Post on 01-Jun-2018
transcript
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Creating Customer Value and CustomerRelationships
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Chapter Questions
What are customer value, satisfaction, and
loyalty, and how can companies deliver them?
What is the lifetime value of customers and
how can marketers maximize it? How can companies attract and retain
customers and cultivate strong customer
relationships? What are the pros and cons of database
marketing?
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Eureka Forbes !"ift of a #mile$
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Customer-Orientations
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Customer Perceived Value
Customer perceived value is the difference
between the prospective customers
evaluation of all the benefits and all the costs
of an offering and the perceived alternatives%
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Determinants of
Customer Perceived Value
&mage benefit 'sychological cost
'ersonal benefit Energy cost
#ervices benefit (ime cost
'roduct benefit )onetary cost
(otal customer benefit (otal customer cost
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Applying Value Concepts
* firm can improve its offers in three ways+
% -y improving the economic, functional,
and psychological benefits of its product,
services, people, and.or image%
/% -y reducing the buyers nonmonetary
costs by lesser time, energy, and
psychological investment%
0% -y reducing the products monetary cost
to the buyer%
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Steps in a
Customer Value Analysis
&dentify ma1or attributes and benefits that
customers value
*ssess the 2ualitative importance of different
attributes and benefits *ssess the companys and competitors
performances on the different customer values
against rated importance
Examine ratings of specific segments
)onitor customer values over time
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What s !oyalty"
!oyaltyis a deeply held commitment to re3
buy or re3patronize a preferred product or
service in the future despite situational
influences and marketing efforts having thepotential to cause switching behavior%
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Delivering Superior Value
Customer Value #anagement $CV#%by (ata
#teel through a cross3functional 1oint team of
the company and the customer has succeeded
in delivering superior customer value
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#easuring Satisfaction
'eriodic surveys
4ustomer loss rate
)ystery shoppers
)onitor competitive performance
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#anaging Customers
5ealing with negative experiences and recoveringcustomer goodwill+
% #et up a 63day, /73hour toll3free hotline to
receive and act on customer complaints%
/% 4ontact the complaining customer as 2uickly aspossible to avoid negative word of mouth%
0% *ccept responsibility for the customers
disappointment8 dont blame the customer%7% 9se customer service people who are empathic%
:% ;esolve the complaint swiftly and to the
customers satisfaction%
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What is Quality"
Qualityis the totality of features and
characteristics of a product orservice that bear on its
ability to satisfy
stated or implied needs%
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#a&imi'ing Customer !ifetime Value
4ustomer 'rofitability
4ustomer E2uity
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Customer-Product Profita(ility
Analysis
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)stimating !ifetime Value
*nnual customer revenue+;s%:>>
*verage number of loyal years+ />
4ompany profit margin+ > 4ustomer lifetime value+ ;s>>>
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What s
Customer Relationship #anagement"
CR#is the process of carefully managing
detailed information about individual
customers and all customer touch points to
maximize customer loyalty%
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*rame+or, for CR# (y Don
Peppers and #artha Rogers
&dentify prospects and customers
5ifferentiate customers by needs and
value to company
&nteract to improve knowledge
4ustomize for each customer
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Customer Revie+s and
Recommendations
(he strongest influence on consumer choiceremains !recommended by relative.friend$%
With increasing mistrust of some companies
and their advertising, online customer ratingsand reviews and recommendations from
consumers are playing an important role%
-loggers who review products or services,
online retailers who add their own
recommendations have also become important%
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Attracting and
Retaining Customers
;educe the rate of defection
&ncrease longevity
Enhance share of wallet
(erminate low3profit customers
Focus more effort on high3profit customers
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he #ar,eting *unnel
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!oyalty Programs
4opyright @ />0 5orling Aindersley B&ndiaC 'vt
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Data(ase .ey Concepts
4ustomer database
5atabase marketing
)ailing list
-usiness database
5ata warehouse
5ata mining
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/sing the Data(ase
(o identify prospects
(o target offers
(o deepen loyalty
(o reactivate customers
(o avoid mistakes
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Don0t 1uild a Data(ase When
(he product is a once3in3a3lifetime purchase
4ustomers do not show loyalty
(he unit sale is very small
(he cost of gathering information is too high
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*or Revie+
What are customer value, satisfaction, and
loyalty, and how can companies deliver them?
What is the lifetime value of customers and
how can marketers maximize it? How can companies attract and retain
customers and cultivate strong customer
relationships?
What are the pros and cons of database
marketing?