Top 10 Learning Concepts

transcript

TOP 10 Learning Concepts

Chapter 5: Customer Value, Satisfaction, and

Loyalty

Cabunilas, Michelle M.13 April 2011

http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,

13th ed.

Contents:

Concept 1: Customer Value, Satisfaction, and Loyalty Concept 2: Customer Satisfaction Concept 3: Product and Service Quality Concept 4: Maximizing Customer Lifetime Value Concept 5: Customer Relationship Management Concept 6: Attracting and retaining Customers Concept 7: Increase Customer Value Concept 8: Building Loyalty Concept 9: Customer Database Concept 10: Customer Development Process and

Retention

13th ed.

Concept 1: Customer Value, Satisfaction, and Loyalty

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Customers

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Customer Perceived

Image Benefit

Psycho.Cost

PersonalBenefit

EnergyCost

ServicesBenefit

Time Cost

ProductBenefit

TotalCustomer

Banefit

MonetaryCost

Total Customer

Determinants Of Customer Perceived Value

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Concept 2: Customer Satisfaction

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A person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance to their expectations.

Customers

Concept 2: Customer Satisfaction

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Measurement Techniques for Customer Satisfaction:

PERIODIC SURVEYS

MYSTERY SHOPPER

LOSS RATE FROM CUSTOMERS

MONITORING PERFORMANCE

Concept 3: Product and Service Quality

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WHAT IS

Is the total feature and characteristic of a product or service that has an ability to satisfy needs.

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Product & ServiceQuality

CustomerSatisfaction

CompanyProfit

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Concept 4: Maximize Customer Lifetime Value

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CustomerProfitabilityCustomer

Profitability

Lifetime Value

CustomerEquity

Top 20% customers generates

80% or more of

company’s profits

Most profitable 20% customers contribute

as much as 150%-200% profit.

Least profitable 10%-20%

cutomers lose 100% profit.

Concept 5: Customer Relationship Management

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Process of managing detailed information about individual customers & all customer “touch point”

to maximize customer loyalty.

Customer encounters the brand and product—from actual

experience to personal or mass communications to casual

observation.

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Identifycustomers

Differentiation(a)Needs(b) value

Customizing products, services

Interactionwith

customers

ONE-TO-ONE MARKETING

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Concept 6: Attracting and Retaining Customers

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Customers

Concept 6: Attracting and Retaining Customers

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Concept 7: Increase Customer Value

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REDUCE RATE OF CUSTOMER DEFECTION

INCREASE LONGEVITY OF CUSTOMER REL.

ENHANCING GROWTH POTENTIAL THROUGH “SHARE OF WALLET”, CROSS-SELLING,

AND UP-SELLING

MAKING LOW-PROFIT CUSTOMERS MORE PROFITABLE

FOCUSING DISPROPORTIONATE EFFORT ONHIGH-VALUE CUSTOMER

Concept 8:Building Loyalty

Create superior products, services, and experiences for the target market.

Get cross-department participation in planning and managing the customer satisfaction and retention process.

Integrate the “Voice of the Customer” to capture their needs and requirements.

Organize and make database of information on customer needs, preferences, contacts, purchase frequency, and satisfaction.

Easy way for customers to reach companies personnel and express their needs, and complaints.

Potential frequency programs and club marketing programs. Run award programs rocognizong outstanding customers.

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Concept 8:Building Loyalty

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Concept 9:Database Marketing

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Collection of information about customers that is current, accessible, and actionable

for marketing purposes.

Process of building, maintaining, and using customer databases to contact,

transact, and build customer relationships.

Concept 9:Database Marketing

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IDENTIFY PROSPECTS

DECIDE WHO TO OFFER

DEEPEN CUSTOMER LOYALTY

REACTIVATE CUSTOMER PURCHASES

AVOID CUSTOMER MISTAKES

Concept 10: Customer Dev’t. Process and Retention

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potentials prospectsFirst timecustomers

Repeatcustomers

clientsmembers advocates partners

In-active orEx-customers

Disqualified prospects

Concept 10: Customer Dev’t. Process and Retention

Acquired new customers cost five times more than satisfying and retaining current customers.

Average company loses 10% of its customer each year.

5% reduction in customer defect rate can increase profits by up to 85%

Customer profit rate increase due to increased purchases, referrals, and price premiums and reducedd operating costs.

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Summary:

Customers are value maximizers. High satisfaction leads to high customer loyalty. Losing profitable customers can affect a firm’s

profits. Marketers play a key role in achieving high

levels of total quality. Customer Relationship Management requires

building a customer database and doing datamining to know trends, segments, and individual needs.

13th ed.

TOP 10 Learning Concepts

Chapter 5: Customer Value, Satisfaction, and

Loyalty

Cabunilas, Michelle M.13 April 2011

13th ed.

Top 10 Learning Concepts

Business