CUSTOMER RELATIONSHIP MARKETING

1. Satisfying customers want by focusing on quality

Chart 1: Satisfaction Rating Based Upon Mobile Operating System

Chart 2: Mobile Operating System Preferences (Google Android/RIM/Apple iOS)

Other technology companys project goal is based around the technology first, which mean that
they will provide to the consumer a device that their technology can make at the time. Meanwhile
Steve Jobs knew that in order to satisfy customers wants, he must go beyond the customers
need that the reason Apple introduces the first IPhone with touch screen can be used with finger.
Before Ipad was released, people wrote an email, browse Internet to enjoy photographs, video
and books on their computer. They need a device that can perform those entire tasks well but
Steve provided a device also perform those task perfectly with ultra-portable. With the Beyond
the need vision apple has created the product that satisfy the customer want.
2. Building long-term relationship through value customer experiences
Samsung approaches their customers by innovative product with a broad range of
smartphones in different shapes, sizes and operating systems. By developing the S Pen to
launch the Air Command features like Action Memo, which gives you the ability to jot down a
name and number and instantly turn it into a new contact, this application brings more easy for
customers who are Asian can write down the note by their languages. Or Screen Write that lets
you draws directly on the screen to add a note to a map or highlight a passage in an email
Additional, Android platform which allows applications developer to put their application on that
will bring to users more convenience.
Samsung has been carrying out many marketing strategies to increasing its sales volume.
Therefore Samsung has developed a lot of products targeting many different customer
segments, different income levels to make sure that their customer easily to find out the product
which can be fixed their needs.

Samsung has a wide coverage from Samsung shop, online websites, mobile center, electronics
shopping center to other mobile phones retail stores, bring more convenience to customer.
Samsung brand shop is where its product showcases. Customers can be consulted and guided
on Samsung products about functions and how to use. These locations can also support
customer in setting up and updating software; repairing customers products.
In term of pricing strategy, by building customer experience, Apple makes them feel I-products
have been tailored for themselves. Once set up, it will look like a custom iPhone app developed
exclusively for your business. Apples customers know the added value of Apple brand so
they are willing to pay for a premium product, which brings them to a premium and asserting
themself lifestyle. Apple has set a higher product price and the company does not give any
promotion, especially on Back Friday in US and recently, Red Friday in some Asian countries.
In the other hand, Samsung often offers consumers a very attractive price. With similar
products functions, Samsung products price is always lower from 10-15% compare with Apple.
Samsung has used its internal resources and applied into their production system, this will help
to cut down the production cost and bringing more choice for consumers. Decreasing cost is
another strategy of Samsung in offering to customers. This term applied for both consumers and
distributors which catch customer attention and action, therefor it will help toincrease sales
volume.

Table 1: A comparison between Samsung Galaxy Note 3 vs Iphone 5S on products feature

and price:

Samsung has offered customer with attractive pricing strategies and a rank of products choice,
however, Apples product is always what customers waiting.

The other chart also shows unit sold between Apples products and Samsungs products. Apple
products are always receiving a higher sales volume than Samsung (by Raymond
James,businessinsider.com).

Chart 4: Samsung Galaxy vs iPhone Sales by Model (MMS)

Apple has done a good job which create highest customer loyalty by making them satisfied even
Apple has only one product IPhone and in general, a bit higher price compared with Samsung.

3. Regarding communication
Samsungs strategy are attracting customer by introducing its product features; guiding
consumers how to use product better. Besides, they also have other campaigns, which
focus on promotion, cooperating with networking providers, distributors to reduce the cost
or buy phone and get its accessories. Samsung has invested a lot of money in creating
advertisings visual and TVC, which can show the interesting of customer towards
Samsung products. According to Kantar Media data cited by the Wall Street Journal, it
spent $401 million, which beat Apples $333 million in advertising on print, online,
television, and billboards in the U.S.

Chart 5: US Mobile phone Ad Spending 2011 2012

In the other hand, with customer oriented marketing strategy, its not difficult to realize that
Apple applies consistently this strategy on communication. Apple always communicates in the
language of audience: It makes no sense to talk about things like megabytes, gigahertz, and
processing power to customers. Take a look at any Apple product page and youll find that though
they do discuss product specifications and technical information, its hidden behind the benefits
that their audience is truly after. Instead of display resolution, youll see phrases like edge to
edge glass, retina display, and LED backlighting. You also see the same things on media
such as TVC, Print ad Apple tells the most interesting story by the simplest way.

Table 2: A comparison between Samsung Galaxy Note vs Apple on communication (Print

Ad, Website, TVC):

Moreover, they focus on expanding the experience through communication channel. And
experience will be a core to create WOM. AdMobs January data illustrates the power of word-ofmouth marketing for Apple. 91% interviewees recommend Iphone for their friends and
colleagues. Chart 7 shows that word-of-mouth came in third follow by TV and Social Media when
Apple released IPhone5, this really says something about the Apple brand ambassadors. One
interesting of TV channel is beside 7 minute video Apple posted to their YouTube channel, Apple
did not run any other advertisements on television or otherwise, this show effective earn-media
campaign and attraction of brand as well.

Chart 6: People recommend their mobile device to a friend or colleague

Chart 7: Information Source of IPhone 5 release of audience

In addition, the Net Promoter Score, Apple began measuring this score in 2007 when there
were 163 stores. The NPS score was 58%. Today, with well over 350 stores, Apples NPS score
tops 70% and some of the best stores rank above 90 percent, a remarkable achievement and
show successful of Apple in creating customer advocates. Because customer loyalty can
manifest itself in multiple ways, for example as increased customer lifetime value retention, it
can be the positive message that an individual customer shares via word of mouth.
Apple is in the experience business they enhance your life with information and
entertainment and empower you at work. Apple is the ultimate lifestyle brand with a strong
emotional connection between company and customer. Every year when Apple introduces a new

iPhone or iPad, throngs of faithful fans start forming lines outside Apple stores. This isnt about
the product. This is about the brand. Apples brand is so powerful, so attractive, and so
compelling, that people want to attach themselves to it, or attach the brand to them. They want to
be identified with Apple, and what Apple represents: good taste; sophisticated design; stylist
image; premium feeling And that is what emotions are all about.

There are thousands of Apple unboxings on Youtube, each from different users from across the
globe or Apple store dance clip that we mentioned above, this is the way consumers is
encouraged and inspired to share their experiences.
Its not about how many the marketing angles; its about the way that people tell that angle.
Whenever see Steve Jobs product-release presentation and youll watch as he tells you why
every other product in the market pales in comparison to what he created. This is also the way to
deliver more clearly about Apple communication strategy which is focus on customer experience
and motivation. Steve Jobs is considered as the spirit of Apple and inspiration icon of thousand
people all over the world. His story, his image, his performance, therefore also are the other way
Apple connect to people, inspire them, give them motivation and base on that create a long-term
relationship with them.
The impact of the CRM strategy to Apple is the saving the cost but higher customers
loyalty. According to Zach Epstein (2013) Samsung spend four times more than apple on
advertising in 2012 which cause the increase on the sale volume of Samsung. Meanwhile

Interbrand mentioned Apple has highest brand value 98,316 $mil compare to Samsung
39,610 $mil.
4. Brand Reputation: Measuring 6 dimensions (Those factors are: Social Responsibility,
Emotional Appeal, Financial Performance, Products & Services, Vision & Leadership,
and Workplace Environment) that comprise reputation and influence consumer behavior.
Beside that Chuck Jones (2013) said that the retention rate of Apple is higher than Samsung at
42% for Apple and 38% for Samsung. This retention rate indicates loyalty of customers.
Regarding to brand reputation index, Apple emerged with the highest overall score (85.6) in 2011
and 85.62 in 2012.
The American Customer Satisfaction Index (ACSI) data on mobile phone satisfaction 2013 show
Apple (iPhone) comes out on top, as it does in the JD Power surveys. ACSI asked 10 questions
on the overall phone experience that looked at how customers view functions including ease of
making and receiving calls, battery life, OS and software, design, audio and video quality, and
navigation of menus and settings. The result of JD Power was performed between February and
August 2013 and measures customer satisfaction in four factors: performance (33%); physical
design (23%); features (22%); and ease of operation (22%).

Chart 7: Brand Value of Apple vs Technology Sector

Chart 8: Top 10 Brand Value 5 years Snapshot Interbrand

Table 10: ACSI Score of Cellular Telephones Source: The American Customer
Satisfaction Index

Chart 11: JD Power customer satisfaction survey 2013

We can conclude that by applying the customer relationship strategy your business, will get
successes to increase the customer commitment to the brand because their strategy is mainly
focus to satisfy the customer want and build long term relationship with them. That is the main
factor to build the customers loyalty. A clear and right segment can help you define exactly who is
your customer, what is their insight during their cycle life. Therefore, the role of customer
segmentation is important. However, in fact, transactional marketing strategy has
own role. End of the day, you should define clearly business current status and long
term objectives, decision of marketing strategy will be depend on that.