Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    Unit 1.3 Building Customer Satisfaction, Value, and Retention

    Uploaded by

    sunny_gladiator
    The document discusses 5 key topics for marketing management: 1. Customer satisfaction, its measurement, and how highly satisfied customers benefit companies. 2. Customer perceived value and how it is determined by comparing total customer value and total customer cost. 3. The importance of customer retention and methods like CRM, loyalty programs, and relationship building to increase customer equity. 4. The role of quality in marketing and how marketers can help achieve total quality management. 5. The concept of internal marketing to motivate and train employees to better serve customers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Unit 1.3 Building Customer Satisfaction, Value, and Retention

    Uploaded by

    sunny_gladiator
    3K views23 pages
    The document discusses 5 key topics for marketing management: 1. Customer satisfaction, its measurement, and how highly satisfied customers benefit companies. 2. Customer perceived value and how it is determined by comparing total customer value and total customer cost. 3. The importance of customer retention and methods like CRM, loyalty programs, and relationship building to increase customer equity. 4. The role of quality in marketing and how marketers can help achieve total quality management. 5. The concept of internal marketing to motivate and train employees to better serve customers.

    Original Title

    Unit 1.3 Building Customer Satisfaction,Value, and Retention

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses 5 key topics for marketing management: 1. Customer satisfaction, its measurement, and how highly satisfied customers benefit companies. 2. Customer perceived value and how it is determined by comparing total customer value and total customer cost. 3. The importance of customer retention and methods like CRM, loyalty programs, and relationship building to increase customer equity. 4. The role of quality in marketing and how marketers can help achieve total quality management. 5. The concept of internal marketing to motivate and train employees to better serve customers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    3K views23 pages

    Unit 1.3 Building Customer Satisfaction, Value, and Retention

    Uploaded by

    sunny_gladiator
    The document discusses 5 key topics for marketing management: 1. Customer satisfaction, its measurement, and how highly satisfied customers benefit companies. 2. Customer perceived value and how it is determined by comparing total customer value and total customer cost. 3. The importance of customer retention and methods like CRM, loyalty programs, and relationship building to increase customer equity. 4. The role of quality in marketing and how marketers can help achieve total quality management. 5. The concept of internal marketing to motivate and train employees to better serve customers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23
    At a glance
    Powered by AI
    The key takeaways are about building customer satisfaction, value and retention. It discusses concepts like customer satisfaction, perceived value and retaining customers.

    The different methods of tracking and measuring customer satisfaction discussed are complaint and suggestion systems, customer satisfaction surveys, ghost shopping and lost customer analysis.

    The different ways customers can handle dissatisfaction discussed are taking no action, taking public or private action, seeking redress directly from businesses, taking legal action, complaining and stopping purchases.

    705721VIT

    Marketing Management
    business school

    Building
    Building Customer
    Customer Satisfaction,
    Satisfaction,
    Value,
    Value, and
    and Retention
    Retention

    EK BUNCHU
    [email protected].
    Department of Marketi
    Faculty of Business Administrati
    Chiang Mai Universi
    1. Customer Satisfaction
     The level of a person’s felt state resulting from
    comparing a product’s perceived performance in
    relation to the person’s expectations

    P<E P=E P>E


    Dissatisfied Satisfied Delighted
    (Highly satisfied)
    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 directly from business firms
    Take legal action to obtain redress
    Complain to business, public, or governmental
    agencies
     Take some form of private action
    Stop buying product/brand or boycott seller
    Warn friends about the product and/or seller
    Methods of Tracking and Measuring
    Customer Satisfaction

    Complaint Customer Ghost Lost


    and satisfaction shopping customer
    suggestion survey analysis
    systems
    2. Customer Perceived Value
     The difference between total customer value and total
    customer cost
     Total Customer Value
    The bundle of benefits customers expect from a
    given product or service
     Total Customer Cost
    The bundle of costs customers expect to incur in
    evaluating, obtaining, and using the product or
    service
    Determinants of Customer Perceived
    Value
    Customer
    Customer
    perceived
    perceived
    value
    value
    Total
    Totalcustomer
    customervalue
    value Total
    Totalcustomer
    customercost
    cost

    Product Services Monetary Time


    value value cost cost

    Personnel Image Energy Psychic


    value value cost cost
    Value Chain
    Activities
    Support

    Firm Infrastructure

    Human Resource Management

    Technology Development
    Profit
    Procurement Margin
    Activities
    Primary

    Inbound Outbound Marketing Customer


    Logistics Operations Logistics & Sales Services
    3. Retaining Customer
     The need for customer retention
     Offensive marketing typically costs more than defensive marketing
    Offensive marketing is designed to obtain an objective, usually market
    share, from a target competitor.
    Whereas, Defensive marketing warfare strategies are a type of
    marketing warfare strategy designed to protect a company's
    market share, profitability, product positioning, or mind share.
     It requires much effort and cost to induce satisfied customers to switch
    away from their current suppliers
    Customer Development
    Process
    Disqualified Inactive or Partners
    prospectsex-customers
    Advocates

    Retaining
    Suspects Clients Customers

    Retaining
    Repeat
    Prospects Customers
    customers

    1st-time Retaining
    Attracting
    Customers
    New customers
    Customers
    Customer Relationship Management
    (CRM)
     The task of creating strong
    customer loyalty and
    retaining customers
    Adoption

    Trial

    Evaluation
    Interest

    Awareness

    New Product Adoption Process


    Levels of CRM

    High margin Medium margin Low margin

    Basic or
    Accountable Reactive
    Many customers Reactive

    Proactive Accountable Reactive


    Medium number
    of customers

    Partnership Proactive Accountable


    Few customers
    Customer Equity
     The aim of CRM is to produce high customer equity
     The more loyal customers, the higher customer equity
     Three drivers of customer equity:
    Value equity
    Brand equity
    Relationship equity
    (a) Value Equity
     The customer’s objective assessment of the utility of
    an offering based on perceptions of its benefits relate
    d to its costs
     Subdrivers of value equity:
    Quality
    Price
    Convenience
    (b) Brand Equity
     The customer’s subjective and intangible assessment
    of the brand, above and beyond its objectively percei
    ved value
     Subdrivers of brand equity:
    Brand awareness
    Customer attitude toward the brand
    Customer perception of the brand ethics
    (c) Relationship Equity
     The customer’s tendency to stick with the brand,
    above and beyond objective and subjective assessmen
    ts of its worth
     Subdrivers of relationship equity:
    Loyalty programs
    Special recognition and treatment programs
    Community building programs
    Knowledge building programs
    Retention Building Approaches
     Adding financial benefits
    Frequency programs
    Club membership programs
     Adding social benefits
    Customization and customerization
     Adding structural ties
    Create long-term contracts
    Charge a lower price to consumers who buy more
    Turn the product into a long-term service
    4. Total Quality Marketing
    Strategy
     Quality
     The totality of features and characteristics of a
    product or service that bear on its ability to satisfy
    stated or implied needs
     Performance quality
     Conformance quality

     Total Quality Management (TQM)


    An organization-wide approach to continuously
    improving the quality of all the organization’s
    processes, products, and services
    Roles of Marketers in
    Total Quality Marketing Management
     Marketers bear the major responsibility for correctly
    identifying the customers’ needs and requirements

     Marketers must communicate customer expectations


    correctly to product designers
    Roles of Marketers in
    Total Quality Marketing Management
     Marketers must make sure that the customers’ orders
    are filled correctly and on time

     Marketers must check that customers have received


    proper instructions, training, and technical assistance i
    n the use of the product
    Roles of Marketers in
    Total Quality Marketing Management
     Marketers must stay in touch with customers after the
    sale to make sure that they are satisfied and remain
    satisfied

     Marketers must gather and convey customer ideas for


    product and service improvements to the appropriate
    company departments
    5. Internal Marketing
     The task of successfully
    hiring, training, and Company
    motivating able

    Ex
    e tin

    te r
    employees who

    ark

    na
    want to serve the

    lM
    customers well M
    al

    ark
    ern

    et
    Int

    ing
    Employees Customers
    Interactive Marketing
    A High-Performance Business
    Environment
    Stockholder Satisfaction
    Business Sales
    growth & Profits
    Customer Satisfaction

    Higher-quality products and services


    Continuous Breakthrough
    improvements innovations
    Employee Satisfaction

    Internal Marketing

    You might also like