The document discusses key concepts for creating customer value, satisfaction, and loyalty. It defines customer perceived value, loyalty, quality, and profitable customers. Satisfaction is described as being equivalent to customer lifetime value. Customer relationship management is introduced as carefully managing customer information to maximize loyalty across interactions. An effective CRM framework includes identifying and differentiating customers then customizing interactions. Common CRM strategies are outlined like reducing defection rates and focusing efforts on high-profit customers.

1. Crisostomo, Kathleen Lizette C.
MARKMA
Chapter 5 - Creating Customer Value, Satisfaction,
and Loyalty

2. The CUSTOMER is
now a top priority in
the modern
organization chart

3. Customer Perceived Value (CPV) =
Difference between all benefits
and costs of an offering and the
perceived alternatives

4. Loyalty = deeply held commitment
to re-buy or re-patronize a
preferred product or service in the
future despite situational
influences and marketing efforts
having the potential to cause
switching behavior
Quality = totality of features and
characteristics of a product or
service that bear on its ability to
satisfy stated or implied needs

5. Marketing is the art of
ATTRACTING and KEEPING
profitable customers
Profitable Customer = revenue
from
person/household/company is
greater than the company’s cost
of attracting, selling and
servicing
Satisfaction = Customer
Lifetime Value

6. Customer Relationship Management =
carefully managing detailed information
about individual customers and all
customer touch points to maximize
customer loyalty

7. Framework for CRM:
1. Identify prospects and
customers

8. 2. Differentiate customers by
needs and value to company

9. 3. Interact to improve knowledge

10. 4. Customize for each customer

11. CRM Strategies (how winning companies
improve their customer base):
1. Reduce the rate of defection

12. 2. Increase longevity

13. !
3. Enhance share of wallet

14. !
4. Terminate low-profit customers

15. !
5. Focus more effort on
high-profit customers