3. Creating Customer Value, Satisfaction And Loyalty Flashcards Preview

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Flashcards in 3. Creating Customer Value, Satisfaction And Loyalty Deck (15):
1

Creating customer value, satisfaction and loyalty

1. Building perceived value
2. building customer satisfaction
3. building customer loyalty
4. customer relationship management
5. customer lifetime value and equity

2

From perceived value to customer loyalty

Benefits + costs -> perceived value -> satisfaction -> loyalty

3

Customer perceived value

The difference between the benefits and the costs

Total customer benefit vs total customer costs
Product benefit vs monetary cost
Service benefit vs time costs
Personell benefit vs energy costs
Image benefit vs psychological cost

4

Building perceived value

1. identify benefits that are valued by customer
2. assess the importance of the different benefits
3. Asses the company and COMPETITORS performance
4. examine how customers in specific segment rate the company’s performance
5. monitor customer perceived value

Zu Punkt 4: if a company’s exceeds the competitors on all the attribute than you can ask for a higher price, because you’re the winner of the value perception is lower than for the competitors you can ask for a lower price

5

Confirmation / disconfirmation paradigm

Expectation E vs outcome P leads to comparison
P dissatisfaction

P=E confirmation -> satisfaction

P>E positive disconfirmation -> satisfaction

6

Customer satisfaction

Why is it important ?

- stay loyal longer and pay less attention to competing brands
- buy more as the company introduces new market offerings
- promote company by word of mouth
- cost less to serve than new customer
- are less sensitive to price

In total: higher returns and lower stock market risks. The more you satisfy the customer the more likely to have higher stock market return

If satisfaction is high the willingness to pay is also high
In the middle there’s a „are of indifference“: people will not pay more if you increase the price

7

Measuring customer satisfaction

With periodic surveys (using standardised items)
- mystery shopping = you don’t feel the people that you want to change sth but do it silently

8

Loyalty

Is a deeply held commitment to rebut or re patronize a preferrrd product or service in the future

9

Why do customers become loyal ?

Psychological factors
Situational factors
Contractual factors
Technical and functional factors
Economic factors

10

Customer relationship management

CRM is the process of carefully managing detailed information about individual customers to max customer loyalty this creates creating, maintaining and enhancing strong relationships
- focusing on touch point. Any occasion on which that you make a contact with the company is important
- one to one market basis: advice the customer on his journey individually

11

Customer relationship management 3 stages

Customer acquisition
Customer retention
Customer recovery

CRM include all management process that aim to initiate, stabilise the customer relationship
Customer relationship can be analysed biz using monetary (customer lifetime value) or non monetary (customer satisfaction) variables

12

Why is customer relationship management important?

Customer relationship is the most important asset

The profit gained over time can increase

Different strategies can be used to recruit, retain and recover customers

13

CRM

1. Identify prospects and customers
2. Differentiate customers by needs and value to company
3. Interact with individual customers
4. Customise products and services for each customer

14

Customer lifetime value

CLV is the net present value of the stream of future profits expected over the customers lifetime purchases.


Revenue 100
Cost 20
Active 80%
Interstate 10%

CLV0= (100-20)*0.80 / (1+0.10)^0

15

CLV and Equity

Customer equity is the sum of all customer lifetime value