Satisfied customers are more likely to be loyal customers and give the company a larger share of their business Customer- perceived value The customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers
Customer Satisfaction Depends on the product perceived performance relative to buyers expectation If the product’s performance falls short of expectations, the customer is dissatisfied If performance matches expectations, the customer is satisfied= highly satisfied or delighted customer Meets expectations = Loyalty Exceeds expectations = advocacy Customer Relationship Levels and Tools A company with many low- margin customers may seek to develop basic relationship with them E.g. protector and gamble doesn’t phone or call on all of its consumers to get to know them personally, instead, P&G creates relationships through brand- building advertising, websites and social media presence Extreme, in markets with few customers and high margins, sellers want to create full partnerships with key customer E.g. P&G sales representatives work closely with the Walmart and other large retailers to sell their product Engaging Customers – “New Marketing” Customer- Engagement marketing: Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continual customer involvement in shaping brand conversations, experiences, and community Its goal is to make the brad a meaningful part of consumers’ conversations and lives Customer-managed relationships In which customers connect with companies and with each other to help forge their own brand experiences Customer- generated marketing By which consumers themselves are playing a bigger role in shaping their own brand experiences and those of others This might happen through uninvited consumer- to- consumer exchanges in blogs, video- sharing sites, social media, and other digital form E.g. pepsi brand held a contest in which it invites 30 second ads from consumers and runs the best ones during the game, and will be aired during the super bowl and earning cash prizes Partner Relationship Management Working closely with partners in other company departments and outside the company to jointly bring greater value to customer Supply Chain Describes a longer channel, stretching from raw materials to components to final products that are carried to final buyer Supply Chain Management Companies today are strengthening their connections with partners all along the supply chain Creating Customer Loyalty and Retention Good customer relationship management creates customer satisfaction Customer remain loyal and talk favourably to others about the company and its product Loyal customers spend more and stay around longer Customer Lifetime Value The value of the entire stream of purchases a customer makes over a lifetime of patronage
Share of Customer
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- Spring '11
- Marketing, Customer- Driven Marketing Strategy, Customer- Engagement Marketing, Customer- Value Marketing