V49 erwin isla-chapter 5_concepts

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V49 erwin isla-chapter 5_concepts

  1. 1. CREATING CUSTOMER VALUE, SATISFACTION & LOYALTY Erwin L. Isla, M.D. MBA/H Batch 8 Top 10+ Concepts
  2. 2. OUTLINE Chapter 5 Creating Customer Value, Satisfaction, and Loyalty
  3. 3. Outline <ul><li>A. BUILDING CUSTOMER VALUE, SATISFACTION, AND LOYALTY </li></ul><ul><ul><li>1. Customer Perceived Value </li></ul></ul><ul><ul><ul><li>Concept 1 </li></ul></ul></ul><ul><ul><li>2. Total Customer Satisfaction </li></ul></ul><ul><ul><ul><li>Concept 2 </li></ul></ul></ul><ul><ul><ul><li>Concept 3 </li></ul></ul></ul>
  4. 4. Outline <ul><ul><li>3. Monitoring Satisfaction </li></ul></ul><ul><ul><ul><li>Concept 4 </li></ul></ul></ul><ul><ul><ul><li>Concept 5 </li></ul></ul></ul><ul><ul><li>4. Product and Service Quality </li></ul></ul><ul><ul><ul><li>Concept 6 </li></ul></ul></ul>
  5. 5. Outline <ul><li>B. CULTIVATING CUSTOMER RELATIONSHIPS </li></ul><ul><ul><li>1. Customer Relationship Management </li></ul></ul><ul><ul><ul><li>Concept 7 </li></ul></ul></ul><ul><ul><li>2. Attracting and Retaining Customers </li></ul></ul><ul><ul><ul><li>Concept 8 </li></ul></ul></ul><ul><ul><li>3. Building Loyalty </li></ul></ul><ul><ul><ul><li>Concept 9 </li></ul></ul></ul><ul><ul><ul><li>Concept 10 </li></ul></ul></ul>
  6. 6. Outline <ul><li>C. Customer Database and Database Marketing </li></ul><ul><ul><li>Concept 11 </li></ul></ul><ul><li>D. Summary/ Conclusion </li></ul>
  7. 7. TOP 10+ CONCEPTS Chapter 5 Creating Customer Value, Satisfaction, and Loyalty
  8. 8. Customer Perceived Value <ul><li>Based on difference between what customer gets & what he/she gives for the different choices </li></ul><ul><li>Customers are value maximizers </li></ul>
  9. 9. 1. The buyer will choose whichever he/ she thinks delivers the highest perceived value. (p. 162) <ul><li>Kotler </li></ul><ul><ul><li>Caterpillar vs. Komatsu, Volvo, Superquinn </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Pyrex, Rolex </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Asian Eye Institute (AEI) </li></ul></ul>
  10. 10. Total Customer Satisfaction <ul><li>Satisfaction – feeling of pleasure or disappointment that result from comparing a product’s perceived performance (or outcome) to expectations </li></ul>
  11. 11. 2. Raise expectations and deliver performance to match. (p. 165) <ul><li>Kotler </li></ul><ul><ul><li>Kia </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Hyundai, Bench </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Unilab (Ritemed) </li></ul></ul>
  12. 12. 3. Create a “branded customer experience”. (p. 165) <ul><li>Kotler </li></ul><ul><ul><li>Joie de Vivre Hospitality Inc., Hotel del Sol (“kind of Martha Stewart Living meets Islands Magazine”) </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Nurture Spa </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Tricare Hospitel </li></ul></ul>
  13. 13. Monitoring Satisfaction <ul><li>Periodic Surveys </li></ul><ul><li>Customer loss rate </li></ul><ul><li>Mystery buyers/ shoppers </li></ul>Strength and weakness?
  14. 14. 4. Monitor customer satisfaction regularly.(p. 165) <ul><li>Kotler </li></ul><ul><ul><li>Wachovia Securities </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Fitness First </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>St. Luke’s Medical Center, Medical City </li></ul></ul>Customer satisfaction Customer retention/ loyalty
  15. 15. Influence of Customer Satisfaction <ul><li>Internet provides avenue to praise and bad mouth a company </li></ul>
  16. 16. 5. Customer satisfaction is both a goal and a marketing tool. (p.166) <ul><li>Kotler </li></ul><ul><ul><li>Heinz, Toyota, Apple, Google (high ACSI) </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Motor Image Pilipinas </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>St. Luke’s Medical Center, MD’s </li></ul></ul>
  17. 17. Product and Service Quality <ul><li>Quality – totality of features of a product or service that bear on its ability to satisfy implied needs </li></ul><ul><li>Interconnected </li></ul>
  18. 18. 6. Quality is the key to value creation and customer satisfaction. (p. 170) <ul><li>Kotler </li></ul><ul><ul><li>General Electric, Lexus </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Levis </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Alcon Philippines, Mercury Drug </li></ul></ul>
  19. 19. Customer Relations Management (CRM) <ul><li>Enables companies to provide excellent real-time customer service through effective use of individual account information. </li></ul>
  20. 20. 7. Manage detailed information about individual customers and customer “touch points” to maximize loyalty. (p. 173) <ul><li>Kotler </li></ul><ul><ul><li>Four Seasons Hotel, Harrah’s </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Pru Life, Philamlife </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Belo Medical Group, Calayan </li></ul></ul>
  21. 21. Attracting and Retaining Customers <ul><li>Search of new customers through media, mail, phone calls, trade shows, lists from brokers </li></ul>
  22. 22. 8. Resort to customer discounts and other promotions to retain new customers and attract new ones <ul><li>Kotler </li></ul><ul><ul><li>Citizens Bank </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Globe, Smart, PLDT </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>( medical equipment suppliers) </li></ul></ul>
  23. 23. Building Loyalty <ul><li>Strong, tight connection to customers </li></ul><ul><li>Key to long-term marketing success </li></ul><ul><li>Includes retention-building activities </li></ul>
  24. 24. 9. Listening to customers is crucial to customer relationship management. (p. 178) <ul><li>Kotler </li></ul><ul><ul><li>MBNA, Deere & Company, Chicken of the Sea </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Hotels </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Customer Service/ Help Desk of hospitals </li></ul></ul>
  25. 25. 10. Develop “Loyalty Programs” to build long term loyalty with high CLV customers. (p. 179) <ul><li>Kotler </li></ul><ul><ul><li>Airlines, hotels, credit card companies, Hershey’s, Harley-Davidson, Apple </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Rustan’s, SM </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Mercury Drug </li></ul></ul>
  26. 26. Customer Database and Database Marketing <ul><li>Customer database – an organized collection of comprehensive information about individual customers or prospects that is current, accessible and actionable </li></ul><ul><li>Database marketing – the process of building, maintaining, and using customer databases and other databases to contact, transact, and build customer relationships </li></ul>
  27. 27. 11. Use technology to build customer value. (p. 181) <ul><li>Kotler </li></ul><ul><ul><li>GE Plastics, Dell Computer, Ameritrade, BBC </li></ul></ul><ul><li>Local </li></ul><ul><ul><li>Banks, </li></ul></ul><ul><li>RP Medical Application </li></ul><ul><ul><li>Health cards (Cocolife) </li></ul></ul>
  28. 28. Summary <ul><li>The buyer will choose whichever he/ she thinks delivers the highest perceived value. </li></ul><ul><li>Raise expectations and deliver performance to match. </li></ul><ul><li>Create a “branded customer experience”. </li></ul><ul><li>Monitor customer satisfaction regularly. </li></ul><ul><li>Customer satisfaction is both a goal and a marketing tool. </li></ul>
  29. 29. Summary <ul><li>Quality is the key to value creation and customer satisfaction. </li></ul><ul><li>Manage detailed information about individual customers and customer “touch points” to maximize loyalty. </li></ul><ul><li>Resort to customer discounts and other promotions to retain new customers and attract new ones. </li></ul>
  30. 30. Summary <ul><li>Listening to customers is crucial to customer relationship management. </li></ul><ul><li>Develop “Loyalty Programs” to build long term loyalty with high CLV customers. </li></ul><ul><li>Use technology to build customer value. </li></ul>
  31. 31. Conclusion Know needs and wants Choices Customer relations And Loyalty
  32. 32. CREATING CUSTOMER VALUE, SATISFACTION & LOYALTY Erwin L. Isla, M.D. MBA/H Batch 8 Top 10+ Concepts THANK YOU!

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