1. Ch 5: Creating Customer Value Satisfaction, and Loyalty TOP 10 Learning Concepts Francine Luanne M Collantes September 2011 http://francollantes.blogspot.com 1

2. Outline:Creating Loyal Customers is at the HEART of every business Foundations of Customer Value, Satisfaction, & Loyalty Transforming the customer “Experience” into a RELATIONSHIP Know thy Customer http://francollantes.blogspot.com 2

3. Outline:Creating Loyal Customers is at the HEART of every business Foundations of Customer Value, Satisfaction, & Loyalty Value-Maximizers Value Proposition Loyalty Satisfaction Product and Service Quality Customer Profitability http://francollantes.blogspot.com 3

4. Outline:Creating Loyal Customers is at the HEART of every business Transforming the customer “Experience” into a RELATIONSHIP Cultivating Long-term Customers Attracting and Retaining Customers http://francollantes.blogspot.com 4

5. Outline:Creating Loyal Customers is at the HEART of every business Know thy Customer Customer Databases and Database Marketing Database Warehouses and Data Mining http://francollantes.blogspot.com 5

6. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers Customer Perceived Value Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com 6

7. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers Total Customer Benefit Product Customer Perceived Value = Service Personnel Image Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com 7

8. Concept 1: FOUNDATIONSCustomers tend to be Value-Maximizers Total Customer Benefit Total Customer Cost - Product Monetary Customer Perceived Value = Service Time Personnel Energy Image Psychological Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com 8

9. Example 1:Customers tend to be Value-Maximizers http://francollantes.blogspot.com 9

11. Uses own marinade concoction

12. Bamboo stick skewers

13. Encourages “kinamot” (eating with bare hands)

14. Pinoy tradition, culture, and home

15. Offers hearty meal

16. Great value for moneyhttp://francollantes.blogspot.com 10

17. Concept 2: FOUNDATIONSValue Proposition Formula = Benefits + Promise to deliver Why should the customer purchase your product? http://francollantes.blogspot.com 11

18. Example 2:Value Proposition Formula = Benefits + Promise to deliver http://francollantes.blogspot.com 12

20. Repeat patronagehttp://francollantes.blogspot.com 13

21. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies http://francollantes.blogspot.com 14

22. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies vs http://francollantes.blogspot.com 15

23. Example 3:Consumers have varying degrees of loyalty to specific brands, stores, and companies vs More customers are still found to go to SM to purchase varying needs http://francollantes.blogspot.com 16

25. Basis:

26. Perceived performance

27. Expectationshttp://francollantes.blogspot.com 17

28. Example 4:Customers satisfaction is defined by matching both expectations and performance March 2011: Toyota announced recall of 8,830 units of both Fortuner and Innova due to over-responsive brake systems, or improperly-mounted camber bolts and seats. Dealership got affected so Toyota Philippines had to issue a statement that cars sold here are not affected http://francollantes.blogspot.com 18

30. Features

31. Characteristics

32. Ability to satisfy stated or implied needs“It’s everyone’s job! http://francollantes.blogspot.com 19

33. Example 5:Satisfaction will also depend on product or service quality http://francollantes.blogspot.com 20

34. Example 5:Satisfaction will also depend on product or service quality Winner of the ff: 2009 Asian Livestock Industry Award Ernst & Young 2010 Entrepreneur of the Year Award http://francollantes.blogspot.com 21

36. Used to develop long-term perspectivehttp://francollantes.blogspot.com 22

38. Customer loyalty

39. Customer selection

40. Long-term planning

41. Resource allocationhttp://francollantes.blogspot.com 23

42. Concept 6: FOUNDATIONS150-20 Rule implies that a company could improve its profits by “firing” its worst customers. Properties are foreclosed properties from bad creditors http://francollantes.blogspot.com 24

44. About customers

45. Individual

46. “Touch points”

47. Maximizes Loyaltyhttp://francollantes.blogspot.com 25

48. Example 7: Experience to RELATIONSHIPMaximizing customer value means cultivating Long-term Customer Relationships + = Partnership: CRM Solution for Call Center Operations "Knowing what the customers want and how they want to be treated are important factors to gaining competitive advantage in a very tough banking market" - Lydia King, First Vice President for IT Operations http://francollantes.blogspot.com 26

49. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Potentials http://francollantes.blogspot.com 27

50. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Prospects Potentials http://francollantes.blogspot.com 28

51. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers First-Timers Prospects Potentials http://francollantes.blogspot.com 29

52. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 30

53. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 31

54. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers Advocates Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 32

55. Concept 8: Experience to RELATIONSHIPThe challenge is in attracting and retaining customers PARTNERS Advocates Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com 33

56. Concept 8:The challenge is in attracting and retaining customers http://francollantes.blogspot.com 34

58. Current

59. Accessible

60. Actionablehttp://francollantes.blogspot.com 35

62. Maintaining

63. Used to:

64. Facilitate contact& transactions

65. Build customer relationshipDatabase Marketing http://francollantes.blogspot.com 36

66. Concept 9: Marketers must know their customers http://francollantes.blogspot.com 37

68. Concept 10: KNOW THY CUSTOMERCRM requires detecting trends, segments, and individual needs WORD CLOUD Customers were invited to partner and help come up with reasons why they might consider going http://francollantes.blogspot.com 39

69. Ch 5: Creating Customer Value Satisfaction, and Loyalty TOP 10 Learning Concepts Francine Luanne M Collantes September 2011 http://francollantes.blogspot.com 40