Chapter 5: Creating Customer Value, Satisfaction, and Loyalty

5,859 views

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
5,859
On SlideShare
0
From Embeds
0
Number of Embeds
215
Actions
Shares
0
Downloads
358
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Chapter 5: Creating Customer Value, Satisfaction, and Loyalty

  1. 1. Chapter 5 Creating Customer Value, Satisfaction, and Loyalty Concepts and Applications Jover S. Chavez Marketing Management Ateneo School of Medicine and Public Health 12 May 2010
  2. 2. Concept 1 Creating loyal customers is at the heart of every business.
  3. 3. Concept 1 <ul><li>Kotler </li></ul><ul><ul><li>Cisco Systems </li></ul></ul><ul><ul><ul><li>“ Make your customer the </li></ul></ul></ul><ul><ul><ul><li>center of your culture.” </li></ul></ul></ul>Creating loyal customers is at the heart of every business. <ul><li>LOCAL </li></ul><ul><ul><li>The Medical City </li></ul></ul><ul><ul><ul><li>Patient Partnership </li></ul></ul></ul><ul><ul><ul><li>Patient on Center Stage </li></ul></ul></ul>
  4. 4. Concept 1 <ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>loyal patients </li></ul></ul><ul><ul><li>loyal patients </li></ul></ul><ul><ul><li>loyal patients </li></ul></ul>Creating loyal customers is at the heart of every business.
  5. 5. Concept 2 <ul><li>CUSTOMER PERCEIVED VALUE (CPV) </li></ul><ul><ul><li>(total customer benefit) – (total customer cost) </li></ul></ul><ul><li>Customers will seek out superior alternatives. </li></ul><ul><ul><li>more educated and informed </li></ul></ul>Customers are value maximizers .
  6. 6. Concept 2 <ul><li>Kotler </li></ul><ul><ul><li>Dell Inc. vs. Hewlett-Packard Co. </li></ul></ul>Customers are value maximizers . <ul><li>LOCAL </li></ul><ul><ul><li>Globe vs. SMART </li></ul></ul><ul><li>MEDICAL APPLICATION </li></ul><ul><ul><li>physician shopping </li></ul></ul>
  7. 7. Concept 3 <ul><li>Kotler </li></ul><ul><ul><li>Volvo’s safety…and more </li></ul></ul>The value proposition consists of the whole cluster of benefits the company promises to deliver. <ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>hospitals </li></ul></ul><ul><ul><li>wellness centers </li></ul></ul><ul><li>LOCAL </li></ul><ul><ul><li>Starbucks </li></ul></ul><ul><ul><li>Fitness First </li></ul></ul>
  8. 8. Concept 4 <ul><li>Kotler </li></ul><ul><ul><li>Superquinn </li></ul></ul>The value delivery system is the manner in which all these promises are kept. <ul><li>LOCAL </li></ul><ul><ul><li>Rustan’s </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>hospitals </li></ul></ul><ul><ul><li>wellness centers </li></ul></ul>
  9. 9. Concept 5 <ul><li>pleasure </li></ul><ul><li>disappointment </li></ul>Satisfaction is a function of product performance and buyer expectations. <ul><li>TOTAL CUSTOMER SATISFACTION (TCS) </li></ul><ul><ul><li>high satisfaction  high customer loyalty </li></ul></ul><ul><ul><li>both a goal and a marketing tool </li></ul></ul>
  10. 10. Concept 5 <ul><li>Kotler </li></ul><ul><ul><li>Joie de Vivre Hospitality Inc. </li></ul></ul>Satisfaction is a function of product performance and buyer expectations. <ul><li>LOCAL </li></ul><ul><ul><li>Windows, Mac </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>surgeries </li></ul></ul><ul><ul><li>medical tourism </li></ul></ul>
  11. 11. Concept 6 <ul><li>customer-centered definition </li></ul><ul><ul><li>meeting or exceeding customer expectations </li></ul></ul><ul><li>conformance quality </li></ul><ul><li>performance quality </li></ul>Quality is the totality of features and characteristics that bear on its ability to satisfy needs.
  12. 12. Concept 6 <ul><li>Kotler </li></ul><ul><ul><li>General Electric </li></ul></ul>Quality is the totality of features and characteristics that bear on its ability to satisfy needs. <ul><li>LOCAL </li></ul><ul><ul><li>adidas </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>therapeutics </li></ul></ul><ul><ul><li>physician competence </li></ul></ul>
  13. 13. Concept 7 <ul><li>Marketing is the art of attracting and keeping profitable customers. </li></ul>The 150-20 Rule : The most profitable 20% of customers may contribute 150% of profitability.
  14. 14. Concept 7 <ul><li>Kotler </li></ul><ul><ul><li>“ Profit Tiers” </li></ul></ul>The 150-20 Rule : The most profitable 20% of customers may contribute 150% of profitability. <ul><li>LOCAL </li></ul><ul><ul><li>BPI </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>insurance </li></ul></ul><ul><ul><li>patient classification </li></ul></ul>
  15. 15. Concept 8 <ul><li>precision marketing </li></ul><ul><ul><li>vs. mass marketing </li></ul></ul>Maximizing customer value means cultivating long-term customer relationships . <ul><li>CUSTOMER RELATIONSHIP MANAGEMENT (CRM) </li></ul><ul><ul><li>managing detailed information and “touch points” to maximize loyalty </li></ul></ul>
  16. 16. Concept 8 <ul><li>Kotler </li></ul><ul><ul><li>Four Seasons </li></ul></ul>Maximizing customer value means cultivating long-term customer relationships . <ul><li>LOCAL </li></ul><ul><ul><li>McDonald’s PlayPlace </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>personalizing treatment </li></ul></ul>
  17. 17. Concept 9 <ul><li>build relationships, not just sales </li></ul><ul><li>acquiring new customers costs more </li></ul><ul><ul><li>5x more than satisfying and retaining </li></ul></ul><ul><li>companies lose 10% of customers annually </li></ul><ul><li>5%  defection  25-85%  profits </li></ul>Attract and retain customers, but retain more.
  18. 18. Concept 9 <ul><li>Kotler </li></ul><ul><ul><li>cellular carriers </li></ul></ul>Attract and retain customers, but retain more. <ul><li>LOCAL </li></ul><ul><ul><li>cellular carriers </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>patient retention, word of mouth </li></ul></ul>
  19. 19. Concept 10 <ul><li>Marketers must know their customers. </li></ul>CRM requires building a customer database and doing datamining to detect trends, segments, and needs.
  20. 20. Concept 10 <ul><li>Kotler </li></ul><ul><ul><li>Novartis </li></ul></ul>CRM requires building a customer database and doing datamining to detect trends, segments, and needs. <ul><li>LOCAL </li></ul><ul><ul><li>Online Banking </li></ul></ul><ul><li>MEDICAL APPLICATIONS </li></ul><ul><ul><li>patient records (physician) </li></ul></ul><ul><ul><li>hospital patient database </li></ul></ul>
  21. 21. Concept 1 Creating loyal customers is at the heart of every business.
  22. 22. Chapter 5 Creating Customer Value, Satisfaction, and Loyalty Concepts and Applications Jover S. Chavez Marketing Management Ateneo School of Medicine and Public Health 12 May 2010

×