Markma Group 4 Chapter 5-Customer Value, Satisfaction and Loyalty
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The document discusses how companies can create customer value, satisfaction, and loyalty. It explains that customer value is determined by assessing the benefits customers receive versus the costs they incur. Companies can also deliver customer satisfaction by meeting or exceeding expectations, and monitor satisfaction through surveys. Customer loyalty, which is important for retention, can be developed through relationship marketing and customer relationship management programs that identify customers, interact with them, and customize offerings.
Markma Group 4 Chapter 5-Customer Value, Satisfaction and Loyalty
- 1. Visual Model: Creating Customer Value, Satisfaction and Loyalty Chapter 5 Raymund C. Piñon Marketing Management V57 April 27, 2010
- 2. Rationale The 3rd important task of Modern Marketing:
- 3. Objectives At the end of the presentation, the participants should be able to understand concepts related to the 3rd marketing task of CONNECTING WITH CUSTOMERS 1. Customer Value, Customer Satisfaction, Customer Loyalty and how we deliver them? 2. What is the lifetime value of customers? 3. How can companies cultivate strong customer relationships? 4. How can companies both attract and retain customers? 5. What is database marketing?
- 4. To Win Customers and ….Beat Competition!!! Customer-centered X Traditional
- 5. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
- 6. Customers’ Perceived Value Customers are value maximizers Total Total Delivered Benefits Costs Value Product Money Service Time Personnel Effort Image Psychological
- 7. Steps in Customer Value Analysis Identify features & benefits Assess company’s that customers value Assess qualitative importance and competitors’ of attributes & benefits performance on different values against rated performance Examine ratings of specific segments Monitor customer values over time
- 8. Delivering High Customer Value Value Proposition Value Delivery System
- 9. Total Customer Satisfaction Perceived Buyer’s Performance Expectation Satisfaction _ =
- 10. Total Customer Satisfaction Satisfaction is Related to Loyalty
- 11. Total Customer Satisfaction Influence of Customer Satisfaction
- 12. Total Customer Satisfaction Monitoring Customer Satisfaction Periodic Surveys Customer Loss Rate Mystery Shopper Competitors’ Performance
- 13. Total Customer Satisfaction Satisfaction Will Also Depends on Quality
- 14. What is Quality? Totality of features and characteristics of products or services that satisfy stated or implied needs Product or Service Expectations Meets or exceeds = or >
- 15. Customer Lifetime Value Art of attracting and keeping profitable customers
- 16. Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
- 17. Maximizing Customer Lifetime Value Customer Profitability Analysis C1 C2 C3 Highly P1 + + + profitable product Profitable P2 + product Unprofitable P3 - - product Highly P4 - unprofitable product High-profit Mixed-bag Losing customer customer customer
- 18. Maximizing Customer Lifetime Value Customer Profitability Analysis Customer Portfolios • acquaintances Activity-Based Costing • friends • partners
- 19. Maximizing Customer Lifetime Value Measuring Customer Lifetime Value Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7 Number of Customers Revenue per Customer Variable Cost per Customer Margin per Customer Acquisition Cost per Customer Total Cost or Profit Present Value
- 21. Customer Relationship Management Focuses on attracting and keeping right customers, and satisfying their needs
- 22. Customer Relationship Management Key to retaining customers is relationship marketing 2. Differentiate customers in terms of: 1. Identify prospects and customers a. Their needs b. Their value to your company 3. Interact with individual customers to 4. Customize products, services improve knowledge about needs and and messages to each customer build stronger relationships
- 23. Customer Relationship Management Increasing Value of Customer Base 1. Reduce customer defection 2. Increase longevity of relationship 3. Enhance growth potential of each customer 4. Make low-profit customers profitable or weed out 5. Focus on high-value customers
- 24. Customer Relationship Management Attracting and Retaining Customers Reducing Defections Retention Dynamics
- 25. Partners Advocates Members Clients Repeat Inactive or Customer Ex-Customers 1st-Time Customer Prospects Disqualified Potentials Prospects
- 26. Customer Relationship Management Building Customer Loyalty Interacting with Customers Creating Loyalty Programs Personalizing Marketing Creating Institutional Ties
- 27. Customer Database and Database Management Customer Database Data Warehousing Data Mining
- 28. Customer Database and Database Management Choose which customers Identify prospects receive a particular offer Deepen loyalty Reactivate customer purchases Avoid mistakes
- 29. Summary The 3rd important marketing task of CONNECTING WITH CUSTOMERS 1. Customer Value, Customer Satisfaction, Customer Loyalty and how we deliver them 2. Lifetime value of customers 3. How companies cultivate strong customer relationships 4. How companies attract and retain customers 5. Database marketing
- 30. Win Customers, Beat Competition Customer Lifetime Value Satisfaction Equity = Profitability + Lifetime Value Perceived Expectation Benefits Customer Relationship Management Attract and Retain Customers Customer Database & Database Mgt Value Proposition Value Delivery System Customer Value Loyalty
- 31. Creating Customer Value, Satisfaction and Loyalty KRISTOFFER Z. JONGCO APRIL 27, 2012
- 32. Objective: How is this created? Through customer value Steps in customer value analysis? Through customer satisfaction The CRM Framework? Through customer loyalty Customer retention: using database
- 33. Customer Value What customer gets from a product & what he has to give to attain it
- 34. Steps: Customer Value Analysis Know major attributes & benefits Assess importance Assess performances Examine ratings Monitor customer values
- 35. Customer Satisfaction Measured by number of repeat and happy customers
- 36. CRM Framework Identify customers Differentiate customers Interact Customize for each customer
- 37. Customer Loyalty Measure of success of supplier in retaining a long term relationship with customer
- 38. Customer Retention Use Database -Identify/attract prospects -Target offers -Deepen loyalty -Reactivate customers -Avoid mistakes
- 39. 5 Steps: Customer Value Retention CUSTOMERS Customer Loyalty Customer Satisfaction Framework
- 40. Summary What is customer value 5 Steps in customer value analysis Customer satisfaction and framework What is customer loyalty All about customer retention Using Database
- 41. Crisostomo, Kathleen Lizette C. MARKMA Chapter 5 - Creating Customer Value, Satisfaction, and Loyalty
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- 57. Creating Customer Value, Satisfaction and Loyalty Value Quality Perceived by the Customer Customer sFrontline Satisfaction Customer People Loyalty Middle Managemen t Top Management Profit for the stakeholders
Editor's Notes
- #43: The CUSTOMER is now on top of the organizational hierarchy
- #44: Customer Perceived Value (CPV) = Difference between all benefits and costs of an offering and the perceived alternatives
- #45: Loyalty (dog) = 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 Quality (check) = totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
- #46: Magnet = marketing is the art of ATTRACTING and KEEPING profitable customers Profitable Customer (thumbs up) = revenue from person/household/company > company’s cost of attracting, selling and servicing Satisfaction (smiley face) = Customer Lifetime Value
- #47: C ustomer Relationship Management (Stick figure 2) = carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty
- #48: Framework for CRM: 1. Identify (eyes) prospects and customers
- #49: 2. Differentiate (nose) customers by needs and value to company
- #50: 3. Interact (smile) to improve knowledge
- #51: 4. Customize (ears) for each customer
- #52: CRM Strategies (how winning companies improve their customer base): 1. Reduce (2 hearts crossed out) the rate of defection
- #53: 2. Increase (heart going up) longevity
- #54: 3 . Enhance (heart with exclamation point) share of wallet
- #55: 4. Terminate (broken heart) low-profit customers
- #56: 5. Focus more effort (heart with explosion) on high-profit customers