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People as 5th Element in Marketing Mix (Introduction (Provide an…
People as 5th Element in Marketing Mix
Introduction
Provide an extension of the delivery system
Provide quality of service to customers
Can bring back important information about the customer
Can bring back important information about the customer
Customer Acquisition
Having new accounts added to bank's income
From result of selling process
1) Low-level selling
When the customer arrives with a clear idea of the service he requires.
When a salesperson carries out a service function sought out by the customer
2) High-level selling (Creative salesmanship)
Persuading customer to change from another service provider to our bank.
Building demand for new services.
Cross Selling
Selling additional services to existing or new customers
Example :pencil2:
Maximising Return on Advertising Expenditure
Banks spend millions of dollars on advertising with the objectives of generating enquiries and demand for its services and products
What happens next may result in
1) Loss of a potential customer
2) Sale
If sales is lost, advertising expenditure is wasted
3) Multiple Sales
If only 1 service is sold (e.g Low-level selling), the cost of advertising does not produce as much revenue as would occur if there had been high-level selling.
Customer Retention
Importance
1) Avoid wastage of expenditure incurred in securing the account
2) Easier to sell new services to existing customers
3) Positive word of mouth recommendations from existing customers are like free sales and advertising, saving the company from having to invest as much money in these activities.
Principles
1) Bank should sell additional services that are beneficial to the customer
The more services a customer uses, the less likely he is to switch banks.
2) Bank should use the customer database to identify customer needs.
Aids the selling process and gives customer the feeling that he is not just a digit, but also a valued customer
3) Bank should ensure that a good quality of service is provided at all times.
When an error is made, it must be rectified quickly and an apology extended to the customer for the inconvenience caused
If mistakes are not dealt with properly, the account may be lost.
Worse, he may tell others about the poor service