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CRM Module-5

The document discusses the evolution of Customer Relationship Management (CRM) and its significance in various industries, emphasizing the role of technology in enhancing customer interactions. It highlights the importance of employee satisfaction in fostering customer loyalty and outlines strategies for building strong employee-customer relationships. Additionally, it addresses service failures and the concept of service recovery, noting that effectively resolving issues can lead to higher customer satisfaction than if no problems had occurred at all.

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Ashita Savsani
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29 views29 pages

CRM Module-5

The document discusses the evolution of Customer Relationship Management (CRM) and its significance in various industries, emphasizing the role of technology in enhancing customer interactions. It highlights the importance of employee satisfaction in fostering customer loyalty and outlines strategies for building strong employee-customer relationships. Additionally, it addresses service failures and the concept of service recovery, noting that effectively resolving issues can lead to higher customer satisfaction than if no problems had occurred at all.

Uploaded by

Ashita Savsani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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UNIT -V

CRM: Emerging Perspectives

Developing customer relationships was there even in


the pre-industrial era but in recent times de-
intermediation process in many industries has
accelerated the evolution of CRM.
Airlines, banks, insurance, computer program
software, and household appliances are using
computer and telecommunication technology to
directly interact end-customers
Databases and direct marketing tools give industries
the means to individualize their marketing efforts.
RECENT SUCCESSSES

 On-line Banking
 Direct selling of books
 Automobiles and insurance
 Growth of service economy and total quality
management have driven adoption of CRM
 Partner relationship with suppliers and customers
for TQM, JIT and MRP seen at Toyota, GM , IBM,
Ford and Motorola
Employee- Organisation Relationship

The employee play a very vital role in the growth of the


organization also as they are the one who actually buy the
service organization's business concept and concretize it
by providing their knowledge, skill, effort and time. they
interact with all other stakeholders and satisfy the
interest of each of the stakeholders. the Organization ,in
turn, fulfils the employees physiological, security, and
social needs. they also inherits several attribute of
customer and hence, are called customer.
“If the customer is the purpose of business ,employee are
the means to achieve the purpose“.
Employee- Customer Linkage

Radclyffe group conducted a study of call center and found that “satisfied”
contact center employees make for satisfied and loyal customers. Customer
decide whether or not to make future purchasing decisions with company,
or to recommend its service to other, as a direct result of their experiences
with a contact center representative. Organization must do short-term
investment in employee satisfaction efforts through employee training,
good working condition, standard pay and perquisites, participation in
management, employee empowerment etc.

companies essentially need to adopt following practices to leverage their


resources of employee.

 Better working condition for employee


 higher salary
 trained staff
 employee empowerment
Factors effecting employee’s customer oriented behavior

• Overwork • Fatigue • Interpersonal • Freedom


Issue

Employee Employee Employee Employee


Behavior Behavior Behavior Behavior

• Role of • Mutual Trust


Decision
Making

Employee Employee
Behavior Behavior
Essentials of building employee relationship

Since the employee are the pillars for the companies


building of relationship with the customer. a
deliberate and well – thought –out initiative is
required by the companies to build foundation for a
strong relationship of employee with the
organization.
Essentials of building employee relationship

Recruitment And Selection


Recruitment strategy from customer perspective
Finding persons of customer first orientation
Building employee customer parity

Employee Motivation Training and Development


Training with customer – first approach
Sharing Customer profile
Training to listen to the customer
Directing to remain focused
Training to build empathy with customer
Employee Customer Orientation

Employee
Participatio
n

Communica
tion
Providing
strategic
learning
view of
opportunity
manageme
nt
Influencing
employee
behavior
towards
customer
Livening
Incorporati
growth path
ng
with
customer
customer
service in
service
appraisal
orientation

Motivating
employees
for service
innovation
Service Recovery
Service
ServiceFailure
Failureis
the process of NOT keeping promises

Above expectation
(great service)
4
2
Expected Service 3 Zone of Tolerance
5
1
Below 6
expectation
7 8 9
(poor service)
Service Failure – Two Topics

Perception & Zone


of Tolerance
Part One: Causes
Service Failure - Causes
The facilities and
environment
The expectations

Actions (&
The systems
inactions) of staff
4
2
3
The process
5
1
6
7 8 9

Actions of the Actions of other


customer The equipment
customers
Service Failure - Causes
The facilities and
environment
The expectations

Actions (&
The systems
inactions) of staff

The process The Service Provider


Becomes Responsible for
Managing

Actions of the Actions of other


customer The equipment
customers
Part Two: Responses
Responses

Above expectation
(great service)
4
2
Expected Service 3 Zone of Tolerance
5
1
Below expectation 6
7 8 9
(poor service)

Customers Put up with it


GOOD Complain Have BAD
Leave
Choices
Complaining is Good?

THE LOGIC:

1. The Perception of the Customer Determines


Service Quality
2. Perception is intangible and may be invisible
3. Complaining makes it visible
4. Unless it is visible the Service Provider cannot
respond
Customer Choices
THE SERVICE Put up with it
GOOD Complain PROVIDER CAN ONLY
RESPOND IF THEY BAD
KNOW ABVOUT THE Leave
FAILURE

What Happens How do Customers Decide What Happens


• Opportunity to • Bond (e.g. contracts, • Little opportunity to
influence by service knowledge etc.) influence by service
provider • Strength of provider
• Opportunity to learn dissatisfaction • Customers spread bad
and adjust service • Switching costs word of mouth
• Willingness to complain • Customers left are
• Significance of service gone for good
• Past relationship
Service Recovery
Process
Service Recovery

Service Recovery:
is the process for Above expectation (great
resolving Failures service) 4
7 8 9
that maintains the Expected
2
3
Zone of
Tolerance
perception of quality Service 5
1
Below expectation 6
7 8 9
(poor service)

Service Recovery Paradox: Can Service Recovery


increase satisfaction with service to levels above
normal service?
The Concept of Justice
A Service Failure represents an expectation not met,
for a customer this is like a BROKEN PROMISE
The customer
wants to see
JUSTICE

Distributive Procedural Interactional


Size of recompense Process is Behaviour of
matches degree of consistent and service provider
failure transparent appropriate for
degree of failure
The Implications of Justice
Distributive Procedural Interactional
Size of recompense Process is Behaviour of
matches degree of consistent and service provider
failure transparent appropriate for
degree of failure

Basis of Organisational response

Frequent,
Appropriate Appropriately
trustworthy
compensation trained staff
communication
Potential customer issues

Opportunistic Unrealistic
high-pitched wheel
claims expectations
Service recovery paradox.
Successfully fixing a problem with a defective
product may lead to higher consumer
satisfaction than in the case where no problem
occurred at all.
Problems………….

 Majority of the customers don’t complain.


 Expensive to fix mistakes.
 Encourages service failure.
 Don’t necessity to think of the firm.
 No guarantee the customer will end up more
satisfied.
Service recovery paradox in a chart-

• to disappointed customer
Plan

• They can recover well


So that

Gain • Greater loyalty from them.

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