Strategic CRM for Customer Satisfaction

Q. (Also posted in My-RealProperty1)

Discuss the strategies for creating value for customers and capturing value from customers in return.

A.
Steps in marketing process:

Step 1 Step 2 Step 3 Step 4 Step 5




Let's start the discussion by stating that the marketing process has arrived at a value proposition. This means:

"Set of benefits or values a company promises to deliver to customers to satisfy their needs."

And, it has been arrived at with much deliberation in the earlier steps of marketing process - namely the Study of environment and identify needs (Step 1) and Coming out with a strategy (Step 2). Now, it has come to Step 3 where a strategy needs to be designed to delight the customers - Action Plans.

This value proposition has to be delivered to the customers, and fulfilling their needs, sustaining the value so that they remain as happy customers. This is in the nutshell, creating value for customer and capturing value from customer in return.

Hence, the first strategy is to satisfy the needs of the customer in the marketing mix, ie pricing has to be right (value for money), product should satisfy the needs (build strong brand), right way of distribution channel (supply chain) and ensuring the marketing communication reaches the target audience with the right message of value proposition.

The next step - Step 4 is customer relationship management. Largely, strategies like special pricing for returning or existing customers, gift point system, special club membership, etc are employed in building strong customer relationship and keeping them delighted.

Customer Relationship Management or CRM Software are being deployed in studying customer purchase pattern, income categories, demographics and their likes and dislikes. Ancillary products and support services like insurance together with housing loan are examples of partnering bundles between different financial institutions. Other examples are like first 12 months of UNIFI subscription free with purchase of the "Smart Home". After sales service can be incorporated with cross selling of specialist products for the renovation of homes, including home appliances, furniture and other partnership with downstream industries.

Lastly, the capturing of value from customer as a long term goodwill and reputation for the company. This process is usually done by periodical emails and phone calls to study customer's satisfaction with the product bought. It is part of the "after sales service" but it is much longer for property developers as similar customers may purchase properties again for investment or up grade after medium term of a few years.

This step in the marketing process is aimed at creating life time customer value and satisfaction, making them spokesperson for the company, and increase market share of the company among the targeted customer group. It is especially so in the telecommunication sector as continual support for customer satisfaction would increase the length of stay with the same operator (loyalty) and therefore results in more profit for the company - increase in total customer equity.

Ref:
Own account from:
Chapter 1 Marketing: Creating and Capturing Customer Value. 2012 Pearson Education, Inc. Publishing as Prentice Hall. Available from http://www1.uprh.edu/drgarced/merc3115/powerpoint14th/pom_14_inppt_cap01.pdf