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RELATIONSHIP MARKETING & SERVICE QUALITY

RELATIONSHIP MARKETING & SERVICE QUALITY. Marketing & Service Quality Module. RELATIONSHIP MARKETING. Focused on building long-term, profitable customer-relationship Build on premise that important accounts need focused and continuous attention

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RELATIONSHIP MARKETING & SERVICE QUALITY

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  1. RELATIONSHIP MARKETING & SERVICE QUALITY Marketing & Service Quality Module

  2. 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.”

  3. How do we build relationship with clients? • Basic Marketing • Reactive Marketing • Accountable Marketing • Proactive Marketing • Partnership Marketing

  4. 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

  5. Tools in Tracking and Measuring Customer Satisfaction • Complaint and Suggestion Systems • Customer Satisfaction Surveys • Ghost/Mystery Shopping • Client Drop-Out Analysis

  6. 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 and ACT, ACT, ACT

  7. HOW MUCH IS A CLIENT’S WORTH? *Interest=2.5% / mo.; SC=3%; #Yrs. Loyal=1 (4 cycles);Margin=70%

  8. HOW MUCH IS A CLIENT’S WORTH? *Ave. portfolio=115 accts; Drop-out rate=15%

  9. 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

  10. The KEY to Customer Retention is Customer Satisfaction • Creates Customer Loyalty • Helps the Bank to better Cross-Sell and Up-Sell 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

  11. Correlation of Service Quality and Bank Profitability

  12. 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.

  13. Dimension of Service Quality • Reliability • Assurance • Tangibles • Empathy • Responsiveness

  14. 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?

  15. THANK YOU FOR MORE INFORMATION ON MARKETING, VISIT THE RBAP-MABS TOOLKIT AT: http://rbapmabstoolkit.wordpress.com

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