Types Of Customers

Loyal customers

Customers

• Customers are those that purchase products or avail the services
• They can be a one time purchaser or a multiple time
• Those who consider another buy from the same service provider are known as loyal customers

Types of customers

Customer can be of two types depending  on their number of visit to a particular service provider.

Types:

• One time customer: They are the one time purchaser. They might have been to the service provider because they had some positive word-of-mouth for the service provider or they have just visited without even noticing the brand name
• Loyal customers: These are the repeated and the satisfied customers who use the products or services from the same employer on a regular basis

Comparing loyal customers with one-time customers

Loyal customers

They have preferable choice of service providers

• The trust is always there when a new product is launched
• Innovation is a key to success for service providers as loyal customers must have reasons to stay longer
• Increasing base of loyal customers is a potential resource to incrementing sales and therefore, the net profit

One-time customers

• They are also important as they add numbers to business
• Efforts are given to convert the onetime customer into loyal customers
• Customer retention is a key in this regard
• They may have a critical view on any new product launch

Customer retention

• Customer retention is like an

achievement that lets a firm retain the

visiting customers

• The purpose is to increase the rate of

conversion from one time customer to

loyal customers

• An incrementing customer retention rate means a rising profitability
• Retained customers become the loyal

customers for their effective involvement

with the service provider

• Customer retention and hence, customer loyalty creates the needs for innovative

and effective strategy making from the

service providerCustomer loyalty cycle

The first phase in the loyalty cycle is customer acquisition which means giving customers the assurance of quality product and service. Once, they are assured of the offers, they are educated on the benefits which is unique only to the service provider. Customer satisfaction in this phase of cycle means a commitment for purchase.  The next and the last stage of the cycle is to retain the one-time visiting customer. This face is known as the continuation and the activity phase. Customer relationship management (CRM)

Customer relationship management is an approach that modern day organizations adapt to

manage its relationship with customers. It utilizes the data analysis to know its customers and their interactions with firms. Such tracking of history enable firms to strategies their plans and schemes accordingly. The strategy is used to increase the customer retention rates and ultimately driving

the sales growth. (Navimipour and Soltani 2016) Importance of customer relationship management  continued

• Helps to improve the customer services
• Increased personalization of service
• Relevancy to customer’s needs
• Customer segmentation
• Customization of marketing is improved
• It is time saving as well
• Customer knowledge is improved

How CRM improves customer service standard

• It helps to view the order and payment history
• Such history provides the useful data which can be analyzed to offer more relevant offers to

customers

• CRM can be integrated with the various social media sites which is helpful in observing the

responses from customers and also the customer complaints can also be acknowledged

• Employers would also be able to justify the commitment it had made
• Customer retention will increase and thereby will impact upon the customer loyalty level

Types of CRM

Four types of CRM

It is important to analyze the most feasible CRM that serves the operational needs which is

specific to employers.  It is important because there are mainly the four kinds of CRM depending

upon its area of expertise. The operation team must identify the best feasible CRM from the

following list to yield the best results:

• Strategic – It helps in developing a business culture which is customer-centric
• Analytical – This is helpful in analyzing the data and helping the managers to commence the

informed decisions

• Operational – It provides the capability to integrate the CRM with marketing activities. It helps in sales, marketing and customer assistance
• Collaborative – It facilitates the flow of information within the organization related to vendors, suppliers, customer and distributors
• Customer data platform – It is generally being used for marketing purpose. It helps to maintain a database that collects the information of customers and keep it stored within it in an organized way

References

1.Navimipour, N.J. and Soltani, Z., 2016. The impact of cost, technology acceptance and employees’ satisfaction on the effectiveness of the electronic customer relationship management systems. Computers in Human Behavior, 55, pp.1052-1066.

2.Nyadzayo, M.W. and Khajehzadeh, S., 2016. The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, pp.262-270.

3.Rahimi, R. and Kozak, M., 2017. Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing, 34(1), pp.40-51.

4.Rahimi, R., 2017. Customer relationship management (people, process and technology) and organisational culture in hotels: Which traits matter?. International Journal of Contemporary Hospitality Management, 29(5), pp.1380-1402.

5.Raju, P.S., Bai, D.V.R. and Chaitanya, G.K., 2014. Data mining: Techniques for enhancing customer relationship management in banking and retail industries. International Journal of Innovative Research in Computer and Communication Engineering, 2(1), pp.2650-2657.

6.Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), pp.1201-1208.