voice of the customer data: 
A company can't accurately measure customer
experience without large data sets, and it can't solve
customer experience problems it doesn't know about.
Lack of omni-channel support: 
When brands cannot listen to or help customers in the
channels they are interacting within, whether through
email, social media, web chat, mobile apps or smart
speakers -- customers can't make their wants and needs
known.
Customers that do not feel heard are more likely to switch
to a competitor.
 Ignoring qualitative data: 
 Brands should harvest and analyze individual comments in survey
free-text fields, which can yield much deeper understanding of
customer experience issues that need solving than numbered ratings
can.
 Qualitative data can also give rise to new ideas for improving
overall experience.
 Poor internal communications: 
 A Customer Experience team must do its homework by analyzing
the customer journey, building voice of the customer
programs and collecting voice of the customer data to create
better experiences.
 Those initiatives won't work, however, unless CX leaders distribute
that information in an understandable way to stakeholders in
sales, marketing, customer support and senior leadership.
 Enterprise Marketing Management
Enterprise marketing management (EMM) is a type of
software that is used to provide, monitor and maintain
a promotional structure across a large organization.
Enterprise marketing can be defined as company-wide
customer relationship management and lead generation
through multichannel, integrated marketing campaigns
targeted toward large enterprises
 Enterprise marketing management is closely related to
enterprise customer relationship management (CRM),
but with a greater focus on the marketing aspect as far
as generating and creating new leads rather than just
maintaining the existing customer base.
Enterprise marketing management
software provides a single platform that
serves all of a business's marketing needs,
including:
Campaign management across all channels (social media,
Web, mobile, traditional)
Customer experience management (pre-sale
research, post-sale follow up, and so on)
Analysis of campaigns, including conversions and
other important factors
Management of marketing resources (budgets,
people and so on)
Five factors are critical for EMM to boost marketing performance:
Integration of data at every touch point:
 Information is critical in the marketing decision process and as such it must
flow freely at every point in the process.
Collaboration:
 Not just within the internal marketing value chain but also with the
external value chains of suppliers and vendors.
Availability of data, resources, materials, and documents:
 It is important that marketing resources are available to all when
needed to complete their job.
Proactive tracking and management of marketing strategies, tactics,
campaigns, and initiatives.
 You need to know where everything is; what is on time and what is
late; who has too much work and who doesn’t have enough; what has
worked and what hasn’t.
 Key marketing performance indicators defined within a
balanced framework available to all.
 This entails a disciplined approach to defining objectives
and facilities to allow team members to understand cause
and effect.
 It also entails providing managers with information on
performance through either lead or lag measures.

These key elements combine to deliver true business

benefits:
building strong brands to sustain the customer experience;
understanding and predicting customer belief and behavior
while optimizing communications to them; and
managing consistent communications across all channels.
 Tips for Successful Enterprise Marketing
Find the account-based marketing and enterprise marketing sweet spot:
 Enterprise marketing and ABM go together like peanut butter and jelly
because both require you to take a focused approach to build rapport
with accounts and the individuals within them.
 ABM can help you gather critical business intelligence about your
prospects that will make developing enterprise marketing programs
across your intended channels much easier.
Get ready to understand the diversity of your marketing assets and to scale
accordingly:
 Enterprise marketing demands that you take the time to learn what
tools and best practices exist to help you scale your marketing
programs to your most important audiences in a smart way.
 This requires reviewing your inbound marketing programs, social
selling, content strategy, lead scoring and organizational
preparedness to meet the expectations of the people you sell to.
 Lean on your executives for a helping hand:
 When developing an enterprise marketing program, you need your team
leaders to help build consensus and buy-in as well as craft and implement
de-siloed programs for which people can be accountable.
Remember that relationships go a long way:
 No one understands an organization or industry better than a person who
works in it.
 When prospecting leads and getting to know an organization to develop
your enterprise marketing strategies, it can be a good idea to ask a friend
in the know…especially one who happens to work at the target enterprise.
 By adding value to your friend’s life and making his or her job easier in
some way, you can make the benefits of this relationship reciprocal in the
long term.
Understand that typical key performance indicators probably won’t
work:
 While every marketing strategy needs goals, the KPIs that are commonly
upheld as “best practices” in more general marketing likely won’t be
suitable for an enterprise marketing program.
 Customer Satisfaction Measurements
Methods for Measuring Customer Satisfaction
91% of unhappy customers will never buy from you
again.
1. Customer Satisfaction Surveys
The customer satisfaction survey is the standard
approach for collecting data on customer happiness.
It consists of asking your customers how satisfied they
are, with or without follow up questions. Three useful
variations:
In-App Surveys
Post-Service Surveys
Long Email Surveys
In-App Surveys
 With this company integrate a subtle feedback bar inside your
website, with generally not more than one or two questions.
 It’s one of the methods with the highest response rates, the
customer is asked for their opinion while they are engaged with your
company.
Post Service Survey
 This type of survey focuses on the customer’s satisfaction with a
specific service customer just received.
 Company ask it right after the delivery, when it's still fresh in the
mind.
 This can be done in email support with a rating link in the mail,
or in live chat with a rating view that appears after the chat.
 It can also be done over the phone, but it's somewhat problematic
because it takes more time from the customer, and customer might
not feel comfortable sharing an unfiltered opinion.
Email Surveys
 The above survey methods aren't suitable for in-depth insights about your
customer happiness.
 Why are they happy or unhappy? Email surveys, on the other hand, are a good
tool in-depth insights about your customer happiness.
 Although they have a downside of low response rates (10% - 15%, according
to Survey Gizmo ), they do allow your customer to take their time in
answering multiple questions. Google Forms is an excellent free tool for
this purpose.
2. Customer Satisfaction Score (CSAT)
 This is the most standard customer satisfaction metric, asking your
customer to rate their satisfaction with your business, product, or service.
Your CSAT score is then the average rating of your customer responses.
 The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger range is not
always better, due to cultural differences in how people rate their satisfaction. 
 The charm of the CSAT metric comes from its directness. The downside,
however, is that satisfaction is hard to estimate, even for the customer.
 3. Net Promoter Score (NPS)
 The Net Promoter Score (NPS) measures the likeliness of a
customer referring you to someone, and it’s probably the most
popular way of measuring customer loyalty .
 Customers are asked how likely they are to recommend your
products/services on a scale from 1 to 10.
 The strength from NPS is that it's not about an emotion of
satisfaction, but about customers intention of referring –
which is easier to answer. It cuts down to the question of whether
the product is good enough to put your own reputation on the
line.
 Calculating your NPS score is quite easy.
 Take the percentage of respondents who fall within the
‘promoter’ category (10 - 9) and subtract the percentage of
‘detractors’ (0 - 6).
 4. Customer Effort Score (CES)
 Customers aren’t asked for their satisfaction or likeliness of
referring, but for the effort it took them to have their issue solved
— generally on a scale from 1 (very low effort) to 7 (very high
effort).
 Company’s aim is to lower this average score. According to CEB
(Corporate Executive Board Company) , 96% of customers with a
high effort score showed reduced loyalty in the future, while that was
the case with only 9% of those who reported low effort scores.
5. Social Media Monitoring
 Social media has had an immense impact on the relationship
between business and customer.
 Where before, a great or poor service experience would maybe be
shared with the closest family and friends, social media offered an
outlet and reach to potentially millions of people.
 6. Things Gone Wrong
 This metric originates from the Lean Six Sigma approach , and
measures the number of complaints, or "Things Gone
Wrong," per 100, 1000, or up to a 1,000,000 units of survey
responses, units sold, or other.
 The standard approach to measure TGW is through complaint
sections in customer surveys, but you could also maintain
internal metrics.
 In the worst case scenario your score is 1 or higher, meaning that
you get at least 1 complaint per chosen unit.
 Important Questions
1. Discuss Customer Value, Customer Expectation, Customer
Satisfaction?
2. Explain Customer Centricity, Customer Acquisition,
Customer Retention, Customer Loyalty?
3. Elaborate Customer Lifetime Value, Customer Satisfaction
Measurements, Web based Customer Support?