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    Creating Long-Term Loyalty Relationships

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    Ryan Surabasquez
    1. Businesses succeed by attracting new customers and retaining existing customers over time. 2. There are disagreements between traditional and modern organizations, including about stability, flexibility, hierarchy, teamwork, employee morale, risk management, and technology. 3. Customer-perceived value is determined by comparing the benefits versus the costs of a product or service. Companies must understand what customers value most. 4. Building customer loyalty requires delivering value at every step of the customer experience through high product quality, excellent service, and meeting or exceeding expectations.

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    Creating Long-Term Loyalty Relationships

    Uploaded by

    Ryan Surabasquez
    32 views60 pages
    1. Businesses succeed by attracting new customers and retaining existing customers over time. 2. There are disagreements between traditional and modern organizations, including about stability, flexibility, hierarchy, teamwork, employee morale, risk management, and technology. 3. Customer-perceived value is determined by comparing the benefits versus the costs of a product or service. Companies must understand what customers value most. 4. Building customer loyalty requires delivering value at every step of the customer experience through high product quality, excellent service, and meeting or exceeding expectations.

    Original Title

    CHAPTER 5

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    1. Businesses succeed by attracting new customers and retaining existing customers over time. 2. There are disagreements between traditional and modern organizations, including about stability, flexibility, hierarchy, teamwork, employee morale, risk management, and technology. 3. Customer-perceived value is determined by comparing the benefits versus the costs of a product or service. Companies must understand what customers value most. 4. Building customer loyalty requires delivering value at every step of the customer experience through high product quality, excellent service, and meeting or exceeding expectations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    32 views60 pages

    Creating Long-Term Loyalty Relationships

    Uploaded by

    Ryan Surabasquez
    1. Businesses succeed by attracting new customers and retaining existing customers over time. 2. There are disagreements between traditional and modern organizations, including about stability, flexibility, hierarchy, teamwork, employee morale, risk management, and technology. 3. Customer-perceived value is determined by comparing the benefits versus the costs of a product or service. Companies must understand what customers value most. 4. Building customer loyalty requires delivering value at every step of the customer experience through high product quality, excellent service, and meeting or exceeding expectations.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 60

    CREATING

    LONG-TERM LOYALTY
    RELATIONSHIPS
    CHAPTER 5
    BUILDING CUSTOMER VALUE,
    SATISFACTION AND LOYALTY
    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 meetings, lay fiber-optic lines, or engage in any business
    activity. Without customers, you don’t have a business.
    TRADITIONAL ORGRANIZATION
    VS. MODERN CUSTOMER
    ORIENTED ORGANIZATION

    Today there are two main flows of organization run concurrently; One Traditional Organization,
    established in between 20th century another is Modern Organization emerged in this ongoing century.
    There are huge differences between these two trends. Why the traditional organization criticizes the
    modern as a misguided and vulnerable organization? What’s the real fact?
    8 MAIN POINTS OF DISAGREEMENTS

    1. Stability.
    2. Flexibility.
    3. Hierarchy
    4. Teamwork
    5. Employee Morale.
    6. Risk Management
    7. Diversification
    8. Technology
    CUSTOMER
    PERCEIVED VALUE
    Customer-perceived value (CPV) is the difference between the
    prospective customer's evaluation of all the benefits and all the costs
    of an offering.
    Total customer benefit
    is the perceived monetary value of the bundle of economic,
    functional, and psychological benefits customers expect from a
    given market offering because of the products, accompanying
    services and image involved.

    Total customer cost


    is the perceived bundle of costs customers expect to incur in
    evaluating, obtaining, using, and disposing of the given market
    offering, including monetary, time, energy, and psychological
    costs.
    Determinants of
    Customer-Perceived Value
    Once the concept of customer value has
    been defined, it is essential to understand
    the customer cost and benefit and the
    constituents of the same. Total Customer
    Benefit can be defined as the “perceived
    monetary value of the bundle of economic,
    functional and psychological benefits that
    the customers expect from a given market
    offering because of the product, service,
    people and image.”
    Steps in a Customer Value Analysis

    1. Identify the major attributes and benefits customers value.


    2. Assess the quantitative importance of the different attributes
    and benefits.
    3. Assess the company’s and competitors’ performances on the
    different customer values against their rated importance.
    4. Examine how customers in a specific segment rate the
    company’s performance against a specific major competitor
    on an individual attribute or benefit basis.
    5. Monitor customer values over time.
    BUILDING CUSTOMER VALUE,
    SATISFACTION AND LOYALTY
    What causes a user to become a devoted customer?
    Why did he buy from a corporation for the first time? Within the
    constraints of search expenses, limited knowledge, mobility, and
    income, customers tend to be value maximizers or perceived value
    maximizers.
    Value Proposition
    Value Proposition consists of the whole cluster of
    benefits the company promises to deliver; it is
    more than the core positioning of the offering.
    Value Delivery
    System
    The value delivery system includes all the
    experiences the customer will have on the way to
    obtaining and using the offering. At the heart of a
    good value delivery system is a set of core
    business processes that help deliver distinctive
    consumer value.
    Customer Satisfaction
    Satisfaction is a person’s feelings of pleasure or disappointment that
    result from comparing a product’s perceived performance(or
    outcome) to expectations . If the performance falls short of
    expectations, the customer is dissatisfied. If it matches
    expectations ,the customer is satisfied. If it exceeds expectations, the
    customer is highly satisfied or delighted.
    Total Customer
    Satisfaction
    Total customer satisfaction is a business strategy
    aimed toward ensuring that the overall customer
    experience is good, in addition to providing a
    quality product or service. This is particularly
    important when competitors offer similar or
    identical products or services for similar prices.
    MONITORING
    SATISFACTION
    Customer satisfaction is a term used to measure
    how business product and service offerings meet or
    surpass the expectation of its customers.
    Measuring customer satisfaction enables
    companies to identify factors of dissatisfaction.
    • Periodic Surveys can track customer satisfaction directly and ask
    additional questions to measure repurchase intention and the
    respondent’s likelihood or willingness to recommend the company
    and brand to others.

    • Companies can monitor their Customer Loss Rate and contact


    those who have stopped buying or who have switched to another
    supplier to find out why. • They can hire Mystery Shoppers to pose
    as potential buyers and report on strong and weak points
    experienced in buying the company’s and competitors’ products.

    • Monitoring of Competitive Performance


    NET PROMOTER SCORE
    NPS measures the affective and behavioral dimension of customer
    satisfaction. It evaluates the likelihood of customers to recommend
    the brand or its products.

    CUSTOMER SATISFSCTION
    CSAT is the historic indicator for measuring customer
    satisfaction. It’s also the most basic. CSAT measures global
    customer satisfaction.
    Total Customer
    Satisfaction
    Total customer satisfaction is a business strategy
    aimed toward ensuring that the overall customer
    experience is good, in addition to providing a
    quality product or service. This is particularly
    important when competitors offer similar or
    identical products or services for similar prices.
    Maximizing Customer Value

    The only valid rule for sustainable market


    share and higher profitability

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