Top 10 Ch 5 Concepts: Creating Customer Value, Satisfaction, & Loyalty

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Top 10 Ch 5 Concepts: Creating Customer Value, Satisfaction, & Loyalty

  1. 1. Ch 5: Creating Customer Value Satisfaction, and Loyalty<br />TOP 10 Learning Concepts <br />Francine Luanne M Collantes<br />September 2011<br />http://francollantes.blogspot.com<br />1<br />
  2. 2. Outline:Creating Loyal Customers is at the HEART of every business<br />Foundations of Customer Value, Satisfaction, & Loyalty<br />Transforming the customer “Experience” into a RELATIONSHIP<br />Know thy Customer<br />http://francollantes.blogspot.com<br />2<br />
  3. 3. Outline:Creating Loyal Customers is at the HEART of every business<br />Foundations of Customer Value, Satisfaction, & Loyalty<br />Value-Maximizers<br />Value Proposition<br />Loyalty<br />Satisfaction<br />Product and Service Quality<br />Customer Profitability<br />http://francollantes.blogspot.com<br />3<br />
  4. 4. Outline:Creating Loyal Customers is at the HEART of every business<br />Transforming the customer “Experience” into a RELATIONSHIP<br />Cultivating Long-term Customers<br />Attracting and Retaining Customers<br />http://francollantes.blogspot.com<br />4<br />
  5. 5. Outline:Creating Loyal Customers is at the HEART of every business<br />Know thy Customer<br />Customer Databases and Database Marketing<br />Database Warehouses and Data Mining<br />http://francollantes.blogspot.com<br />5<br />
  6. 6. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers<br />Customer Perceived Value<br />Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009<br />http://francollantes.blogspot.com<br />6<br />
  7. 7. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers<br />Total Customer Benefit<br />Product<br />Customer Perceived Value<br />=<br />Service<br />Personnel<br />Image<br />Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009<br />http://francollantes.blogspot.com<br />7<br />
  8. 8. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers<br />Total Customer Benefit<br />Total Customer Cost<br />-<br />Product<br />Monetary<br />Customer Perceived Value<br />=<br />Service<br />Time<br />Personnel<br />Energy<br />Image<br />Psychological<br />Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009<br />http://francollantes.blogspot.com<br />8<br />
  9. 9. Example 1:Customers tend to be Value-Maximizers<br />http://francollantes.blogspot.com<br />9<br />
  10. 10. Example 1:Customers tend to be Value-Maximizers<br /><ul><li>Inasal = Visayan for barbeque
  11. 11. Uses own marinade concoction
  12. 12. Bamboo stick skewers
  13. 13. Encourages “kinamot” (eating with bare hands)
  14. 14. Pinoy tradition, culture, and home
  15. 15. Offers hearty meal
  16. 16. Great value for money</li></ul>http://francollantes.blogspot.com<br />10<br />
  17. 17. Concept 2: FOUNDATIONSValue Proposition Formula = Benefits + Promise to deliver<br />Why should the customer purchase your product?<br />http://francollantes.blogspot.com<br />11<br />
  18. 18. Example 2:Value Proposition Formula = Benefits + Promise to deliver<br />http://francollantes.blogspot.com<br />12<br />
  19. 19. Concept 3: FOUNDATIONSConsumers have varying degrees of loyalty to specific brands, stores, and companies<br />Loyalty<br /><ul><li>Repeat purchase
  20. 20. Repeat patronage</li></ul>http://francollantes.blogspot.com<br />13<br />
  21. 21. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies<br />http://francollantes.blogspot.com<br />14<br />
  22. 22. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies<br />vs<br />http://francollantes.blogspot.com<br />15<br />
  23. 23. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies<br />vs<br />More customers are still found to go to SM to purchase varying needs<br />http://francollantes.blogspot.com<br />16<br />
  24. 24. Concept 4: FOUNDATIONSCustomers satisfaction is defined by matching both expectations and performance<br />Satisfaction<br /><ul><li>Feelings of pleasure or disappointment
  25. 25. Basis:
  26. 26. Perceived performance
  27. 27. Expectations</li></ul>http://francollantes.blogspot.com<br />17<br />
  28. 28. Example 4:Customers satisfaction is defined by matching both expectations and performance<br />March 2011: Toyota announced recall of 8,830 units of both Fortuner and Innova due to over-responsive brake systems, or improperly-mounted camber bolts and seats.<br />Dealership got affected so Toyota Philippines had to issue a statement that cars sold here are not affected<br />http://francollantes.blogspot.com<br />18<br />
  29. 29. Concept 5: FOUNDATIONSSatisfaction will also depend on product or service quality<br />Quality<br /><ul><li>Totality of:
  30. 30. Features
  31. 31. Characteristics
  32. 32. Ability to satisfy stated or implied needs</li></ul>“It’s everyone’s job!<br />http://francollantes.blogspot.com<br />19<br />
  33. 33. Example 5:Satisfaction will also depend on product or service quality<br />http://francollantes.blogspot.com<br />20<br />
  34. 34. Example 5:Satisfaction will also depend on product or service quality<br />Winner of the ff:<br />2009 Asian Livestock Industry Award<br />Ernst & Young 2010 Entrepreneur of the Year Award<br />http://francollantes.blogspot.com<br />21<br />
  35. 35. Concept 6: FOUNDATIONS150-20 Rule implies that a company could improve its profits by “firing” its worst customers.<br />Customer Lifetime Value<br /><ul><li>Measure of customer profitability
  36. 36. Used to develop long-term perspective</li></ul>http://francollantes.blogspot.com<br />22<br />
  37. 37. Concept 6: FOUNDATIONS150-20 Rule implies that a company could improve its profits by “firing” its worst customers.<br />Customer Lifetime Value<br /><ul><li>Marketing metric for:
  38. 38. Customer loyalty
  39. 39. Customer selection
  40. 40. Long-term planning
  41. 41. Resource allocation</li></ul>http://francollantes.blogspot.com<br />23<br />
  42. 42. Concept 6: FOUNDATIONS150-20 Rule implies that a company could improve its profits by “firing” its worst customers.<br />Properties are foreclosed properties from bad creditors<br />http://francollantes.blogspot.com<br />24<br />
  43. 43. Concept 7: Experience to RELATIONSHIPMaximizing customer value means cultivating Long-term Customer Relationships<br />Customer Relationship Management (CRM)<br /><ul><li>Uses detailed information
  44. 44. About customers
  45. 45. Individual
  46. 46. “Touch points”
  47. 47. Maximizes Loyalty</li></ul>http://francollantes.blogspot.com<br />25<br />
  48. 48. Example 7: Experience to RELATIONSHIPMaximizing customer value means cultivating Long-term Customer Relationships<br />+<br />=<br />Partnership:<br />CRM Solution for Call Center Operations<br />"Knowing what the customers want and how they want to be treated are important factors to gaining competitive advantage in a very tough banking market" <br />- Lydia King, First Vice President for IT Operations<br />http://francollantes.blogspot.com<br />26<br />
  49. 49. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />Potentials <br />http://francollantes.blogspot.com<br />27<br />
  50. 50. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />Prospects<br />Potentials <br />http://francollantes.blogspot.com<br />28<br />
  51. 51. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />First-Timers<br />Prospects<br />Potentials <br />http://francollantes.blogspot.com<br />29<br />
  52. 52. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />Patrons<br />First-Timers<br />Prospects<br />Potentials <br />http://francollantes.blogspot.com<br />30<br />
  53. 53. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />Members<br />Patrons<br />First-Timers<br />Prospects<br />Potentials <br />http://francollantes.blogspot.com<br />31<br />
  54. 54. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />Advocates<br />Members<br />Patrons<br />First-Timers<br />Prospects<br />Potentials <br />http://francollantes.blogspot.com<br />32<br />
  55. 55. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers<br />PARTNERS<br />Advocates<br />Members<br />Patrons<br />First-Timers<br />Prospects<br />Potentials <br />http://francollantes.blogspot.com<br />33<br />
  56. 56. Concept 8:The challenge is in attracting and retaining customers<br />http://francollantes.blogspot.com<br />34<br />
  57. 57. Concept 9: KNOW THY CUSTOMERMarketers must know their customers<br />Customer Database<br /><ul><li>Organized collection of individual information
  58. 58. Current
  59. 59. Accessible
  60. 60. Actionable</li></ul>http://francollantes.blogspot.com<br />35<br />
  61. 61. Concept 9: KNOW THY CUSTOMERMarketers must know their customers<br /><ul><li>Building
  62. 62. Maintaining
  63. 63. Used to:
  64. 64. Facilitate contact& transactions
  65. 65. Build customer relationship</li></ul>Database Marketing<br />http://francollantes.blogspot.com<br />36<br />
  66. 66. Concept 9: Marketers must know their customers<br />http://francollantes.blogspot.com<br />37<br />
  67. 67. Concept 10: KNOW THY CUSTOMERCRM requires detecting trends, segments, and individual needs<br />Data Warehouses and Data Mining<br /><ul><li>Allows business to make the PROACTIVE, KNOWLEDGE-DRIVEN DECISIONS</li></ul>http://francollantes.blogspot.com<br />38<br />
  68. 68. Concept 10: KNOW THY CUSTOMERCRM requires detecting trends, segments, and individual needs<br />WORD CLOUD<br />Customers were invited to partner and help come up with reasons why they might consider going<br />http://francollantes.blogspot.com<br />39<br />
  69. 69. Ch 5: Creating Customer Value Satisfaction, and Loyalty<br />TOP 10 Learning Concepts <br />Francine Luanne M Collantes<br />September 2011<br />http://francollantes.blogspot.com<br />40<br />

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