Building Strong Customer Relationships: Understanding Customer Relationship Marketing and Management

Building Strong Customer Relationships: Understanding Customer Relationship Marketing and Management

Learning Objectives

At the end of the lesson you will be able to describe, recognise and explain customer relationship marketing, customer loyalty, and customer relationship management. You will also learn about different methods to determine customer value.

Introduce the learning objectives and explain the importance of understanding customer relationship marketing and management.

Customer Relationship Marketing

Customer relationship marketing is a strategy to build long-term customer relationships by focusing on customer needs and preferences.

Explain the concept of customer relationship marketing and give examples of how it is used.

Customer Loyalty

Customer loyalty is the willingness of customers to continue doing business with a company based on their satisfaction, expectations, attractiveness, and switching costs.

Discuss the factors that contribute to customer loyalty and how they affect customer behaviour.

Satisfaction

Satisfaction is the degree to which customer expectations are met or exceeded.

Explain the importance of customer satisfaction and how it can be measured.

Expectations

Expectations are the anticipated benefits and outcomes that customers associate with a product or service.

Discuss the role of expectations in customer satisfaction and how companies can manage them.

Attractiveness

Attractiveness is the degree to which customers find a company's products or services appealing compared to those of its competitors.

Explain how attractiveness influences customer loyalty and how companies can improve their competitiveness.

Switching Costs

Switching costs are the costs that customers incur when switching from one company to another, such as time, effort, and money.

Discuss the role of switching costs in customer loyalty and how companies can reduce them.

Customer Relationship Management

Customer relationship management is the process of managing interactions with customers to build long-term relationships.

Explain the concept of customer relationship management and its key elements.

Image

Image is the way a company is perceived by its customers, including its reputation, brand, and values.

Discuss the importance of a company's image in building customer relationships and how it can be managed.

Reference

Reference is the use of satisfied customers as references to attract new customers.

Explain how reference marketing can be used to build customer relationships and how companies can identify satisfied customers to use as references.

Public Relations

Public relations is the management of a company's reputation and relationships with stakeholders, such as customers, employees, and the media.

Discuss the importance of public relations in building customer relationships and how it can be managed.

Social Marketing

Social marketing is the use of social media and other online platforms to build relationships with customers.

Explain how social marketing can be used to build customer relationships and how companies can manage their social media presence.

Customer Service

Customer service is the provision of assistance and support to customers before, during, and after a purchase.

Discuss the importance of customer service in building customer relationships and how it can be managed.

Determining Customer Value

Determining customer value is the process of assessing the value of a customer to a company.

Introduce the concept of determining customer value and its importance for customer relationship management.

Total Turnover

Total turnover is the total amount of money a customer has spent with a company.

Explain how total turnover can be used to determine customer value and its limitations.

RFM Analysis

RFM analysis is a method for determining customer value based on recency, frequency, and monetary value of purchases.

Explain how RFM analysis can be used to determine customer value and give examples.

Share of Wallet

Share of wallet is the percentage of a customer's spending that goes to a particular company.

Discuss how share of wallet can be used to determine customer value and how companies can increase their share of wallet.

Customer Lifetime Value

Customer lifetime value is the total value of a customer to a company over the lifetime of their relationship.

Explain how customer lifetime value can be used to determine customer value and its importance for customer relationship management.

Customer's Network

A customer's network includes the people and organisations that influence their purchasing decisions.

Discuss how a customer's network can be used to determine customer value and how companies can leverage it.

Summary

In this lesson, you learned about customer relationship marketing, customer loyalty, customer relationship management, and different methods to determine customer value.

Summarise the key points of the lesson and emphasise their importance for building strong customer relationships.

Reflection

What did you learn from this lesson? How can you apply this knowledge to build stronger customer relationships?

Encourage students to reflect on what they have learned and how they can use this knowledge in their future careers.

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.