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7/31/2019 Top 10 Chapter 5 Concepts
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http://francollantes.blogspot.com
TOP 10 Learning Concepts
Francine Luanne M CollantesSeptember 2011
Ch 5: Creating Customer Value
Satisfaction, and Loyalty
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Outline:
Creating Loyal Customers is at
the HEART of every business
Foundations of CustomerValue, Satisfaction,&Loyalty
Transforming the customer Experience into aRELATIONSHIP
Know thy Customer
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Foundations of CustomerValue, Satisfaction,&Loyalty
1. Value-Maximizers2. Value Proposition
3. Loyalty
4. Satisfaction
5. Product and Service Quality
6. Customer Profitability
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Outline:
Creating Loyal Customers is at
the HEART of every business
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Transforming the customer Experience into a
RELATIONSHIP Cultivating Long-term Customers
Attracting and Retaining Customers
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Outline:
Creating Loyal Customers is at
the HEART of every business
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Know thy Customer
Customer Databases and Database Marketing Database Warehouses and Data Mining
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Outline:
Creating Loyal Customers is at
the HEART of every business
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Concept 1: FOUNDATIONS
Customers tend to be Value-
Maximizers
http://francollantes.blogspot.com
Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4thEd,Philip Kotler and Kevin Lane Keller, 2009
CustomerPerceivedValue
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Concept 1: FOUNDATIONS
Customers tend to be Value-
Maximizers
http://francollantes.blogspot.com
=
TotalCustomer
Benefit
Product
Service
Personnel
Image
Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4thEd,Philip Kotler and Kevin Lane Keller, 2009
CustomerPerceivedValue
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Concept 1: FOUNDATIONS
Customers tend to be Value-
Maximizers
http://francollantes.blogspot.com
=
TotalCustomer
Benefit
Product
Service
Personnel
Image
Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4thEd,Philip Kotler and Kevin Lane Keller, 2009
TotalCustomer
Cost
Monetary
Time
Energy
Psychological
-
CustomerPerceivedValue
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Example 1:
Customers tend to be Value-
Maximizers
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Example 1:
Customers tend to be Value-
Maximizers
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Inasal = Visayan for barbeque Uses own marinade concoction
Bamboo stick skewers Encourages kinamot (eating
with bare hands) Pinoy tradition, culture, and
home
Offers hearty meal Great value for money
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Concept 2: FOUNDATIONS
Value Proposition Formula =
Benefits + Promise to deliver
http://francollantes.blogspot.com
Why
shouldthe
customerpurchase
yourproduct?
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http://francollantes.blogspot.com
Example 2:
Value Proposition Formula =
Benefits + Promise to deliver
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Concept 3: FOUNDATIONS
Consumers have varying degrees of
loyalty to specific brands, stores, and
companies
http://francollantes.blogspot.com
Loyalty
Repeat purchase
Repeat patronage
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Example 3:
Consumers have varying degrees of
loyalty to specific brands, stores, and
companies
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Example 3:
Consumers have varying degrees of
loyalty to specific brands, stores, and
companies
http://francollantes.blogspot.com
vs
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Example 3:
Consumers have varying degrees of
loyalty to specific brands, stores, and
companies
http://francollantes.blogspot.com
vs
More customers are stillfound to go to SM to
purchase varying needs
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Concept 4: FOUNDATIONS
Customers satisfaction is defined by
matching both expectationsand
performance
http://francollantes.blogspot.com
Satisfaction
Feelings of pleasure ordisappointment
Basis:
Perceived performance
Expectations
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Example 4:
Customers satisfaction is defined by
matching both expectationsand
performance
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March 2011: Toyota announced recall of 8,830 units of both Fortuner andInnova due to over-responsive brake systems, or improperly-mountedcamber bolts and seats.
Dealership got affected so Toyota Philippines had to issue a statementthat cars sold here are not affected
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Concept 5: FOUNDATIONS
Satisfaction will also depend on
productorservice quality
http://francollantes.blogspot.com
Quality
Totality of: Features
Characteristics
Ability to satisfy stated
or implied needs
Its everyones job!
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http://francollantes.blogspot.com
Example 5:
Satisfaction will also depend on
productorservice quality
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http://francollantes.blogspot.com
Example 5:
Satisfaction will also depend on
productorservice quality
Winner of the ff: 2009 Asian Livestock Industry Award
Ernst & Young 2010 Entrepreneur of the Year Award
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C t 6 FOUNDATIONS
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Concept 6: FOUNDATIONS
150-20 Rule implies that a company
could improve its profitsbyfiringits
worstcustomers.
http://francollantes.blogspot.com
Customer Lifetime Value
Measure of customerprofitability
Used to develop long-
term perspective
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C t 6 FOUNDATIONS
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Concept 6: FOUNDATIONS
150-20 Rule implies that a company
could improve its profitsbyfiringits
worstcustomers.
http://francollantes.blogspot.com
Customer Lifetime Value
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Marketing metric for: Customer loyalty
Customer selection
Long-term planning
Resource allocation
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Concept 6: FOUNDATIONS
150-20 Rule implies that a company
could improve its profitsbyfiringits
worstcustomers.
Properties are foreclosed properties from bad creditors
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Concept 7: Experience to RELATIONSHIPMaximizing customer value means cultivating
Long-term Customer Relationships
http://francollantes.blogspot.com
Customer RelationshipManagement (CRM)
Uses detailed information
About customers
Individual
Touch points
Maximizes Loyalty
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http://francollantes.blogspot.com
Example 7: Experience to RELATIONSHIPMaximizing customer value means cultivating
Long-term Customer Relationships
+ =Partnership:
CRM Solution for Call Center Operations
"Knowing what the customers want and how they want to be treated are importantfactors to gaining competitive advantage in a very tough banking market"
- Lydia King, First Vice President for IT Operations
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
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Potentials
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
http://francollantes.blogspot.com
Prospects
Potentials
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
http://francollantes.blogspot.com
Prospects
Potentials
First-Timers
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
http://francollantes.blogspot.com
Prospects
Potentials
First-Timers
Patrons
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
http://francollantes.blogspot.com
Prospects
Potentials
First-Timers
Patrons
Members
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
http://francollantes.blogspot.com
Prospects
Potentials
First-Timers
Patrons
Members
Advocates
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Concept 8: Experience to RELATIONSHIP
The challenge is in attracting and
retaining customers
http://francollantes.blogspot.com
Prospects
Potentials
First-Timers
Patrons
Members
PARTNERS
Advocates
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http://francollantes.blogspot.com
Concept 8:
The challenge is in attracting and
retaining customers
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Concept 9: KNOW THY CUSTOMER
Marketers must know their customers
http://francollantes.blogspot.com
Customer Database
Organized collection ofindividual information
Current
Accessible
Actionable
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Concept 9: KNOW THY CUSTOMER
Marketers must know their customers
http://francollantes.blogspot.com
Database Marketing Building
Maintaining
Used to:
Facilitate contact &
transactions
Build customer
relationship
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http://francollantes.blogspot.com
Concept 9:
Marketers must know their customers
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Concept 10: KNOW THY CUSTOMER
CRM requires detecting trends,
segments, and individual needs
http://francollantes.blogspot.com
Data Warehouses and Data Mining
Allows business tomake the PROACTIVE,
KNOWLEDGE-DRIVEN
DECISIONS
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http://francollantes.blogspot.com
Concept 10: KNOW THY CUSTOMER
CRM requires detecting trends,
segments, and individual needs
Customers were invited to partner andhelp come up with reasons why
they might consider going
WORD CLOUD
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TOP 10 Learning Concepts
Francine Luanne M Collantes
September 2011
Ch 5: Creating Customer Value
Satisfaction, and Loyalty
h //f ll bl 40