9: Creating Sustainability

Question 1

Qantas case: why did they provide so much?

Answer 1

Priority check-in, priority upgrades, additional baggage allowance.

This causes customer retention, exit barriers, word of mouth.

It costs 6x more to gain customer

Question 2

Relationship management

Answer 2

Long-term orientation, commitment and fulfilment of promises, customer share not market share, customer lifetime value, to a dialogue, customisation

Question 3

Customer modes

Answer 3

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)

Question 4

6 markets model

Answer 4

CUSTOMER MARKETS

• influence
• internal (employees- happy employees = happy customer)
• referral (past customers that can recommend)
• potential employee
• supplier

Question 5

Customer retention strategies

Answer 5

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)

Question 6

CDI: customer data integration

Answer 6

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.

Question 7

Customisation

Answer 7

Mass individualisation
Co creation
User generated content
Crowd sourcing 
User innovation
Lead users 
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

Question 8

Individualisation of product offering

Answer 8

Cosmetic customisation - changing exterior

Transparent - customer unaware of customisation e.g. coffee shop

Collaborative - doing it with them e.g. optician

Adaptive - a product the customer can customise them self e.g. lamp

develop relationship with customer and adapt communication method