Page 109 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT
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Customer Relationship Management
Notes
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Caution The fact to be noted at this juncture is that the customer, whom an organisation can
retain by rendering expected satisfaction, cannot continue to be retained when the customer
changes his satisfaction level from expected to desired level and further from desired
level to exciting level. Therefore organizations must keep on building up their ability to
continuously satisfy their target customers so as to have customer retention. A suitably
designed customer satisfaction audit would serve the purpose.
Self Assessment
Fill in the blanks:
11. Companies that tend to be past-oriented use the …………………… strategy.
12. When adopting an …………………… strategy, an actor ignores the customers and
concentrate on the expectations expressed within own organisation.
13. …………………… strategists focus heavily on the future of a company or organization
and the well-being of the staff.
14. Co-proactive strategy in managing expectations is the one needed in ……………………
relationships.
15. An …………………… strategy is appropriate in situations where the company management
can rely on the employees' commitment,
Case Study Customer Retention
S ynergy partners with one of America’s largest banks to retain customers amidst
economic stressors and other difficult challenges.
A large US banking organization and longstanding partner of Synergy’s was working
with a product wholesaler to offer a variety of fee-based products focused on fraud and
identity theft prevention. Essentially, the product wholesaler (also one of Synergy’s
long-standing business partners) supported the marketing, customer service and retention
channel for these particular fee based credit monitoring products.
The product wholesaler, acting as a TPA on behalf of the Bank, sought a solution to address
shrinking membership during the economic downturn. Customers, who enrolled in the
programs through a variety of channels (outbound telesales, direct mail, IVR, inbound
up-sells, banking centre promotions, etc.), were provided a specific toll free number for
customer support. An IVR menu offered these customers an option to cancel their
subscription to the service. When a consumer opted to cancel, the call was transferred to a
contact centre CSR who attempted to retain the customer through a variety of persuasive
methods and special offers. The Bank and product wholesaler realized that existing retention
efforts were not easily or readily scalable to address the increased volume of potential
cancellations they were experiencing, thus an incremental retention solution was required.
Initial conversations with the business partner(s) revealed that the key drivers of
cancellation were the “poor economy” and recent changes in the credit card industry.
Contd...
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