Page 85 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes approaches like national contracts and master purchasing agreements to be adopted by
vendors.
5. SCM (Supply Chain Management): Regarding suppliers’ loyalty, again it has been observed
that it pays more to develop closer relations with a few suppliers than to deal with more
vendors. More often marketers find it beneficial to retain existing customers for life rather
than making a one-time sale to several new customers.
6. GAMP (Global Account Management Programs): An extension of CRM is reflected in the
emerging trend of large internationally oriented companies to become global. For this
purpose, such companies are seeking the assistance of vendor’s co-operating and
collaborating solutions for global operations. This has made it obligatory for markets
interested in the business of global companies, to adopt CRM programs, particularly
global account management programs.
7. KM (Knowledge Management): Knowledge about customers is a pre-requisite for CRM.
Indeed, in depth knowledge of the customer’s habits, desires, needs and the analysis of
their cognitive effective behavior and attributes need to be applied through CRM to
develop and design marketing strategies as well as to develop ad cultivate interaction and
relationship with customers for mutual benefit.

Task Take any organization of your choice. Research on the various techniques
implemented by them to retain their customers and to what degree have they succeeded
in that.

Finally, it is recognizable that customers’ expectations have changed significantly in recent
years. With the advent of new technology and increased availability of new and advanced
product features and services, consumers are least prepared to compromise their preferences for
quality of products/services. Cross selling and up selling are possible to a greater extent for
customers, if they are loyal and committed to the firm and its offerings.
Self Assessment

Fill in the blanks:
5. Business process re-engineering, automation and downsizing reduced the …………………
costs.
6. SFA puts …………………… directly in the hands of field sales staff.
7. The …………………… approach involves the integration of parts, supplies and the sale of
services along with a particular capital equipment.
8. Knowledge about customers is a pre-requisite for …………………….

6.5 Customer Loyalty

Building customer loyalty is the basic platform of relationship formation. In a highly competitive
and challenging business environment, organizations are really blessed if they are fortunate to
have loyal customers in their customer inventory. With the backup of loyal customers, the
organization could enjoy a number of advantages. In short, having loyal customers will serve as
a sustainable competitive edge to the organization concerned in the present day context. Therefore,
organizations should keep “building customer loyalty” as their prime agenda.

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