Class 10
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The document discusses key concepts related to customer value, satisfaction, loyalty and relationship management. It provides definitions of customer perceived value, loyalty and quality. It also lists determinants of customer perceived value and steps in a customer value analysis. Furthermore, it discusses frameworks for customer relationship management (CRM) and strategies to focus on CRM, retain customers, and create customer evangelists.
Class 10
- 1. Creating Customer Value, Satisfaction, and Loyalty
- 2. HDFC Offers an Assortment of Services to Satisfy its Customers
- 4. What is 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.
- 5. Determinants of Customer Perceived Value Image benefit Psychological cost Personal benefit Energy cost Services benefit Time cost Product benefit Monetary cost Total customer benefit Total customer cost
- 6. Steps in a Customer Value Analysis Identify major attributes and benefits that customers value Assess the qualitative importance of different attributes and benefits Assess the company’s and competitor’s performances on the different customer values against rated importance Examine ratings of specific segments Monitor customer values over time
- 7. What is Loyalty? Loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.
- 8. Top Brands in Customer Loyalty Avis Google L.L. Bean Samsung (mobile phones) Yahoo! Canon (office copiers) Land’s End Coors Hyatt Marriott Verizon KeySpan Energy Miller Genuine Draft Amazon
- 9. The Value Proposition The whole cluster of benefits the company promises to deliver
- 10. Measuring Satisfaction Periodic Surveys Customer Loss Rate Mystery Shoppers Monitor Competitive Performance
- 11. J.D. Power Rates Customer Satisfaction
- 12. What is Quality? Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
- 13. Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
- 14. The 150 – 20 Rule
- 16. Estimating Lifetime Value Annual customer revenue: Rs.500 Average number of loyal years: 20 Company profit margin: 10% Customer lifetime value: Rs.1000
- 17. What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touchpoints to maximize customer loyalty.
- 18. Framework for CRM Identify prospects and customers Differentiate customers by needs and value to company Interact to improve knowledge Customize for each customer
- 19. Building a Relationship with Rural Consumers Challenges due to lack of technology and resources Personal relationship between buyer and seller for ages SBI Tiny initiative was aimed at starting a relationship with an eye on future profits Aadhaar offers home delivery of agri-inputs to villagers in busy sowing season
- 20. CRM Strategies Reduce the rate of defection Increase longevity Enhance “share of wallet” Terminate low-profit customers Focus more effort on high-profit customers
- 21. Focus on CRM
- 22. Customer Retention Acquisition of customers can cost five times more than retaining current customers. The average customer loses 10% of its customers each year. A 5% reduction to the customer defection rate can increase profits by 25% to 85%. The customer profit rate increases over the life of a retained customer.
- 23. The Customer Development Process Prospects Suspects Disqualified First-time customers Repeat customers Clients Members Partners Ex-customers
- 24. Steps for Creating Customer Evangelists Customer plus-delta Napsterize your knowledge Build the buzz Create community Make bite-size chunks Create a cause
- 25. Database Key Concepts Customer database Database marketing Mailing list Business database Data warehouse Data mining
- 26. Using the Database To identify prospects To target offers To deepen loyalty To reactivate customers To avoid mistakes
- 27. Don’t Build a Database When The product is a once-in-a-lifetime purchase Customers do not show loyalty The unit sale is very small The cost of gathering information is too high
- 28. Perils of CRM Implementing CRM before creating a customer strategy Rolling out CRM before changing the organization to match Assuming more CRM technology is better Stalking, not wooing, customers
- 29. Marketing Debate Online vs. Offline Privacy? Take a position: Privacy is a bigger issue in the online world than in the offline world. or 2. Consumers receive more benefit than risk from marketers knowing their personal information.
- 30. Marketing Discussion Choose a business and show how you would go about developing a quantitative formulation that captures the concept of customer lifetime value.