Top 10 concepts chapter 5

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Top 10 concepts chapter 5

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

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