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Value of Customers Module 3

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48 views

Value of Customers Module 3

Uploaded by

jonezajalandoni510
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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VALUE OF CUSTOMER AND DIFFERENTIATE STRATEGIC AND

MARKETING PLANNING For Senior High School


Q1, Module 3

Customer loyalty is founded on excellent customer services. The creation of customer


value does not rely on marketing alone. It compasses other functions such as sourcing, operating,
processing, communication, human resource services, administration, finance and accounting.

Building Customer Value


Customer value is defined as the satisfaction derived from what a customer may experience
or expect by choosing a particular action relative to the cost of that action. The action can be a
purchase, a visit, an order, or a sign up. The cost refers to anything that can be given up to
receive the desired product or service which can be in the form of money, time, knowledge, data
or others.

Levels of Customer Value


The levels of customer value indicate what the consumer expect and do not expect from
their purchases.

1. Basic and expected levels. These levels include the basic requirements of conducting a
business. For instance, restaurants are expected to have a spacious dining area and clean tables
and utensils. If these requirements are not met by the business, it cannot provide high quality
customer value.
2. Desired customer value. This involves what the customers want from the purchase or service
experience. This is the first opportunity for a business to get ahead of the competition. For
example, a retail shop can provide friendly and helpful staff who can assist the customers in
making the right choices.
3. Unanticipated customer value. It pertains to an unexpected purchase or service experience
that may go beyond what the customers desire. For example, in a gasoline station, the gasoline
boy cleans the window after filling up the customer’s gasoline tank without an extra charge.

Types of Customers

There are four types of customers based on projected customer retention and loyalty to the brand.

1. Strangers – are customers whose needs do not fit the company’s offerings. The company
does not need to invest and exert effort to win them.
2. Butterflies - as the name implies, are not loyal to specific brand because they keep on looking
for the best deals which may lead to patronizing other brands. The company can enjoy profits
from these customers only for a short period.
3. True friends- have needs that match the company’s offerings. They make repeat purchases
and patronize the brand as long as it satisfies their needs. The company must invest in these
customers and strengthen its relationship with them.
4. Freeloaders- are loyal but not profitable because of the limited fit between their needs and
the company’s offering. For example, a few customers of a salon patronizes its services regularly
but do not generate enough profit to sustain the maintenance costs, it can earn only if it raises the
prices of its services.

Relationship Development Strategies


Recent research shows that loyal customers prove to be more profitable than ordinary
customers. This is the reason why companies are challenged to maintain customer loyalty.
Companies should practice the following relationship development strategies to retain loyal
customers:
1. Communicate with customers frequently and effectively. It is important to always get in
touch with customers through e-mail and social networking sites especially in the new normal
situation. Provide various means to give immediate feedback (e.g., online customer surveys).
2. Offer customer rewards. Customer loyalty programs, which include special discounts,
freebies, perks, may work well for various types of products and services. These encourage
customers to remain loyal to the brand because they are rewarded for their patronage.
3. Conduct special events and provide sponsorship. Companies can hold or sponsor parties,
concerts, contests, and the like to boost interaction among loyal customers and company
representatives.
4. Enhance customer service. Some company outsource their services to third party
organizations to cater complaints and inquiries, promote their latest offerings and provide
technical support.
5. Utilize languages to reach a wider customer base. Marketers can create promotional
materials in different languages to cater specific regions. Consumers can also now choose the
language they would like to use to communicate with customer service representative.

Customer Service in the Philippine Business Enterprise


The success of our homegrown companies lies not just on their offerings but also on their
customer service. Local business now utilizes customer service tools that fit our customer-
oriented culture and extensive technology usage.
1. Email and SMS – also help businesses communicate with their clientele more easily as most
consumers regularly check their inboxes.
2. Social Networking sites – aside from their primary function of connecting people, have
become a channel for netizens to ask for customer support. Telecom Companies promptly
responds to inquiries and complaints on social media and redirects the customer to the site’s
private messaging system for further assistance.
3. Live chat support – facilitates real time correspondence between customer and the company
representative.

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