Markma session 3 presentation marvin pedregosa revised

transcript

ph.linkedin.com/in/marvinpedregosa

CREATING LONG-TERM LOYALTY RELATIONSHIPS

Marvin PedregosaATENEO GRADUATE SCHOOL OF BUSINESS

Connecting with Customers

Outline

STRONG Loyalty Relationships are created through:

1. Maximizing Customer Value

2. Ensuring Customer Delight

3. Solidifying Product Quality

4. Investing in the Right Customers

5. Managing Customer Relationships

6. Being Savvy with Data

SUCH PRODUC

MUCH QUALITYVERY AMAZE

TEACH DOGE PLS

Cust. Perceived Value = Total Benefits – Total Costs

Loyalty Relationship Concept 1 of 6:

SET CUSTOMER VALUE to MAXIMUM

Customer Perceived Value

Product Benefit

Services Benefit

Personnel Benefit

Image Benefit

Total Customer Benefit

Monetary Cost

Time Cost

Energy Cost

Psychological Cost

Total Customer Cost

Undergo CUSTOMER VALUE ANALYSIS

SET CUSTOMER VALUE to MAXIMUM

1. Identify benefits, etccustomers value

2. Assign weights

3. Assess company and competitors’ performance

4. Ask customers to rate

5. Monitor

SET CUSTOMER VALUE to MAXIMUMHOW TO MAXIMIZE?

2 Alternatives:

1. Increase Total Customer Benefit

2. Decrease Total Customer Cost

DELIGHT THY CUSTOMERWHAT IS CUSTOMER SATISFACTION?

A person’s feeling of PLEASURE or DISAPPOINTMENTthat result from comparing a product’s perceived performance to expectations.

DELIGHT THY CUSTOMER

Performance < Expectations

DISSATISFIED

Performance = ExpectationsSATISFIED

Performance > ExpectationsDELIGHTED

DELIGHT THY CUSTOMEREVERYONE WANTS HIGHLY SATISFIED CUSTOMERS!

1. Stay loyal longer

2. Buys more as the company introduces new & upgraded products

3. Talks favorably to others about the company

4. Pays less attention to competing brands

5. Less sensitive to price

ENSURE PRODUCT QUALITYHigh Quality

High Customer Satisfaction

High Loyalty

High Prices

Low Costs*

High Profitability

ENSURE PRODUCT QUALITY

HOW? Codify QUALITY as a company priority

Ensure Departmental objectives and targets reflect QUALITY as a priority

Develop action plans to achieve QUALITY targets through daily processes or projects

PERIODICALLY MONITOR

INVEST IN THE RIGHT CUSTOMERS

Marketing is the art of attracting and keeping PROFITABLE CUSTOMERS

Person, household, or company that over time yields

for attracting, selling, & serving that customer.

REVENUE STREAM > COST STREAM

INVEST IN THE RIGHT CUSTOMERSNOT ALL CUSTOMERS ARE “EQUAL”

Customer Profitability Analysis

INVEST IN THE RIGHT CUSTOMERSNOT ALL CUSTOMERS ARE “EQUAL”

The Marketing Funnel

MANAGE YOUR RELATIONSHIPS

CUSTOMER RELATIONSHIP MANAGEMENT

CRM can be practiced through…

1. Personalized Marketing

2. Customer Empowerment

3. Recommendations from consumers

Companies can create stronger bonds with customers by personalizing relationships.

CUSTOMER RELATIONSHIP MANAGEMENT

CRM CUSTOMER RELATIONSHIP MANAGEMENT

4-Step Framework for Personalized Marketing

1. Identify Prospects and Customers

2. Differentiate customers in terms of their needs and value

to your company

3. Interact to gain information and build relationships

4. Customize products, services , and messages to each

customer

BE DATA SAVVYBUILD A CUSTOMER DATABASE

MINE DATA

Summary

STRONG Loyalty Relationships are created through:

1. Maximizing Customer Value

2. Ensuring Customer Delight

3. Solidifying Product Quality

4. Investing in the Right Customers

5. Managing Customer Relationships

6. Being Savvy with Data

SUCH DELIGHT

LOYAL DOGE

VERY MANAJEDWOW

WOWWOW

Conclusion

LOYAL CUSTOMERS ARE RESULTS OF

1. Good recognition of needs

2. Not settling for anything less than the BEST in Product Quality

3. Well-managed interactions

4. Strategically focused efforts

LOYAL CUSTOMERS ARE PRIORITY!

Repeat Sales, Positive Word-of-Mouth, Neutralized Competition

CREATING LONG-TERM LOYALTY RELATIONSHIPS

ANALYZING CONSUMER MARKETS

Outline

HOW DO WE LOOK INTO CONSUMER BEHAVIOR?

1. WHAT Influences Consumer Behavior

2. HOW Do Consumers Think

3. HOW Do Consumers Choose

4. HOW To INFLUENCE Consumers’Behavior

Analyzing Consumer Markets Concept 1 of 4:

BEHAVIORAL INFLUENCERSWhat is consumer behavior?

It is the study of how consumers select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants

BEHAVIORAL INFLUENCERSFACTORS

CULTURAL SOCIAL

PERSONAL

BEHAVIORAL INFLUENCERSFACTORS: CULTURAL

3Culture Sub-Culture Social Class

Family

Key Institutions

Nationality

Religion

Racial Group

Geographic Region

Lower Lowers

Upper Lowers

Working Class

Middle Class

Upper Middles

Lower Uppers

Upper Upper

BEHAVIORAL INFLUENCERSFACTORS: SOCIAL

BEHAVIORAL INFLUENCERSFACTORS: PERSONAL

AGE ECONOMIC CIRCUMSTANCES

AND OCCUPATION

PERSONALITY AND SELF-CONCEPT

LIFESTYLE AND VALUES

PSYCHOLOGICAL PROCESSES AFFECTING CONSUMERS

PSYCHOLOGICAL PROCESSES AFFECTING CONSUMERSMOTIVATION

Motivation is when a need becomes aroused to a level of intensity that drives us to act.

3 theories of human motivation:

1. Freud 2. Maslow 3. Herzberg

PSYCHOLOGICAL PROCESSES AFFECTING CONSUMERSPERCEPTION

Perception is the process of how we interpret information to create a meaningful picture of the world

PSYCHOLOGICAL PROCESSES AFFECTING CONSUMERSLEARNING

Learning Induces change in our behavior arising from experience

Marketers can thus build product demand by associating it with strong drives, using motivational cues, and providing positive reinforcement

PSYCHOLOGICAL PROCESSES AFFECTING CONSUMERSEMOTIONS

Emotions are involved when consumer response is not all rational but invokes different feelings

• Emotional marketing campaigns help build stronger connections with consumers.

• People can relate more to the brand instead of just associating it as a product.

THE PURCHASE PROCESS

PROBLEM RECOGNITION

PURCHASE DECISION

POSTPURCHASE BEHAVIOR

INFORMATION SEARCH

EVALUATION OF

ALTERNATIVES

THE PURCHASE PROCESS

PROBLEM RECOGNITION

Internal Stimuli

ExternalStimuli

THE PURCHASE PROCESS2.

INFORMATION SEARCH

4 MAJOR INFORMATION SOURCES:

1. Personal

2. Commercial

3. Public

4. Experiential

EVALUATION OF

ALTERNATIVES

THE EVALUATION PROCESS IS INFLUENCED BY

1. Beliefs

2. Attitudes

3. Expectancy Values (Rationalization)

NON COMPENSATORY MODELSMakes use of “Mental Shortcuts” or HEURISTICS

1. Conjunctive– Minimum Cut Off per Attribute

2. Lexicographic – Choice among the best of a perceived most important Attribute

3. Elimination-by-Aspects

PURCHASE DECISION

POSTPURCHASE SATISFACTION

POSTPURCHASE ACTIONS

POSTPURCHASE USE AND DISPOSALS

POSTPURCHASE BEHAVIOR

CONTEXTUAL INFLUENCES &HEURISTICSDECISION HEURISTICS OR RULES OF THUMB

1. Availability – Based on the quickness and ease with which a particular example of an outcome comes to mind e.g. Safety of Malaysia Airline flights

2. Representativeness – Based on how representative or similar the outcome is to other examples e.g. Coffee Creamer Packaging

3. Anchoring or Adjustment – Consumers arrive at an initial judgment and then adjust it based on additional information e.g. Important First Impressions

Summary

HOW DO WE LOOK INTO CONSUMER BEHAVIOR?

1. WHAT Influences Consumer Behavior

2. Psychological Processes AFFECTING Consumers

3. The Purchase Process

4. Contextual Influences and Heuristics

LOL found it

Conclusion

ANALYSIS LEADS TO REWARDS

1. Consumer behavior is affected by a lot of factors

2. Purchase decisions are not purely rational

3. GOOD MARKETING can influence these factors and lead to

meeting company objectives!

ANALYZING CONSUMER MARKETS