Transcript 2.20442_RelationshipMarketing

RELATIONSHIP MARKETING &
SERVICE QUALITY
Marketing & Service Quality Module
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RELATIONSHIP MARKETING
 Focused on building long-term, profitable
customer-relationship
 Build on premise that important accounts need
focused and continuous attention
 “Getting to know our customers better so we
can meet their wants and needs better.”
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How do we build relationship with
clients?
 Basic Marketing
 Reactive Marketing
 Accountable Marketing
 Proactive Marketing
 Partnership Marketing
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Customer Satisfaction
= fx { PERCEIVED PRODUCT
PERFORMANCE} and {CLIENT’S
EXPECTATION}
 If PP > E, Clients are very satisfied
 If PP = E, Clients are satisfied
 If PP < E, Clients are very dissatisfied
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Tools in Tracking and Measuring
Customer Satisfaction
 Complaint and Suggestion Systems
 Customer Satisfaction Surveys
 Ghost/Mystery Shopping
 Client Drop-Out Analysis
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THE COST OF LOST CLIENTS
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Define and measure drop-out rate
Distinguish the causes of customer reduction
Identify those that can be managed better
Estimate how much profit the bank loses
when it loses customers
 Spend to reduce the bank’s drop-out rate
 LISTEN, LISTEN, LISTEN to Customers and
ACT, ACT, ACT
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HOW MUCH IS A CLIENT’S
WORTH?
Loan
Size
Term
Revenue
Client’s
value
Net Margin
P3,000
3 months
P315.00
P1,260.00
P882.00
P5,000
3 months
P525.00
P2,100.00
P1,470.00
P10,000
3 months
P1,050.00
P4,200.00
P2,940.00
P12,000
3 months
P1,260.00
P5,040.00
P3,528.00
P15,000
3 months
P1,575.00
P6,300.00
P4,410.00
*Interest=2.5% / mo.; SC=3%; #Yrs. Loyal=1 (4 cycles);Margin=70%
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HOW MUCH IS A CLIENT’S
WORTH?
Loan Size
Net Margin
Revenue if 100% Dropout Value
Retention Rate (Revenue*15%)
Loss/Month
(Drop-out
value/12
months)
P3,000
P882.00
P101,430
P15,215
P1,268
P5,000
P1,470.00
P160,050
P25,358
P2,113
P10,000
P2,940.00
P338,100
P50,715
P4,226
P12,000
P3,528.00
P405,720
P60,858
P5,072
P15,000
P4,410.00
P507,150
P76,073
P6,339
*Ave. portfolio=115 accts; Drop-out rate=15%
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THE NEED TO RETAIN
CLIENTS
 Acquiring customers can cost five times more
than the costs in satisfying and retaining current
clients.
 An average company loses 10% of its clients
every year.
 A 5% points reduction in customer drop-out rate
can increase profits by 25-85%, depending on
the industry.
 The customer profit rate tends to increase over
the life of the retained customer.
SOURCE: Selling: The Personal Force of Marketing
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The KEY to Customer Retention is
Customer Satisfaction
 Creates Customer Loyalty
 Helps the Bank to better Cross-Sell and UpSell other Products & Services
 Supports better Word-of-Mouth Marketing
Creates “Stickiness”
 Listening to Clients can Improve the Bank’s
Products & Services
 The Cost of Promoting Services to Existing
Clients is less than to New Clients
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Correlation of Service Quality
and Bank Profitability
HIGH QUALITY
SERVICE
HIGH
CUSTOMER
SATISFACTION
HIGHER REVENUES &
LOWER COSTS
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SERVICE QUALITY
 SERVICE
- Is any act or performance that one party can
offer to another that is essentially intangible
and does not result to ownership of anything.
 QUALITY
– Is the totality of features and characteristics
of a product or service that bear on its ability to
satisfy stated or implied needs.
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Dimension of Service Quality
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Reliability
Assurance
Tangibles
Empathy
Responsiveness
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Questions to ask to check if we are effectively
providing service quality to our clients
 Do we strive to present a realistic picture of our service
to customer?
 Is performing the service “right the first time”, a top
priority of our Bank?
 Do we communicate effectively with customers?
 Do we surprise customers during the service process?
 Do our employees regard service problems as
opportunities to impress customers or as annoyances?
 Do we continuously evaluate and improve our
performance against customers’ expectations?
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THANK YOU
FOR MORE INFORMATION ON MARKETING, VISIT THE
RBAP-MABS TOOLKIT AT:
http://rbapmabstoolkit.wordpress.com
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