top 10 learning concepts
DESCRIPTION
TRANSCRIPT
TOP 10 Learning Concepts
Chapter 5: Customer Value, Satisfaction, and
Loyalty
Cabunilas, Michelle M.13 April 2011
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Contents:
Concept 1: Customer Value, Satisfaction, and Loyalty Concept 2: Customer Satisfaction Concept 3: Product and Service Quality Concept 4: Maximizing Customer Lifetime Value Concept 5: Customer Relationship Management Concept 6: Attracting and retaining Customers Concept 7: Increase Customer Value Concept 8: Building Loyalty Concept 9: Customer Database Concept 10: Customer Development Process and
Retention
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 1: Customer Value, Satisfaction, and Loyalty
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Customers
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Customer Perceived
Value
Image Benefit
Psycho.Cost
Concept 1: Customer Value, Satisfaction, and Loyalty
PersonalBenefit
EnergyCost
ServicesBenefit
Time Cost
ProductBenefit
TotalCustomer
Banefit
MonetaryCost
Total Customer
Cost
Determinants Of Customer Perceived Value
Concept 1: Customer Value, Satisfaction, and Loyalty
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 2: Customer Satisfaction
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
A person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance to their expectations.
Customers
Concept 2: Customer Satisfaction
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Measurement Techniques for Customer Satisfaction:
PERIODIC SURVEYS
MYSTERY SHOPPER
LOSS RATE FROM CUSTOMERS
MONITORING PERFORMANCE
Concept 3: Product and Service Quality
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
WHAT IS
Is the total feature and characteristic of a product or service that has an ability to satisfy needs.
Concept 3: Product and Service Quality
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Product & ServiceQuality
CustomerSatisfaction
CompanyProfit
Concept 3: Product and Service Quality
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 4: Maximize Customer Lifetime Value
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
CustomerProfitabilityCustomer
Profitability
Lifetime Value
Lifetime Value
CustomerEquity
CustomerEquity
Top 20% customers generates
80% or more of
company’s profits
Most profitable 20% customers contribute
as much as 150%-200% profit.
Least profitable 10%-20%
cutomers lose 100% profit.
Concept 5: Customer Relationship Management
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Process of managing detailed information about individual customers & all customer “touch point”
to maximize customer loyalty.
Customer encounters the brand and product—from actual
experience to personal or mass communications to casual
observation.
Concept 5: Customer Relationship Management
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Identifycustomers
Differentiation(a)Needs(b) value
Customizing products, services
Interactionwith
customers
ONE-TO-ONE MARKETING
Concept 5: Customer Relationship Management
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 6: Attracting and Retaining Customers
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Customers
Concept 6: Attracting and Retaining Customers
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 7: Increase Customer Value
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
REDUCE RATE OF CUSTOMER DEFECTION
INCREASE LONGEVITY OF CUSTOMER REL.
ENHANCING GROWTH POTENTIAL THROUGH “SHARE OF WALLET”, CROSS-SELLING,
AND UP-SELLING
MAKING LOW-PROFIT CUSTOMERS MORE PROFITABLE
FOCUSING DISPROPORTIONATE EFFORT ONHIGH-VALUE CUSTOMER
Concept 8:Building Loyalty
Create superior products, services, and experiences for the target market.
Get cross-department participation in planning and managing the customer satisfaction and retention process.
Integrate the “Voice of the Customer” to capture their needs and requirements.
Organize and make database of information on customer needs, preferences, contacts, purchase frequency, and satisfaction.
Easy way for customers to reach companies personnel and express their needs, and complaints.
Potential frequency programs and club marketing programs. Run award programs rocognizong outstanding customers.
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 8:Building Loyalty
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Concept 9:Database Marketing
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Collection of information about customers that is current, accessible, and actionable
for marketing purposes.
Process of building, maintaining, and using customer databases to contact,
transact, and build customer relationships.
Concept 9:Database Marketing
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
IDENTIFY PROSPECTS
DECIDE WHO TO OFFER
DEEPEN CUSTOMER LOYALTY
REACTIVATE CUSTOMER PURCHASES
AVOID CUSTOMER MISTAKES
Concept 10: Customer Dev’t. Process and Retention
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
potentials prospectsFirst timecustomers
Repeatcustomers
clientsmembers advocates partners
In-active orEx-customers
Disqualified prospects
Concept 10: Customer Dev’t. Process and Retention
Acquired new customers cost five times more than satisfying and retaining current customers.
Average company loses 10% of its customer each year.
5% reduction in customer defect rate can increase profits by up to 85%
Customer profit rate increase due to increased purchases, referrals, and price premiums and reducedd operating costs.
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
Summary:
Customers are value maximizers. High satisfaction leads to high customer loyalty. Losing profitable customers can affect a firm’s
profits. Marketers play a key role in achieving high
levels of total quality. Customer Relationship Management requires
building a customer database and doing datamining to know trends, segments, and individual needs.
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.
TOP 10 Learning Concepts
Chapter 5: Customer Value, Satisfaction, and
Loyalty
Cabunilas, Michelle M.13 April 2011
http://cabunilasmichelle.blogspot.comKotler, Keller, Marketing Management,
13th ed.