Markma group 4 chapter 5 Customer Value, Satisfaction and Loyalty

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Markma Grp 4 Presentation on Chapter 5

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  • The CUSTOMER is now on top of the organizational hierarchy
  • Customer Perceived Value (CPV) = Difference between all benefits and costs of an offering and the perceived alternatives
  • Loyalty (dog) = deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior Quality (check) = totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
  • Magnet = marketing is the art of ATTRACTING and KEEPING profitable customers Profitable Customer (thumbs up) = revenue from person/household/company > company’s cost of attracting, selling and servicing Satisfaction (smiley face) = Customer Lifetime Value
  • C ustomer Relationship Management (Stick figure 2) = carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty
  • Framework for CRM: 1. Identify (eyes) prospects and customers
  • 2. Differentiate (nose) customers by needs and value to company
  • 3. Interact (smile) to improve knowledge
  • 4. Customize (ears) for each customer
  • CRM Strategies (how winning companies improve their customer base): 1. Reduce (2 hearts crossed out) the rate of defection
  • 2. Increase (heart going up) longevity
  • 3 . Enhance (heart with exclamation point) share of wallet
  • 4. Terminate (broken heart) low-profit customers
  • 5. Focus more effort (heart with explosion) on high-profit customers
  • Markma group 4 chapter 5 Customer Value, Satisfaction and Loyalty

    1. 1. Visual Model: Creating Customer Value,Satisfaction and Loyalty Chapter 5 Raymund C. Piñon Marketing Management V57 April 27, 2010
    2. 2. Rationale The 3rd important task of Modern Marketing:
    3. 3. ObjectivesAt the end of the presentation, the participants shouldbe able to understand concepts related to the 3rdmarketing task of CONNECTING WITH CUSTOMERS 1. Customer Value, Customer Satisfaction, Customer Loyalty and how we deliver them? 2. What is the lifetime value of customers? 3. How can companies cultivate strong customer relationships? 4. How can companies both attract and retain customers? 5. What is database marketing?
    4. 4. To Win Customers and ….Beat Competition!!! Customer-centeredX Traditional
    5. 5. To Win Customers and ….Beat Competition!!! Total Customer Satisfaction Build Create and Deliver Customer Superior Customer Value Loyalty
    6. 6. Customers’ Perceived ValueCustomers are value maximizers Total Total Delivered Benefits Costs Value Product Money Service Time Personnel Effort Image Psychological
    7. 7. Steps in Customer Value AnalysisIdentify features & benefits Assess company’sthat customers value Assess qualitative importance and competitors’ of attributes & benefits performance on different values against rated performance Examine ratings of specific segments Monitor customer values over time
    8. 8. Delivering High Customer Value Value Proposition Value Delivery System
    9. 9. Total Customer Satisfaction Perceived Buyer’s Performance Expectation Satisfaction _ =
    10. 10. Total Customer SatisfactionSatisfaction is Related to Loyalty
    11. 11. Total Customer SatisfactionInfluence of Customer Satisfaction
    12. 12. Total Customer SatisfactionMonitoring Customer Satisfaction Periodic Surveys Customer Loss Rate Mystery Shopper Competitors’ Performance
    13. 13. Total Customer SatisfactionSatisfaction Will Also Depends on Quality
    14. 14. What is Quality? Totality of features and characteristics of products or services that satisfy stated or implied needs Product or Service Expectations Meets or exceeds = or >
    15. 15. Customer Lifetime ValueArt of attracting and keeping profitable customers
    16. 16. Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
    17. 17. Maximizing Customer Lifetime ValueCustomer Profitability Analysis C1 C2 C3 Highly P1 + + + profitable product Profitable P2 + product Unprofitable P3 - - product Highly P4 - unprofitable product High-profit Mixed-bag Losing customer customer customer
    18. 18. Maximizing Customer Lifetime ValueCustomer Profitability Analysis Customer Portfolios • acquaintances Activity-Based Costing • friends • partners
    19. 19. Maximizing Customer Lifetime ValueMeasuring Customer Lifetime Value Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7Number of CustomersRevenue per CustomerVariable Cost per CustomerMargin per CustomerAcquisition Cost per CustomerTotal Cost or ProfitPresent Value
    20. 20. Cultivating Customer Relationships
    21. 21. Customer Relationship ManagementFocuses on attracting and keeping right customers,and satisfying their needs
    22. 22. Customer Relationship Management Key to retaining customers is relationship marketing 2. Differentiate customers in terms of:1. Identify prospects and customers a. Their needs b. Their value to your company3. Interact with individual customers to 4. Customize products, services improve knowledge about needs and and messages to each customer build stronger relationships
    23. 23. Customer Relationship ManagementIncreasing Value of Customer Base 1. Reduce customer defection 2. Increase longevity of relationship 3. Enhance growth potential of each customer 4. Make low-profit customers profitable or weed out 5. Focus on high-value customers
    24. 24. Customer Relationship ManagementAttracting and Retaining Customers Reducing Defections Retention Dynamics
    25. 25. Partners Advocates Members Clients Repeat Inactive or Customer Ex-Customers 1st-Time Customer Prospects DisqualifiedPotentials Prospects
    26. 26. Customer Relationship ManagementBuilding Customer Loyalty Interacting with Customers Creating Loyalty Programs Personalizing Marketing Creating Institutional Ties
    27. 27. Customer Database andDatabase ManagementCustomer Database Data Warehousing Data Mining
    28. 28. Customer Database andDatabase Management Choose which customersIdentify prospects receive a particular offer Deepen loyalty Reactivate customer purchases Avoid mistakes
    29. 29. SummaryThe 3rd important marketing task ofCONNECTING WITH CUSTOMERS1. Customer Value, Customer Satisfaction, Customer Loyalty and how we deliver them2. Lifetime value of customers3. How companies cultivate strong customer relationships4. How companies attract and retain customers5. Database marketing
    30. 30. Win Customers, Beat Competition Customer Lifetime Value Satisfaction Equity = Profitability + Lifetime Value Perceived Expectation Benefits Customer Relationship Management Attract and Retain Customers Customer Database & Database Mgt ValueProposition Value Delivery System Customer Value Loyalty
    31. 31. Creating Customer Value,Satisfaction and Loyalty KRISTOFFER Z. JONGCO APRIL 27, 2012
    32. 32. Objective:How is this created? Through customer value Steps in customer value analysis? Through customer satisfaction The CRM Framework? Through customer loyalty Customer retention: using database
    33. 33. Customer Value What customer gets from a product & what he has to give to attain it
    34. 34. Steps:Customer Value Analysis Know major attributes & benefits Assess importance Assess performances Examine ratings Monitor customer values
    35. 35. Customer SatisfactionMeasuredby number of repeat and happy customers
    36. 36. CRM Framework Identify customers Differentiate customers Interact Customize for each customer
    37. 37. Customer Loyalty Measure of success of supplier in retaining a long term relationship with customer
    38. 38. Customer Retention Use Database-Identify/attract prospects-Target offers-Deepen loyalty-Reactivate customers-Avoid mistakes
    39. 39. 5 Steps: Customer Value Retention CUSTOMERS Customer Loyalty Customer SatisfactionFramework
    40. 40. Summary What is customer value 5 Steps in customer value analysis Customer satisfaction and framework What is customer loyalty All about customer retention Using Database
    41. 41. Crisostomo, Kathleen Lizette C.MARKMAChapter 5 - Creating Customer Value, Satisfaction,and Loyalty
    42. 42. !
    43. 43. !
    44. 44. !
    45. 45. GalicanoMarketing Presentation
    46. 46. Creating Customer Value,Satisfaction and Loyalty Value Quality Perceived by the Customer Customer sFrontlineSatisfactionCustomer People Loyalty Middle Managemen t Top Management Profit for the stakeholders
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