Your SlideShare is downloading. ×
Kotler mm 13e_basic_05
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Kotler mm 13e_basic_05

3,060
views

Published on

Published in: Education

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,060
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
196
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 5 Creating Customer Value, Satisfaction, and Loyalty Marketing Management, 13th ed
  • 2. Chapter Questions • What are customer value, satisfaction, and loyalty, and how can companies deliver them? • What is the lifetime value of customers? • How can companies cultivate strong customer relationships? • How can companies both attract and retain customers? • What is database marketing? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-2
  • 3. What is Customer Perceived Value? Customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-3
  • 4. Figure 5.2 Determinants of Customer Perceived Value Total customer benefit Total customer cost Product benefit Monetary cost Services benefit Time cost Personal benefit Energy cost Image benefit Psychological cost Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-4
  • 5. Steps in a Customer Value Analysis • Identify major attributes and benefits that customers value • Assess the qualitative importance of different attributes and benefits • Assess the company’s and competitor’s performances on the different customer values against rated importance • Examine ratings of specific segments • Monitor customer values over time Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-5
  • 6. 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-6
  • 7. Top Brands in Customer Loyalty • Avis • Land’s End • Google • Coors • L.L. Bean • Hyatt • Samsung (mobile • Marriott phones) • Verizon • Yahoo! • KeySpan Energy • Canon (office • Miller Genuine Draft copiers) • Amazon Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-7
  • 8. Measuring Satisfaction • Periodic surveys • Customer loss rate • Mystery shoppers • Monitor competitive performance Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-8
  • 9. 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-9
  • 10. Maximizing Customer Lifetime Value • Customer profitability • Customer equity • Lifetime value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-10
  • 11. Estimating Lifetime Value • Annual customer revenue: $500 • Average number of loyal years: 20 • Company profit margin: 10 • Customer lifetime value: $1000 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-11
  • 12. What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touchpoints to maximize customer loyalty. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-12
  • 13. Framework for CRM • Identify prospects and customers • Differentiate customers by needs and value to company • Interact to improve knowledge • Customize for each customer Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-13
  • 14. CRM Strategies • Reduce the rate of defection • Increase longevity • Enhance share of wallet • Terminate low-profit customers • Focus more effort on high-profit customers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-14
  • 15. Customer Retention • Acquisition of customers can cost 5 times more than retaining current customers. • The average customer loses 10% of its customers each year. • A 5% reduction to the customer defection rate can increase profits by 25% to 85%. • The customer profit rate increases over the life of a retained customer. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-15
  • 16. Steps for Creating Customer Evangelists • Customer plus-delta • Napsterize your knowledge • Build the buzz • Create community • Make bite-size chunks • Create a cause Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-16
  • 17. Database Key Concepts • Customer • Business database database • Database • Data warehouse marketing • Data mining • Mailing list Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-17
  • 18. Using the Database • To identify prospects • To target offers • To deepen loyalty • To reactivate customers • To avoid mistakes Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-18
  • 19. Don’t Build a Database When • The product is a once-in-a-lifetime purchase • Customers do not show loyalty • The unit sale is very small • The cost of gathering information is too high Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-19
  • 20. Perils of CRM • Implementing CRM before creating a customer strategy • Rolling out CRM before changing the organization to match • Assuming more CRM technology is better • Stalking, not wooing, customers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-20
  • 21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-21