What exactly are customer values

and customer relationships?

The only value that a

firm can ever create

comes from the

customers.

How to satisfy a customer

Customer Perceived Value

The Customer Perceived Value for a product can be calculated as –

CPV = Benefits - Costs

Monitoring Satisfaction

Complaints Surveys

Customer Relationship Management

Personalizing marketing Ensuring that the brand and its marketing are as relevant and possible to as

many customers as possible

Customers Clients

Customer Relationship Management

Loyalty programs

Club/company membership cards

Managing Customer Database

Database Mailing List

Database

Buyer names,Ages,

Birthdays,Hobbies,Interests

etc…

NORDSTROM earned fame through

its effective CUSTOMER SERVICES

Nordstrom• Founded by John Nordstrom in

1901• It was started as a shoe store but

grew into a speciality chain storeselling top quality clothing,jewellery and perfumes

• In 2009, it has generated revenueof $8 billion

Nordstrom offers exceptional

CUSTOMER SERVICE through…

• Product prices

• Extremely convenient return policy

• Thank you cards

• Facility to shop online

• High standards in quality

AND…Rewards/Incentives

Fashion Shows Live Piano concert

NORDSTROM ‘s printed advertisements

RISKS AHEAD…

OTHER COMPETITORS

And

Focussing disproportionately on high profit customers

might result in discontent among the other customers

To maintain BRAND IMAGE and promote customer

BRAND EQUITY...

• The company should give rewards/

incentives to all classes of customers

based on the revenues generated

from each class instead of prioritizing

high profit customers

• Make effective use of social

media to reach out people and

expand the horizons of the

target markets

Customer Perceived Value Monitoring Satisfaction

Customer Relationship Management Customer Database

Presented by Smaran Raj Bachu (IIT Madras)

as a part of marketing management internship

under the guidance of Prof. Sameer Mathur,

IIM Lucknow.