what are customer value, satisfaction, and loyalty, and how can companies deliver them ?

What Are Customer Value, Satisfaction, And Loyalty,

And How Can Companies Deliver Them ?

Successful Marketers are those who carefully manage their

customer base

Creating Loyal Customers

is at the heart of every business

The only value that your company will ever create is the value that comes from Customers :

The only value that your company will ever create is the value that comes from Customers :

The ones you have nowand the ones you will have in the future

Without Customers, there is no Business

No Customers = Checkmate

Customers are Value Maximizers

Buyers will buy from the firm that they perceive to offer the highest customer

delivered value

Customer Perceived Value is the difference betweenTotal Customer Benefit and Total Customer Cost

Customer Perceived Value

Total Customer Benefit

Total Consumer Cost

= -

Customer Perceived Value

Total Customer Benefit

Total Consumer Cost

= -

Monetary Cost

Time Cost

Energy Cost

Psychological Cost

ProductBenefit

ServicesBenefit

PersonnelBenefit

Image Benefit

How to Sell effectively ?

How to Sell effectively ?

Higher Total Customer Benefit

Lower Total Customer Cost

Delivering High Customer Value

Delivering High Customer Value

The Value Proposition System consists of a cluster of benefits that the company promises to deliver

Delivering High Customer Value

The Value Proposition System consists of a cluster of benefits that the company promises to deliver

It is more than the core positioning of the offering

For example, Volvo’s core positioning

has been safety !

But the buyer is promised more than just a safe car

Also ensure an efficient Value Delivery System

A Customer’s Satisfaction is a function of the product’s perceived performance and the buyer’s

expectations

If the performance falls short of the expectations :

If the performance falls short of the expectations :

The Customer isDissatisfied !

If the performance exceeds the

expectations :

If the performance exceeds the

expectations :

The Customer isSatisfied !

High Satisfaction leads toHigh Customer Loyalty

But Customer Satisfaction does not ‘guarantee’ Customer Loyalty !

Undertake Customer surveys – Get to know your Customer

Address your Customer complaints ASAP !

After All,Your Most Unhappy

CustomersAre Your Greatest

Source Of Learning !

Slides by : Priyanjit Biswas

Created by :

PRIYANJIT BISWAS,JADAVPUR UNIVERSITY

During an Internship by :

Prof. SAMEER MATHUR,IIM LUCKNOW

www.IIMInternship.com