Some Discussion Points: Sign and Leave But No Moving in and Out

Some discussion Points
Class Attendance- Norms to maintain social

etiquettes and support learning environmentSign and leave but no moving in and out
Sept 22nd and 29th- Guest sessions- Only
come if you are interested to attend. Help
Build not Ruin the brand MDI
(Assignment Submission as planned- CR to
Coordinate- No late assignments)
Script logic case on 24th along with Hilton
case
Relationship Management
What is a relationship?
A relationship consists of episodes
between dyadic parties over time
Episodes are time-bound and nameable
Examples of episodes
Placing an order
Raising a query
Playing a round of golf
Two key features of well developed
relationships
Trust
Commitment
Trust is focussed
Trust is shown in the other partys ..
1. Benevolence. A belief that one

party will act in the interests of the
other.
2. Honesty. A belief that the other
party will be credible.
3. Competence. A belief that the
other party has the necessary
expertise.
Relational consequences of
commitment
Commitment arises from trust, shared values, and
the belief that partners will be difficult to replace.
Commitment motivates partners to co-operate in
order to preserve relationship investments.
Commitment means partners pass over shortterm alternatives in favour of more stable, longterm benefits associated with current partners.
Where customers have choice, they make
commitments only to trustworthy vendors,
because commitment entails vulnerability,
leaving them open to opportunism.
Companies want relationships

with customers
Why?
because companies that manage their
customer base in order to identify, satisfy and
retain profitable customers enjoy better
business results
reduced customer churn creates
A larger customer base
Longer average customer tenure
Reduced marketing costs to replace defected
customers
Better understanding of customer requirements
More cross-selling opportunities
When do companies not want

relationships?
When they fear loss of control. Relationships
are bi-lateral arrangements, which involve
giving up unilateral control over resources.
When they do not want to commit
resources. Relationships require the
commitment of resources such as people,
time and money.
When opportunity costs are high. If
resources are committed to one customer,
they cannot be used for another
Relationships
For Profits
With Products
Or Between People- Is it possible to have
relationships in a business setting Sampark
(Shistachar). Sambandhon (Mulay)
Can relationships be measured and Monitored?
---- How will you measure and reward a parent
child Relationship.
Can Everything be explained with numbers- Is it
near reliable or Fool Proof (Qualitative and
Quantitative)
Are Human beings Rational or Emotional
Beings? Are we super computers or beyond
Putting Relationship Back

into CRM
Customer relationship management
has devolved into customer
profitability management, a one
dimensional, company-centric
practice based on economics and
costs that provides little insight into
why and in what ways people form
relationships with companies and
brands.
Putting Relationship Back

into CRM
Some Mistakes That companies make
Companies seem to forget that their
relationships are not just with consumers
but with people: people who live rich and
complicated lives.
Companies are not cognizant of the
requirements of diverse types of
relationships beyond the loyalty ideal.
Companies dont recognize that
relationships are two-sided and that these
relationships evolve with each interaction.
CRM needs meaning not

information
Having information involves
disintegrating and reducing complex
ideas into small, manageable bites.
But finding meaning involves
assembling information bites into
larger, more abstract wholes.
Ironically, information and meaning
tend to work at cross-purposes: For
meaning, context is everything; with
information, context is noise.
Purpose of data collection

Companies need more robust data to assemble a more
complete story of peoples needs and expectations, and how
the brand helps them live their lives.
Marriott Internationals Ritz-Carlton operates a system called
Mystique, which collects staff observations about guests
everything from the kinds of fruit left on room-service
plates to a guests oncoming cold
True understanding involves more than just developing
insights that are specific to purchase and consumption. It
also means developing empathy for the individuals broader
emotional life and understanding how an experience feels
from the customers perspective.
BEST CUSTOMER TRAP

Best customers are a natural consequence of
CRM programs that see platinum customers as
the Holy Grail.
They are created when companies reward
good customers with discounts, shower them
with attention and special treatment and
permit them to break rules. Over time, as their
demands and expectations increase, they
often become more costly to serve, and, taken
to the extreme, they become a profit drain.
There are a lot more bad customer
relationships than there are bad customers.
Rules for relationship

Companies must codify, by
relationship type, which rules are fixed
and unbreakable, and which ones may
be nice to have but are less vital to
the overall health of the relationship.
Rules can have significant financial
implications; its important to know
which rules increase costs, which rules
increase revenues
Understanding
Customer Experience
Christopher Meyer and Andre
Schwager
Understanding
Customer Experience
The term customer corridor to portray the
series of touch points that a customer
experiences.
CRM captures what a company knows about
a particular customerhis or her history of
service requests, product returns, and
inquiries, among other things
Customer experience data capture
customers subjective thoughts about a
particular company.
The Right Way to Manage

Unprofitable
Customers
Four common reasons why

businesses terminate relationships:
Declining profitability of specific customers,
Lower productivity of employees as they deal
with unprofitable customers,
Changes in the capacity to serve large
volumes of customers, and
Shifts in a companys business strategy.

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Some discussion Points

Class Attendance- Norms to maintain social

1. Benevolence. A belief that one

Companies want relationships

When do companies not want

Putting Relationship Back

Putting Relationship Back

CRM needs meaning not

Purpose of data collection

BEST CUSTOMER TRAP

Rules for relationship

The Right Way to Manage

Four common reasons why

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