Bonding & Defection

The Elements of CRM

Sales force Customer service/call Marketing

automation center management automation

Call center telephone sales Call Centers Campaign

Managing aspects management
E-commerce Of customer contact

Field sales
Web-based Content
Retail self service management

Data analysis
Third-party brokers, Field services
And business
Distributors, agents and dispatch
Intelligence tools

Data warehouse and data cleaning tools

 Customer bonding
Financial Bonds
Social Bonds
Customisation Bonds
Structural Bonds
 Financial Bonds
Weakest bonds but most commonly used
Volume and frequency rewards
Bundle and cross selling
Stable pricing
 Social Bonds
Most enduring
Personal
Informal
Rapport
 Customization Bonds
Strong and difficult to break
Customer intimacy: A marketing strategy where a
service supplier or product retailer gets close to their
clients. The benefits of greater customer intimacy
improved highly tailored problem solving capabilities
greater adaptation of products to customer needs
higher customer loyalty levels
Service provider has intimate knowledge of their
customers and their needs
It means the customer is actively sharing information
during interaction and contributing in the
customization of the product/ service
 Structural Bonds
Strongest of all bonds
Most difficult to imitate
Business-to-business
Provide service that makes the customer more
productive
 Zero Customer Defections
NPV of Profits from a customer
35
30
25
20
15 NPV of Profits from a
customer
10
5
0
2 yr 2.5 yr 3.3 yr 5 yr 20% 10 yr 20 yr 5%
50% 40% 30% 10%
 Statistics of customer behaviour
96% dont bother to complain
Dissatisfied customer will tell 15 others
Satisfied customer will tell 6 others
71% feel happy if their complaint is dealt by
one employee, level drops to 61% if more
than one employee becomes involved
If complaint is handled well 95% of customers
return to do business with the company
 Categories of Customer Defectors
70% of customers defect due to perceived
indifference of company
- lack of response to service query
- inefficient complaint handling
- lack of courtesy
Price defectors
Product defectors
Service defectors
Market defectors
Technology defectors
Organizational defectors
 Steps to reduce customer defection
Measure customer retention
Interview former customers
Analyse complaint and service data
Identify switching barriers