Top 10 concepts chapter 5
- 1. TOP 10 CONCEPTS CREATING CUSTOMER VALUE LOYALTY & SATISFACTION GWENDOLYN KU WONG ATENEO GRADUATE SCHOOL OF BUSINESS REGIS CLASS
- 2. We Create Customer Value, Loyalty and Satisfaction when: 1. Make Customer is the Center 2. Perceived Value should be Greater than Cost. 3. Live up to Promise and Expectations. 4. Performance Meets Expectations for Satisfaction. 5. Quality Supports Profitability.
- 3. We Create Customer Value, Loyalty and Satisfaction when: Satisfaction is the Goal. Empowerment is Key. Complaints is a Cornerstone for Customer Relationship. CRM supports excellent service. Customer base is strong company.
- 4. CONCEPT 1: MAKE THE CUSTOMER THE CENTER TO BE PROFITABLE 1. Holistic approach by training organization to focus on customer satisfaction. CUSTOMER CUSTOMER TOP MANAGEMENT TOP MANAGEMENT
- 5. DELL HEWLETT PACKARD SM RUSTAN’S LK GLOBAL REALTY & DEVELOPMENT CORPORATION Conscious decision to train all members of organization to make Customer No. 1 EXAMPLES
- 6. Customer has Choices Greater Benefits to Customer Customer Chooses Maximum Benefits Customer Buys Product CONCEPT 2: CUSTOMER PERCEIVED VALUE SHOULD BE GREATER THAN CUSTOMER COST TO RESULT IN A BUY DECISION. WISE BUY ? ? ? ? ?
- 7. EXAMPLES Caterpillar vs Komatsu Ateneo MBA vs La Salle Management Technology LK Global Realty: All units are finished Perceived value: no more building permit, renovation hassle Customer Cost: 1.868M ,vs 1.70M SM Grass Cost and challenge of renovation > 1.868M
- 8. CONCEPT 3 PROMISE AND EXPERIENCE MUST MATCH TO BUILD CUSTOMER VALUE AND LOYALTY Product positioning is the Promise Delivery involves the whole Organization Key Result of Delivery is the Experience Experience = Promise = VALUE VALUE = LOYALTY LOYALTY = BRAND EQUITY = REPEAT BUY
- 9. EXAMPLES BMW = Luxury & Performance Disneyland = the Disney Experience Fitness First Retro class = Retro Addicts LK Global Realty: Live in Luxury, Sleep like a Baby We are hoping to live up to this positioning Homes that are as promised To encourage repeat buys and referrals
- 10. CONCEPT 4 WHEN PERFORMANCE MEETS EXPECTATION, CUSTOMERS GAIN SATISFACTION LOW EXPECTATIONS = NO ATTRACTION HIGH EXPECTATIONS = CHANCES OF DISAPPOINTMENT EXPECTATIONS MET = SATISFACTION = BRAND LOYALTY = REPEAT BUY LOW PRICE HIGH QUALITY BRINGS BEST CUSTOMER SATISFACTION
- 11. EXAMPLES CHERY CARS: low expectation KIA = 5 YEAR WARRANTY HYUNDAI = 5 YEAR WARRANTY LK GLOBAL REALTY & DEV CORP SM GRASS LK CHERRY ORCHARD PRICE: 1.8M 1.688M AREA: 22 SQM 22 SQM BALCONY: NO YES FINISHING: SEE PICS
- 12. CONCEPT 5 TOTAL QUALITY SUPPORTS PROFITABILITY QUALITY MEETS OR EXCEEDS EXPECTATIONS = CUSTOMER SATISFACTION QUALITY SUPPORTS PREMIUM PRICING PREMIUM PRICING ACCEPTABLE ALL ARE ELEMENTS OF BRAND EQUITY
- 13. EXAMPLES Louis Vuitton Hermes Ayala Land / Ayala Developments LK Global Realty: goals: treasured homes retains equity Premium priced Pagibig homes
- 14. CONCEPT 6 CUSTOMER SATISFACTION IS THE DESIRED MARKETING TOOL LOYALTY RETENTION ACCEPTANCE OF NEW OFFERS WORD OF MOUTH ADVERTISING ALL THESE RESULT TO REPEAT BUYS
- 15. Example Disneyland – from children to grandparents Louis Vuitton – bag collection Toyota – all car categories are accepted LK Global Realty – we want to grow with our market, from 1 st homes to repeat buys
- 16. CONCEPT 7 CUSTOMER EMPOWERMENT IS KEY TODAY Internet Social Networking and Blogs Have Own Blog for Positive Reinforcement Increase Positive reviews and expectations Build a Buzz Community Create a Cause
- 17. EXAMPLES The Purse Forum – reviews all IT bags, where bag addicts find support Travelocity – all hotels are reviewed, airline prices can be compared Consumer Report USA – reviews cars, electronics, etc. Join local real estate market blogs
- 18. CONCEPT 8 CUSTOMER COMPLAINTS IS A CORNER STONE OF CUSTOMER RELATIONSHIP. Resolve customer complaints immediately Quick resolution = 95% customer retention Non resolution = gripe publicity Always reinforce the Positive Experience Customer Support
- 19. EXAMPLES AT&T customer relationship department. No questions asked. Grew out of Sprint complaints. Nieman Marcus – return and exchange allowed within 180 days. Rustan’s – credit exchange within 14 days SM Dept store – credit exchange within 7 days LK Global Realty established customer relationship department
- 20. CONCEPT 9 CRM SUPPORTS DETAILED CUSTOMER UNDERSTANDING AND EXCELLENT CUSTOMER SERVICE Gathers data at touch points. Provides one to one marketing opportunities. Increase market offerings. Increase Customer Retention and Loyalty Induces Repeat Buys
- 21. EXAMPLES Las Vegas casinos – member cards Resort World casino – free membership Philippine Airlines – Mabuhay Miles SM Rewards Card LK Global Realty: Customer Info File
- 22. CONCEPT 10 CUSTOMER BASE IS HIGH VALUE TO COMPANY. Reduce customer defection Increase longevity of customer relationship Increase offers by cross sell and up sell methods Focus efforts on High Value Customers Convert low profit customers or terminate them. Keeping a customer is cheaper.
- 23. EXAMPLES Google Skype Ebay PLDT Smart 38 Million subscribers LK Global Realty: 325 clients and 100+ agents Source of referrals and repeat buys Develop as Buyer Agents Source of New Leads
- 24. CONCLUSION We create customer value, loyalty and satisfaction when: 1. We Make the Customer the Center 2. Perceived Value is Greater than Cost 3. Promise Lives up to Expectations 4. Performance Meets Expectations 5. Quality Supports Profitability.
- 25. CONCLUSION We create customer value, loyalty and satisfaction when: Satisfaction is the Achieved Goal. Customer is Empowered. Resolved complaints build long term relationships. CRM supports excellent service. Customer base = company value.
- 26. TOP 10 CONCEPTS CREATING CUSTOMER VALUE LOYALTY & SATISFACTION GWENDOLYN KU WONG ATENEO GRADUATE SCHOOL OF BUSINESS REGIS CLASS