Chapter 5Creating Customer Value, Satisfaction and LoyaltyConcepts and Applications

Jover S. ChavezMarketing ManagementAteneo School of Medicine and Public Health12 May 2010

Concept 1

Creating loyal customers is at the heart of every business.

Concept 1

KotlerCisco SystemsMake your customer thecenter of your culture.

Creating loyal customers is at the heart of every business.LOCALThe Medical CityPatient PartnershipPatient on Center Stage

Concept 1

MEDICAL APPLICATIONSloyal patientsloyal patientsloyal patients

Creating loyal customers is at the heart of every business.

Concept 2

CUSTOMER PERCEIVED VALUE (CPV)(total customer benefit) (total customer cost)

Customers will seek out superior alternatives.more educated and informedCustomers are value maximizers.

Concept 2

Customers are value maximizers.KotlerDell Inc. vs. Hewlett-Packard Co.

LOCALGlobe vs. SMARTMEDICAL APPLICATIONphysician shopping

Concept 3

KotlerVolvos safetyand more

The value proposition consists of the whole cluster of benefits the company promises to deliver.MEDICAL APPLICATIONShospitalswellness centers

LOCALStarbucksFitness First

Concept 4

The value delivery system is the manner in which all these promises are kept.KotlerSuperquinn

LOCALRustans

MEDICAL APPLICATIONShospitalswellness centers

Concept 5

pleasuredisappointment

Satisfaction is a function of product performance and buyer expectations.TOTAL CUSTOMER SATISFACTION (TCS)high satisfaction high customer loyaltyboth a goal and a marketing tool

Concept 5

Satisfaction is a function of product performance and buyer expectations.KotlerJoie de Vivre Hospitality Inc.

LOCALWindows, Mac

MEDICAL APPLICATIONSsurgeriesmedical tourism

Concept 6

Quality is the totality of features and characteristics that bear on its ability to satisfy needs. customer-centered definitionmeeting or exceeding customer expectationsconformance qualityperformance quality

Concept 6

Quality is the totality of features and characteristics that bear on its ability to satisfy needs. KotlerGeneral Electric

LOCALadidas

MEDICAL APPLICATIONStherapeuticsphysician competence

Concept 7

Marketing is the art of attracting and keeping profitable customers.

The 150-20 Rule: The most profitable 20% of customers may contribute 150% of profitability.

Concept 7

The 150-20 Rule: The most profitable 20% of customers may contribute 150% of profitability. KotlerProfit Tiers

LOCALBPI

MEDICAL APPLICATIONSinsurancepatient classification

Concept 8

precision marketingvs. mass marketingMaximizing customer value means cultivating long-term customer relationships.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)managing detailed information and touch points to maximize loyalty

Concept 8

Maximizing customer value means cultivating long-term customer relationships.KotlerFour Seasons

LOCALMcDonalds PlayPlace

MEDICAL APPLICATIONSpersonalizing treatment

Concept 9

build relationships, not just salesacquiring new customers costs more5x more than satisfying and retainingcompanies lose 10% of customers annually5% defection 25-85% profits

Attract and retain customers,but retain more.

Concept 9

Attract and retain customers,but retain more.Kotlercellular carriers

LOCALcellular carriers

MEDICAL APPLICATIONSpatient retention, word of mouth

Concept 10

Marketers must know their customers.

CRM requires building a customer database and doing datamining to detect trends, segments, and needs.

Concept 10

CRM requires building a customer database and doing datamining to detect trends, segments, and needs.KotlerNovartis

LOCALOnline Banking

MEDICAL APPLICATIONSpatient records (physician)hospital patient database

Concept 1

Creating loyal customers is at the heart of every business.

Chapter 5Creating Customer Value, Satisfaction, and LoyaltyConcepts and Applications

Jover S. ChavezMarketing ManagementAteneo School of Medicine and Public Health12 May 2010