The document discusses 10 concepts for creating customer value, satisfaction, and loyalty. The concepts are: 1) customers are the top priority, 2) customers maximize value, 3) satisfaction occurs when performance meets or exceeds expectations, 4) quality leads to value and satisfaction, 5) profitable customers provide net positive value, 6) lifetime customer value implies profits, 7) customer relationship management enables strong, long-term relationships, 8) retaining customers is more profitable than attracting new ones, 9) loyalty is key to long-term marketing success, and 10) customer databases provide customer insights. The conclusion emphasizes that prioritizing customers, quality, and relationships optimizes value and profits.

1. Chapter 5: CREATING CUSTOMER VALUE, SATISFACTION, AND LOYALTYHannah Paula V. DoromalAteneo School of Medicine and Public HealthTop 10 Concepts

2. Customers are on TopCustomers as Value MaximizersSatisfaction: The Difference between Performance and ExpectationQuality is key to Value Creation and SatisfactionCustomer Profitability = Net Positive ValueOUTLINE

3. Customer Lifetime Value Implies ProfitCRM for a Strong Long-Term RelationshipRetaining Customers is More Profitable than Attracting ThemLoyalty is Key to Long-Term Marketing SuccessCustomer Database Makes Known the CustomerOUTLINE

4. Concept 1: Customers are on TopCUSTOMERSCUSTOMERS

5. Kotler: U.S. Retailer CompUSA onsite customer reviewsLocal: Medical CityRP Medical Application: The Doctor-Patient relationshipConcept 1: Customers are on Top

6. How then do customers ultimately make choices?Concept 2: Customers as Value MaximizersCUSTOMER-PERCEIVED VALUE (CPV)TOTAL CUSTOMER COSTTOTAL CUSTOMER BENEFIT=- Product benefit

7. Services benefit

8. Personnel benefit

9. Image benefit

10. Monetary cost

11. Time cost

12. Energy cost

13. Psychological costKotler: Hewlett-Packard Co., Dell Inc.Local: Which gym package to subscribe to?RP Medical Application: Patient packagesConcept 2: Customers as Value Maximizers

14. Performance > Expectations =Deliver high Customer satisfaction subject to delivering acceptable levels of Stakeholder satisfactionRegular measurement neededConcept 3: Satisfaction: The Difference between Performance and Expectation

15. Kotler: Joie de Vivre Hospitality Inc. chain of boutiquesLocal: Hotel serviceRP Medical Application: After discharge, transport services and follow-up enquiries for patientConcept 3: Satisfaction: The Difference between Performance and Expectation

16. Concept 4: Quality is key to Value Creation and Satisfaction

17. Concept 4: Quality is key to Value Creation and SatisfactionKotler: GELocal: Antique pinya barongRP Medical Application: Hospital facilities and services

18. Concept 5: Customer Profitability = Net Positive ValueCOMPANY COSTCOMPANY REVENUEPROFITABLE CUSTOMER=>

19. Kotler: Casino Membership CardsLocal: Mabuhay MilesRP Medical Application: PhilHealth premiums Concept 5: Customer Profitability = Net Positive Value

20. Maximizing long-term customer profitabilityA lifetime stream of revenue and costConcept 6: Customer Lifetime Value Implies Profit

21. Kotler: Planning customer investmentsLocal: Life InsurancesRP Medical Application: Health Preventive measures (Primordial prevention)Concept 6: Customer Lifetime Value Implies Profit

22. Customer Relations Management (CRM) - managing customer “touch points” to maximize customer loyaltyIncreasing the value of Customer BaseConcept 7: CRM for a Strong Long-Term Relationship

23. Kotler: Harrah’s Entertainment Inc. loyalty programLocal: Pharmaceutical companiesand doctorsRP Medical Application: OB-GYNE and Pediatric practicesConcept 7: CRM for a Strong Long-Term Relationship

24. 5% reduction in defection rate can increase profits by 25%-85%Concept 8: Retaining Customers is More Profitable than Attracting Them

25. Kotler: Citizens Bank and dog biscuitsLocal: Cable companies RP Medical Application: Keeping patient’s medical recordsConcept 8: Retaining Customers is More Profitable than Attracting Them

26. Concept 9: Loyalty is Key to Long-Term Marketing Success

27. Kotler: Harley-DavidsonLocal: Apple productsConcept 9: Loyalty is Key to Long-Term Marketing Success

28. RP Medical Application: Patient-doctor relationshipConcept 9: Loyalty is Key to Long-Term Marketing Success

29. Marketers must know their customersA Database:Identifies prospectsDecide which customer should receive a particular offerDeepen customer loyaltyReactivate customer purchaseAvoid serious customer mistakesConcept 10: Customer Database Makes Known the Customer

30. Kotler: UK supermarket chain Tesco’s Clubcard frequent-shopper programLocal: Formula milk companies and free milk with their registrationRP Medical Application: Personalized greeting cards for patients from their doctors (Pedia)Concept 10: Customer Database Makes Known the Customer

31. Customers should be on TopCustomers are value maximizersSatisfaction is when performance is greater than expectationQuality is leads to value creation and customer satisfactionCustomer profitability yields a Net Positive ValueCONCLUSION

32. Maximizing CLV brings the firm profitCRM is needed to establish a strong long-term relationshipRetaining customers is more profitableCustomer loyalty brings long-term marketing successCustomer database makes known the customerCONCLUSION

33. Chapter 5: CREATING CUSTOMER VALUE, SATISFACTION, AND LOYALTYHannah Paula V. DoromalAteneo School of Medicine and Public HealthTop 10 Concepts