Building customer value , satisfaction and loyalty
- 1. Maharshi Dayanand University, Rohtak Submitted To: Submitted By: Dr. Pardeep Ahlawat Meenakshi MBA 2.2 (G) Roll no:- 325
- 3. Table of contents 1. Customer Perceived Value 2. Customer Satisfaction 3. Maximizing Customer Lifetime Value 4. Cultivating Customer Relationships 5. Building Customer Loyalty 6. Reducing Customer Defection
- 4. Customer Perceived Value Customer Perceived Value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. CPV = Total Benefits - Total cost
- 5. Determinants of Customer Perceived Value Total Customer Benefits 1. Product Benefit 2. Service Benefit 3. Personnel Benefit 4. Image Benefit Total Customer Cost 1. Monetary Cost 2. Time Cost 3. Energy Cost 4. Psychological Cost
- 6. Measurement of Customer Perceived Value 1. The expected performance of the offering before it's purchase or use 2. The actual performance i.e. perception regarding the offer after using it. Dissatisfaction Satisfaction Delight
- 7. Customer Satisfaction Satisfaction is a person's feeling of pleasure or disappointment that perceived performance ( or Outcome ) to expectations. Satisfaction = Performance - Expectations
- 8. Measuring Customer Satisfaction 1. Periodic Survey 2. Mystery Shoppers 3. Customer Complaints
- 9. Customer Lifetime Value Customer lifetime value describes the net present value of the stream of future profits, expected over the customer’s lifetime purchases.
- 10. Maximizing Customer Lifetime Value Customer Profitability Analysis is a method of finding most profitable customers and focusing on them to generate more revenue with less efforts.
- 11. Pareto Principle
- 12. Cultivating Customer Relationships Maximizing Customer value means cultivating long-term customer relationship. CRM :- Customer relationship management is a business strategy that aims to understand, manage and personalise the needs of an organisation current and potential customers.
- 13. Customer Loyalty Customer Loyalty refers to the behaviour of Customer who are repeated buyers of a particular product and those who give good ratings, positive feedback and recommendations to the company.
- 14. Building Customer Loyalty ● Communication ● Customer Service ● Employee Loyalty ● Flexible ● Discount/Incentives
- 15. Reducing Customer Defection There are five main steps a company can take to reduce the Defection rate. 1. The company must define and measure it's retention rate. 2. The company must distinguish the causes of customer attrition and identify those that can be managed better.
- 16. 3. The company needs to estimate hi much profit it uses when it loses customers. 4. The company needs to figure out how much it would cost to reduce the Defection rate. 5. And finally, nothing beats listening to customers.
- 17. Thank- You