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Unit 2 Creating Customer Value, Satisfaction & Loyalty 02

Customer Value

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Mukul Mishra
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26 views21 pages

Unit 2 Creating Customer Value, Satisfaction & Loyalty 02

Customer Value

Uploaded by

Mukul Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Creating Customer Value,

Satisfaction & Loyalty


Dr. Mukul Mishra
Introduction
“The only value your company will ever create is
the value that comes from customers – the ones
you have now and the ones you will have in the
future. Businesses succeed by getting, keeping,
and growing customers. Customers are the only
reason you build factories, hire employees,
schedule meeting, etc. Without customers, you
don’t have a business.”

– Don Peppers & Martha Rogers


• New Concept-market development
• Educate/persuade to buy
• Personal Selling-Eurochamps
• Word of mouth publicity – relationship with
customers
• Gift of Smile – customer confidence & trust
• Superior brand experience- intenstive training
& retraining + customer feedback
• Long term success – commitment to building
relationships
• Success of AquaGuard
• Several Awards for best practices
Traditional Organization Vs. Modern Customer Centric Organization
Customer Perceived Value
Customers are:
• Value-maximizers
• Form value expectation & act on it
• Buy from firm perceived to offer highest
customer delivered value, defined as

• customer perceived value = total customer


benefits - total customer cost
Fig-Determinants of Perceived Customer
Value

Total customer benefit Total customer cost

Product benefit Monetary cost

Services benefit Time cost

Personnel benefit Energy cost

Image benefit Psychological cost


• Customer perceived value (CPV) :difference between
prospective customers evaluation of all benefits & costs
of an offering & perceived alternatives

• Total customer value-perceived monetary value of the


bundle of economic, functional & psychological benefits
expected from a market offering because of product,
service, people and image

• Total customer cost –Perceived bundle of costs to obtain,


use, maintain, own & dispose an offering, including
monetary, time, energy & psychological costs
• How to Increase CPV?
– Raising economic,social emotional benefits
– Reducing one/more costs

– Customer :Two value offering V1 & V2

• Favour V1 if V1/v2>1

• Favour V2 of V1/V2 < 1

• Indifferent if V1=V2
Steps in Customer Value
Analysis
1. Identify major attributes and benefits that customers
value

2. Assess the qualitative importance of different attributes


and benefits

3. Assess the company’s and competitor’s performances on


the different customer values against rated importance

4. Examine ratings of specific segments

5. Monitor customer values over time


Delivering High Customer
Value

• The Customer value proposition consists of the whole


cluster of benefits the company promises to deliver, it
is more than the core positioning of the offering.

• The customer value-delivery system includes all the


experiences the customer will have on the way to
obtaining and using the offering
Total Customer
Satisfaction
• Person’s feeling of pleasure or disappointment
that result from comparing a product’s
perceived performance to the expectations.

• Dissatisfied/satisfied/Delighted

• Expectations ?- marketers promises/past


buying experience/friends advice etc.

• Expectations – high/low
Tracking Customer
Satisfaction
• Companies can monitor the customer loss rate and
contact customers who have stopped buying and
learn why this happened.

• Companies can hire mystery shoppers to pose a


potential buyers and report on strong and weak
points experienced in buying the company’s and
competitor’s products.

• In addition to tracking customer value expectations


and satisfaction, companies need to monitor their
competitor’s performance in these areas as well.
Customer Loyalty

• A deeply held commitment to re-buy or re-


patronize a preferred product or service in the
future despite situational influences and
marketing efforts having the potential to
cause switching behavior.
Top Brands in Customer
Loyalty
• Apple iPhone • Google
• Clairol • Amazon
• Samsung • Bing
• Mary Kay • J.Crew
• Grey Goose • AT&T Wireless
• Clinique • Discover Card
• Avis • Verizon Wireless
• Wal-Mart • Cheerios
Product & Service Quality
• Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy stated or implied needs.

• Product and service quality -customer


satisfaction -company profitability

• Quality is the key to value creation and customer


satisfaction.
• Forms
– Conformance quality
– Performance quality
Marketers Role in Delivering
Quality

• Correctly identifying customers’ needs and


requirements

• Communicate customer expectations properly


to product designers

• Be sure orders are filled correctly and on time


• Provide customers with proper instructions,
training, and technical assistance

• Stay in touch with customers after the sale

• Gather customer ideas for improvements and


convey them to the appropriate departments
• Provide customers with proper instructions,
training, and technical assistance

• Stay in touch with customers after the sale

• Gather customer ideas for improvements and


convey them to the appropriate departments

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