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.
