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CONNECTING WITH
CUSTOMERS
Nadia Tantuco
Ateneo Graduate School of Business
October 3, 2014
ph.linkedin.com/in/nadiatantuco
OUTLINE:
Why do we need to connect with
customers?
1) Good marketing starts with strong customer
relationships
Creating Long-term Loyalty Relationships (chapter
5)
2) To understand how consumers think, feel, and act;
and offer clear value to each and every target
consumer
Analyzing Consumer Markets (chapter 6)
3) Sellers need to understand business
organizations, in order to create and capture value
Analyzing Business Markets (chapter 7)
OUTLINE:
Why do we need to connect with
customers?
1) Good marketing starts with strong customer
relationships
Creating Long-term Loyalty Relationships (chapter
5)
2) To understand how consumers think, feel, and act;
and offer clear value to each and every target
consumer
Analyzing Consumer Markets (chapter 6)
3) Sellers need to understand business
organizations, in order to create and capture value
Analyzing Business Markets (chapter 7)
Creating loyal customers is at
the heart of every business.
Marketers must build:
Customer Value
Satisfaction
Loyalty
Customer Value
Customers are more than ever better
informed and educated.
A value proposition
Consists of all the benefits the company
promises to deliver
Is more than the core positioning of the
offering
A promise about the experience customers
can expect
Customer Satisfaction
A product offer must meet customer
expectations to generate satisfaction.
A customer-centered firm seeks to create
high customer satisfaction. (But this is
not the ultimate goal.)
The company must balance delivering
high customer satisfaction and delivering
acceptable levels to other stakeholders,
given its total resources.
Customer Satisfaction
Satisfaction also depends on product
or service quality.
Higher levels of quality can better
support higher prices and lower costs.
Quality is clearly the key to value
creation and customer satisfaction.
Customer Loyalty
Marketing is the art of attracting and
keeping profitable customers.
Customer-Product Profitability Analysis:
Customer Loyalty
Companies must use information
wisely and interact with their
customers.
To cultivate strong customer
relationships, companies must
1. Manage customer relationships
2. Attract and retain customers
3. Build Loyalty
Cultivating Customer Relationships 1:
The goal of customer relationship
management (CRM) is to maximize
loyalty.
CRM is a process that
Manages detailed information about
individuals
Distinguishes customer touch points
Enables companies to provide real-time
customer service
Cultivating Customer Relationships 1:
Companies can create stronger bonds
with customers by personalizing
relationships.
CRM can be practiced through
Personalized Marketing
creating brand relevance for each
individual
Customer Empowerment
consumers as brand
evangelists/ambassadors
Recommendations from consumers
Cultivating Customer Relationships 2:
Attracting and retaining customers
require companies to manage various
consumer levels.
The different levels in a Marketing Funnel:
Cultivating Customer Relationships 2:
Winning companies improve their
value through excellent management
of their customer base.
Strategies in managing the customer
base:
1. Reducing customer defection
2. Increasing company-customer
engagement
3. Creating new offerings and opportunities
for existing customers
4. Managing low-profit customers
5. Focusing on high-profit customers
Cultivating Customer Relationships 3:
Creating a strong, tight connection to
customers is the key to long-term
success.
Building loyalty though
Understanding customer point of view
Developing loyalty programs
Creating customer databases
Cultivating Customer Relationships 3:
Database marketing helps companies in
knowing more about their target market.
However, assumptions gathered from
these databases may not always hold
true.
Companies must proceed thoughtfully
in how they would use the information
provided.
Customers are value maximizers.
Reference groups
Family
Social roles/status
Influences of consumer behavior 3:
Personal factors have a direct impact
on consumer behavior.
Age
Occupation
Personality
Lifestyle and values
Its important to understand how
marketing stimulus affects
consumers purchase decision.
Model of consumer behavior:
Key Psychological Process 1:
Motivation is when a need becomes
aroused to a level of intensity that drives
us to act.
3 theories of human motivation:
1. Freuds
2. Maslows
3. Herzbergs
Key Psychological Process 2:
Perception is the process of how we
interpret information to create a
meaningful picture of the world.
Different perceptions of things result
from:
Selective
1. Attention
2. Distortion
3. Retention
Key Psychological Process 3:
Learning induces changes in our
behavior arising from experience.
Nadia Tantuco
Ateneo Graduate School of Business
October 3, 2014
ph.linkedin.com/in/nadiatantuco