2. CHP: 1&5-2
Value and Satisfaction
•Perceived Value
– The customer’s evaluation of the difference
between benefits and costs.
– Customers often do not judge values and
costs accurately or objectively.
•Customer Satisfaction
– Product’s perceived performance relative to
customer’s expectations.
3. CHP: 1&5-3
Determinants of
Customer Perceived Value
Total customer benefit Total customer cost
Product benefit Monetary cost
Services benefit Time cost
Personal benefit Energy cost
Image benefit Psychological cost
4. Determinants of Customer-Delivered
CHP: 1&5-4
Value
Customer-delivered
value
Total
customer
value
Total
customer
cost
Product
value
Monetary
cost
Personal
value
Energy
cost
5. CHP: 1&5-5
Loyalty
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.
6. CHP: 1&5-6
The Value Proposition
The whole cluster of benefits the
company promises to deliver
8. Product and Service Quality
CHP: 1&5-8
Quality is the totality of features and
characteristics of a product or
service that bear on its
ability to satisfy
stated or implied needs.
9. Total Quality Management
CHP: 1&5-9
TQM is an organization-wide
approach to continuously
improving the quality of
all the organization’s processes,
products, and services.
12. CHP: 1&5-12
Framework for CRM
Identify prospects and customers
Differentiate customers by needs
and value to company
Interact to improve knowledge
Customize for each customer
13. CHP: 1&5-13
CRM Strategies
Reduce the rraattee ooff ddeeffeeccttiioonn
IInnccrreeaassee lloonnggeevviittyy
EEnnhhaannccee ““sshhaarree ooff wwaalllleett””
Terminate low-profit
customers
Focus more effort on
high-profit customers
14. Mass vs. One-to-One Marketing
Mass
• Average customer
• Customer anonymity
• Standard product
• Mass production
• Mass distribution
• Mass advertising
• One-way message
• Economies of scale
One-to-One
• Individual customer
• Customer profile
• Customized market
offering
• Customized
production
• Economies of scope
• Share of customer
CHP: 1&5-14
15. CHP: 1&5-15
Customer Retention
• Acquisition of customers can cost 5 times
more than retaining current customers.
• The average company loses 10% of its
customers each year.
• A 5% reduction to the customer defection
rate can increase profits by 25% to 85%.
• The customer profit rate increases over
the life of a retained customer.
19. Forming Strong Customer Bonds
CHP: 1&5-19
Add financial
benefits
Add social
benefits
Add structural
ties
Hinweis der Redaktion
Figure 5.4 shows the main steps in attracting and retaining customers in terms of a funnel. The marketing funnel identifies the percentage of the potential target market at each stage in the decision process, from merely aware to highly loyal. Consumers must move through each stage before becoming loyal customers. Some marketers extend the funnel to include loyal customers who are brand advocates or even partners with the firm.