Customers weigh all of the potential benefits of a product and discount all of the costs associated with the product and they formulate the perceived value decide whether it is worth buying.
Know your customer and understand their needs and motivations- know the answers to questions such as…What attributes do they value in a product?Are their values changing over time?Is buyer buying for personal use or on behalf of their company?
The value proposition is the entire bundle of benefits that a company promisesThe value delivery system includes all of the experiences that customer will have obtaining and using your product.
Total customer satisfactionGood companies raise expectations of consumers and meet or exceed their expectations in order to satisfy & please their customers.
Monitoring satisfactionCompanies used to monitor satisfaction by asking them to fill out surveys or participate in focus groups. Companies would pay mystery shoppers to report on their customer services experience in restaurants and in stores. quickly become antiquated because of a user-generated website created in 2004.
Yelp!Yelp is influential due to its popularity- yelp.com has over 1.6 million daily visitorsCustomers give 1-5 stars on their experience. The way to avoid bad yelp reviews is to provided high quality
Quality- we all know quality when we see and experience it.I think this quote from Jack Welch former chairman for GE says it best:
Impact-Higher levels of quality result in higher levels of customer satisfaction and allow for a higher price pointSo- there is a positive correlation btn quality and company profitability
Cultivating customer relationshipsCustomer relationship management is the process of knowing and managing detailed information about individual customersCustomer touch points allow you to touch your customer and utilize the individual knowledge about them
The process for One to One Mktg:Know WHO your prospective customers are- don’t go after everyone! Differentiate your customers by how much they mean to your bottom line Build stronger relationships by Customize your message and services to meet their individualism
So- you have done all this great marketing and have attractive lots of customers… now you need to keep them!In order to keep a business profitable, you need to keep your customers from defecting and going to your competition. When customers defect and return and potentially defect again… it is called customer churn. In order to reduce churn- companies must:Understand their retention rateUnderstand why customers are leaving and how to find potential fixes.
Retention DynamicsTHEY SHOULD Know the cost of the lost customer versus the cost of fixing the reason why they left and chose the smaller cost It costs 5X more to acquire a new customer than retain an old one.
Throughout all of the previous slides that we have reviewed- we are building loyalty:We know how our customer makes decisions, the importance of a quality product, monitoring customer satisfaction and gaining and retaining customers through marketing.
Companies need to interact with their customers to form strong bonds – this included listen to feedback and reacting to it in a timely manner.
Smart companies are rewarding their frequent customers w/ free benefits such as free flights on airlines or free stays at hotels.The benefits are incentive for customers to build loyalty and become repeat customers.
Companies use databases for mtkg to:Organize and track past customersIdentify new, prospective customersDeepen customer loyalty by sending reminders and specials
Hoster ignite ch 5
chapter 5:creating customer satisfaction, value and loyalty<br />
how do customers make decisions?<br />total customer benefit – customer cost<br />= customer perceived value (cpv)<br />
know your customer<br />understand their needs and motivations<br />
delivering high customer value<br />value proposition<br /> value delivery system<br />
total customer satisfaction<br />expectations<br />
quality<br />“quality is our best assurance of customer allegiance, our strongest defense against foreign competition, and the only path to sustained growth and earnings.”<br /> -John F. Welch<br />