Customer Satisfaction

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Transcript Customer Satisfaction

Building Customer
Customer Value
Total Customer
Personnel &
Image Value
Total Customer Cost
( Monetary ,Time ,
Energy & Psychic
Customer Delivered
( Profit to the
Customer Satisfaction
Customer Satisfaction with a purchase depends upon
product’s performance relative to buyer expectation.
Expectations are based on customer’s past experiences,
the opinions of friends & associates & marketer &
competitor information and promises
Dilemma of Expectation
Setting low expectations may not attract
enough buyers while too high expectations
may lead to buyer dissatisfaction
Measuring Satisfaction
Periodic surveys
 Customer loss rate
 Mystery shoppers
Framework for CRM
Identify prospects and customers
 Differentiate customers by needs and
value to company
 Interact to improve knowledge
 Customize for each customer
CRM Strategies
Reduce rate of defection
 Increase longevity
 Terminate low-profit customers
 Focus more effort on high-profit
Reducing Customer Defection
Define and measure retention rate
Distinguish causes of customer attrition
Estimate profit loss associated with loss
of customers
Assess cost to reduce defection rate
Gather customer feedback
Levels of Relationship
Basic :
Salesperson sells but doesn’t follow up.
Reactive :
Salesperson sells & encourages customer to call
whenever required.
Accountable :
The sales person calls customer after sometime of
sale & ensures smooth running of product.
Levels of Relationship
Proactive :
The salesperson calls the customer from time to time with
suggestions about improvement in product
The company continuously works with customer & with
other customers to discover ways to deliver better value.
Steps in relationship
marketing Program
Identify the key customers meriting
Choose the good customers & designate them for
relationship management.
(b) Assign a skilled Relationship Manager
Steps in relationship
marketing program
( c ) Develop a clear job description for
relationship managers:
Describe their reporting relationships , objectives
,responsibilities & evaluation criteria.
( d ) Have each relationship manager develop
annual & long range customer relationship
(e) Appoint an overall manager to
supervise the relationship managers.
Building Loyalty
Affinity programs:
A marketing effort sponsored by
an organization that solicits
responses from individuals who
share common interests and
Frequent-buyer and Frequent-user
Frequency marketing: frequentbuyer or user marketing programs that
reward customers with cash, rebates,
merchandise, or other premiums
Can loyalty be built?
Long term contract is a better solution: like subscription
Tools That Aid Relationship
Electronic Data Interchange (EDI)
Vendor Managed Inventory (VMI)
Database Marketing
Electronic Data Interchange
Electronic Data Interchange (EDI)
involves computer-to-computer
exchanges of invoices, orders, and
other business documents
 EDI is rapidly gaining popularity
because it allows firms to reduce their
cost and to improve their efficiency and
Vendor-Managed Inventory
Vendor-Managed Inventory
(VMI): is an inventory-management
system in which the seller–based on
existing agreement with a buyer–
determines how much of a product is
New supplies are then automatically
shipped to the buyer