CREATING CUSTOMER VALUE, SATISFACTION & LOYALTY

Erwin L. Isla, M.D.MBA/H Batch 8

Top 10+ Concepts

OUTLINE

Chapter 5Creating Customer Value, Satisfaction, and Loyalty

Outline

A. BUILDING CUSTOMER VALUE, SATISFACTION, AND LOYALTY

1. Customer Perceived Value• Concept 1

2. Total Customer Satisfaction• Concept 2• Concept 3

Outline

3. Monitoring Satisfaction• Concept 4• Concept 5

4. Product and Service Quality• Concept 6

Outline

B. CULTIVATING CUSTOMER RELATIONSHIPS

1. Customer Relationship Management• Concept 7

2. Attracting and Retaining Customers• Concept 8

3. Building Loyalty• Concept 9• Concept 10

Outline

C. Customer Database and Database Marketing

• Concept 11

D. Summary/ Conclusion

TOP 10+ CONCEPTS

Chapter 5Creating Customer Value, Satisfaction, and Loyalty

Customer Perceived Value

Based on difference between what customer gets & what he/she gives for the different choices

Customers are value maximizers

1. The buyer will choose whichever he/ she thinks delivers the highest perceived value. (p. 162)

Kotler Caterpillar vs. Komatsu, Volvo,

Superquinn Local

Pyrex, Rolex RP Medical Application

Asian Eye Institute (AEI)

Total Customer Satisfaction

Satisfaction – feeling of pleasure or disappointment that result from comparing a product’s perceived performance (or outcome) to expectations

2. Raise expectations and deliver performance to match. (p. 165)

Kotler Kia

Local Hyundai, Bench

RP Medical Application Unilab (Ritemed)

3. Create a “branded customer experience”. (p. 165)

Kotler Joie de Vivre Hospitality Inc., Hotel del

Sol (“kind of Martha Stewart Living meets Islands Magazine”)

Local Nurture Spa

RP Medical Application Tricare Hospitel

Monitoring Satisfaction

Periodic Surveys Customer loss rate Mystery buyers/ shoppers

Strength and weakness?

4. Monitor customer satisfaction regularly.(p. 165)

Kotler Wachovia Securities

Local Fitness First

RP Medical Application St. Luke’s Medical Center, Medical

City

Customer satisfaction

Customer

retention/ loyalty

Influence of Customer Satisfaction

Internet provides avenue to praise and bad mouth a company

5. Customer satisfaction is both a goal and a marketing tool. (p.166)

Kotler Heinz, Toyota, Apple,

Google (high ACSI) Local

Motor Image Pilipinas

RP Medical Application St. Luke’s Medical

Center, MD’s

Product and Service Quality

Quality – totality of features of a product or service that bear on its ability to satisfy implied needs

Interconnected

6. Quality is the key to value creation and customer satisfaction. (p. 170)

Kotler General Electric, Lexus

Local Levis

RP Medical Application Alcon Philippines, Mercury Drug

Customer Relations Management (CRM)

Enables companies to provide excellent real-time customer service through effective use of individual account information.

7. Manage detailed information about individual customers and customer “touch points” to maximize loyalty. (p. 173)

Kotler Four Seasons Hotel, Harrah’s

Local Pru Life, Philamlife

RP Medical Application Belo Medical Group, Calayan

Attracting and Retaining Customers

Search of new customers through media, mail, phone calls, trade shows, lists from brokers

8. Resort to customer discounts and other promotions to retain new customers and attract new ones

Kotler Citizens Bank

Local Globe, Smart, PLDT

RP Medical Application (medical equipment suppliers)

Building Loyalty

Strong, tight connection to customers

Key to long-term marketing success

Includes retention-building activities

9. Listening to customers is crucial to customer relationship management. (p. 178)

Kotler MBNA, Deere &

Company, Chicken of the Sea

Local Hotels

RP Medical Application

Customer Service/ Help Desk of hospitals

10. Develop “Loyalty Programs” to build long term loyalty with high CLV customers. (p. 179)

Kotler Airlines, hotels, credit card

companies, Hershey’s, Harley-Davidson, Apple

Local Rustan’s, SM

RP Medical Application Mercury Drug

Customer Database and Database Marketing

Customer database – an organized collection of comprehensive information about individual customers or prospects that is current, accessible and actionable

Database marketing – the process of building, maintaining, and using customer databases and other databases to contact, transact, and build customer relationships

11. Use technology to build customer value. (p. 181)

Kotler GE Plastics, Dell Computer,

Ameritrade, BBC Local

Banks, RP Medical Application

Health cards (Cocolife)

Summary

The buyer will choose whichever he/ she thinks delivers the highest perceived value.

Raise expectations and deliver performance to match.

Create a “branded customer experience”. Monitor customer satisfaction regularly. Customer satisfaction is both a goal and

a marketing tool.

Summary

Quality is the key to value creation and customer satisfaction.

Manage detailed information about individual customers and customer “touch points” to maximize loyalty.

Resort to customer discounts and other promotions to retain new customers and attract new ones.

Summary

Listening to customers is crucial to customer relationship management.

Develop “Loyalty Programs” to build long term loyalty with high CLV customers.

Use technology to build customer value.

Conclusion

Know needs and wants

Choices

Customer relations

And

Loyalty

CREATING CUSTOMER VALUE, SATISFACTION & LOYALTY

Erwin L. Isla, M.D.MBA/H Batch 8

Top 10+ ConceptsTHANK YOU!