This document provides an overview of key concepts related to customer value, satisfaction, and loyalty. It discusses customer perceived value, value chain analysis, customer profitability, lifetime value, and the marketing funnel. The key points covered are:
1) Customer perceived value is the difference between total customer benefits and total customer costs. It must be assessed for a company's offering relative to competitors.
2) Value chain analysis examines the activities within a company that create and deliver value to customers.
3) Customer profitability analysis assesses whether individual customers or segments are profitable over their lifetime by comparing total revenues to relationship costs.
4) Customer lifetime value is the net present value of the future cash flows expected from a customer
This unit explains the following topics:
1. Life Time Value (LTV)
2. Recency
3. RFM Model
4. Customer Life Cycle
5. Segmentation
6. Acquisition Tactical Management
7. Customer Retention Stages
This unit explains the following topics:
1. Life Time Value (LTV)
2. Recency
3. RFM Model
4. Customer Life Cycle
5. Segmentation
6. Acquisition Tactical Management
7. Customer Retention Stages
1-Customer Service Operations ppt Material.pptxetebarkhmichale
o demonstrate why customer profiles matter, let’s look at a few examples:
For “Attitudes,” you might ask a customer whether they’re confident about financial matters. If their answer is “No,” that customer could potentially be a good candidate for financial advising services.
For “Personal Preferences,” you might ask a customer whether they prefer to handle customer service inquiries on their own, or if they appreciate a helping hand. If they prefer the former, you might recommend that they use your mobile banking application for self-service.
For “Milestones,” if your customer indicates that they were recently married, it might make sense to target them with a personalized marketing campaign offering low interest home loans.
You’ll notice that, in each of these examples, the customer’s preferences, values, and interests are treated as a top priority, and your bank is positioned to engage accordingly. That’s because a true customer-centric banking model not only helps financial institutions gain a 360-degree view of the customer and uncover valuable insights, it also represents a commitment to making customers feel as though their bank truly understands what they want and need.
Now that we’ve covered the basics of customer segmentation in banking, let’s take a minute to talk technology — after all, customer profiles don’t just build themselves. A customer relationship management (CRM) system gives banks a centralized database in which they can store customer data and develop customer profiles. By granting your employees access to this repository, you enable them to regularly update profiles with new information after each interaction and to use the information contained within a customer’s profile to provide more personalized service. Figures show that adding this kind of human touch to the customer experience benefits customers and employees alike: Among employees who report that customer-centricity is a key priority within their organization, 73% find their work meaningful.
Be Proactive With Predictive Analytics
Another way to pair strategy and technology for greater customer-centricity in banking is with predictive analytics. When accumulated over time, the data within a CRM system can be used to identify behavioral patterns and build predictive models that reveal valuable customer insights or operational inefficiencies. For example, if a customer has a documented history of visiting branch locations in person, they’re likely to do so again in the future. Although this is a relatively simplistic example of predictive analytics in action, it gets the basic point across.
For a more complex understanding of how predictive analytics can help you develop a more customer-centric approach in banking, let’s say you want to proactively look for ways to optimize how your call center handles customer inquiries. After analyzing call history data sets across different customer demographics — for example, Baby Boomers, Gen X,
Evaluation and Control of Sales Performance
Sales Performance
Methods of Supervision and Control of Sales force
Sales Performance Evaluation Criteria
Sales Performance Review
Sales Management Audit
B. Measuring Distribution Channel Performance
Evaluating Channels
Control of Channel
C. Ethics in Sales Management
D. New Trends in Sales and Distribution Management
Ten Slides in Ten Minutes - Client Crusades and CampaignsBill Graham CP.APMP
Few thoughts on campaigns and crusades. Market campaigns are so underestimated when considering opportunity management. However, they must be implemented in a sensible way.
Why value propositions matter? How to create a true value proposition for B2B businesses? Implementation ready toolkit to design a superior value propositions
1-Customer Service Operations ppt Material.pptxetebarkhmichale
o demonstrate why customer profiles matter, let’s look at a few examples:
For “Attitudes,” you might ask a customer whether they’re confident about financial matters. If their answer is “No,” that customer could potentially be a good candidate for financial advising services.
For “Personal Preferences,” you might ask a customer whether they prefer to handle customer service inquiries on their own, or if they appreciate a helping hand. If they prefer the former, you might recommend that they use your mobile banking application for self-service.
For “Milestones,” if your customer indicates that they were recently married, it might make sense to target them with a personalized marketing campaign offering low interest home loans.
You’ll notice that, in each of these examples, the customer’s preferences, values, and interests are treated as a top priority, and your bank is positioned to engage accordingly. That’s because a true customer-centric banking model not only helps financial institutions gain a 360-degree view of the customer and uncover valuable insights, it also represents a commitment to making customers feel as though their bank truly understands what they want and need.
Now that we’ve covered the basics of customer segmentation in banking, let’s take a minute to talk technology — after all, customer profiles don’t just build themselves. A customer relationship management (CRM) system gives banks a centralized database in which they can store customer data and develop customer profiles. By granting your employees access to this repository, you enable them to regularly update profiles with new information after each interaction and to use the information contained within a customer’s profile to provide more personalized service. Figures show that adding this kind of human touch to the customer experience benefits customers and employees alike: Among employees who report that customer-centricity is a key priority within their organization, 73% find their work meaningful.
Be Proactive With Predictive Analytics
Another way to pair strategy and technology for greater customer-centricity in banking is with predictive analytics. When accumulated over time, the data within a CRM system can be used to identify behavioral patterns and build predictive models that reveal valuable customer insights or operational inefficiencies. For example, if a customer has a documented history of visiting branch locations in person, they’re likely to do so again in the future. Although this is a relatively simplistic example of predictive analytics in action, it gets the basic point across.
For a more complex understanding of how predictive analytics can help you develop a more customer-centric approach in banking, let’s say you want to proactively look for ways to optimize how your call center handles customer inquiries. After analyzing call history data sets across different customer demographics — for example, Baby Boomers, Gen X,
Evaluation and Control of Sales Performance
Sales Performance
Methods of Supervision and Control of Sales force
Sales Performance Evaluation Criteria
Sales Performance Review
Sales Management Audit
B. Measuring Distribution Channel Performance
Evaluating Channels
Control of Channel
C. Ethics in Sales Management
D. New Trends in Sales and Distribution Management
Ten Slides in Ten Minutes - Client Crusades and CampaignsBill Graham CP.APMP
Few thoughts on campaigns and crusades. Market campaigns are so underestimated when considering opportunity management. However, they must be implemented in a sensible way.
Why value propositions matter? How to create a true value proposition for B2B businesses? Implementation ready toolkit to design a superior value propositions
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
1. B C O M 22353:
MARKETING
M A N A G E M E N T
Lesson III: Crafting Customer Value
Mr. Sachith Ranasinghe
1
2. University of Kelaniya,Sri Lanka
Mr. Sachith Ranasinghe
B.Com (Special) Kelaniya
Lecturer (Probationary)
Department of Commerce And Financial Management
E-mail – sachithr@kln.ac.lk
2
3. 3
L E A R N I N G OBJECTIVES
1. Define Customer Perceived Value and explain the Customer Value Analysis
2. Explain value chain and identify application of value chain to an industry
3. Describe customer profitability and customer lifetime value
4. Define the marketing funnel and explain the concept of loyalty
3
4. C u s t o m e r V a l u e , S a t i s f a c t i o n & L o y a l t y
• Managers who believe the customer is the company’s only true “profit
center” consider the traditional organization chart.
• Successful marketing companies invert the chart to look like Figure 5.1(b).
Managers at every level must be personally engaged in knowing, meeting,
and serving customers
4
4
5. C u s t o m e r V a l u e , S a t i s f a c t i o n & L o y a l t y
4
5
6. C u s t o m e r P e r c e i v e d V a l u e
Customer-perceived value (CPV) is the difference between the prospective
customer’s evaluation of all the benefits and costs of an offering and the
perceived alternatives.
4
6
CPV
TCB
TCC
7. C u s t o m e r P e r c e i v e d V a l u e
• Total Customer Benefit is the perceived monetary value of the bundle of
economic, functional, and psychological benefits customers expect from a
given market offering because of the product, service, people, and
image.
• Total Customer Cost is the perceived bundle of costs customers expect to
incur in evaluating, obtaining, using, and disposing of the given market
offering, including monetary, time, energy, and psychological costs.
4
7
8. C u s t o m e r P e r c e i v e d V a l u e
4
8
1. Total Customer Cost
a. Monetary Cost
b. Time Cost
c. Energy Cost
d. Psychological Cost
2. Total Customer Benefit
a. Product Benefit
b. Services Benefit
c. Personnel Benefit
d. Image Cost
9. C u s t o m e r P e r c e i v e d V a l u e
4
9
Total Customer Cost
a) Monetary Cost - the price paid for the product or service by the
customer.
b) Time Cost – the cost to the customer in time spent in the decision
making and buying process such as searching, evaluating, purchasing and
delivery lead times.
c) Energy Cost - the degree of physical effort expended by the customer
while searching for, evaluating, buying, installing, using and receiving
delivery of the product.
d) Psychological Cost - the cost related to any dissatisfaction and
frustration experienced by the customer during the evaluation and
purchasing journey.
10. C u s t o m e r P e r c e i v e d V a l u e
4
10
Total Customer Benefit
a) Product Benefit - the basic attributes of the product such as quality,
design, functionality, packaging and cost savings.
b) Services Benefit – the support services offered alongside the product.
These may include pre-sales and post-sales customer services such as
delivery, installation, warranties, servicing and guarantees.
c) Personnel Benefit - the value added by company representatives during
the sales process to overcome customer objections and facilitate a sale.
d) Image Benefit - the perceived value to a customer of increased image and
reputation achieved by being seen to own and use the product.
11. C u s t o m e r V a l u e A n a l y s i s
• Managers conduct a customer value analysis to reveal the company’s
strengths and weaknesses relative to those of various competitors, a
systematic process with multiple steps.
4
1. Identify the major attributes and benefits that customers value.
2. Assess the quantitative importance of the different attributes and benefit.
3. Assess the company’s and competitors’ performances on the different customer
values against their rated importance.
4. Examine how customers in a specific segment rate the company’s performance.
against a specific major competitor on an individual attribute or benefit basis.
5. Monitor customer values over time.
11
12. 1. Identify the major attributes and benefits that
customers value
Customers are asked what attributes, benefits, and performance levels they
look for in choosing a product and vendors. Attributes and benefits should be
defined broadly to encompass all the inputs to customers’ decisions.
4
12
13. 2. Assess the quantitative importance of the
different attributes and benefits
Customers are asked to rate the importance of different attributes and
benefits. If their ratings diverge too much, the marketer should cluster them
into different segments.
4
13
14. 3. Assess the company’s and competitors’
performances on the different customer values
against their rated importance.
Customers describe where they see the company’s and competitors’
performances on each attribute and benefit.
4
14
15. 4. Examine how customers in a specific segment
rate the company’s performance against a specific
major competitor on an individual attribute or
benefit basis
If the company’s offer exceeds the competitor’s offer on all important
attributes and benefits, the company can charge a higher price (thereby
earning higher profits), or it can charge the same price and gain more
market share.
4
15
16. 5. Monitor customer values over time
The company must periodically redo its studies of customer values and
competitors’ standings as the economy, technology, and product features
change.
4
16
17. Choice Processes and Implications
• Some marketers might argue the process we have described is too
rational.
• TPB versus Impulse Buying.
• Buying only for Customer’s Personal Benefit.
4
17
18. Choice Processes and Implications
1. The buyer might be under orders to buy at the lowest price.
2. The buyer will retire before the company realizes the competitive
product is more expensive to operate.
3. The buyer enjoys a long-term friendship with the competitive
organization’s salesperson.
Buyers operate under various constraints and occasionally make choices that give
more weight to their personal benefit than to the company’s benefit
4
18
19. CPV - Conclusion
1. It suggests that the seller must assess the total customer benefit and
total customer cost associated with each competitor’s offer in order to
know how its own offer rates in the buyer’s mind.
2. It also implies that the seller at a disadvantage has two alternatives:
increase total customer benefit or decrease total customer cost.
3. The former calls for strengthening or augmenting the economical,
functional, and psychological benefits. The latter calls for reducing the
buyer’s costs.
4
19
20. Delivering High Customer Value – Attaining Loyalty
• Loyalty has been defined as “a deeply
held commitment to rebuy or re-
patronize a preferred product or service
in the future despite situational
influences and marketing efforts having
the potential to cause switching
behavior.”
4
20
21. Delivering High Customer Value – Attaining Loyalty
• Value Proposition consists of the whole cluster of benefits the company
promises to deliver; it is more than the core positioning of the offering.
• Value Delivery System includes all the experiences the customer will
have on the way to obtaining and using the offering. At the heart of a
good value delivery system is a set of core business processes that help
deliver distinctive consumer value.
4
21
23. T h e V a l u e C h a i n – V a l u e D e l i v e r y
N e t w o r k
4
23
24. P a t h w a y s t o b u i l d C u s t o m e r L o y a l t y
1. Interact Closely with Customers - Connecting customers, clients, patients, and
others directly with company employees is highly motivating and informative.
2. Develop Loyalty Programs – e.g.: Frequency programs (FPs) are designed to
reward customers who buy frequently and in substantial amounts.
3. Build Brand Communities - A brand community is a specialized community of
consumers and employees whose identification and activities focus around the
brand.
a) A “consciousness of kind”,
b) Shared rituals, stories, and traditions that help convey the meaning of the
community,
c) A shared moral responsibility or duty to both the community as a whole and individual
community members
4
24
25. P a t h w a y s t o b u i l d C u s t o m e r L o y a l t y
4
25
26. Customer Profitability
4
• A profitable customer is a person, household, or company that over time
yields a revenue stream exceeding by an acceptable amount the
company’s cost stream for attracting, selling, and serving that customer.
• Marketers can assess customer profitability individually, by market
segment, or by channel.
26
27. Customer Profitability
4
• Individual or Segmented? Common Approach
Many companies measure customer satisfaction, but few measure individual
customer profitability. Banks claim this is a difficult task because each customer
uses different banking services, and the transactions are logged in different
departments.
27
28. Customer Profitability Analysis
4
Customer profitability analysis (CPA) is best conducted with the tools of an
accounting technique called Activity Based Costing (ABC).
ABC accounting tries to identify the real costs associated with serving each
customer—the costs of products and services based on the resources they consume.
The company estimates all revenue coming from the customer, less all costs.
28
29. Customer Profitability Analysis
4
Each cell contains a symbol representing the profitability of selling that product to
that customer. Customer 1 is very profitable; he buys two profit-making products (P1
and P2). Customer 2 yields mixed profitability; she buys one profitable product (P1)
and one unprofitable product (P3). Customer 3 is a losing customer because he buys
one profitable product (P1) and two unprofitable products (P3 and P4).
29
30. Customer Lifetime Value (CLV)
4
Customer lifetime value (CLV) describes the net present value of the stream
of future profits expected over the customer’s lifetime purchases.
The company must subtract from its expected revenues the expected costs of
attracting, selling, and servicing the account of that customer, applying the
appropriate discount rate (depending on cost of capital and risk attitudes).
30
31. Customer Churn (Defection)
4
It is not enough to attract new customers; the company must also keep them
and increase their business.
To reduce the defection rate, the company must:
1. Define and measure its retention rate. (subscription rate, graduation rate, etc.)
2. Distinguish the causes of customer attrition and identify those that can be
managed better. (poor service, shoddy products, and high prices versus changing
geo area)
3. Compare the lost customer’s lifetime value to the costs of reducing the defection
rate.
31
32. The Marketing Funnel
4
• The marketing funnel identifies the percentage of the potential target
market at each stage in the decision process, from merely aware to highly
loyal.
• Consumers must move through each stage before becoming loyal
customers.
• Some marketers extend the funnel to include loyal customers who are
brand advocates or even partners with the firm.
32
34. Contemporary Pathways to Cultivate Customer
Relationships
4
• Customer Relationship Management (CRM) is the process of carefully managing
detailed information about individual customers and all customer “touch points” to
maximize loyalty.
• Customer Value Management (CVM), describes the company’s optimization of the
value of its customer base. CVM focuses on the analysis of individual data on
prospects and customers to develop marketing strategies to acquire and retain
customers and drive customer behavior.
34
35. Contemporary Pathways to Cultivate Customer
Relationships
4
• Personalizing Marketing is about making sure the brand and its marketing are as
personally relevant as possible to as many customers as possible.
• Customer Empowerment and Customer Reviews & Recommendations
35