Page 92 - DMGT510_SERVICES_MARKETING

Unit 5: Customer Relationship Management in Services

From these, the organizations need to acquire customers and prospective customers and retain Notes
valuable customers.

Task Visit websites of a few service companies and make a note their customer
retention strategies.

Understand and Differentiate

Organizations cannot have a relationship with customers unless they understand them, find out
what they value, what types of services are important to them, how and when they like to
interact and what they want to buy. True understanding is based on a combination of detailed
analysis and interaction.

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Caution Several activities are important:
Profiling to understand demographics, purchase patterns and channel preference.

Segmentation to identify logical unique groups of customers that tend to look alike

and behave in a similar fashion. While the promise of one-one marketing sounds
good, not many organizations have mastered the art of treating each customer
uniquely. Identification of actionable segments is a practical place to start.
Primary research to capture needs and attitudes.

Customer valuation to understand profitability, as well as lifetime value or long-

term potential. Value may also be based on the customer’s ability or inclination to
refer other profitable customers.
Customers need to see that the company is differentiating between service and communications
based on what they have learned independently and on what the customers have told them.

Develop and Customize

In the product-focused world of yesterday, companies developed products and services and
expected customers to buy them. In a customer-focused world, product and channel development
have to follow the customer’s lead. Organizations are increasingly developing products and
services, and even new channels based on customer needs and service expectations.

Interact and Deliver

Interaction is also a critical component of a successful CRM initiative. It is important to remember
that interaction does not just occur through marketing and sales channels and media; customers
interact in many different ways with many different areas of the organization, including
distribution and shipping, customer service and online. With access to information and
appropriate training, organizations will be prepared to steadily increase the value they deliver
to customers.

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