The document discusses key concepts for creating customer value, satisfaction, and loyalty. It defines customer perceived value, loyalty, quality, and profitable customers. Satisfaction is described as being equivalent to customer lifetime value. Customer relationship management is introduced as carefully managing customer information to maximize loyalty across interactions. An effective CRM framework includes identifying and differentiating customers then customizing interactions. Common CRM strategies are outlined like reducing defection rates and focusing efforts on high-profit customers.
3. Customer Perceived Value (CPV) =
Difference between all benefits
and costs of an offering and the
perceived alternatives
4. Loyalty = 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
Quality = totality of features and
characteristics of a product or
service that bear on its ability to
satisfy stated or implied needs
5. Marketing is the art of
ATTRACTING and KEEPING
profitable customers
Profitable Customer = revenue
from
person/household/company is
greater than the company’s cost
of attracting, selling and
servicing
Satisfaction = Customer
Lifetime Value
6. Customer Relationship Management =
carefully managing detailed information
about individual customers and all
customer touch points to maximize
customer loyalty
The CUSTOMER is now on top of the organizational hierarchy
Customer Perceived Value (CPV) = Difference between all benefits and costs of an offering and the perceived alternatives
Loyalty (dog) = 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 behaviorQuality (check) = totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
Magnet = marketing is the art of ATTRACTING and KEEPING profitable customersProfitable Customer (thumbs up) = revenue from person/household/company > company’s cost of attracting, selling and servicingSatisfaction (smiley face) = Customer Lifetime Value
Customer Relationship Management(Stick figure 2)= carefully managing detailed information about individual customers and all customer touch points to maximizecustomer loyalty
Framework for CRM:1.Identify (eyes) prospects and customers
2. Differentiate (nose) customers by needs and value to company
3. Interact (smile) to improve knowledge
4. Customize (ears)for each customer
CRM Strategies (how winning companies improve their customer base):1. Reduce (2 hearts crossed out) the rate of defection
2. Increase (heart going up) longevity
3. Enhance (heart with exclamation point) share of wallet
4. Terminate (broken heart) low-profit customers
5.Focus more effort (heart with explosion)on high-profit customers