kot57578_ch05

kot57578_ch05 - PA R T 3 CONNECTING WITH CUSTOMERS IN THIS...

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PART 3 CONNECTING WITH CUSTOMERS IN THIS CHAPTER, WE WILL ADDRESS THE FOLLOWING QUESTIONS: 1. What are customer value, satisfaction, and loyalty, and how can companies deliver them? 2. What is the lifetime value of customers? 3. How can companies both attract and retain customers? 4. How can companies cultivate strong customer relationships? 5. How can companies deliver total quality? 6. What is database marketing?
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139 alk into most banks, and you’ll notice that human contact is kept to a minimum. The scenario at a branch of Washington Mutual, known affectionately as “WaMu” (Wa-moo) by its employees and loyal customers, is a sharp contrast. There are no teller windows. No ropes. If you need to open a checking account (with free checking), you step right up to the concierge station and a friendly person directs you to the right “nook.” WaMu gets cozier with customers by training its sales associates to be approachable and to find out about customers’ needs. If a customer’s child just got into college, they can walk him or her over to a loan officer or they can steer a prospective homeowner to the mortgage desk. If your children are with you and get restless, you can send them to the WaMu Kids ® corner W Employee welcomes customers to a Las Vegas WaMu bank: Washington Mutual prides itself on being customer-friendly. CHAPTER 5 ::: CREATING CUSTOMER VALUE, SATISFACTION, AND LOYALTY five >>> Today, companies face their toughest competition ever. Moving from a product and sales philosophy to a marketing philosophy, however, gives a company a better chance of outperforming com- petition. And the cornerstone of a well-conceived marketing orien- tation is strong customer relationships. Marketers must connect with customers—informing, engaging, and maybe even energizing them in the process. John Chambers, CEO of Cisco Systems, put it well: “Make your customer the center of your culture.” Customer- centered companies are adept at building customer relationships, not just products; they are skilled in market engineering, not just product engineering.
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140 PART 3 > CONNECTING WITH CUSTOMERS < to play. The bank’s format, known as its Occasio TM style, which is Latin for “favor- able opportunity,” is carefully designed to facilitate cross-selling of products. This is important, because when customers buy multiple products, they are more likely to remain a customer of the bank and are far more profitable. After four years, the average customer who opens a free checking account and then purchases addi- tional products has an exponentially more profitable relationship with the bank, and this is reflected in higher than average deposit, investment, consumer-loan, and mortgage-loan bank balances. This kind of growth has propelled the formerly unknown Seattle thrift bank into a $268 billion major player in under a decade.
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kot57578_ch05 - PA R T 3 CONNECTING WITH CUSTOMERS IN THIS...

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