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Top 10 concepts chapter 5 Top 10 concepts chapter 5 Presentation Transcript

  • TOP 10 CONCEPTS CREATING CUSTOMER VALUE LOYALTY & SATISFACTION GWENDOLYN KU WONG ATENEO GRADUATE SCHOOL OF BUSINESS REGIS CLASS
  • We Create Customer Value, Loyalty and Satisfaction when:
    • 1. Make Customer is the Center
    • 2. Perceived Value should be Greater than Cost.
    • 3. Live up to Promise and Expectations.
    • 4. Performance Meets Expectations for Satisfaction.
    • 5. Quality Supports Profitability.
  • We Create Customer Value, Loyalty and Satisfaction when:
    • Satisfaction is the Goal.
    • Empowerment is Key.
    • Complaints is a Cornerstone for Customer Relationship.
    • CRM supports excellent service.
    • Customer base is strong company.
  • CONCEPT 1: MAKE THE CUSTOMER THE CENTER TO BE PROFITABLE
    • 1. Holistic approach by training organization to focus on customer satisfaction.
    CUSTOMER CUSTOMER TOP MANAGEMENT TOP MANAGEMENT
      • DELL HEWLETT PACKARD
      • SM RUSTAN’S
      • LK GLOBAL REALTY & DEVELOPMENT CORPORATION
      • Conscious decision to train all members of organization to make Customer No. 1
    EXAMPLES
    • Customer has Choices
    • Greater Benefits to Customer
    • Customer Chooses Maximum Benefits
    • Customer Buys Product
    CONCEPT 2: CUSTOMER PERCEIVED VALUE SHOULD BE GREATER THAN CUSTOMER COST TO RESULT IN A BUY DECISION. WISE BUY ? ? ? ? ?
  • EXAMPLES
    • Caterpillar vs Komatsu
    • Ateneo MBA vs La Salle Management Technology
    • LK Global Realty: All units are finished
      • Perceived value: no more building permit, renovation hassle
      • Customer Cost: 1.868M ,vs 1.70M SM Grass
      • Cost and challenge of renovation > 1.868M
  • CONCEPT 3 PROMISE AND EXPERIENCE MUST MATCH TO BUILD CUSTOMER VALUE AND LOYALTY
    • Product positioning is the Promise
    • Delivery involves the whole Organization
    • Key Result of Delivery is the Experience
    • Experience = Promise = VALUE
    • VALUE = LOYALTY
    • LOYALTY = BRAND EQUITY = REPEAT BUY
  • EXAMPLES
    • BMW = Luxury & Performance
    • Disneyland = the Disney Experience
    • Fitness First Retro class = Retro Addicts
    • LK Global Realty: Live in Luxury, Sleep like a Baby
      • We are hoping to live up to this positioning
      • Homes that are as promised
      • To encourage repeat buys and referrals
  • CONCEPT 4 WHEN PERFORMANCE MEETS EXPECTATION, CUSTOMERS GAIN SATISFACTION
    • LOW EXPECTATIONS = NO ATTRACTION
    • HIGH EXPECTATIONS = CHANCES OF DISAPPOINTMENT
    • EXPECTATIONS MET = SATISFACTION = BRAND LOYALTY = REPEAT BUY
    • LOW PRICE HIGH QUALITY BRINGS BEST CUSTOMER SATISFACTION
  • EXAMPLES
    • CHERY CARS: low expectation
    • KIA = 5 YEAR WARRANTY
    • HYUNDAI = 5 YEAR WARRANTY
    • LK GLOBAL REALTY & DEV CORP
      • SM GRASS LK CHERRY ORCHARD
      • PRICE: 1.8M 1.688M
      • AREA: 22 SQM 22 SQM
      • BALCONY: NO YES
      • FINISHING: SEE PICS
  • CONCEPT 5 TOTAL QUALITY SUPPORTS PROFITABILITY
    • QUALITY MEETS OR EXCEEDS EXPECTATIONS = CUSTOMER SATISFACTION
    • QUALITY SUPPORTS PREMIUM PRICING
    • PREMIUM PRICING ACCEPTABLE
    • ALL ARE ELEMENTS OF BRAND EQUITY
  • EXAMPLES
    • Louis Vuitton
    • Hermes
    • Ayala Land / Ayala Developments
    • LK Global Realty:
      • goals: treasured homes
      • retains equity
      • Premium priced Pagibig homes
  • CONCEPT 6 CUSTOMER SATISFACTION IS THE DESIRED MARKETING TOOL
    • LOYALTY
    • RETENTION
    • ACCEPTANCE OF NEW OFFERS
    • WORD OF MOUTH ADVERTISING
    • ALL THESE RESULT TO REPEAT BUYS
  • Example
    • Disneyland – from children to grandparents
    • Louis Vuitton – bag collection
    • Toyota – all car categories are accepted
    • LK Global Realty – we want to grow with our market, from 1 st homes to repeat buys
  • CONCEPT 7 CUSTOMER EMPOWERMENT IS KEY TODAY
    • Internet
    • Social Networking and Blogs
    • Have Own Blog for Positive Reinforcement
    • Increase Positive reviews and expectations
    • Build a Buzz Community
    • Create a Cause
  • EXAMPLES
    • The Purse Forum – reviews all IT bags, where bag addicts find support
    • Travelocity – all hotels are reviewed, airline prices can be compared
    • Consumer Report USA – reviews cars, electronics, etc.
    • Join local real estate market blogs
  • CONCEPT 8 CUSTOMER COMPLAINTS IS A CORNER STONE OF CUSTOMER RELATIONSHIP.
    • Resolve customer complaints immediately
    • Quick resolution = 95% customer retention
    • Non resolution = gripe publicity
    • Always reinforce the Positive Experience
    Customer Support
  • EXAMPLES
    • AT&T customer relationship department. No questions asked. Grew out of Sprint complaints.
    • Nieman Marcus – return and exchange allowed within 180 days.
    • Rustan’s – credit exchange within 14 days
    • SM Dept store – credit exchange within 7 days
    • LK Global Realty established customer relationship department
  • CONCEPT 9 CRM SUPPORTS DETAILED CUSTOMER UNDERSTANDING AND EXCELLENT CUSTOMER SERVICE
    • Gathers data at touch points.
    • Provides one to one marketing opportunities.
    • Increase market offerings.
    • Increase Customer Retention and Loyalty
    • Induces Repeat Buys
  • EXAMPLES
    • Las Vegas casinos – member cards
    • Resort World casino – free membership
    • Philippine Airlines – Mabuhay Miles
    • SM Rewards Card
    • LK Global Realty: Customer Info File
  • CONCEPT 10 CUSTOMER BASE IS HIGH VALUE TO COMPANY.
    • Reduce customer defection
    • Increase longevity of customer relationship
    • Increase offers by cross sell and up sell methods
    • Focus efforts on High Value Customers
    • Convert low profit customers or terminate them.
    • Keeping a customer is cheaper.
  • EXAMPLES
    • Google
    • Skype
    • Ebay
    • PLDT Smart 38 Million subscribers
    • LK Global Realty: 325 clients and 100+ agents
      • Source of referrals and repeat buys
      • Develop as Buyer Agents
      • Source of New Leads
  • CONCLUSION We create customer value, loyalty and satisfaction when:
    • 1. We Make the Customer the Center
    • 2. Perceived Value is Greater than Cost
    • 3. Promise Lives up to Expectations
    • 4. Performance Meets Expectations
    • 5. Quality Supports Profitability.
  • CONCLUSION We create customer value, loyalty and satisfaction when:
    • Satisfaction is the Achieved Goal.
    • Customer is Empowered.
    • Resolved complaints build long term relationships.
    • CRM supports excellent service.
    • Customer base = company value.
  • TOP 10 CONCEPTS CREATING CUSTOMER VALUE LOYALTY & SATISFACTION GWENDOLYN KU WONG ATENEO GRADUATE SCHOOL OF BUSINESS REGIS CLASS