CHAPTER 2:

CUSTOMERS
ENGS 35 TECHNOPRENEURSHIP
 Customer
• could be the person who makes the decision
to purchase a product, and/or pays for it.
• party that receives or consumes products
(goods or services) and could choose between
different products and suppliers.
• entity within a firm who establishes the
requirement of a process and receives the
output of that process
According to Peter Drucker, the first task
that a company must do is to CREATE
customers.
How do companies
create customers?
Steve Jobs, APPLE
“You’ve got to start with
the customer experience
and work back towards
the technology – not the
other way around.”
Customer Loyalty
• Customer loyalty is the result of
consistently positive emotional experience,
physical attribute-based satisfaction and
perceived value of an experience.

Customer complaint
• Customer complaint is "an expression of
dissatisfaction on a consumer's behalf to a
responsible party. It can also be described
in a positive sense as a report from a
consumer providing documentation about a
problem with a product or service
 Customer Retention
• Customer retention refers to the ability of a
company or product to retain its customers over
some specified period. High customer retention
means customers of the product or
business tend to return to, continue
to buy or in some other way not defect to
another product or business, or to non-use
entirely.
Customer Satisfaction
• Customer satisfaction is a measure
of how products and services
supplied by a company meet or
surpass customer
expectation.
FACTORS AFFECTING CUSTOMER
RELATIONSHIP
Characteristics of
Characteristic of Product Customers

Characteristics of
Suppliers
Product Life Cycle
Identified
Customer Need

Design and Production and/or Operational Use and Retirement and

Development Construction Maintenance Support material disposal

Feedback
Role of Customers in Innovation
CUSTOMER NEEDS  INNOVATION

•Innovation should START from understanding the

customer needs.
• In order to achieve business success, innovation
must line up with
a critical customer problem that NO ONE has solved.
Types of Customers
Potential Not your business’ customer yet but should be given full treatment
Customer for them to be one.
New Fresh customer that just bought something from you.
Customer
Impulsive Customers that make a buying decision in an instant, provided
Customer that the condition is right.
Discount Customer that sees value in your product but won’t pay it at full
Customer price.
Loyal Customers who keep on coming back for more. They also act as
Customer brand’s ambassador and help you grow through word of mouth.
Types of Customers – How to deal with
them?
Potential Impulsive Discount
New Customer Loyal Customer
Customer Customer Customer
• Show them • Invest a bit of • Make it easy for • When giving • Recognize these
what they can time into them to access discounts, make customers, give
get from your explaining how your product sure the rewards
your product • Response on customer • Identify what
product
works their inquiries understands all made them love
• Let them • Provide quickly and necessary details your
know that customer service concisely • Provide deals product/services
they can ask support that they can’t and make sure it
for help or get elsewhere. happens with
advice at any other customers.
time.
Customer Relationship Management (CRM)
CRM is a business strategy that
aims to understand, anticipate and
manage the needs of an
organization’s current and potential
customers.
The Purpose of CRM
• creating value for the customer • gain competitive advantage
and the company

• customer retention
CRM Requirements
• Organization must become
customer focused
• Organization must be prepared to
adapt to the needs of the
customers into account and
delivers them
• Market research must be
undertaken to assess customer
needs and satisfaction.
Strategically Significant Customers
• Not all customers are equally important. CRM only focuses on strategically
significant markets.
• Relationships are built with customers that are likely to provide value for
services
• Building relationship with customers that will provide little value could result in a loss of
time, staff and financial resources.

WHO ARE THE STRATEGICALLY SIGNIFICANT CUSTOMERS?

• Customers with high lifetime values
• Customers who serve as benchmarks for other customers
• Customer who inspire change in the supplier
Information Technology and CRM
• Technological approaches can be used to
assist organizations in increasing
customer value and their own
profitability. Such approaches can be the
use of databases, data mining and one-to-
one marketing.
• The technology approaches help keep a record of customers names and
contact details in addition to their history of buying products or using
services. This information can be used to target customers in a
personalized way and offer them services to meet their specific needs.
• This personalized communication provides value for the customer and
increases customers loyalty
Face-to-Face CRM
• CRM could also be carried out in face-to-face interactions
without the use of technology.
• Staff members often remember the names and favorite
services/products of regular customers and use this
information to create a personalized service for them.
• However, face to face CRM could prove less useful
when organizations have a large number
of customers as it would be more difficult to
remember details about each of them.
 CHAPTER 3:
VALUE
PROPOSITION
ENGS 35 TECHNOPRENEURSHIP
Value Proposition
Value - the regard that something is held to deserve; the importance, worth, or
usefulness of something.
■ It is the core of any business, and it directs all future decisions, innovations, and
customers that get targeted.

Value Proposition - a promise of value to be delivered,

communicated, and acknowledged.
CvSU Value Proposition
■ TRUTH Mercury Drug
■ EXCELLENCE
■ SERVICE
Value Proposition
■ Nakasisiguro, gamot ay laging
bago

DIET Value Proposition

■ Quality Works
Value Proposition Canvas
■ The Value Proposition Canvas is a tool which can help ensure that a
product or service is positioned around what the customer
values and needs.
■ The Value Proposition Canvas was initially developed by Dr Alexander
Osterwalder as a framework to ensure that there is a fit between
the product and market. It is a detailed look at the relationship
between two parts of the Osterwalder’s broader Business Model Canvas;
customer profile and value map.
2 Building Blocks of Value Proposition
Canvas
■ Customer profile ■ Value Map
Value Proposition Canvas
VALUE MAP CUSTOMER PROFILE
Value Proposition Canvas
Customer Profile
■ Gains – the benefits which the customer expects and
needs, what would delight customers and the things which may
increase likelihood of adopting a value proposition.
■ Pains – the negative experiences, emotions and risks
that the customer experiences in the process of getting the
job done.
■ Customer jobs – the functional, social and emotional
tasks customers are trying to perform, problems they are
trying to solve and needs they wish to satisfy.
■ A customer profile should be created for each
customer segment, as each segment has distinct gains,
pains and jobs.
Value Proposition Canvas
Value Map

■ Gain creators – how the product or service

creates customer gains and how it offers
added value to the customer.
■ Pain relievers – a description of exactly how
the product or service alleviates
customer pains.
■ Products and services – the products and
services which create gain and relieve
pain, and which underpin the creation of value
for the customer.
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Achieving fit between the value proposition and
customer profile
■ After listing gain creators, pain relievers and products and services, each point
identified can be ranked from nice to have to essential in terms of value to the
customer. A fit is achieved when the products and services offered as part
of the value proposition address the most significant pains and
gains from the customer profile.
 Value Proposition Canvas
Going further
■ An additional step is to investigate the
extent to which a company has a
competitive advantage in those areas to
ensure that the value proposition is
unique and sufficiently differentiated.
■ A value proposition matrix can be
used to plot each aspect of the value
proposition with respect to its value to
the customer and the competitive
advantage the company has in offering
that product or service.
Why Use Value Proposition Canvas
 any question?
Thank you for listening!