BUILDING
CUSTOMER
SATISFACTION,
VALUE &
RETENTION
SCOPE
A. CUSTOMER
CUSTOMER VALUE
CUSTOMER SATISFACTION
CUSTOMER LOYALTY
CUSTOMER LIFETIME VALUE
CUSTOMER EQUITY
CUSTOMER PRODUCT PROFITABILITY
CUSTOMER RELATIONSHIP MANAGEMENT
B. CUSTOMER & BUSINESS MARKET
INFLUENCING MARKET
BUYING PROCESS
BUYING DECISION
Costumer Value
Value is a consumer
perception that after comparing the cost and price
with benefits that are received. If the consumer rate
product (brand) used to meet the needs and provide benefits
Costumer Satisfaction
Satisfaction is a person’s feelings of pleasure or
disappointment resulting from comparing a product’s
perceived
performance (
or outcome
) in relation to
Tools for measuring
Customers satisfaction
Complaints and suggestions systems
Customers satisfaction surveys
Ghost shopping
Highly Satisfied Customers
•
Stays Buyer Longer
•
Buys More
•
Talks Favorably about Products
•
Offers Ideas
COSTUMER NEEDS
• Factors related to the product - Quality Products
- Product form - Reliability
Factors associated with the service - Warranties
- Response and how to solve
Factors associated with the purchase of - Employee Experience
Value equity: What the customer assesses the value of the product or service provided by the company to be;
Brand equity: What the customer assesses
the value of the brand is, above its objective value;
Retention equity: The tendency of the
customer to stick with the brand even when it is priced higher than an otherwise equal
product;
There are
three drivers (factors)
Profitability &
Quality concepts
A
profitable customer
is a person,household or company that over time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling and servicing that customer•
INFLUENCING FACTORS
•
BUYING PROCESS
•
BUYING DECISION
- To make other goods and services
- To resell to other business users or to consumers
- To conduct the organization’s operations
The business market consists of all individuals and organizations that buy goods and services for one or more of the following purposes:
A. Multiple Buying Influences – the Buying Center
What results are you looking for?
• Define measurement of market potential • Determination of market characteristics • Market share analysis
• Sales analysis • Business trends
Refine opportunities to pursue and “how”
• Market segmentation and niche markets
• Features and benefits required for market success
Customer Relationships Management
*Customer Relationship Management is the
establishment, development, maintenance and
optimization of long-term mutually valuable
relationships between consumers and
Why do Market Research
Knowledge is King
Learn from others…you will have plenty of your own lessons
Find “strategic” competitive advantages
What are your barriers of entry? What are the competitors?
Develop competitive differential opportunities
Why are you better? How can you be the best?
Understanding of core competencies and core rigidities
Develop pricing models
Targeted alliances/partnerships that extend reach
Create the product roadmap
Features, benefits to fit customer/consumer need
Support the creation of the company/product/service vision
Feed the machine with information
Market Research is
the Critical component
to any business plan
Know the self
Know the customer
Know the market
Know the industry
Know the government
Types of market research
Exploratory research
Review of literature (pubs, online, mags)
Discussion with experts, officials, friends and family
Study of competitors or case studies in similar industries
Descriptive research
Targeted at specific question or hypothesis
Surveys/questionnaires
random sample from a relevant population Focus groups
Industry or product specific (usually expensive)
Use your network! As a student…ask for help from a
targeted CEO
Experimental research
Looking for cause and effect (i.e. pharma research)
Watching a user group “use” the product
Targeted research topics and why?
Advertising research
Motivation research
Ad effectiveness
Business Economics and
Corporate research
Forecasting Business Trends
Pricing studies
Acquisition/merger research
Product research
Product acceptance or potential
Competitive product studies
Testing of existing products
Packaging design, etc.
Sales and Market
research
Market potential
Market share analysis
Market characteristics
Sales Analysis
Distribution sales channel studies
Test marketing/focus groups
Promotional research and studies
Financial research
Competitive research
Direct competition – important
Indirect competition – critically important
What to look for..
Map their strategy
Differentiate your offering
Find pricing advantages
Develop barriers to entry
How to fill the “whole” need for
customer/consumer
Financial stability
Market share and focus on new markets
Short term advantages
Refined tactics for customer reach
Measurement of market potential
Market characteristics
Market share
New product acceptance
Produce evaluation
Improvements
Long range advantages
Planning, goal setting, developing strategies
Understanding business trends
Global market opportunities
Forecasting growth
Management uses MR to reduce errors in decision
marketing, expand sales and locate new
opportunities
Uninformed decisions can be failures
Primary Market Research
Surveys Telephone, mail, in-person, (email)
Focus groups
Random sampling of population
Scientific approach for primary market research
Define the problem
Don’t confuse problems w/a symptom
Analyze the situation
What do you already have and what do you need Use secondary data
Refine the “specific problem”
Secondary Market research tools
The internet
Competitive research
White papers
Press releases (statistics” Industry tradeshows
School databases
Industry analysts
Gartner Group
IDS
Internal records (sales, etc)
Libraries
Government
SIC codes/Industry codes
Demographics
Commercial firms (competitors, partners, “like” companies)
Press releases, conferences, tradeshows
Decisions driven by market research
Overall company vision
Product or service positioning
Product or service innovations/extensions
Investment in marketing at segments of market
Understanding of potential distribution channels
Branding
Credibility
Bibliography
Berger, Paul D. and Nada I. Nasr (1998), "Customer lifetime value: Marketing models and applications," Journal of Interactive Marketing, 12 (1), 17 - 30
Department of marketing & Decision sciences, San Jose State University, presentation Part 22-Identifying and Selecting Markets
Pfeifer, Phillip E., Haskins, Mark E., and Conroy, Robert M. (2005), "Customer Lifetime Value,
Customer Profitability, and the Treatment of Acquisition Spending," Journal of Managerial Issues, 17 (1), 11-25
Rust, Roland T.; Lemon, Katherine N.; Zeithaml, Valarie A.: Return on Marketing: Using Customer Equity to Focus Marketing Strategy, Journal of Marketing 68(1), 2004, 109-127
