chapter 5 creating customer value satisfaction and loyalty...
TRANSCRIPT
Chapter 5 – Creating Customer Value Satisfaction And Loyalty
Md Afnan Hossain – Lecturer SouthEast UniversityCourse Code: Mkt 3123 (D,E)
Contents Source: Kotlar, Keller, Koshy, Jha (2014) Marketing Management.
Forbes, The Economist, Wall Street Journal, Financial Times, Business Week, CNN Business
Marketing Management
Determinants of Customer Perceived Value
Image benefit Psychological cost
Personal benefit Energy cost
Services benefit Time cost
Product benefit Monetary cost
Total customer benefit Total customer cost
Steps in a Customer Value Analysis
Identify major attributes and benefits that customers value
Assess the qualitative importance of different attributes and benefits
Assess the company’s and competitor’s performances on the different customer values against rated importance
Examine ratings of specific segments
Monitor customer values over time
Amazon And Samsung Unseat Apple In 2013
Customer Loyalty Engagement Index
Samsung (taking the #1 spot from Apple in Smartphones),
Amazon (which took the #1 spot from Apple in Tablets) and kept its #1 ranking for its Kindle E-readers,
Hyundai and Ford (tied for #1 in Automotive, with Ford moving up in a big way),
Dunkin’ Donuts (in both Packaged and Out-of-Home Coffee Categories),
Subway (in Quick Serve, who served up enough emotional engagement to unseat McDonald’s (now #3)
http://www.forbes.com/sites/marketshare/2013/02/05/amazon-and-samsung-unseat-apple-as-2013-customer-loyalty
engagement-index-ids-seismic-shifts-in-consumer-emotional-engagement-oh-and-11-ca
Consumer satisfaction
Satisfaction is person’s feelings of pleasure
or disappointment resulting from comparing a
product’s perceived performance (or
outcome) in relation to his or her
expectations.
Measuring Satisfaction
Periodic Surveys
Customer Loss Rate
Mystery Shoppers
Monitor competitive
performance
What is Quality?
Quality is the totality of features and
characteristics of a product or service
that bear on its ability to satisfy
stated or implied needs.
Maximizing Customer Lifetime Value
Customer
Profitability
Customer
Equity
Lifetime
Value
Consumer profitability
is a person, household, or company that over
time yields a revenue stream that exceeds by
an acceptable amount the company’s cost
stream of attracting, selling, and servicing
that customer.
Customer-Product Profitability Analysis
Consumer lifetime value
Describes the net present
value of the stream of future
profits expected over the
consumer’s lifetime purchases.
Framework for CRM
Identify prospects and customers
Differentiate customers by needs
and value to company
Interact to improve knowledge
Customize for each customer
CRM Strategies
Reduce the rate of defection
Increase longevity
Enhance “share of wallet”
Terminate low-profit
customers
Focus more effort on
high-profit customers
Customer Retention
Acquisition of customers can cost five times more
than retaining current customers.
The average customer loses 10% of its customers
each year.
A 5% reduction to the customer defection rate can
increase profits by 25% to 85%.
The customer profit rate increases over the life of a
retained customer.
The Customer Development Process
Prospects
Suspects
Disqualified
First-time
customersRepeat
customersClients Members
PartnersEx-customers
Using the Database
To identify prospects
To target offers
To deepen loyalty
To reactivate customers
To avoid mistakes
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