The document discusses customer value, satisfaction, loyalty and how companies can deliver them. It covers topics like lifetime value, cultivating customer relationships, attracting and retaining customers, database marketing, and using customer information to improve customer experience and maximize profits over the long run. The purpose is to provide an overview of customer relationship management strategies and techniques that companies can use to increase customer loyalty and lifetime value.

1. Creating Customer Value, Satisfaction, and Loyalty Marketing Management, 13 th ed 5

3. Ritz Carlton - Famous for its Exceptional Service Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

4. Figure 5.1 Organizational Charts Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

6. Figure 5.2 Determinants of Customer Perceived Value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Image benefit Psychological cost Personnel benefit Energy cost Services benefit Time cost Product benefit Monetary cost Total customer benefit Total customer cost

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

11. The Value Proposition Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- The whole cluster of benefits the company promises to deliver

12. Raising Customer Expectations Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

13. Measuring Satisfaction Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Periodic Surveys Customer Loss Rate Mystery Shoppers Monitor Competitive Performance

14. J.D. Power Rates Customer Satisfaction Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

15. Single Key Question of Net Promoter “How likely is it that you would recommend this product or service to a friend or colleague?” Use 0-10-point scale 0-6 are Marketers than subtract Detractors 7-8 are deemed Passively satisfied 9-10 are Promoter (Net Promoter Score-NPS) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

17. World class companies used NPS Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

19. What is Quality? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

20. Conformance V.S. Performance

21. Maximizing Customer Lifetime Value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Customer Profitability Customer Equity Lifetime Value

22. Figure 5.3 The 150 – 20 Rule Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

23. Figure 5.4 Customer-Product Profitability Analysis Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

26. Framework for CRM Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Identify prospects and customers Differentiate customers by needs and value to company Interact to improve knowledge Customize for each customer

27. Harrah’s targets hundreds of segments Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

28. CRM Strategies Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Reduce the rate of defection Increase longevity Enhance “share of wallet” Terminate low-profit customers Focus more effort on high-profit customers

29. Focus on CRM Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

31. Figure 5.5 The Customer Development Process Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- Prospects Suspects Disqualified First-time customers Repeat customers Clients Members Partners Ex-customers

32. Creating Customer Evangelists Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-

35. Using the Database Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5- To identify prospects To target offers To deepen loyalty To reactivate customers To avoid mistakes

40. Brought to You By Hashim Khan IMS University of Peshawar [email_address]