Creating

Customer Value,
Satisfaction, and

Delivering High Customer Value

Loyalty- as a deeply held commitment to
rebuy or repatronize a preferred product
or service in the future despite situational
influences and marketing efforts having
the potential to cause switching behavior.
Satisfaction- is a persons feelings of a
pleasure or disappointment that result
from comparing a products perceived
performance (or outcome) to their
expectations.

(a) Traditional Organizational Chart

Top
Management
Middle
Management
Frontline People
Customers

(b) Customer- oriented Organization

Chart

Customers Value
Analysis
STEPS IN ANALYZING THE STRENGTH AND WEAKNESS
OF COMPY,
-Identify the major attribute and benefits that
customers value
-Asses the quantitative importance of the different
attribute and benefits
-Asses the company and competitors performance on
the different customer values against their rated
importance
-Examine how customers in a specific segment rate
the companys performance against a specific major
competitor on an individual attribute or benefit basis
-Monitor customer values over time

- Consist of the whole cluster of benefits the

company promises to deliver; it is more tan core
positioning of the offering.
Value Proposition

Example: VOLVO

 Includes all the experience customer will have n

the way to obtaining and using the offering. At the
heart of a good value delivery system is set of
core business process that help to deliver
distinctive consumer value.
Value Delivery System

Maximizing Customer Lifetime Value

- Profitable
customer- is a person,
household, or company
that over time yields a
revenue stream that
exceeds by an
acceptable amount the
companys stream for
attracting, selling, and
servicing that
customer.

- Customer
Profitability Analysis
(CPA)- is the best
conducted with the
tools of an accounting
technique called
activity-based costing
(ABC)

Measuring Customer Lifetime Value

Customer Lifetime Value- describes
the net present value of the stream
future profits expected revenues the
expected over the customers lifetime
purchase.

Cultivating
Customer
Relationship

Increasing Value of the Customer

Base
Reducing the rate of customer defection
Increasing the longevity of the customer
relationship
Enhancing the growth potential of each
customer through share-of-wallet
cross-selling, and up-selling
Making low-profit customers more
profitable or terminating them
Focusing disproportionate effort on
high-value customers

2 Customers Loyalty Programs

- Frequency Programsdesigned to provide rewards
to customers who buy
frequently and substantial
amounts.
- Club Membership
Programs- can be open to
everyone who purchase a
product or service, or it can
be limited to an affinity
group or to those willing to
pay a small free.

- Example: APPLE
Apple encourage owner its
computers to form local
apple-user groups. By 2001,
there were over 600 ranging
size from fewer that 25
members to over 1000
members. The user group
provide apple owners with
opportunities to learn more
about their computers, share
ideas, and get product
discounts. They sponsor
special activities and events
and perform community
service.

Customer Databases and Database

Marketing
Customer database- is an organized collection of
comprehensive information about individual customers
or prospects that is current, accessible, and actionable
for such marketing purpose as lead generation, lead
qualification, sale of a product or service, or
maintenance of customer relationship.
Database marketing- is the process of building,
maintaining, and using customer database and other
database (products, supplier, resellers) to contract,
transact, and build customer relationship.
Customer mailing list- simply set of names,
addresses, and telephone numbers.
Database warehouse- marketers can capture, query,
and analyze it to draw inferences about an individual
customers needs and responses.

Companies use their general database

in five ways:

To identify prospects.
To decide which customers
should receive a particular offer,
To deepen customer loyalty.
To reactive customer purchases.
To avoid serious customer
mistakes.