Building Customer Satisfaction, Value and Retention
Customer satisfaction is the outcome felt by buyers who have experienced a . on building satisfaction through customer relationship development activities. DEFINING CUSTOMER VALUE AND SATISFACTION n Total Customer Value: total customer value(customer benefits) minus total customer cost(using and 8 ATTRACTING AND RETAINING CUSTOMERS»Relationship marketing (cont.). BUILDING CUSTOMER SATISFACTION, VALUE, AND RETENTION BY: from comparing a product's perceived performance (outcome) in relation to his or her.
Managers themselves should leave their offices from time to time, enter company and competitor sales situations where they are unknow, and experience firsthand the treatment they receive.
A variant of this for managers to phone their own company with questions and complaints to see how the calls are handled. Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened.
Not only is it important to conduct exit interviews when customers first stop buying; it is also necessary to monitor the customer loss rate. CSI Customer Satisfaction Index 11 Discussion Question Would you feel more brand loyalty for a company that tried to immediately resolve a complaint viaor a company that had a customer service representative call within two business days to resolve the problem over the phone?
Building Customer Satisfaction Through Quality, Service, & Value
Understand customer value Create customer value Deliver customer value Capture customer value Sustain customer value Value chain: Building partnering relationship with specific distributors and suppliers to create a superior value-delivery network.
Customer relationship management CRM: Listen to the customer and respond quickly and constructively to the complaints.
Acquiring new customers can cost five times more than the costs involved in satisfying and retaining current customers. Customer profit rate tends to increase over the life of retained customer.
Chapter 3 Building Customer Satisfaction, Value, and Retention
The Key Customer equity: Important when the products are differentiated business markets. Important when products are less defferentiated and have more emotional impact.
Important where personal relationships count for a lot.Building Customer Relationships Through Effective Marketing
The Basics Cross-departmental participation Integrate the Voice of the Customer into all business decisions Create superior offering for the target market 30 Forming Strong Customer Bonds: The Basics Organize and make accessible a database of customer information Make it easy for customers to reach the appropriate personnel Reward outstanding employees 31 Forming Strong Customer Bonds: The Basics Other three retention-building approaches: The Basics Other three retention-building approaches cont.
Individualizing and personalizing customer relationship. Turning Customer into Clients customers are nameless, part of mass, served by any one. Building Customer Satisfaction, Value and Retention Building Customer Satisfaction, Value and Retention In this world of extreme competition, companies with a total focus on customer are going to be the winner.
Companies must understand importance of customer satisfaction and then build process around it. A satisfied customer will be a loyal customer.
According to various research and studies it has been confirmed that consumer will purchase products, which given them maximum perceived value. This value comes from calculating the cost associated with the emotional level decision like the brand image, corporate brand, sales personnel image and functional image.
CHAPTER 2 BUILDING CUSTOMER SATISFACTION, VALUE, AND RETENTION. - ppt download
This value converts to total customer cost by including purchase cost, time-energy in evaluation of product and intuitive cost. Consumer will take decisions after considering the total cost associated with purchase, perceived and otherwise.
If after the purchase product performs as expected than customer is considered satisfied. A completely satisfied customer is likely to repurchase the product and even promote the product through a word of mouth.
BUILDING CUSTOMER SATISFACTION, VALUE, AND RETENTION
Companies are aiming for total customer satisfaction, which can be achieved after understanding customer expectation and then delivering as per the expectation. Companies are able to achieve this state of total customer satisfaction by incorporating good business practices.
These practices are constructed around stakeholders, business process, resource and organization.
Companies need to define boundaries of relation with stakeholders as to get maximum value for every participant. To ensure maximum value, companies need to develop business processes, which understand and fulfill customer expectations. This can be achieved by aligning cross functional teams across critical processes, to create one smooth flow. Companies need to understand its core competencies and develop them, thereby successfully managing its resources.
Organizational structure, design and policies have to be suitable to facilitate the introduction of total customer satisfaction culture.