Markma session 3 presentation marvin pedregosa revised

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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

WOW

SUCH PRODUC

MUCH QUALITYVERY AMAZE

WOW

WOW

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!

THEY:

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


WHY?


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

CRM

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

3

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

3



BEHAVIORAL INFLUENCERSFACTORS: PERSONAL

3

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

1.

Internal Stimuli

ExternalStimuli

ExternalStimuli

ExternalStimuli

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




Date post:	14-Jul-2015
Category:	Marketing
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