Flashcards in 9: Creating Sustainability Deck (8)
Qantas case: why did they provide so much?
Priority check-in, priority upgrades, additional baggage allowance.
This causes customer retention, exit barriers, word of mouth.
It costs 6x more to gain customer
Long-term orientation, commitment and fulfilment of promises, customer share not market share, customer lifetime value, to a dialogue, customisation
Transactional – by something and just want to Buy it. Bothering = disturbance. (Bread, etc.)
Active relational mode – customer buys something and expects relationship and dissatisfied otherwise. (Hairdresser)
Passive relational mode - customer wants relationship when they want/need it (phone service provider)
6 markets model
-internal (employees- happy employees = happy customer)
- referral (past customers that can recommend)
- potential employee
Customer retention strategies
Develop relational bonds
Build in switching barriers (economic - contracts, psychological- making people think it’s too hard to leave)
Reduce churn drivers (changing quality, opening hours etc)
Build a foundation for customer retention (need data on customers)
CDI: customer data integration
A data management process where all customers and prospect data are consolidated to create a single accurate view of the customer.
Can you build relationships (using customer interests), customisation (changing what is offered to them) for example – Nike design own sneakers.
User generated content
Open source software - when developing software consumers can go in and change it - gamers)
E.g jetstar - can have what you want, have nothing if you want nothing