CRM MATRIXCRM MATRIX

By:- Dr. Ramikshen Y.By:- Dr. Ramikshen Y.

22

How Relationships are builtHow Relationships are built

Relationships are built on trust.Relationships are built on trust.

Three stages of building relationshipThree stages of building relationship

33

ABC of RelationshipsABC of Relationships

First you First you acceptaccept a relationship a relationship

Acceptance Belief CommitmentRelationship

Bond

Your Your beliefbelief in that relationship leads to a in that relationship leads to a sense of sense of commitmentcommitment to that relationship. to that relationship.

44

Then you start Then you start believingbelieving in that relationship. in that relationship. If you do not believe, you can not continue If you do not believe, you can not continue the relationship further. If you believe, you the relationship further. If you believe, you will nurture the relationship. will nurture the relationship.

Two elements are Two elements are merged merged together to form together to form relationship/bondrelationship/bond

55

Customer Relationship MatrixCustomer Relationship Matrix

Two elements of relationship are:Two elements of relationship are:1.1. Commitment Commitment in relationshipin relationship

2.2. Acceptance Acceptance of relationshipof relationship..

Based on this, four customer relationship Based on this, four customer relationship styles are developed. styles are developed.

66

Customer Relationship MatrixCustomer Relationship Matrix

Four relationship styles are:

1. Golf-Hole Relationship

2. Rail Track Relationship

3. Telephone Booth Relationship

4. Honey Bee Relationship

Customer Relationship MatrixCustomer Relationship Matrix

COMMITMENT

AC

CE

PT

AN

CE

GOLF - HOLE RAIL TRACK

TELEPHONE BOOTH HONEY BEE

LOW HIGH

HIGH

88

CR Matrix: CR Matrix: Golf-HoleGolf-Hole(Low commitment & low acceptance)

Objective: To increase the sales

Strategy: Put the ball (customer) into the hole (place/offering) anyhow

Approach: Ad-hoc, Short-term, price leadership

Loyalty: Service provider is the only player in the industry, customers are price conscious, loyal to the service provider with lowest price.

Outcome: Increase in revenue but opportunistic relationship with customers, neutral word of mouth

99

CR Matrix: CR Matrix: Rail TrackRail Track(High commitment & low acceptance)

Objective: To increase sales based on constraints, switching cost

Strategy: Like two rails of a track, they run together/ parallel but never meet

Approach: Focused

Loyalty: Customers are unable to seek alternative service provider

Outcome: Customers buy the product because of commitment but negative word of mouth.

1010

CR Matrix: CR Matrix: Telephone BoothTelephone Booth(Low commitment & high acceptance)(Low commitment & high acceptance)

Objective: To increase sales based on product availability at affordable cost.

Strategy: Telephone booths are used irrespective of their condition & brand.

Approach: Extensive distribution, convenience

Loyalty: Loyalty due to convenience factors (location), habitual

Outcome: Products get sold because of convenience, positive word of mouth

1111

CR Matrix: CR Matrix: Honey BeeHoney Bee(High commitment & high acceptance)

Objective: To build & maintain meaningful mutually beneficial relationship to increase the sales

Strategy: All bees have relationship with the queen bee and strong commitment towards her. They live together (mutual benefit).

Approach: Long-term, Customisation

Loyalty: Loyalty as a consequence from emotional attachment to the service provider/ product.

Outcome: Stronger brand. Customers buy the product because of relationship bond, positive word of mouth

Relationship Styles & 4CsRelationship Styles & 4Cs

Compromise Constraints

Convenience ContentmentBoth have High Commitment but reasons are different

Both have High Acceptance but reasons are different

1313

Do we need to manage the Do we need to manage the relationship?relationship?

Why do business relationships have to be Why do business relationships have to be managed anyway? It seems so planned or managed anyway? It seems so planned or deliberate. deliberate.

Why can't they just happen and evolve in Why can't they just happen and evolve in their own way?their own way?

We do our job, customers do theirs, and We do our job, customers do theirs, and somehow we meet in the middle.somehow we meet in the middle.

Sadly, it doesn't work that way. Sadly, it doesn't work that way.

1414

Managing RelationshipManaging Relationship

Managing customers effectively does Managing customers effectively does mean a bit of calculation, premeditation mean a bit of calculation, premeditation and work on our part. and work on our part.

Managing business relationships means Managing business relationships means that we become aware of changing needs, that we become aware of changing needs, of difficulties that arise or of issues that of difficulties that arise or of issues that need resolving. need resolving.

1515

How to manage the relationshipHow to manage the relationship

Everyone has had the experience of ending a Everyone has had the experience of ending a phone conversation or leaving a meeting phone conversation or leaving a meeting thinking how much better the discussion would thinking how much better the discussion would have gone 'if only' the customers had been more have gone 'if only' the customers had been more co-operative or understood more. co-operative or understood more.

It seems so logical to imagine that things really It seems so logical to imagine that things really would improve if only the customers could see would improve if only the customers could see the situation the way we see it. the situation the way we see it.

However much we may wish it, it just doesn't However much we may wish it, it just doesn't work that way.work that way.

1616

Expectations from RelationshipExpectations from Relationship

Understanding CustomersUnderstanding Customers

Company(Seller/Provider)

CUSTOMERS

Expectations

Expectations

1717

Who is managing the relationship?Who is managing the relationship?

CUSTOMER MANAGED RELATIONSHIP

C R MCustomer Relationship Management

Are we managing the relationship?

Are we being managed by the customers?

In a business relationship it is important to understand that who is managing the relationship.

1818

Developing RelationshipsDeveloping Relationships

Understanding the value of relationshipUnderstanding the value of relationship

Creating values in relationshipCreating values in relationship

Delivering value in relationshipDelivering value in relationship

Keeping the relationship dynamicKeeping the relationship dynamic

Developing RelationshipDeveloping Relationship

COMMITMENT

AC

CE

PT

AN

CE Simple

Relationship

EnduringRelationship

2020

Developing RelationshipDeveloping RelationshipVia Acceptance RouteVia Acceptance Route

Golf Hole →Telephone Booth → Honey Bee

Implement marketing activities to increase customers commitment to the brand/ offering/ company/ channel

Enable the customer

2121

Golf Hole Golf Hole →→ Rail Track → Honey Bee Rail Track → Honey Bee

Implement marketing activities to increase Implement marketing activities to increase customer’s acceptance of the customer’s acceptance of the brand/product/service brand/product/service

Add value to the offering Add value to the offering

Developing RelationshipDeveloping RelationshipVia Commitment RouteVia Commitment Route

2222

ConclusionConclusion

Most of the customers have Golf-Hole type of Most of the customers have Golf-Hole type of relationship with the sellers/providers. relationship with the sellers/providers. Companies (sellers/providers) can build enduring Companies (sellers/providers) can build enduring relationship (Honey Bee type) with its customers relationship (Honey Bee type) with its customers through Acceptance or Commitment route. through Acceptance or Commitment route. CR Style matrix provides an insight toCR Style matrix provides an insight to the the customer’s behaviour, enabling tactical and customer’s behaviour, enabling tactical and strategic actions to be taken by sales, product strategic actions to be taken by sales, product development and marketing to meet customer development and marketing to meet customer needs & expectationsneeds & expectations