Visual Model: Creating        Customer Value,Satisfaction and Loyalty               Chapter 5           Raymund C. Piñon  ...
Rationale   The 3rd important task of Modern Marketing:
ObjectivesAt the end of the presentation, the participants shouldbe able to understand concepts related to the 3rdmarketin...
To Win Customers and      ….Beat Competition!!!                Customer-centeredX Traditional
To Win Customers and      ….Beat Competition!!!                       Total                     Customer                  ...
Customers’ Perceived ValueCustomers are value maximizers  Total          Total           Delivered Benefits        Costs  ...
Steps in Customer Value AnalysisIdentify features & benefits                                        Assess company’sthat c...
Delivering High Customer Value  Value Proposition   Value Delivery System
To Win Customers and      ….Beat Competition!!!                       Total                     Customer                  ...
Total Customer Satisfaction    Perceived          Buyer’s   Performance       Expectation       Satisfaction              ...
Total Customer SatisfactionSatisfaction Depends on Quality
What is Quality?   Totality of features and characteristics of products or services    that satisfy stated or implied nee...
Total Customer SatisfactionInfluence of Customer Satisfaction
Total Customer SatisfactionMonitoring Customer Satisfaction             Periodic Surveys                                  ...
Total Customer SatisfactionSatisfaction is Related to Loyalty
To Win Customers and      ….Beat Competition!!!                       Total                     Customer                  ...
Customer Lifetime ValueArt of attracting and keeping profitable customers
Maximizing Customer Lifetime Value                    Customer Profitability  Customer Equity                            L...
Maximizing Customer Lifetime ValueCustomer Profitability Analysis                C1           C2         C3               ...
Maximizing Customer Lifetime ValueCustomer Profitability Analysis                                  Customer Portfolios    ...
Maximizing Customer Lifetime ValueMeasuring Customer Lifetime Value                                Year   Year   Year   Ye...
Cultivating Customer Relationships
Customer Relationship ManagementFocuses on attracting and keeping right customers,and satisfying their needs              ...
Customer Relationship Management  Key to retaining customers is relationship marketing                                    ...
Customer Relationship ManagementIncreasing   Value of Customer Base        1. Reduce customer defection                   ...
Customer Relationship ManagementAttracting and Retaining Customers         Reducing Defections         Retention Dynamics
Partners                                                                Advocates                                         ...
Customer Relationship ManagementBuilding Customer Loyalty          Interacting with Customers   Creating Loyalty Programs ...
Customer Database andDatabase ManagementCustomer Database                    Data Warehousing                             ...
Customer Database andDatabase Management                         Choose which customersIdentify prospects       receive a ...
SummaryThe 3rd important marketing task ofCONNECTING WITH CUSTOMERS1.   Customer Value, Customer Satisfaction,     Custome...
Win Customers, Beat Competition                       Customer Lifetime Value                          Satisfaction       ...
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Markman visual model creating customer value, satisfaction & loyalty by raymund c. piñon

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Markman visual model creating customer value, satisfaction & loyalty by raymund c. piñon

  1. 1. Visual Model: Creating Customer Value,Satisfaction and Loyalty Chapter 5 Raymund C. Piñon Marketing Management V57 April 27, 2010
  2. 2. Rationale The 3rd important task of Modern Marketing:
  3. 3. ObjectivesAt the end of the presentation, the participants shouldbe able to understand concepts related to the 3rdmarketing 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. 4. To Win Customers and ….Beat Competition!!! Customer-centeredX Traditional
  5. 5. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
  6. 6. Customers’ Perceived ValueCustomers are value maximizers Total Total Delivered Benefits Costs Value Product Money Service Time Personnel Effort Image Psychological
  7. 7. Steps in Customer Value AnalysisIdentify features & benefits Assess company’sthat 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. 8. Delivering High Customer Value Value Proposition Value Delivery System
  9. 9. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
  10. 10. Total Customer Satisfaction Perceived Buyer’s Performance Expectation Satisfaction _ =
  11. 11. Total Customer SatisfactionSatisfaction Depends on Quality
  12. 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. 13. Total Customer SatisfactionInfluence of Customer Satisfaction
  14. 14. Total Customer SatisfactionMonitoring Customer Satisfaction Periodic Surveys Customer Loss Rate Mystery Shopper Competitors’ Performance
  15. 15. Total Customer SatisfactionSatisfaction is Related to Loyalty
  16. 16. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
  17. 17. Customer Lifetime ValueArt of attracting and keeping profitable customers
  18. 18. Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
  19. 19. Maximizing Customer Lifetime ValueCustomer 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. 20. Maximizing Customer Lifetime ValueCustomer Profitability Analysis Customer Portfolios • acquaintances • friends Activity-Based Costing • partners Or • Diversify portfolio to manage risk
  21. 21. Maximizing Customer Lifetime ValueMeasuring Customer Lifetime Value Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7Number of CustomersRevenue per CustomerVariable Cost per CustomerMargin per CustomerAcquisition Cost per CustomerTotal Cost or ProfitPresent Value
  22. 22. Cultivating Customer Relationships
  23. 23. Customer Relationship ManagementFocuses 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. 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 company3. Interact with individual customers to 4. Customize products, services improve knowledge about needs and and messages to each customer build stronger relationships
  25. 25. Customer Relationship ManagementIncreasing 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. 26. Customer Relationship ManagementAttracting and Retaining Customers Reducing Defections Retention Dynamics
  27. 27. Partners Advocates Members Clients Repeat Inactive or Customer Ex-Customers 1st-Time Customer Prospects DisqualifiedPotentials Prospects
  28. 28. Customer Relationship ManagementBuilding Customer Loyalty Interacting with Customers Creating Loyalty Programs Personalizing Marketing Creating Institutional Ties
  29. 29. Customer Database andDatabase ManagementCustomer Database Data Warehousing Data Mining
  30. 30. Customer Database andDatabase Management Choose which customersIdentify prospects receive a particular offer Deepen loyalty Reactivate customer purchases Avoid mistakes
  31. 31. SummaryThe 3rd important marketing task ofCONNECTING WITH CUSTOMERS1. Customer Value, Customer Satisfaction, Customer Loyalty and how we deliver them2. Lifetime value of customers3. How companies cultivate strong customer relationships4. How companies attract and retain customers5. Database marketing
  32. 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 ValueProposition Value Delivery System Customer Value Loyalty
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