Transcript Relationship Marketing - RBAP-MABS

RELATIONSHIP MARKETING &
SERVICE QUALITY
Marketing & Service Quality Module
1
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.”
2
How do we build relationship with
clients?
 Basic Marketing
 Reactive Marketing
 Accountable Marketing
 Proactive Marketing
 Partnership Marketing
3
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
4
Tools in Tracking and Measuring
Customer Satisfaction
 Complaint and Suggestion Systems
 Customer Satisfaction Surveys
 Ghost Shopping
 Lost Customer Analysis
5
THE COST OF LOST CLIENTS




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
6
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%
7
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%
8
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
9
The KEY to Customer Retention is
Customer Satisfaction
 Stays loyal longer (Customer Loyalty)
 Buys more as the Bank introduces new
products and upgrades existing products
 Talks favorably about the Bank and its
products
 Pays less attention to competing brands and
advertising and is less sensitive to price
 Offers product or service ideas to the Bank
 Cost less to serve repeat clients than new
customers because transaction are routinized
10
HIGH SERVICE
QUALITY
HIGHER
REVENUES
HIGH
CUSTOMER
SATISFACTION
LOWER
COST
Correlation of Service Quality
and Bank Profitability
11
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.
12
Dimension of Service Quality





Reliability
Assurance
Tangibles
Empathy
Responsiveness
13
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?
14