Creating value for customers

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Creating value for customers

  1. 1. Creating Value for Customers
  2. 2. <ul><li>Consumer Value </li></ul><ul><li>Customer value is the relationship between the consumers perception of </li></ul><ul><li>benefits they believe they will derive from a purchase compared to the </li></ul><ul><li>price that will be paid </li></ul><ul><li>The total benefit package include functional attributes of the product and </li></ul><ul><li>related service attributes </li></ul><ul><li>Therefore value can be defined as the ratio of perceived benefits to </li></ul><ul><li>perceived sacrifice that is involved </li></ul>
  3. 3. Components of Customer Value Product Attributes Service Attributes Transaction Cost Life cycle cost Risk Product Attributes Product Attributes Expected Customer Value
  4. 4. Maximizing the lifetime value of the customers <ul><li>Value customer receive </li></ul><ul><li>value proposition </li></ul><ul><li>value assessment </li></ul><ul><li>Value Organization receive </li></ul><ul><li>Acquisition economics </li></ul><ul><li>Retention economics </li></ul><ul><li>Customer segment </li></ul><ul><li>Lifetime value analysis </li></ul>
  5. 5. <ul><li>Key steps of the value delivery sequence </li></ul><ul><li>Choose the Value </li></ul><ul><li>(Customer value need, value positioning, </li></ul><ul><li>provide the value </li></ul><ul><li>(product development, service development, pricing, </li></ul><ul><li>distributing and servicing </li></ul><ul><li>Communicate the value </li></ul><ul><li>(sales force message, sales promotion, advertising, PR) </li></ul>
  6. 6. How to implement a value proposition approach <ul><li>Analyze and segment the markets by the value customers desire </li></ul><ul><li>vigorously assess the opportunities in each segment to deliver </li></ul><ul><li>superior value </li></ul><ul><li>choose the value proposition that promise these opportunities </li></ul>
  7. 7. Value creating relationships <ul><li>B2B relationships </li></ul><ul><li>B2C relationships </li></ul><ul><li>However before this market segmentation is essential to better </li></ul><ul><li>manage relationships </li></ul><ul><li>B2B – segmentation by value sought, industry type </li></ul><ul><li>B2C – segmentation - Loyalty segmentation, occasion segmentation </li></ul>
  8. 8. Relationship Management Chain <ul><li>Define the value proposition understand the customer value chain where and how intended to create value competitive benchmarking </li></ul><ul><li>2 Identify appropriate customer value segmentation </li></ul><ul><li>identify customer value preferences </li></ul><ul><li>segment profitability analysis </li></ul><ul><li>configure the value package </li></ul>
  9. 9. <ul><li>Designing value delivery systems </li></ul><ul><li>Mass customization </li></ul><ul><li>Value added partnerships </li></ul><ul><li>Process reengineering </li></ul><ul><li>Managing and maintaining delivered satisfaction </li></ul><ul><li>service process monitoring </li></ul><ul><li>customer satisfaction measurement </li></ul><ul><li>employee satisfaction measurement </li></ul>

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