03 Customervaluessatisfactionandloyalty 130131111332 Phpapp01

8/12/2019 03 Customervaluessatisfactionandloyalty 130131111332 Phpapp01

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THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),

FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),

MSLIM1


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How can companies deliver customer value,satisfaction, and loyalty?

What is the lifetime value of a customer,

and why is it important to marketers? How can companies cultivate strong

customer relationships? What is the role of database marketing in

customer relationship management?

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Customer perceived value CPV)thedifference between the prospective

customers evaluation of all thebenefits and all the costs of anoffering and the perceivedalternatives.

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Total customer value

Product value

Services value

Personnel value Image value

Total customer cost

Monetary cost

Time cost

Energy cost Psychic cost

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A deeply held commitment to re-buyor re-patronize a preferred product or

service in the future despitesituational influences and marketingefforts having the potential to causeswitching behavior.

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A persons feelings of pleasure ordisappointment that result from

comparing a products perceivedperformance (or outcome) toexpectations.

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Quality (or grade) is the totality offeatures and characteristics of a

product or service that bear on itsability to satisfy stated or impliedneeds.

Forms

Conformance quality

Performance quality

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Correctly identifying customers needs andrequirements

Communicate customer expectations properly

to product designers Be sure orders are filled correctly and on time Provide customers with proper instructions,

training, and technical assistance

Stay in touch with customers after the sale Gather customer ideas for improvements and

convey them to the appropriate departments

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A profitable customeris one that overtimeyields a revenue stream that

exceeds by an acceptable amount thecompanys cost stream for attracting,selling, and servicing that customer.

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Best conducted with an accountingtechnique called Activity-Based

Costing (ABC). Estimate all revenue coming from the

customer, less all costs that go intoserving that customer.

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Describes the net present value of thestream of future profits expected over

the customers lifetime purchases.

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Customer relationship managementCRM)is the process of carefullymanaging detailed information aboutindividual customers and all customertouch points to maximize customerloyalty.

Touch pointany occasion on which acustomer encounters the brand andproduct.

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1. Identify your prospects andcustomers

2. Differentiate customers in terms oftheir needs and their value to yourcompany

3. Interact with individual customers

4. Customize products, services, andmessages to each customer

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PARETOS LAW

80:20 RULE20% of customer account for 80% of

turn over

20% of customer account for 80% ofprofit

20% of customer account for 80% of all

your problems 14


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Acquisition Retention

Salesanalysis

merchandising

advertising

Customersegmentati

on

Campaignmanagement

Channelsupport

Trust andprivacy

Productquality

Customerservice

Customersatisfaction


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Potentials Prospects

First-time customers Repeat customers Clients Members Advocates Partners

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Loyalty is about the conscious decision of your customers tocommit their continual repurchases to your brand. It is :

Driving an extra few miles to do your shoppingRecommending it to your best friend

An emotional and rational lock-inSometimes encouraged by an incentive or rewardA better path to profit

Loyalty is essentially a one-way commitment for which thecustomer receives a reward, but it is also about relationships

Two-way interaction in which both sides create andexchange mutual benefits

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Satisfaction is important business success However, satisfaction itself is not the only thing

that delivers increased profits and a greater share

of customers wallets Satisfaction is only a feeling that is most likely to

disappear quickly Satisfaction alone isnt adequate customer loyalty

must combine with satisfaction for it to be

effective

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Identify the best prospects Match a specific offer with a specific

customer as a way to sell, cross-sell,

and up-sell Deepen customer loyalty by

remembering preferences and

offering relevant incentives andinformation Reactivate customer purchasing Avoid serious mistakes

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Large investment Difficulty in getting everyone to be

customer oriented Not all customers want an ongoing

relationship Assumptions behind CRM may not

always hold true

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Highly competitive

Low differentiation

Delighted

customers

probable good

loyalty program

Low customer

value

Alternative

available

High barriers to

change due to

excellent loyalty

program

Vulnerable to

change

Highsatisfaction

lowsatisfaction

Low loyalty High loyalty22


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Customer databasean organizedcollection of comprehensive informationabout individual customers or prospects

that is current, accessible, and actionablefor marketing purposes. Database marketingthe process of

building, maintaining, and using customer

databases and other databases to makecontact, facilitate transactions, and buildcustomer relationships.

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Data warehouseorganized datawhere marketers can capture, query,

and analyze it to draw inferencesabout an individual customers needsand responses.

Dataminingstatisticians extractuseful information about individuals,trends, and segments from the massof data.

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Thankyou

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03 Customervaluessatisfactionandloyalty 130131111332 Phpapp01

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