This document discusses key concepts related to customer relationship management including: 1. Customer perceived value, which is the difference between total customer benefits and total customer costs of an offering compared to alternatives. Benefits include product, service, personnel and image while costs include monetary, time, energy and psychological. 2. Customer satisfaction, which is a customer's feeling of pleasure based on how a product's performance matches their expectations. 3. Customer lifetime value, which is the net present value of future profits expected over the lifetime of a customer. Maximizing customer lifetime value involves focusing efforts on the most profitable customers.

1. Maharshi Dayanand University,
Rohtak
Submitted To: Submitted By:
Dr. Pardeep Ahlawat Meenakshi
MBA 2.2 (G)
Roll no:- 325

3. Table of contents
1. Customer Perceived Value
2. Customer Satisfaction
3. Maximizing Customer Lifetime Value
4. Cultivating Customer Relationships
5. Building Customer Loyalty
6. Reducing Customer Defection

4. Customer Perceived Value
Customer Perceived Value is the difference between
the prospective customer’s evaluation of all the
benefits and all the costs of an offering and the
perceived alternatives.
CPV = Total Benefits - Total cost

5. Determinants of Customer
Perceived Value
Total Customer Benefits
1. Product Benefit
2. Service Benefit
3. Personnel Benefit
4. Image Benefit
Total Customer Cost
1. Monetary Cost
2. Time Cost
3. Energy Cost
4. Psychological Cost

6. Measurement of Customer Perceived
Value
1. The expected performance of the offering before it's
purchase or use
2. The actual performance i.e. perception regarding the
offer after using it.
Dissatisfaction Satisfaction Delight

7. Customer Satisfaction
Satisfaction is a person's feeling of pleasure or
disappointment that perceived performance ( or
Outcome ) to expectations.
Satisfaction = Performance - Expectations

8. Measuring Customer Satisfaction
1. Periodic Survey
2. Mystery Shoppers
3. Customer Complaints

9. Customer Lifetime Value
Customer lifetime value describes the net present value of
the stream of future profits, expected over the customer’s
lifetime purchases.

10. Maximizing Customer Lifetime
Value
Customer Profitability Analysis is a method of finding
most profitable customers and focusing on them to
generate more revenue with less efforts.

11. Pareto Principle

12. Cultivating Customer Relationships
Maximizing Customer value means cultivating long-term
customer relationship.
CRM :- Customer relationship management is a business
strategy that aims to understand, manage and personalise
the needs of an organisation current and potential
customers.

13. Customer Loyalty
Customer Loyalty refers to the behaviour of Customer
who are repeated buyers of a particular product and those
who give good ratings, positive feedback and
recommendations to the company.

14. Building Customer Loyalty
● Communication
● Customer Service
● Employee Loyalty
● Flexible
● Discount/Incentives

15. Reducing Customer Defection
There are five main steps a company can take to reduce
the Defection rate.
1. The company must define and measure it's retention
rate.
2. The company must distinguish the causes of customer
attrition and identify those that can be managed better.

16. 3. The company needs to estimate hi much profit it uses
when it loses customers.
4. The company needs to figure out how much it would
cost to reduce the Defection rate.
5. And finally, nothing beats listening to customers.

17. Thank- You