Module 1: Introduction to Service Marketing

CUSTOMER RELATIONSHIP
MARKETING: ITS BENEFITS,
STRATEGIES, STAGES AND
SYSTEM TO VALUE BY
SERVICE PROVIDERS

Prepared by: Catherine B. Bolintiam, PhD

 2 INTRODUCTION

The intention of any service providers was benefit boost through volume of business as
indicated by Selling Idea, yet in later long periods of twentieth century, the thought process
of service marketing has been moved toward benefit amplification through consumer loyalty.
At present, every service provider needs to confront merciless rivalry with different
contenders for a traction in ever elusive market. That is the reason simple consumer loyalty
isn't guaranteeing dedication towards any provider. As possibilities are having numerous
options and they are more value touchy now, service providers need to do something extra
to make its clients retail. Impersonation of new elements and offers are exceptionally normal
and that is the reason innovations and great ideas are intense. In this way, potential clients as
well as maintenance of old ones is extremely imperative to advance revenue driven
augmentation. The accentuation on relationship is currently a key to effective service
business and the conventional idea of making deals is being supplanted by making long time
win – win relationship with clients. Along with such, service businesses are currently focusing
closer on their relationship management with existing clients to hold them and increment a
lot of clients’ loyalty.
 3 OBJECTIVES

At the end of the topic, students should be able to:

• Define Customer Relationship Marketing;
• strategies for practicing Relationship Marketing
• Read at least 2 best practices of any service business in the Philippines and
check if their relationship with their customers are leveling up or
enhancing.
 TRANSACTIONAL AND
RELATIONSHIP MARKETING
 PRINCIPLES OF BUILDING GOOD
CUSTOMER RELATIONSHIP

• Customize the approach with warm greetings depending upon the

scenario.
• Make the customers feel that we understand what they want.
• Know that some customers are more interested in the ways we build
customer relationships than the services we are marketing.
• Keep the customers notified about the things they are interested to
avail.
 CUSTOMER RELATIONSHIP
MARKETING

Based on Customer Relationship Marketing is a technique that is centered around client

relationships and customer loyalty. Utilizing customer data and feedback, service
businesses/providers develop strong bonds with their customers to gain their trust. 

Accordingto Dodgson (2020), Relationship Marketing is one way to ensure that customers
trust the business is by prioritizing developing meaningful relationships that promote
brand loyalty and customer retention.

Cross(2018) defined Customer Relationship Marketing varies greatly from the traditional
transactional marketing approach that focuses on increasing individual earning numbers.
 7 ADVANTAGES OF CRM
• It saves crucial time and money for the business compared to traditional methods.
This is because businesses then focus on the prospects that actually show promise of maintaining a
relationship, rather than wasting their money trying to pursue the wrong type of customer. 
• It increases customer satisfaction levels and communication levels too.
When customers have a strong relationship with a business, they interact with them more frequently.
This makes it far easier for businesses to learn about their customers and therefore tailor their content
towards them more easily. 
• It delivers a consistent customer service. 
If there’s one thing that customers love, it’s businesses being consistently good. Meeting customer
needs, improving customer satisfaction and delivering an all-round exceptional experience are all a result
of consistency. 
• It improves profitability. 
Customers who are loyal to a business spend more with them. Fact. As opposed to chasing the one-time
sale that might leave straight away after. 
• It spreads brand or identity awareness. 
The happier that the customers are, the more chance that they’ll relay the message about the service.
 8 DISADVANTAGES OF CRM

• New customers take a back seat. 

We can’t rely on retaining customers for everything, sometimes there is a need for new
customers to meet budget goals. However, due to the onus placed on retention, they
sometimes get overlooked. 
• Returning customers expect benefits straight away. 

Some customers feel like their dedicated support deserves a discounted service. This
means that we can either honor the discount and make less profit or decline it and risk losing
the norm. 
• It may require a service culture change. 

Nobody likes change, do they? Especially drastic change. There is a need to work hard at
getting all of the service staff on board to back the decision, otherwise, the culture change
won’t work effectively. 
 STAGES OF CUSTOMER
9 RELATIONSHIP MARKETING

There are four main stages of typical customer relationship marketing, these are: 
• Attracting customers
This is where the first impression of the service will be formed – and they’re hard
to turn round if they’re poor.
• Converting customers 
The easiest way to aid the chances of conversion as a service business is to have
an amazing website. If the website is untidy and hard to use, the likelihood is that it
won’t convert.
• Retaining customers
Not all business comes from new customers. Go above and beyond for the
current customers and hopefully they’ll repay with their loyalty.  
• Delighting customers 
We’re not just providing a service or a product for providing an experience. Aim
to delight the customers before, during and after the service for maximum results.
 STRATEGIES FOR PRACTICING
10 CUSTOMER RELATIONSHIP

• Show customers to value them with every interaction

Consider spontaneously recognizing them and delighting them in unexpected ways
• Listen to customers and respond

Use social media monitoring tools to reply to comments and complaints and address customers’
concerns
• Give customers free information

Identify topics and interests customers have and then create content to address them and give
customers free access to it, such as informational videos on products they recently purchased or newsletters
that highlight individual customers and share their stories
• Expanded loyalty rewards

Any company can offer perks and rewards, but you need to expand beyond the typical reward program
and give people stuff they love or recognize them in unexpected ways
• Communicate frequently

A relationship is nothing without communication, so make sure you communicate with customers often
via social media, email, messages, etc. (just be sure the communication provides value to customers and
does not become intrusive or too frequent).
 CUSTOMER RELATIONSHIP
11 MARKETING STRATEGIES
 RELATIONSHIP MARKETING
12 STRATEGY

• Delivering a consistent customer experience – By becoming customer-centric and

focusing on customer relationships, companies align their touchpoints and work across
the organization to meet customer needs, improve satisfaction, and deliver an exceptional
experience
• Gathering customer feedback – Building strong relationships with customers requires
communication, and companies put more stock in gathering feedback and analyzing it to
make better service business decisions to build stronger relationships
• Improving customer profitability – Customers that are loyal spend more with improving
profitability; in fact, consumers are now putting customer experience ahead of cost when
making decisions.
• Creating customer advocates – The happier the customers are, the better the chances
they will spread the word about the service you provided to others; when a strong
relationship is built with them and deliver a consistent experience, they have better
reviews to share.
 UTILIZES CUSTOMER RELATIONSHIP
13 MARKETING
 CUSTOMER RELATIONSHIP
14
MARKETING SYSTEM
 15 REFERENCES

Miles Media (2016). Importance of Relationship Marketing in Service Sector. Retrieved

from https://milesonmedia.com/importance-of-relationship-marketing-in-service-sector/
Matt Dodgson, Matt (2020). What is Customer Relationship Marketing? Retrieved from
https://www.market-recruitment.co.uk/what-is-customer-relationship-marketing/
Cross, Amy (2018). What is Customer Relationship Marketing? Definition of Customer
Relationship Marketing, Strategies, Benefits, and More. Retrieved from
https://www.ngdata.com/what-is-customer-relationship-marketing/
Pattel, Snigdha (2020). 10 Proven Ways to Build Life Long Customer Relationships (and
Why It’s Important). Retrieved from https://www.revechat.com/importance-of-building-
customer-relationships/
Steven MacDonald, Steven (2021). Relationship Marketing: How to Put the Spotlight on
Relatioshipin Business. Retrieved from https://www.superoffice.com/blog/relationship-
marketing/