The Islamia University of Bahawalpur

Marketing Management Group Members: Hassan Obaid (154)

Sehrish Hassan (175)

Shagufta Nawaz (181) Aimen Amin (142)

Amna Aslam (146)

Zeshan Mazhar (179)

Relationship Marketing

What is Relationship Marketing?

Long term strategy to build relationships with individual customers.

Definition of RM
Consistent

application of up to date knowledge of individual customer to product and service design. focuses the firms attention on customer retention with a view to build a long term relationship with the customer.

RM

Comparison
Traditional Marketing Relationship Marketing Focus on customer relation. Continuous customer contact. Quality is concern of all. High customer service.

Transaction based.
Focus on single sale. Quality is concern of production. Less emphasis on service.

Customer Relationship Management

What I am going to discuss?

CRM

Introduction targets and roles of CRM

Functioning Aspects

Strategies Advantages Disadvantages

What is CRM?

 Process

of managing the detailed information about individual customers.

Carefully managing

all the customers touch point with the aim of maximizing customer loyalty.

People

Customer acquisition

Relationship

Process

Value

CRM
Retention

Technology

Loyalty

Why CRM is required ?

Customer focus Relationship building

Management

Primary Concern of any business

Revenue generation

Customer Focus

Satisfaction Delight Experience

High acquisition cost Long term gains

Low retention cost

Relationship Building

Product delivery Satisfaction

Customer-centric

Measure and manage Customer profitability

Management

Other elements-communication components

Marketing Management

Order Processing
Customer servicing Inside sales Outside sales Sales support

FUNCTIONING TARGET AND ROLES

Ubiquity

Cost Reduction

1 to 1 marketing

Single customer view

CRM Functioning targets

Real time updates

Revenue enhancement Buying Patterns & Demographics

Better analysis

Still, why to spend on Customer-retention rather than customer acquisition ???

Acquisition or Retention
Acquisition

Retention

3% increase in profits Cost is very high Life cycle is short

17% increase in profits Cost is very low Life cycle is long Long term profit Value chain building

Short term profit

Unpredictable value chain building

ASPECTS OF CRM

 Front office business support

Contact history is recorded No communication gap E.g.- call centers, BPO

 Direct communication Cost reduction Service improvement

E.g.- mail, internet

 Analysis of customer data Design and target marketing campaigns Product and service decision making Management decisions

CRM STRATEGIES

Profiling

Search

ACQUISITION

Buying pattern

Communication

Improving customer satisfaction

Updating

RETENTION

Need analysis

1to 1 communication

Lower inventory

Marketing cost reduction

Cost REDUCTION

Speedier delivery

Advantages of CRM
Retention Positive Share In-depth

of customers.

word of mouth.
insight of customer.

of customer high.

Disadvantages of CRM
Lack

of privacy.

Current Limited

focus, No focusing on future customers.

criteria of prospects.

Any Questions?

Thank you.