Customer Values and Relationships

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What exactly are customer values and customer relationships?

Transcript of Customer Values and Relationships

Page 1: Customer Values and Relationships

What exactly are customer values

and customer relationships?

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The only value that a

firm can ever create

comes from the

customers.

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How to satisfy a customer

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Customer Perceived Value

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

CPV = Benefits - Costs

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Monitoring Satisfaction

Complaints Surveys

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Customer Relationship Management

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

many customers as possible

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Customers Clients

Customer Relationship Management

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Loyalty programs

Club/company membership cards

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Managing Customer Database

Database Mailing List

Database

Buyer names,Ages,

Birthdays,Hobbies,Interests

etc…

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NORDSTROM earned fame through

its effective CUSTOMER SERVICES

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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

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Nordstrom offers exceptional

CUSTOMER SERVICE through…

• Product prices

• Extremely convenient return policy

• Thank you cards

• Facility to shop online

• High standards in quality

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AND…Rewards/Incentives

Fashion Shows Live Piano concert

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NORDSTROM ‘s printed advertisements

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RISKS AHEAD…

OTHER COMPETITORS

And

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Focussing disproportionately on high profit customers

might result in discontent among the other customers

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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

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Customer Perceived Value Monitoring Satisfaction

Customer Relationship Management Customer Database

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Presented by Smaran Raj Bachu (IIT Madras)

as a part of marketing management internship

under the guidance of Prof. Sameer Mathur,

IIM Lucknow.