‘Customer Relationship

Management’
When Joann idleman
arrives at the airport in
Las Vegas,
a sleek white
limousine
is waiting to whisk
her off to
Harrah’s hotel and
 She doesn’t bat an eyelash
as she passes
Caesar’s place and the
Mirage,
two showy resorts
where the 67 year old
entrepreneur from California
was once a regular.
Now, she wouldn’t dream of
staying anywhere
 Upon arriving at the
hotel,
she is greeted with a
big smile by her
personal host,
Gary Ernest,
who makes her hotel
reservations and books
 In her suite,
she finds
fresh cut flowers,
cookies,
chocolate covered
strawberries,
cold drinks in the fridge
and a
welcoming voice mail from
 If she goes to Harrah’s on her
birthday, there’s a cake in her
room.
“I think they know my complete
life history,” says idleman.
“Whether it’s a birthday or an
anniversary, there’s always
something in the room to
acknowledge that,
and that,
to me,
Idleman has been gambling at the
Harrah’s since 1995;
in 1998 she started staying in the
hotel exclusively.
The year before, the company had
rolled out a loyalty card program
called Total rewards,
which tracks customers gaming
activities and gives them rewards
to encourage them to spend more
money at the slots and tables.
 Although Idleman says
it was the service and not
the card
that made her a Harrah
devotee,
the company would not
have been able to
provide its high caliber
service
 And thanks to that service
idleman’s spending
Increased by 72% from 1997
to the present.
Now,
she spends
between $5000 and $
10,000
on gaming per visit.
Ernest and company
better treat her
like a
VIP
 Points to Ponder
Basic needs
1.Transport
2. Bookings
3.Comfortable Stay
4.Entertainment

Delight Needs
1.Limousine
2.Personal host
3.Flowers,cookies,cold drinks, etc.
Add on’s:
The unspoken needs….
 Concert Bookings
 Birthday anniversary
celebrations
 VIP treatment
 ….Crm philosophy

Identify the need

Understand the need
Satisfy the need
Over-shoot the levels of
expectation
 Marketing approaches
Product centric(Mass Marketing)

Customer centric(Individual
Marketing)

Relationship centric(Cross-level
Marketing)
 relationship marketing

…you will not be trying to sell a

single product to as many
customers as possible. Instead,
you’ll be trying to sell a single
customer as many products as
possible-over a long period of
time, and across different product
lines. To do this, you will need to
concentrate on building unique
relationships with individual
customers, on a 1:1 basis…
Understanding the customer

-Who is he?
-Where does he belong?
-Who are around him?
-What does he want?
-Why does he want it?
 - Summarized CRM
Learning about Customization
of
Customers marketing
mix

crm is a comprehensive strategy and

process of acquiring, retaining &
partnering with selective customers
to create superior value for the
company and the customer
 …Views on crm
Mckenna (1991) presents a strategic view
by putting the customer first and shifting
the roles of marketing from manipulating
customer (telling and selling) to genuine
customer involvement (communicating
and sharing the knowledge).
Bickert (1992) says a narrow perspective
of CRM is database marketing
emphasizing promotional aspects of
marketing linked to database efforts.
Vavra (1992) defines CRM as customer
retention process in which a variety of
after marketing tactics is used for
customer bonding or staying in touch
The Six markets approach to
crm
 Emergence of CRM
•De- intermediation process is trigger to CRM
growth specially in industries such as banks,
airlines, telecom, tourism, insurance

•The advent of TQM right from Deming’s time

(1968) in Japan giving rise to JIT processes
affecting service aspects

•The birth of digital technology and system of

integration

•The realization that customer acquisition is

costly affair (The loss of financial and value of
goodwill)

•Rise in customers’ expectations of service as

 Transaction Vs
Relationship Marketing
Transaction Relationship
One-time Ongoing
Managing Brands Managing People
Mass comm. Individual comm.
Market share Customer share
Profitability of Profitability of
transaction longevity
Brand Equity Customer share
equity
 Levels of investment into
CRM
2.Basic Marketing
3.Reactive Marketing
4.Accountable Marketing
5.Proactive Marketing
6.Partnership Marketing ,PRM
7.Collaborative Marketing,
cCRM
7. Supplier Relationship
Management , SRM
Building customer
relationships
Psychological steps vis-s-
vis Relationship Stages
Prospect Switching tendencies
Customer Satisfaction achieved
Client Trust
Supporter Conviction
Advocate Loyalty
Partner Ongoing empathy
Why customers move
away?
Bonding for effective
crm

2.Financial Bonds
3.Social bonds
4.Customization Bonds
5.Structural Bonds
Categories of defectors
to crm
1.Price defectors
2.Product defectors
3.Service defectors
4.Market defectors
5.Technology defectors
6.Organizational defectors
Developing a customer
retention program