Cosla ch 5 creating long term loyalty relationships v79 ezekiel fajardo castro

Creating Long-term Loyalty Relationships
Ezekiel F. Castro
Ateneo De Manila University - Graduate School of Business
Marketing Management (MARKMA) S30 v79
Kotler
Keller
CHAPTER 05 CoSLA
Version
4.0
ezekielfajardocastro.weebly.com | 0917-190-3213 | ezekielfcastro@outlook.com
RELATIONAL MARKETING:

1. What are customer value, satisfaction, and
loyalty, and how can companies deliver them?
2. What is the lifetime value of customers and
how can marketers maximize it?
3. How can companies attract and retain the
right customers and cultivate strong customer
relationships?
4. What are the pros and cons of database
marketing?
Questions

CUSTOMERS
are value
maximizers.

Customer Perceived Value
It is the difference between the
customer's evaluation of all benefits
and costs of an offering and
perceived alternatives.

SatisfactionA function of the product’s perceived
performance and the buyer’s
expectations.

Loyalty
It is the commitment to re-
buy or re-patronize a
preferred product or service.

World Balance focuses to
customer’s value and comfort
World Balance provides value and comfort to our customers from
different walks of life.”-worldbalance.com.ph
Source: https://www.worldbalance.com.ph/about-us

Companies must ensure that
they meet andexceed
customer expectations. The
key to retaining customers
is relationship marketing.

World Balance is all about offering a wide array
of quality products and experiences that their
customers love.
Performance
Athleisure Lifestyle
Outdoor
Source: https://www.worldbalance.com.ph/about-us

Quality is the totality of
features and characteristics
of a product or service that
bear on its ability to satisfy
stated or implied needs.

Customer lifetime value is the total
worth to a business of a customer over the
whole period of their relationship.
Customer Profitability
Customer Equity
Lifetime Value

CRPY = customer revenue per year (Multiplied to)
DTRY = Duration of the relationship in years (Subtract to)
TCASC = Total costs of acquiring and serving the customer
Simplest Formula:
CRPY x DTRY - TCASC = CUSTOMER LIFETIME VALUE

Marketing managers must calculate customer lifetime
values of their customer base to understand their
profit implications. They must also determine ways to
increase the value of the customer base.

Customer Relationship Management
is the process of carefully managing detailed
information about individual customers and all
customer touch points to maximize customer
loyalty.

Customer Relationship Management
often requires building a customer
database and doing data mining to detect
trends, segments, and individual needs.

World Balance implemented
CRM to be more proactive
with their decision making.
World balance partnered with
eScience to develop their
Customer Relationship
Management (CRM) to boost
their sales productivity, to
help them for proactive
decision making and efficiency
in retail.
Source: https://www.electronicscience.com/newshome/newsdetails/update/2.wb.html

Top CRM in the Market:
 HubSpot CRM
 Zendesk Sell
 ZOHO CRM
 Fresh Sales CRM
 Salesforce: Sales Cloud Lightning Professional
Source: https://sea.pcmag.com/crm-products/5039/the-best-crm-software-for-2020

Database Marketing
is a form of direct marketing that uses
databases of customers to generate
targeted lists for direct marketing
communications.

1. What are customer value, satisfaction, and
loyalty, and how can companies deliver them?
Customer Perceived Value
It is the difference between the customer's evaluation of all
benefits and costs of an offering and perceived alternatives.
Satisfaction
A function of the product’s perceived performance and the buyer’s
expectations.
Loyalty
It is the commitment to re-buy or re-patronize a
preferred product or service.
Companies must ensure that they meet andexceed
customer expectations. The key to retaining customers
is relationship marketing.

2. What is the lifetime value of customers and
how can marketers maximize it?
Customer lifetime value is the total
worth to a business of a customer over
the whole period of their relationship.
Marketing managers must calculate
customer lifetime values of their
customer base to understand their
profit implications.

3. How can companies attract and retain the
right customers and cultivate strong customer
relationships?
Companies should implement Customer
Relationship Management (CRM) that is
carefully managing detailed information about
individual customers to maximize their loyalty
to the business.

4. What are the pros and cons of database
marketing?
PROS
 To identify prospects
 To target offers
 To deepen loyalty
 To reactivate customers
 To avoid mistakes
CONS
(Don’t build database when)
 The product is a once-in-a-
lifetime purchase
 Customers do not show
loyalty
 The unit sale is very small
 The cost of gathering
information is too high

Customers are value maximizers.
They form an expectation of value
and act on it. Buyers will buy from
the firm that they perceive to offer
the highest customer-delivered
value
By understanding the customer
experience and measuring feedback
at all key touchpoints, Marketing
Managers can start to understand
the key drivers of Customer
Lifetime Value.
Marketing Managers should be
careful when creating a Customer
Database for Customer Relationship
Management (CRM).
Marketing Mangers need to
identify the pros and cons of
Database Marketing.
Summary: Key Take away…

Cosla ch 5 creating long term loyalty relationships v79 ezekiel fajardo castro

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