Markman visual model creating customer value, satisfaction & loyalty by raymund c. piñon
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This document discusses connecting with customers through creating customer value, satisfaction, and loyalty. It defines key concepts like customer lifetime value, cultivating strong customer relationships, attracting and retaining customers through database marketing. The goal is to understand how to win customers and beat competition by delivering superior customer value, building customer satisfaction and loyalty through understanding their needs and expectations.
Markman visual model creating customer value, satisfaction & loyalty by raymund c. piñon
- 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. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
- 10. Total Customer Satisfaction Perceived Buyer’s Performance Expectation Satisfaction _ =
- 11. Total Customer Satisfaction Satisfaction Depends on Quality
- 12. 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 >
- 13. Total Customer Satisfaction Influence of Customer Satisfaction
- 14. Total Customer Satisfaction Monitoring Customer Satisfaction Periodic Surveys Customer Loss Rate Mystery Shopper Competitors’ Performance
- 15. Total Customer Satisfaction Satisfaction is Related to Loyalty
- 16. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
- 17. Customer Lifetime Value Art of attracting and keeping profitable customers
- 18. Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
- 19. 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
- 20. Maximizing Customer Lifetime Value Customer Profitability Analysis Customer Portfolios • acquaintances • friends Activity-Based Costing • partners Or • Diversify portfolio to manage risk
- 21. 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
- 23. Customer Relationship Management Focuses on attracting and keeping right customers, and satisfying their needs Process of carefully managing detailed information about individual customers and all customer “touch points” to maximize customer loyalty
- 24. 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
- 25. 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
- 26. Customer Relationship Management Attracting and Retaining Customers Reducing Defections Retention Dynamics
- 27. Partners Advocates Members Clients Repeat Inactive or Customer Ex-Customers 1st-Time Customer Prospects Disqualified Potentials Prospects
- 28. Customer Relationship Management Building Customer Loyalty Interacting with Customers Creating Loyalty Programs Personalizing Marketing Creating Institutional Ties
- 29. Customer Database and Database Management Customer Database Data Warehousing Data Mining
- 30. Customer Database and Database Management Choose which customers Identify prospects receive a particular offer Deepen loyalty Reactivate customer purchases Avoid mistakes
- 31. 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
- 32. Win Customers, Beat Competition Customer Lifetime Value Satisfaction Equity = Profitability + Lifetime Value Perceived Expectation Benefits Customer Relationship Management B - C = Attract and Retain Customers DV Customer Database & Database Mgt Value Proposition Value Delivery System Customer Value Loyalty