Top 10 Chapter 5 Concepts

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http://francollantes.blogspot.com

TOP 10 Learning Concepts

Francine Luanne M CollantesSeptember 2011

Ch 5: Creating Customer Value

Satisfaction, and Loyalty

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Outline:

Creating Loyal Customers is at

the HEART of every business

Foundations of CustomerValue, Satisfaction,&Loyalty

Transforming the customer Experience into aRELATIONSHIP

Know thy Customer

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Foundations of CustomerValue, Satisfaction,&Loyalty

1. Value-Maximizers2. Value Proposition

3. Loyalty

4. Satisfaction

5. Product and Service Quality

6. Customer Profitability


Outline:




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Transforming the customer Experience into a

RELATIONSHIP Cultivating Long-term Customers

Attracting and Retaining Customers


Outline:




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Know thy Customer

Customer Databases and Database Marketing Database Warehouses and Data Mining


Outline:




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Concept 1: FOUNDATIONS

Customers tend to be Value-

Maximizers


Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4thEd,Philip Kotler and Kevin Lane Keller, 2009

CustomerPerceivedValue

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Maximizers


=

TotalCustomer

Benefit

Product

Service

Personnel

Image



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Maximizers


=

TotalCustomer

Benefit

Product

Service

Personnel

Image


TotalCustomer

Cost

Monetary

Time

Energy

Psychological

-


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Example 1:


Maximizers



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Example 1:


Maximizers


Inasal = Visayan for barbeque Uses own marinade concoction

Bamboo stick skewers Encourages kinamot (eating

with bare hands) Pinoy tradition, culture, and

home

Offers hearty meal Great value for money


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Value Proposition Formula =

Benefits + Promise to deliver


Why

shouldthe

customerpurchase

yourproduct?

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Example 2:

Value Proposition Formula =

Benefits + Promise to deliver

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Consumers have varying degrees of

loyalty to specific brands, stores, and

companies


Loyalty

Repeat purchase

Repeat patronage

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Example 3:



companies



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Example 3:



companies


vs

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Example 3:



companies


vs

More customers are stillfound to go to SM to

purchase varying needs

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Customers satisfaction is defined by

matching both expectationsand

performance


Satisfaction

Feelings of pleasure ordisappointment

Basis:

Perceived performance

Expectations

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Example 4:

Customers satisfaction is defined by

matching both expectationsand

performance


March 2011: Toyota announced recall of 8,830 units of both Fortuner andInnova due to over-responsive brake systems, or improperly-mountedcamber bolts and seats.

Dealership got affected so Toyota Philippines had to issue a statementthat cars sold here are not affected


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Satisfaction will also depend on

productorservice quality


Quality

Totality of: Features

Characteristics

Ability to satisfy stated

or implied needs

Its everyones job!

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Example 5:



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Example 5:



Winner of the ff: 2009 Asian Livestock Industry Award

Ernst & Young 2010 Entrepreneur of the Year Award

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C t 6 FOUNDATIONS


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150-20 Rule implies that a company

could improve its profitsbyfiringits

worstcustomers.


Customer Lifetime Value

Measure of customerprofitability

Used to develop long-

term perspective

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C t 6 FOUNDATIONS


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worstcustomers.


Customer Lifetime Value

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Marketing metric for: Customer loyalty

Customer selection

Long-term planning

Resource allocation

C t 6 FOUNDATIONS


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worstcustomers.

Properties are foreclosed properties from bad creditors


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Concept 7: Experience to RELATIONSHIPMaximizing customer value means cultivating

Long-term Customer Relationships


Customer RelationshipManagement (CRM)

Uses detailed information

About customers

Individual

Touch points

Maximizes Loyalty

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Example 7: Experience to RELATIONSHIPMaximizing customer value means cultivating

Long-term Customer Relationships

+ =Partnership:

CRM Solution for Call Center Operations

"Knowing what the customers want and how they want to be treated are importantfactors to gaining competitive advantage in a very tough banking market"

- Lydia King, First Vice President for IT Operations

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http://ph/


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Concept 8: Experience to RELATIONSHIP

The challenge is in attracting and

retaining customers


Potentials

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retaining customers


Prospects

Potentials

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retaining customers


Prospects

Potentials

First-Timers

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retaining customers


Prospects

Potentials

First-Timers

Patrons

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retaining customers


Prospects

Potentials

First-Timers

Patrons

Members

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retaining customers


Prospects

Potentials

First-Timers

Patrons

Members

Advocates

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retaining customers


Prospects

Potentials

First-Timers

Patrons

Members

PARTNERS

Advocates

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Concept 8:


retaining customers

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Concept 9: KNOW THY CUSTOMER

Marketers must know their customers


Customer Database

Organized collection ofindividual information

Current

Accessible

Actionable

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Database Marketing Building

Maintaining

Used to:

Facilitate contact &

transactions

Build customer

relationship

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Concept 9:


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CRM requires detecting trends,

segments, and individual needs


Data Warehouses and Data Mining

Allows business tomake the PROACTIVE,

KNOWLEDGE-DRIVEN

DECISIONS

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CRM requires detecting trends,

segments, and individual needs

Customers were invited to partner andhelp come up with reasons why

they might consider going

WORD CLOUD

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TOP 10 Learning Concepts

Francine Luanne M Collantes

September 2011

Ch 5: Creating Customer Value

Satisfaction, and Loyalty

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Top 10 Chapter 5 Concepts

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