Professional Documents
Culture Documents
3.customer Satisfaction
3.customer Satisfaction
Value Framework
Selecting the value to be offered Intensity of value to be offered Avoid under/over selection of value Creating the value
Delivering the value Capturing back the value Communicating the value Enhancing the value
Delivering Value
Value Proposition: Whole cluster of benefits that the company promises to deliver Value-delivery system : Addressing all the experiences a customer has during the acquisition and usage of an offering
delivered value A totally satisfied customer turns a hard core loyalist. Satisfaction can be measured through
Satisfaction Surveys Feedback from lost customers Number of warranties revoked Mystery shopping
Product Quality
Quality is the ability of a product/service to satisfy
stated or implied needs. TQM is an enterprise-wide initiative to continuously improve the quality of processes , products and services Flip side of TQM : Too much focus on processes may result in losing focus on customer Return on Quality: Measured in tangible terms like increased value for customers, lower costs or increased sales
customers lifetime purchases CLV=CLR-CLC(after applying the discounting factor) Customer Equity=Sum total of CLV of all the customers Cost of acquiring a new customer=5 times that of satisfying an existing customer . A 5% reduction in customer defection can boost the profits by minimum 25%. Therefore it is important to retain customers.