BMT 646 - Customer Service (Class 1 - Notes) PDF

Preview

Summary

Dr. Coruh / Class 1...

Description

BMT 646 – CUSTOMER SERVICE Class 1 / Chapter 1 – CRM Definitions CRM AS A PRODUCT: §

Worldwide spending on customer experience and customer relationship management (CRM) software grew by 15.6% to reach $48.2 billion dollars in 2018.

§

According to research from Gartner Inc, CRM remains both the largest and fastest growing enterprise application software category.

§

CRM market grew by 15.9% to $56.5 billion in 2019.

HOWEVER, CRM IS MORE THAN A PRODUCT/ SOFTWARE: §

CRM is not only a technology investment. A good CRM focus is the difference between success and failure and many of the ideas behind CRM can be used to improve your life and increase your work success.

§

CRM focuses on collecting, disseminating and using customer and competitive information to develop better value propositions for customers. A customer-centric firm is a learning organization that constantly adapts to customer requirements and competitive conditions.

§

Understanding Customer Requirements. Some customers value: the experience, the interactions (smile etc), and quality over price. Every customer is different – forget about equal and fair treatment. Every customer has different needs. Hence, giving everyone the same deal is often not wanted or needed.

CUSTOMER TOUCHPOINTS – Every point of direct client contact: §

Telephone (Phone Calls)

§

Social Media Platforms and Website (Post, Likes, Comments, Online forms, etc )

§

Email

§

Storefront

MISUNDERSTANDING ABOUT CRM §

1 – CRM is a new term (usually related to database Marketing)

§

2 – CRM is an IT Issues (Software)

§

3 – CRM is about loyalty Schemes

§

4 – CRM is about making sales team more effective (Selling)

WHAT CRM REALL IS – GOOD CUSTOMER RELATIONSHIP MANAGEMENT.

THREE (3) TYPES OF CUSTOMERS: §

1 – Internal Customers; Individuals within organizations.

§

2 – External Customers; Individuals outside the organization.

§

3 – End Customer; Final customer in a third part or multiple party relationship.

CUSTOMER (DEFINED): §

Any person or entity (buyer) that makes a purchase of a good or service from an entity or individual (seller). This could be a first-time purchase or limited to one purchase. Limited to a brief initial interaction.

CLIENT (DEFINED): §

Any person or entity (buyer) that makes repeat and multiple purchases of a good or service from an entity or individual (seller). This second and thereafter purchase where a mutual connection / relationship / interaction has been developed.

CUSTOMER CENTRICITY AND OTHER BUSINESS MODELS (LOGICS):

§

1 – PRODUCT-ORIENTED: Businesses believe that customers choose product with the best quality, performance, design and/or features.

§

2 – PRODUCTION-ORIENTED: Businesses focus on operational excellence and believe that customers choose low-price products.

§

3 – SALES-ORIENTED: Businesses believe that if they invest enough in advertising, selling and public relationships (PR) and sales promotions, customers will be persuaded to buy.

§

4 – CUSTOMER OR MARKET-ORIENTED: Businesses share a set of beliefs about putting the customer first (customer-centric).

CUSTOMER EMOTIONAL JOURNEY: §

1 – Awareness

§

2 – Knowledge

§

3 – Consideration

§

4 – Purchase

§

5 – Closing

§

6 – Post Purchase Review / Analysis

CLIENT JOURNEY: §

1 – SUSPECT: Does the potential customer fits your target market profile?

§

2 – PROSPECT: The customer fits the target market profile and is being approached for the first time.

§

3 – FIRST TIME CUSTOMER: Customer makes purchase for first time. Your offer playing a major role.

§

4 – REPEAT CUSTOMER: The customer makes additional purchases. Your offer plays a minor role.

§

5 – MAJORITY CUSTOMER: The customer selects your company as the supplier of choice. You occupy a significant place in the customer’s mind.

§

6 – LOYAL CUSTOMER: The customer is resistant to switching suppliers and has a strong perspective and positive attitude towards your company or offer.

§

7 – ADVOCATES: The customer generates additional referral dollars through positive word-of-month.

Business Value

Brand Advocates

Loyal Customers (1 in 5 detractors)

§ § §

Most trusted sources Highly influential Massive reach

A popular idea is you should not only please but delight the customer.

Fans and Followers (May not advocate)

FINAL CONSIDERATIONS: §

Focus on profits and not on revenue.

§

Every organization has limited resources. Hence, wisely allocate for highest efficiency.

§

80/20 rule. 80% of business / profits come from 20% of customers. In more extreme cases 10% generates profits....