Transcript Chapter 2 : Biuling Customer Satisfaction, Value and retention

Chapter 5
Building Customer Satisfaction,
Value and Retention and Loyalty
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What is a Customer?
“The customer is value-maximizer,
within the bounds of search costs
and limited knowledge, mobility and
income.”
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What is needed by the
Customer?
• Value
• Satisfaction
• Retention
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Customer Value
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Customer Value
“ Is the bundle of benefits expected”
Customer Cost
“ Is the bundle of costs expected”
• What is Customer Delivered Value?
Customer Delivered Value = Total
Customer Value - Total Customer
Cost
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Customer Delivered Value
Total Customer Value
Total Customer Cost
Product Value
Money Cost
Service Value
Time Cost
Personnel Value
Energy Cost
Image Value
Psychic cost
Determinants of Customer Delivered Value
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What are the factors that may hinder or
stop the full implementation of the
Customer Delivered Value System?
• The buyer might be under orders to
buy at the lowest cost.
• Concentrating on the short-term
benefits and over looking long term
costs.
• The effect of the Relation between
the sales persons and the consumer.
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Customer Satisfaction
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What is Satisfaction?
• It is a person’s feeling of pleasure or
disappointment resulting from
comparing a product’s perceived
performance (or outcome) in relation
to his or her expectations.
Satisfaction = function (perceived
performance /expectations)
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What are the tools for tracking and
measuring Customer Satisfaction
• Complaint and Suggestion system
• Customer Satisfaction Surveys
• Ghost Shopping
• Lost Customers Analysis
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Attracting and Retaining
Customers
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Benefits of Highly Satisfied Customer
•
•
•
•
Stays Loyal Longer
Buys more
Talks favorably about the company
Offer products and services ideas to
the company
• Costs less to serve than new
customer
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Why retain Customers?
• Acquiring a new customer costs 5
times retaining an old one.
• The average company loss about
10% of its customers annually
• Customer rate increase with time.
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What are the types of marketing?
• Basic Marketing: selling the product
• Reactive Marketing: selling the product
and encouraging further contact
• Accountable Marketing: Follow up on
Customers satisfaction.
• Proactive marketing: involving customers
in product and company improvements
• Partnership marketing: encouraging the
customer to become a stakeholder in the
company
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Tools to improving the marketing
impact
• Adding financial benefits
– Adding social benefits
– Individualizing and personalizing
customer relationship
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