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Stra - Marketing MGMT Chapter 2

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5 views16 pages

Stra - Marketing MGMT Chapter 2

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Uploaded by

getusimed1
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2

Building Customer Satisfaction, Value and


Retention and Loyalty
What is a Customer?

“The customer is value- maximizer, within the


bounds of search costs and limited knowledge,
mobility and income.”
What is needed by the
Customer?

• Value

• Satisfaction

• Retention
Customer Value
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
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


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.
Customer Satisfaction
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)
What are the tools for tracking and measuring
Customer Satisfaction
• Complaint and Suggestion system

• Customer Satisfaction Surveys

• Ghost Shopping

• Lost Customers Analysis


Attracting and Retaining
Customers
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
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.
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
Tools to improving the marketing impact

• Adding financial benefits


– Adding social benefits
– Individualizing and personalizing customer
relationship
• End of chapter 2

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