2. Principles of Marketing Chapter 5 Value for Customers Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM) Customers are the reason to be for Markekting. No customers, no marketing. Goals Concepts Key words Case Studies Practical examples Q&A
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4. Goals Concepts Key words Case Studies Practical examples Q&A Customer Value us the difference between the benefits a customer receives and the total cost incurred from acquiring, using, and disposing of a product. Customer: one who purchases or receives a product or service from a business or merchant, or plans to Principles of Marketing Chapter 5 Value for Customers Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
5. Goals Concepts Key words Case Studies Practical examples Q&A Customer: one who purchases or receives a product or service from a business or merchant, or plans to Principles of Marketing Chapter 5 Value for Customers Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM) Perceived value Perceived Benefits Perceived Costs What will this product deliver for me? For the money I’m paying, what am I getting It’s worth paying certain amount for what I am getting
6. Goals Concepts Key words Case Studies Practical examples Q&A Customer: one who purchases or receives a product or service from a business or merchant, or plans to Principles of Marketing Chapter 5 Value for Customers Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM) Customer perceived value Functional benefits Brand benefits Other benefits Customer perceived value Purchase price Other costs Benefits Costs
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8. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Customer: one who purchases or receives a product or service from a business or merchant, or plans to Principles of Marketing Chapter 5 Value for Customers How was the experience with the product? Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
9. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Level of satisfaction Emotional experience Negative Neutral Positive Dissatisfied Defect Satisfied switchable Delighted Loyal Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
10. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Loyalty Product Champions Reduced Costs Larger share of wallet Satisfaction= buy again same brand Share the good experience Brands with good customer satisfaction spend less money in other things! Happy customers are willing to buy other products same brand. Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
11. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Measuring Customer Satisfaction Surveys Private studies Own studies National Studies etc Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
15. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Attachment to a brand Profit Customer service Customer Loyalty: the degree to which a customer will prefer a brand in particular. The rebuy. JOE’s Presentation Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
17. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers The Value of the Customer THE PARETO RULE . 80/20 80% Profits generated by 20% of customers 60% remaining profits 20% losses Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
18. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Customer Lifetime Value (CLV): is the present value of all profits to be earned from a customer Average purchases Profit margin Costs to service that customer Retention rate Firm discount rate Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
19. Customer satisfaction: the degree to which a product meets or exceeds customer expectations. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Customer retention: Companies need to find ways to keep customers, attract new customers, replace customers or get them back Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
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21. RESEARCH: United Airlines Loyalty programs United Airlines measure to solve the issue with “the guitar” No more than 2 pages. Homework
22. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Relationship Marketing: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers Customer : one who purchases or receives a product or service from a business or merchant, or plans to Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
23. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Customer retention: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers It’s more expensive to loose a customer than to keep it Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM) Cash flow Increase Retention Increase customer loyalty Purchase history Customer relations
24. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Customer retention: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers Focus your marketing on your current customer and the rest will follow Turn your customers into fans Traditional marketing expend money convincing new customers. Relationship marketing expend money keeping the ones already have Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
26. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Customer Relationship Management: all the activities to establish, develop and maintain customer sales. Customer : one who purchases or receives a product or service from a business or merchant, or plans to Who is your customer Know who brings profit Have a conversation Give a customer what they need Create loyalty programs Special software for CRM Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM) Technology Loyalty Programs Customization Interaction Differentiation Identification CRM
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28. Goals Concepts Key words Case Studies Practical examples Q&A Principles of Marketing Chapter 5 Value for Customers Customer retention: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers Customer Value Customer Satisfaction Relationship Marketing Customer Relationship Management (CRM)
29. Customers Customers perceive a value Loyalty is a two way thing Relationship marketing is the key Successful companies have a CRM Department
