1. Creating Long-Term Loyalty
Relationships
Concept Synthesis and Local Application
RONALD BASUIL
Ateneo Graduate School of Business
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
2. Concepts and Examples of Creating Long
Term Loyalty Relationships
• The Marketing Funnel
• Customer Value Analysis
• Managing the Customer Base
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
4. My Personal Journey with the Marketing
Funnel
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
5. Customer Value Analysis
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
Benefit Cost
Monetary
Time
Energy
Psychological
Product
Services
Personnel
Image
Family Mid-Size SUVs
6. Customer Value Analysis
Toyota Fortuner is the clear winner in Technologies,
Mid to Low Range offerings and Value for Money!
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
Examine how they are rated on
beneficial attribute
Assess the company’s and competitors’
performances vs importance
Assess the Quantitative Importance of
the Attributes
Identify Major Attributes & benefits
7. Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
• Reducing the Rate of Customer Defect
• Increasing the longevity of the customer relationship
• Enhancing the growth potential of each customer through “share of
wallet,” cross-selling, and upselling
• Making low-profit customers more profitable or terminating them.
• Focusing disproportionate effort on high-profit customers
Managing the Customer Base
for Semiconductor Design & Manufacturing
8. Managing the Customer Base
Reducing the Rate of Customer Defect
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
Yield (%) = # of Good Units /
Total # Units Tested
Lower Cost vs Higher Quality
Customer Return and AOQ
(Average Outgoing Quality)
Test Coverage = Power
consumption, Scan, MBIST, Speed
Total Test time (Secs) =
Test time + Index Time
TQM (Total Quality Management),
OCAP (Out of Control Action
Plan), & OPL (One Point Lesson)
Product Handling
9. Managing the Customer Base
Increasing the Longevity of Customer Relationship
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
Solve the Customer’s Future
Problem – Complex, Innovative
and Profitable Problems
10. Managing the Customer Base
Focusing Disproportionate Effort on High-Profit Customers
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
Uncompromised Quality at Higher Cost
11. Summary
• The Steps of Marketing Funnel – Audible
• Customer Value Analysis Process – Family Mid-Size SUVs
• Managing the Customer Base for Semiconductor Design &
Manufacturing Industry
o Reducing the Rate of Customer Defect
o Increasing the Longevity of Customer Relationship
o Focusing Disproportionate Effort on High-Profit Customers
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
12. Creating Long-Term Loyalty
Relationships
Concept Synthesis and Local Application
RONALD BASUIL
Ateneo Graduate School of Business
Creating Long-Term Loyalty Relationships
https://www.linkedin.com/in/ronald-basuil/
Editor's Notes
Hello vcoach and classmates, I am ronald basuil. Student of Ateneo graduate school business.
I am going to discuss and provide examples on 3 concepts of creating a long-term loyalty relationships with your customer
These are the marketing funnel, customer value analysis and managing the customer base.
Marketing funnel is a system that allows you to track the customer journey from having no idea who you are right through to becoming a lifelong loyal customer and every step in between.
The beauty of the funnel is that it provides a graphical representation of what can often be a hard subject to visualize. This is a good way to create your own marketing and can be as simple as looking at your own business and how you acquire customers. What are the stages of prospective customer takes and the journey they go through that moves from having no idea that your business existed to becoming a loyal customer.
So I would like to share with you the personal journey I had with the Marketing Funnel not as businessman but as consumer, with one of the App which I have been using since 2017. Audible!
Audible is a audiobook service from Amazon, offering the world’s biggest selection of titles ranging from much loved classics to new releases and original podcasts. For busy people who love to learn while on the move.
I always like reading books and learning something new. But I find myself always struggling to have available time to read due to activities on work, family, and other reasons. One day, I was walking in a park of our company area when I stumble on one of my colleague who had her earphones on while walking.
As I converse with her, she mentioned about an app called Audible and how it helps her a lot in finishing a book. I see her genuine love for learning just as myself to the point that she’s more than willing to pay for the monthly subscription.
So I tried the app, got it downloaded and installed in my phone. I listen to one of their free book and eventually finish that book within a month. I was so amazed!
Because what I realized is that I can read or shall I say listen to the book while driving going to the office and back home which usually takes a round 40mins per trip.
So, I decided to subscribe and pay a monthly due in return of choosing and listening to any one book I want per month. I started slow while trying to establish my habit, sometime going back listening to music. I used it from a couple of times in a week with some of the classic and best selling books I loved
to every time I commute going to the office and back home with any books that I am interested to listen to.
So in short, I finish a total of 26 books in just a year!
I became loyal to Audible not only because of the significant advantage it is providing me but also because of the enjoyment of learning that I am getting from their books.
Customer is always right, but have you ever wondered why the customer is so important? Why the location of the business and the quality of the product is much important? This is the fact that without the customer buying the product, organization and business will not exist.
Customer value is what you receive in return for what you sacrifice. As a businessman, you have to make sure the customer think that your product is a value-deal for them! Make them think that what they are getting is much more than what they are giving for your product. Customer value analysis is a very important tool as this allows the organization to gauge how they are being judged compare to their industry rivals, as they say: “Perception is Reality”. And this serves as a critical part in making sure that the customer is happy.
So as an example, lets take a closer at the current 2021 models of family mid-size SUVs in the Philippines.
On a personal note, I currently own a 2013 Toyota Innova and a 2014 Honda City. So I am looking for an SUV that could fit my family of 3 and some extended family members for a long holiday weekend.
Top models that are available here in the Philippines are: Toyota Fortuner, Mitsubishi Montero, Ford Everest, Nissan Terra, Isuzu MUX and the Cherolet Trailblazer.
So going through each step of the customer value analysis, I came up with the different ranking of these models given the most important attributes that I am looking for as my next family mid-size SUV.
These are the exterior, interior, tech goodies, safety, and depending on my budget I ranked their low, mid and high range offerings as well, and lastly the value for money.
I like the exterior of the Everest because of its burly, intimidating, broad face, muscular fender and it is the biggest among the competitors. Followed by the Fortuner which smooth, rounded, conservative, elegant and the newest model among the competitors.
In the interior department, my number one is again the Ford Everest because of boxier, chunkier interior as well as it has panoramic sunroof, leather dashboard, adjustable seats and power 3rd row. Followed by Fortuner which has a streamlined, elegant and sporty flowing lines in its cabin.
My second bet for tech goodies is the Ford Everest which has power folding, automatic parking, active noise cancelling, power fold 3rd seats. But on the top spot I have again the Fortuner which has wireless charging pad, power tailgate, ipad car play and android auto on top of the mentioned features of the Everest.
Safety is everybody’s priority in choosing their own vehicle and this is especially true for me as well. My first runner up on this category is the Ford Everest with adaptive cruise control, lane departure warning, blind spot monitoring and automatic emergency braking. On the top I have a tie between Toyota Fortuner and Mitsubishi Montero with both 360deg camera other than what was mentioned in the Everest.
On the mid and high range models I think Fortuner is still the number one given the number of features at 1.8 and 2.4M. On the low-range, Trailblazer is the winner at 1.53M with only basic features.
Overall Value for money, the V-model of Fortuner wins at only 1.8M for its mid-range model. So the overall winner for me is the Toyota Fortuner, followed by Ford Everest.
The way I ranked each of these brands coming from the consumer perspective should be the same as how they ranked themselves against their competitors, together with their unique selling proposition and target market.
By profession, I work as a test development engineering manager for a semiconductor design and manufacturing company. So I will be providing examples based on my professional experience relating to some of these items in the slide. Time to market and time to revenue, getting ahead of what’s possible for your customer, profiling and learning what your customer’s customer is doing against their competitors and betting on which kind of solution they will be needing from you are some of the factors to be considered in managing your customer base.
Quality is the most important for the customer, but equally important for the business is to have satisfactorily high hross margin ratio or overall profitability of the product.
As a manager, I must hit the right balance of producing and testing my product at lower cost against its datasheet and at maximum test coverage. It is not good to have a high yielding product but with a lot of customer return or low average outgoing quality. Other than fabrication and assembly cost, having an optimized testtime at maximum possible test coverage is very important. This can be achieved by increasing the parallel test sites, eliminating test insertions especially at cold and high temperatures as well as cohesive test program solution.
Product handling is very important across the development and production process, this avoids product mixing, esd or electro-static discharge, or any visual-mechanical rejects that not only jeopardizes your quality but also very disruptive to production line. So some of the tools are important such as TQM, OCAP, OPL & others.
We must anticipate the customer’s future demand, to be ahead with their complex problems and betting on which kind of solution they will be needing from us. This is while leveraging the different new technologies in the market. For example, in a silicon wafer fab process – we started with 180um now going to 22nm reticle process while increasing the total wafer size from old 4” wafers to 12” wafers and so we can produce more die per batch. We also adapted 3-horizon approach as the operational framework for business development especially for Tier 1 customers. During the conceptualization and feasibility stage, we categorized each of the features and benefit in these different horizons so we can plan which qualities of the product should we include in the development that makes a significant impact for the customer and to the market.
Focusing disproportionate effort on high profit customers. This is especially true for top tier customers such as iPhone & Samsung consumer-phone market, Microsoft in gaming & software market, Honeywell and Siemens in industrial market and lastly the different brands in automotive market such as Toyota, bmw, tesla and others. These companies have a big reputation to keep and so additional development cost for better quality and reliability is a no-issue for them.
So, I provided example on the steps of marketing funnel using my personal experience with Audible app.
The process of customer value analysis using the family mid-size SUV selection as an example.
And the different examples in managing the customer base for a typical semiconductor design and manufacturing company to reduce the rate of customer defect, increasing longevity of customer relationship and focused effort on high profit customers.
This is ronald basuil. Student of Ateneo graduate school business, on creating long-term loyalty relationships.
