03. customer values, satisfaction, and loyalty


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Customer values by Tharaka Dias

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  • Inertia – Body language or Physics – the tendency of a body to maintain its state of rest or uniform motion unless acted upon by an extremal force
  • 03. customer values, satisfaction, and loyalty

    1. 1. THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt,ACIM(UK), FAEA(Dip in AEA-UK),FinstSMM(UK), CPM(Asia), MSLIM 1
    2. 2.  How can companies deliver customer value, satisfaction, and loyalty? What is the lifetime value of a customer, and why is it important to marketers? How can companies cultivate strong customer relationships? What is the role of database marketing in customer relationship management? 2
    3. 3.  Customer perceived value (CPV) — the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. 3
    4. 4.  Total customer value  Total customer cost  Product value  Monetary cost  Services value  Time cost  Personnel value  Energy cost  Image value  Psychic cost 4
    5. 5. A 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. 5
    6. 6. A person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance (or outcome) to expectations. 6
    7. 7.  Quality (or grade) is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Forms  Conformance quality  Performance quality 7
    8. 8.  Correctly identifying customers’ needs and requirements Communicate customer expectations properly to product designers Be sure orders are filled correctly and on time Provide customers with proper instructions, training, and technical assistance Stay in touch with customers after the sale Gather customer ideas for improvements and convey them to the appropriate departments 8
    9. 9. A profitable customer is one that over time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream for attracting, selling, and servicing that customer. 9
    10. 10.  Best conducted with an accounting technique called Activity-Based Costing (ABC). Estimate all revenue coming from the customer, less all costs that go into serving that customer. 10
    11. 11.  Describes the net present value of the stream of future profits expected over the customer’s lifetime purchases. 11
    12. 12.  Customer relationship management (CRM) is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize customer loyalty.  Touch point—any occasion on which a customer encounters the brand and product. 12
    13. 13. 1. Identify your prospects and customers2. Differentiate customers in terms of their needs and their value to your company3. Interact with individual customers4. Customize products, services, and messages to each customer 13
    14. 14.  PARETO’S LAW 80:20 RULE20% of customer account for 80% of turn over20% of customer account for 80% of profit20% of customer account for 80% of all your problems 14
    15. 15. Sales Customer analysis service Customer Productsegmentatio quality n Acquisitio Retention n Trust andadvertising privacy Channel merchandising Campaign Customer support management satisfaction
    16. 16.  Potentials Prospects First-time customers Repeat customers Clients Members Advocates Partners 16
    17. 17.  Interact with customers Develop loyalty programs  Frequency programs  Club membership programs Personalize marketing Create institutional ties 17
    18. 18.  Loyalty is about the conscious decision of your customers to commit their continual repurchases to your brand. It is : Driving an extra few miles to do your shopping Recommending it to your best friend An emotional and rational ‘lock-in’ Sometimes encouraged by an incentive or reward A better path to profit Loyalty is essentially a one-way commitment for which the customer receives a reward, but it is also about relationships Two-way interaction in which both sides create and exchange mutual benefits 18
    19. 19.  Satisfaction is important business success However, satisfaction itself is not the only thing that delivers increased profits and a greater share of customer’s wallets Satisfaction is only a feeling that is most likely to disappear quickly Satisfaction alone isn’t adequate customer loyalty must combine with satisfaction for it to be effective 19
    20. 20.  Identifythe best prospects Match a specific offer with a specific customer as a way to sell, cross-sell, and up-sell Deepen customer loyalty by remembering preferences and offering relevant incentives and information Reactivate customer purchasing Avoid serious mistakes 20
    21. 21.  Large investment Difficulty in getting everyone to be customer oriented Not all customers want an ongoing relationship Assumptions behind CRM may not always hold true 21
    22. 22. High satisfactionlow satisfaction Low loyalty High loyalty 22
    23. 23.  Customer database—an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for marketing purposes. Database marketing —the process of building, maintaining, and using customer databases and other databases to make contact, facilitate transactions, and build customer relationships. 23
    24. 24.  Data warehouse—organized data where marketers can capture, query, and analyze it to draw inferences about an individual customer’s needs and responses. Datamining—statisticians extract useful information about individuals, trends, and segments from the mass of data. 24
    25. 25. 25
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