Chapter Ten Case Study Six Relationship Marketing

Company Overview Supplier to CPG industry Few competitors –fierce competition –highly specialized expertise –timing is critical –small # of customers but very profitable Value-laden exchanges within the marketing definition

Company’s current position –based on survey results Higher than expected dissatisfaction Higher than expected switching Customers had above average technology readiness scores –description of the construct Customers’ preferences for services

Three Types of Marketing Internal Marketing Employees Customers Company External Marketing Interactive Marketing technology

Service Culture… “a culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers is considered a natural way of life and one of the most important norms by everyone” Christian Gronroos “Managing Internal Marketing-a Prerequisite for Successful External Marketing”

Service Profit Chain Success 8 causal links (Service Mgmt Trinity) –customer loyalty drives profit and growth –customer satisfaction drives customer loyalty –value drives customer satisfaction –employee productivity drives value –employee loyalty drives productivity –employee satisfaction drives loyalty –internal quality drives employee satisfaction –top management leadership underlies the chain’s success

Underlying Logic of Relationship Customer retention & increased profits Employee Satisfaction & Loyalty Quality Services Customer Satisfaction

Why Focus on Employees? They are the service They are the organization in the customer’s eyes They are the marketers This is the same for the web site

E-Business Marketing Goals E-Commerce –providing quality online services –payment may not be electronic but service delivery is CRM –meeting and exceeding customers’ needs ERP –Lower cost of doing business (!) BI –continual input from CSRs and customers

Value Bubble Site needs work –Strategies and implementation differences Attract –none--why? Engage –customized services Retain –research library updates with notification

Relating –dynamic site configuration Prototype –evolution of site –where it is now…unfortunately