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    MBA 722 (Marketing Management) Chapter 5 - Creating Long-Term Loyalty Relationships

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    JP O
    1. The document discusses how to create long-term customer loyalty through building customer value, satisfaction, and relationships. It emphasizes putting customers first and focusing on delivering high customer perceived value. 2. Several techniques for measuring and monitoring customer satisfaction are presented, including descriptive, diagnostic, and predictive methods. Maximizing customer lifetime value and profitability requires understanding factors that influence satisfaction. 3. Maintaining quality products/services, cultivating relationships through CRM, and empowering and retaining customers are keys to attracting and building loyalty. Customer databases allow targeting communications to current and potential customers.

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    MBA 722 (Marketing Management) Chapter 5 - Creating Long-Term Loyalty Relationships

    Uploaded by

    JP O
    28 views37 pages
    1. The document discusses how to create long-term customer loyalty through building customer value, satisfaction, and relationships. It emphasizes putting customers first and focusing on delivering high customer perceived value. 2. Several techniques for measuring and monitoring customer satisfaction are presented, including descriptive, diagnostic, and predictive methods. Maximizing customer lifetime value and profitability requires understanding factors that influence satisfaction. 3. Maintaining quality products/services, cultivating relationships through CRM, and empowering and retaining customers are keys to attracting and building loyalty. Customer databases allow targeting communications to current and potential customers.

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    presentation in marketing management

    Original Title

    CHAPTER 5

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    1. The document discusses how to create long-term customer loyalty through building customer value, satisfaction, and relationships. It emphasizes putting customers first and focusing on delivering high customer perceived value. 2. Several techniques for measuring and monitoring customer satisfaction are presented, including descriptive, diagnostic, and predictive methods. Maximizing customer lifetime value and profitability requires understanding factors that influence satisfaction. 3. Maintaining quality products/services, cultivating relationships through CRM, and empowering and retaining customers are keys to attracting and building loyalty. Customer databases allow targeting communications to current and potential customers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views37 pages

    MBA 722 (Marketing Management) Chapter 5 - Creating Long-Term Loyalty Relationships

    Uploaded by

    JP O
    1. The document discusses how to create long-term customer loyalty through building customer value, satisfaction, and relationships. It emphasizes putting customers first and focusing on delivering high customer perceived value. 2. Several techniques for measuring and monitoring customer satisfaction are presented, including descriptive, diagnostic, and predictive methods. Maximizing customer lifetime value and profitability requires understanding factors that influence satisfaction. 3. Maintaining quality products/services, cultivating relationships through CRM, and empowering and retaining customers are keys to attracting and building loyalty. Customer databases allow targeting communications to current and potential customers.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 37

    MBA 722 (Marketing Management)

    Chapter 5 - Creating Long-term Loyalty


    Relationships
    E
    R
    P
    A
    C
    .
    C
    H
    A
    L
    IL 1
    Z A
    B
    M
    BUILDING CUSTOMER VALUE, SATIFACTION,
    AND LOYALTY
    Creating loyal customers is
    at the heart of every business.
    According to marketing experts
    Don Peppers and Martha
    Rogers say…
    “The only value your company
    will ever create is the value that
    comes from customers- the ones
    you have now and the ones you
    will have in the future.”
    CONNECTING WITH CUSTOMERS
    DIMENSIONS OF CUSTOMER SATISFACTION
    TRADITIONAL ORGANIZATION VS. MODERN
    CUSTOMER-ORIENTED ORGANIZATION
    TRADITIONAL ORGANIZATION VS. MODERN
    CUSTOMER ORIENTED ORGANIZATION

    At the top are customers;


    A pyramid with next importance are
    the president at frontline people who meet,
    serve, and satisfy
    the top, customers, under them are
    management in the middle managers,
    the middle, and whose job is to support the
    frontline people so they
    frontline people can serve customers well;
    and customers at and base is the top
    the bottom is the management- to hire and
    traditional support good middle
    managers is the modern
    organization. customer-oriented
    organization.
    TRADITIONAL ORGANIZATION CHART
    Example:
    MODERN CUSTOMER-ORIENTED ORGANIZATION
    CHART
    Example:
    CUSTOMER PERCEIVED VALUE (CPV)

     is the difference between the prospective


    customer’s evaluation of all the benefits and
    all the costs of an offering and the perceived
    alternatives.
    PROSPECTIVE CUSTOMER OR CLIENT

    •Customer Perceived Value


    •Customer Satisfaction
    •Customer Benefit
    •Customer Value
    •Customer Loyalty
    DETERMINANTS OF CUSTOMER PERCEIVED
    VALUE
    APPYLING VALUE CONCEPTS

    Customer-
    Perceived Value
    “Human Needs”

    prospective costs of one


    customer's product when
    evaluation of the compared with
    benefits others
    CUSTOMER VALUE ANALYSIS
    Asses the company’s
    Assess the quantitative and competitors’
    Identifying the major
    importance of the performances on the
    attributes and benefits
    different attributes and different customer
    customers value.
    benefits. values against their
    rated importance.
    Examine how customers in
    a specific segment rate the
    company’s performance
    Monitor customer values
    against a specific major
    over time.
    competitor on an
    individual attribute or
    benefit basis.
    CUSTOMER VALUE ANALYSIS EXAMPLE

    Ecomonic Study and Market Analysis of


    Jollibee Food Corporation.  is one of the
    biggest known fast-food companies in the
    Philippines.
    …Jollibee specializes on its local market and
    serves almost all customers. 
    …Jollibee is a company that values family and
    setting children with superior value.
    CUSTOMER VALUE ANALYSIS EXAMPLE
    CHOICE PROCESSES AND IMPLICATIONS

    1.Lowest Price
    2.Quality
    3.Promotion
    DELIVERING HIGH CUSTOMER VALUE
    ~ customer have varying degrees of loyalty
    › specific brands
    › stores
    › companies
    Example: Brand -Samsung
    Category- Wireless handset
    Rankings- Rank3 (2010)
    TOTAL CUSTOMER SATISFACTION

    Satisfaction is define as a
    person’s feelings of
    pleasure or
    disappointment that result
    from comparing a
    product’s perceived
    performance to
    expectations.
    MONITORING SATISFACTION
    A highly satisfied customer generally stays loyal longer,
    buys more as the company introduces new and upgraded
    products, talks favorably to others about the company and
    its products.

    ‘Customer Satisfaction
    is rated on a scale
    from one to five.’
    MEASUREMENT TECHNIQUES

    Descriptive
    • measuring a variable or set of variables as they exist naturally.
    Example: Statistical Data
    Diagnostic
    • helping companies understand whether their current
    sales, marketing or overall corporate strategies are effective.
    Example: Graph Diagnostic Assessment/Testing
    Predictive
    • marketing technique that involves using data analytics..
    Example: Data mining & Probability to forecast outcomes
    MEASUREMENT AND SCALING TECHNIQUES
    NET PROMOTER AND CUSTOMER
    SATISFACTION
    INFLUENCES OF CUSTOMER SATISFACTION

    ~ Customer satisfaction is both a goal (achieve


    high customer satisfaction ratings) and a
    marketing tool (Internet Survey)
    PRODUCT AND SERVICE QUALITY
     Products and Services that meet or exceed
    customer expectations result in customer
    satisfaction.
     A company that satisfies most of its customers’
    needs most of the time is called a quality
    company, distinguished by its conformance
    quality and performance quality
    •Product & service quality,
    customer satisfaction, &
    company profitability are
    intimately connected.
    • Higher levels of quality result
    in higher level of customer
    satisfaction, which support
    higher prices & (often) lower
    costs.
    MAXIMIZING CUSTOMER LIFETIME VALUE
    Customer Lifetime Value (CLV)
    •Customer Lifetime Value (CLV) a marketing metric that projects the value of
    customer over the entire history of that customer’s relationship with a
    company. It is the current value of the likely future income flow generated by
    an individual purchaser.
    • It seeks to maximize profit by analyzing customer behavior and business cycles
    to identify and target customers with the greatest potential net value over
    time.
    CUSTOMER PROFITABILITY
    Customer Profitability Analysis
    (CPA)-  is a tool from managerial
    accounting that shifts the focus from 
    product line profitability to individual
    customer profitability.

    Activity-Based Costing(ABC)-
    looks at the various cost drivers to
    accurately isolate costs and determine
    a product’s profitability.
    CULTIVATING CUSTOMER RELATIONSHIP
    Customer Relationship Management (CRM)- is the process of
    carefully managing detailed information about individual
    customers and all customer “touch points” to maximize loyalty.
    1. Know That Happy Customers = Returning Customers. ...
    . and Manage Realistic Expectations. ...
    2. Set
    3. Be a Connector. ...
    4. Keep Documentation. ...
    5. Respond Promptly. ...
    6. Think Like a Salesperson
    CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
    CUSTOMER EMPOWERMENT

      is providing consumers with options,


    tools and resources to facilitate decision-
    making, allowing consumers to tailor a
    product or brand experience to suit their
    own specific needs and desires.
    CUSTOMER REVIEWS AND RECOMMENDATIONS
    ATTRACTING AND RETAINING CUSTOMERS
    BUILDING LOYALTY EXAMPLE
    Building customer loyalty gives you a high return on
    the time, effort and money you invest in providing good
    customer service.
    CUSTOMER DATABASES AND DATABASE
    MARKETING
    Database marketing can be used for communications
    with current and potential customers. With so much
    customer data – both internal and external – available to
    companies today, database marketing is becoming an
    increasingly important part of the overall marketing
    strategy.

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