1. Ch 5: Creating Customer Value Satisfaction, and Loyalty TOP 10 Learning Concepts Francine Luanne M Collantes September 2011 http://francollantes.blogspot.com 1
2. Outline:Creating Loyal Customers is at the HEART of every business Foundations of Customer Value, Satisfaction, & Loyalty Transforming the customer “Experience” into a RELATIONSHIP Know thy Customer http://francollantes.blogspot.com 2
3. Outline:Creating Loyal Customers is at the HEART of every business Foundations of Customer Value, Satisfaction, & Loyalty Value-Maximizers Value Proposition Loyalty Satisfaction Product and Service Quality Customer Profitability http://francollantes.blogspot.com 3
4. Outline:Creating Loyal Customers is at the HEART of every business Transforming the customer “Experience” into a RELATIONSHIP Cultivating Long-term Customers Attracting and Retaining Customers http://francollantes.blogspot.com 4
5. Outline:Creating Loyal Customers is at the HEART of every business Know thy Customer Customer Databases and Database Marketing Database Warehouses and Data Mining http://francollantes.blogspot.com 5
6. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers Customer Perceived Value Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com 6
7. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers Total Customer Benefit Product Customer Perceived Value = Service Personnel Image Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com 7
8. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers Total Customer Benefit Total Customer Cost - Product Monetary Customer Perceived Value = Service Time Personnel Energy Image Psychological Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com 8
17. Concept 2: FOUNDATIONSValue Proposition Formula = Benefits + Promise to deliver Why should the customer purchase your product? http://francollantes.blogspot.com 11
21. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies http://francollantes.blogspot.com 14
22. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies vs http://francollantes.blogspot.com 15
23. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies vs More customers are still found to go to SM to purchase varying needs http://francollantes.blogspot.com 16
28. Example 4:Customers satisfaction is defined by matching both expectations and performance March 2011: Toyota announced recall of 8,830 units of both Fortuner and Innova due to over-responsive brake systems, or improperly-mounted camber bolts and seats. Dealership got affected so Toyota Philippines had to issue a statement that cars sold here are not affected http://francollantes.blogspot.com 18
34. Example 5:Satisfaction will also depend on product or service quality Winner of the ff: 2009 Asian Livestock Industry Award Ernst & Young 2010 Entrepreneur of the Year Award http://francollantes.blogspot.com 21
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36. Used to develop long-term perspectivehttp://francollantes.blogspot.com 22
42. Concept 6: FOUNDATIONS150-20 Rule implies that a company could improve its profits by “firing” its worst customers. Properties are foreclosed properties from bad creditors http://francollantes.blogspot.com 24
48. Example 7: Experience to RELATIONSHIPMaximizing customer value means cultivating Long-term Customer Relationships + = Partnership: CRM Solution for Call Center Operations "Knowing what the customers want and how they want to be treated are important factors to gaining competitive advantage in a very tough banking market" - Lydia King, First Vice President for IT Operations http://francollantes.blogspot.com 26
49. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Potentials http://francollantes.blogspot.com 27
50. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Prospects Potentials http://francollantes.blogspot.com 28
51. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers First-Timers Prospects Potentials http://francollantes.blogspot.com 29
52. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 30
53. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 31
54. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Advocates Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 32
55. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers PARTNERS Advocates Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 33
56. Concept 8:The challenge is in attracting and retaining customers http://francollantes.blogspot.com 34
66. Concept 9: Marketers must know their customers http://francollantes.blogspot.com 37
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68. Concept 10: KNOW THY CUSTOMERCRM requires detecting trends, segments, and individual needs WORD CLOUD Customers were invited to partner and help come up with reasons why they might consider going http://francollantes.blogspot.com 39
69. Ch 5: Creating Customer Value Satisfaction, and Loyalty TOP 10 Learning Concepts Francine Luanne M Collantes September 2011 http://francollantes.blogspot.com 40