Professional Documents
Culture Documents
Customer Relationships
1. Introductions
www.quintadamata.net
2.
• Mature Industry
– increasing competition
• Competitive advantage
– Price
– Service quality
– Loyal relationships
2.
The bottom line
• Reduction of 5% of defective customers may result in
80% increase in profitability (Reichheld & Sasser, 1990)
• Behaviors:
– Come back frequently
– Buy most expensive products
– Recommend provider to friends
– Give important suggestions
• Emotions:
– Are attached to the provider/staff
– Trust the provider
– Resist changing despite competitors’ persuasion
– Willing to forgive mistakes
?
3.
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Differentiated Strategy to 3.
Loyalty Segments
“Not all customers were created equal”
• High loyals – most profitable, make them feel like family
(20% of your customers)
• Latent loyals – find out why they can’t come more often,
find other ways they can help, don’t discount
B.
C .
R.I.M.
Provider Customer
R.I.M. 4. RIM
Love
Status
Services
Types of Resources
Information Goods
Money
4. RIM
Types of Investments
Give – to your valuable customers
• Make sure that your special customers receive special treatment
• Send cards for birthdays rather than just for the holidays
• Make them feel unique (use name, compliment them for helping)
• Educate them about front and back stage
• Characteristics
– Communality – help and expect help from others
– Brandfests are used to share history
– Keep consuming to stay connected
4. BC
Building a Community
Community
2. Use a newsletter to share news about customers
3. Develop an online forum for customers to stay in touch
4. Organize annual events “by invitation” for VIP customers
5. Facilitate picture / story sharing
6. Help customers help each other
7. Give a name to the community
8. …
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4.
Action Outline
1. Select your market segment
– Identify most valuable customers (what criteria?)
– Identify customers who might become valuable
Provider Customer