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Kotler mm 14e_05_ippt_ge
1.
5 Creating Long-Term Loyalty Relationships 1
2.
Chapter Questions What
are customer value, satisfaction, and loyalty, and how can companies deliver them? What is the lifetime value of customers and how can marketers maximize it? How can companies attract and retain customers and cultivate strong customer relationships? What are the pros and cons of database marketing? Copyright © 2012 Pearson Education 5-2
3.
Harrah’s Builds Relationships Copyright
© 2012 Pearson Education 1-3
4.
Figure 5.1 Customer-Orientations Copyright
© 2012 Pearson Education 5-4
5.
Dell Reestablished Its Commitment
to Value Copyright © 2012 Pearson Education 5-5
6.
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. Copyright © 2012 Pearson Education 5-6
7.
Figure 5.2 Determinants
of Customer Perceived Value Copyright © 2012 Pearson Education 5-7 Image benefit Psychological cost Personal benefit Energy cost Services benefit Time cost Product benefit Monetary cost Total customer benefit Total customer cost
8.
Caterpillar Maximizes Customer Value Copyright
© 2012 Pearson Education 5-8
9.
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 Copyright © 2012 Pearson Education 5-9
10.
Copyright © 2012
Pearson Education 5-10 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.
11.
Copyright © 2012
Pearson Education 5-11 Top Brands in Customer Loyalty Apple iPhone Clairol Samsung Mary Kay Grey Goose Clinique Avis Wal-Mart Google Amazon Bing J.Crew AT&T Wireless Discover Card Verizon Wireless Cheerios
12.
Establishing Value Copyright ©
2012 Pearson Education 5-12
13.
Copyright © 2012
Pearson Education 5-13 Measuring Satisfaction Periodic surveys Customer loss rate Mystery shoppers Monitor competitive performance
14.
Managing Customers Copyright ©
2012 Pearson Education 5-14
15.
Copyright © 2012
Pearson Education 5-15 What is Quality? Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
16.
Copyright © 2012
Pearson Education 5-16 Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value
17.
Figure 5.3 Customer-Product Profitability
Analysis Copyright © 2012 Pearson Education 5-17
18.
Copyright © 2012
Pearson Education 5-18 Estimating Lifetime Value Annual customer revenue: $500 Average number of loyal years: 20 Company profit margin: 10 Customer lifetime value: $1000
19.
Copyright © 2012
Pearson Education 5-19 What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty.
20.
Copyright © 2012
Pearson Education 5-20 Framework for CRM Identify prospects and customers Differentiate customers by needs and value to company Interact to improve knowledge Customize for each customer
21.
Amy’s Maximized Word
of Mouth Copyright © 2012 Pearson Education 5-21
22.
Copyright © 2012
Pearson Education 5-22 Attracting and Retaining Customers Reduce the rate of defection Increase longevity Enhance share of wallet Terminate low-profit customers Focus more effort on high-profit customers
23.
Figure 5.4 The
Marketing Funnel Copyright © 2012 Pearson Education 5-23
24.
Loyalty Programs Copyright ©
2012 Pearson Education 5-24
25.
Database Key Concepts
Customer database Database marketing Mailing list Business database Data warehouse Data mining Copyright © 2012 Pearson Education 5-25
26.
Copyright © 2012
Pearson Education 5-26 Using the Database To identify prospects To target offers To deepen loyalty To reactivate customers To avoid mistakes
27.
Copyright © 2012
Pearson Education 5-27 Don’t Build a Database When The product is a once-in-a-lifetime purchase Customers do not show loyalty The unit sale is very small The cost of gathering information is too high
28.
For Review What
are customer value, satisfaction, and loyalty, and how can companies deliver them? What is the lifetime value of customers and how can marketers maximize it? How can companies attract and retain customers and cultivate strong customer relationships? What are the pros and cons of database marketing? Copyright © 2012 Pearson Education 5-28
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