Creating Customer Value, Satisfaction, and Loyalty.pptVIP

Creating Customer Value, Satisfaction, and Loyalty Chapter Questions What are customer value, satisfaction, and loyalty, and how can companies deliver them? What is the lifetime value of customers? How can companies cultivate strong customer relationships? How can companies both attract and retain customers? What is database marketing? What is Customer Perceived Value? Customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Figure 5.2 Determinants of Customer Perceived Value 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 What is Loyalty? Loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. Top Brands in Customer Loyalty Avis Google L.L. Bean Samsung (mobile phones) Yahoo! Canon (office copiers) Land’s End Coors Hyatt Marriott Verizon KeySpan Energy Miller Genuine Draft Amazon Measuring Satisfaction Periodic surveys Customer loss rate Mystery shoppers Monitor competitive performance What is Quality? Maximizing Customer Lifetime Value Customer profitability Customer equity Lifetime value Estimating Lifetime Value Annual customer revenue: $500 Average number of loyal years: 20 Company profit margin: 10 Customer lifetime value: $1000 What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touchpoints to maximize customer loyalty. Framework for CRM Identify prospects and customers Differentiate custo