creating-long-term-loyalty-relationships
Download as PPT, PDF12 likes6,530 views
This document discusses creating long-term loyalty relationships with customers. It defines key concepts like customer value, satisfaction and loyalty. It also discusses how companies can maximize customer lifetime value and attract and retain customers through customer relationship management programs and databases. Specific strategies highlighted include identifying customer needs, customizing interactions, reducing defection rates and focusing efforts on high-value customers.
creating-long-term-loyalty-relationships
- 2. Chapter Questions ď§ What are customer value, satisfaction, and loyalty, and how can companies deliver them? ď§ What is the lifetime value of customers and how can marketers maximize it? ď§ How can companies attract and retain customers and cultivate strong customer relationships? ď§ What are the pros and cons of database marketing? Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-2
- 3. Harrahâs Builds Relationships Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-3
- 4. Figure 5.1 Customer-Orientations Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-4
- 5. Dell Reestablished Its Commitment to Value Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-5
- 6. What is Customer Perceived Value? ď§ Customer perceived value is the difference between the prospective customerâs evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-6
- 7. Figure 5.2 Determinants of Customer Perceived Value Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-7 Image benefit Psychological cost Personal benefit Energy cost Services benefit Time cost Product benefit Monetary cost Total customer benefit Total customer cost
- 8. Caterpillar Maximizes Customer Value Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-8
- 9. Steps in a Customer Value Analysis ď§ Identify major attributes and benefits that customers value ď§ Assess the qualitative importance of different attributes and benefits ď§ Assess the companyâs and competitorâs performances on the different customer values against rated importance ď§ Examine ratings of specific segments ď§ Monitor customer values over time Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-9
- 10. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-10 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.
- 11. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-11 Top Brands in Customer Loyalty ď§ Apple iPhone ď§ Clairol ď§ Samsung ď§ Mary Kay ď§ Grey Goose ď§ Clinique ď§ Avis ď§ Wal-Mart ď§ Google ď§ Amazon ď§ Bing ď§ J.Crew ď§ AT&T Wireless ď§ Discover Card ď§ Verizon Wireless ď§ Cheerios
- 12. Establishing Value Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-12
- 13. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-13 Measuring Satisfaction ď§ Periodic surveys ď§ Customer loss rate ď§ Mystery shoppers ď§ Minor competitive performance ď§ Strength Gaining Potential ď§ Manage/ Monitor Competitive Position
- 14. Managing Customers Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-14
- 15. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-15 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.
- 16. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-16 Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
- 17. Figure 5.3 Customer-Product Profitability Analysis Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-17
- 18. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-18 Estimating Lifetime Value
- 19. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-19 What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty.
- 20. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-20 Framework for CRM ď§ Identify prospects and customers ď§ Differentiate customers by needs and value to company ď§ Interact to improve knowledge ď§ Customize for each customer
- 21. Amyâs Maximized Word of Mouth Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-21
- 22. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-22 Attracting and Retaining Customers ď§ Reduce the rate of defection ď§ Increase longevity ď§ Enhance share of wallet ď§ Terminate low-profit customers ď§ Focus more effort on high-profit customers
- 23. Figure 5.4 The Marketing Funnel Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-23
- 24. Loyalty Programs Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-24
- 25. Database Key Concepts ď§ Customer database ď§ Database marketing ď§ Mailing list ď§ Business database ď§ Data warehouse ď§ Data mining Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-25
- 26. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-26 Using the Database ď§ To identify prospects ď§ To target offers ď§ To deepen loyalty ď§ To reactivate customers ď§ To avoid mistakes
- 27. Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-27 Donât Build a Database When ď§ The product is a once-in-a-lifetime purchase ď§ Customers do not show loyalty ď§ The unit sale is very small ď§ The cost of gathering information is too high
- 28. For Review ď§ What are customer value, satisfaction, and loyalty, and how can companies deliver them? ď§ What is the lifetime value of customers and how can marketers maximize it? ď§ How can companies attract and retain customers and cultivate strong customer relationships? ď§ What are the pros and cons of database marketing? Copyright Š 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-28
Editor's Notes
- #26: .