Briefer on Customer Value, Satisfaction, Loyalty, Retention, and Relationship Management (from Kotler, Keller 14th edition)

1. CREATING LONG-
TERM
LOYALTY
RELATIONSHIPS
Ciela Cayton
September 18, 2013

2. OUTLINE
1. HOW TO BUILD CUSTOMER VALUE,
SATISFACTION, AND LOYALTY
a. Customers in the Organization Chart
b. Customer Perceived Value
c. Measuring Satisfaction
2. HOW TO MAXIMIZE CUSTOMER
LIFETIME VALUE
a. Customer Profitability
3. HOW TO CULTIVATE CUSTOMER
RELATIONSHIPS
a. Customer Relationship Management
b. CRM Strategies

3. CUSTOMER VALUE, SATISFACTION,
AND LOYALTY

4. 1. TRADITIONAL VS. CUSTOMER-ORIENTED
ORGANIZATION CHART
TRADITIONAL ORG CHART CUSTOMER-ORIENTED ORG CHART
PRESIDENT/CEO
VICE PRESIDENTS
PRESIDENT/CEO
VICE PRESIDENTS
MANAGERS
DIVISION CHIEFS
MANAGERS
DIVISION CHIEFSACCOUNT
OFFICERS
ACCOUNT
OFFICERS
BUYERS
BUYERS
BUYERS
BUYERS

5. 2. CUSTOMER-PERCEIVED VALUE
Customer-
Perceived
Value
Total
Customer
Benefit
Total
Customer
Cost
Product
Benefit
Monetary
Cost
Services
Benefit
Time
Cost
Personnel
Benefit
Energy
Cost
Image
Benefit
Psychological
Cost
Benefits A B Costs A B
Customer P100 P50 Monetary P90 P35
Services P20 P20 Time P10 P30
Personnel P30 P30 Energy P30 P40
Image P100 P50 Psychological P10 P20
Total P250 P150 Total P140 P125
CPV of A = (P250-P140) = P110
CPB of B = (P150-P125) = P25
Choose Product A

6. 3. MEASURING SATISFACTION
HONDA CARS’
PERIODIC CUSTOMER
SURVEY
HONDA CARS’
PERIODIC CUSTOMER
SURVEY
BOOK BUYER/
CLIENT REVIVAL
PHONE BRIGADE
BOOK BUYER/
CLIENT REVIVAL
PHONE BRIGADE
SAN MIGUEL’S
MYSTERY SHOPPER
SAN MIGUEL’S
MYSTERY SHOPPER
COMPETITIVE WATCHCOMPETITIVE WATCH

7. MAXIMIZING CUSTOMER
LIFETIME VALUE

8. April Marisse Adriana
TJ Hotdogs + + + Highly
Profitable
Purefoods
Corned Beef
+ Profitable
Magnolia Oil - Unprofitable
Magnolia
Pancake
- - Highly
Unprofitable
Mixed-bag
customer
High-profit
customer
Losing
customer
4. CUSTOMER PROFITABILITY

9. CULTIVATING CUSTOMER
RELATIONSHIPS

10. 5. CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) FRAMEWORK
1. Gathering of contacts from all touch points (mailing
lists, calling cards, inquiries)
1. Gathering of contacts from all touch points (mailing
lists, calling cards, inquiries)
2. Segregate clients between patrons, donors, sponsors,
volunteers
2. Segregate clients between patrons, donors, sponsors,
volunteers
3. Email specific invitations to each type of “partner”
(to donate, to attend/participate in an event, to sponsor, to
volunteer)
3. Email specific invitations to each type of “partner”
(to donate, to attend/participate in an event, to sponsor, to
volunteer)
4. Delegate personal contact method / implementation
for support follow-up to appropriate department
4. Delegate personal contact method / implementation
for support follow-up to appropriate department

11. 6. CRM STRATEGIES
P & G: Face-to-
face
merchandising
promos
P & G: Face-to-
face
merchandising
promos
Ayala Foundation:
Donor Retention
Program
Ayala Foundation:
Donor Retention
Program
A-Deals: Ayala-
linked discounts
and purchase
bundles
A-Deals: Ayala-
linked discounts
and purchase
bundles
San Mig Coffee: 10
+ 1 promo
San Mig Coffee: 10
+ 1 promo
BPI: Preferred
Clients rewards
(exclusive
invitations,
promos, and gifts)
BPI: Preferred
Clients rewards
(exclusive
invitations,
promos, and gifts)

12. CREATING LONG-TERM
LOYALTY RELATIONSHIPS
Ciela Cayton
September 18, 2013
END