athavale katie ignite presentation_creating customer value, satisfaction, and loyalty

Creating Customer Value, Satisfaction, and Loyalty

Customer Perceived Value

Total Customer Satisfaction

• Dissatisfied-below expectations

• Satisfied-meets expectations

• Delighted-exceeds expectations

Monitoring Satisfaction

Monitoring Satisfaction• Surveys• Mystery shoppers• Interview inactive

customers • Monitor competitor

performance

Make it easy for the customer to complain

• 24/7 hotline• Contact complainers ASAP• Accept responsibility• Hire empathetic customer service reps

Impact of Quality

The 80/20 Rule

Customer Profitability Analysis

Customer 1 Customer 2 Customer3

Product 1 + + Highly profitable product

Product 2 + Profitable product

Product 3 _ _ Unprofitable product

High-profit customer

Mixed bag customer

Losing customer

Attracting and Retaining Customers

Customer Lifetime Value

Customer Relationship Management (CRM)

Building Loyalty

Building Loyalty

Customer Databases

• Past purchases• Volumes• Prices• Profits• Buying policies• Competitive suppliers• Age

• Income• Family members• Birthdays• Hobbies• Favorite foods• Interests• Opinions• Prefered media

Data Warehouses and Datamining

Database Uses

1. Identify prospects2. Customize offerings3. Deepen customer

loyalty

Database Uses

1. Identify prospects2. Customize offerings3. Deepen customer

loyalty4. Reactivate customer

purchases5. Avoid customer

service errors

The Downside of Database Marketing & CRM

• Large investment• Getting employees on board• Privacy issues• False assumptions

Implementing CRM

• 70% of firms found little or no improvement through CRM

• Don’t put the cart before the horse!