chapter 2 Build customer satisfactory, value and retention.pptVIP

Build customer satisfactory, value and retention Objectives In this chapter, we will address the following questions: What are customer value and satisfaction, and how can companies deliver them? What makes a high-performance business? How can companies both attract and retain customers? How can companies improve both customer and company profitability? How can companies deliver total quality? Defining Customer Value and Satisfaction Customer perceived value (CPV) The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. Total customer value Total monetary value of economic, functional, psychological benefits associated with a product offering. Total customer cost Total cost of evaluating, obtaining, using, and disposing of a given product offering. Figure 2-1: Determinants of Customer Delivered Value Defining Customer Value and Satisfaction Total customer satisfaction Satisfaction-feelings of pleasure or disappointment Expectations VS perceived performance Customer expectations Formed by past experience, friends, marketers, competitors’ information and promises. Delivering High Customer Value Value proposition-whole cluster of promises offered Value-delivery system-communications and channel experiences offered to customers Marketing tools Add financial benefits to the customer relationship Add social benefits as well as financial benefits Add structural ties as well as financial benefits What A Highly Satisfied Customer Does Stays loyal longer Buys more as the company introduces new products and upgrades existing products Talks favorably about the company and its products Pays less attention to competing brands and advertising and is less sensitive to price Offers product/service ideas to the company Costs less to serve than new customers because transactions are routinized How Customers Handle Dissatisfaction Take no action Take some form of public action Seek redress