Page 255 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes Customer-relationship analytics take on the role of a highly sophisticated marketing
department. These tools identify your most valuable customers, group these customers
based on purchasing behavior and other attributes, and target them with promotions and
sales efforts designed to increase customer loyalty and sales revenue.

A fundamental concept of Customer-relationship Management is the lifetime value of a
new customer. The basic idea is that customers should be judged on their profitability to
the firm over the total time they make purchases.

11.8 Keywords

Aesthetics: Measure of the product’s looks, design, touch and feel.

Chinese Whisper: Information passed from one to another
Conformance: Delivery quality meeting design standards.
CRM: Managing of prospects all the way through the entire sales process and after
Customer Relationship Analytics: Set of tools to perform reporting, analysis and data mining.

Empathy: Relates to caring, feeling as well as the ability to give personalized service.
ERP: Helps a manufacturer or other business manage the important parts of its business
Marketing Myopia: Short sighted and inward looking approach to marketing
Marketing Research: Identifying, collecting data on the market and translating into information

Service Profit Chain: Measures relationship between loyalty, satisfaction and profitability
11.9 Review Questions

1. Using a service company’s loyalty scheme of your choice, critically assess its overall value
to the company in developing profitable business.

2. Explain the Six-Market Model and its importance for an educational institution or a
university.
3. Explain how the Relationship Ladder might work for a Five Star Deluxe Hotel in its
corporate marketing and management.
4. Mr. Vijay Mallya has been openly ambitious about his new brand extension, Kingfisher
Airlines. Your company has been appointed as his marketing and operations consultant.
Advise how the ‘Service-Profit Chain’ concept can be applied fruitfully for Kingfisher
Airlines.
5. Explain – using the ‘Leaking Bucket Theory’ – the statement: “Customer retention is
cheaper in the long run than customer acquisition”.

6. How would you use ‘The Cycle of Capability’ in a public sector bank for enhanced
effectiveness and efficiency?
7. Make a credible linkage between customer loyalty and relationship marketing in services.
How can a department store use it?
8. Is relationship marketing a new business idea, or just traditional practices applied in a
new context?
9. Critically assess methods used by travel agencies to develop ongoing relationships through
their personal customers.

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