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Logistics Express and Services

Manajemen Logistics
STIAMI

Creating Customer Value,


Satisfaction, and Loyalty

Source : Marketing Management 12th Edition


Building Customer Value, Satisfaction, & Loyalty

CUSTOMERS

Top
Front-line people
Mgt

Middle Middle
Management Management

Front-line people Top


Mgt

CUSTOMERS
Modern Customer-oriented
Traditional Organization Chart Organization Chart
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Customer Perceived Value (CPV)
◼ CPV = the difference between the
prospective customer’s evaluation of all
benefits and all the costs of an offering
and the perceived alternatives.
◼ CPV = Total Customer Value – Total
Customer Cost

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Delivering High Customer Value to build Loyalty

A deeply held commitment to re-buy


or re-patronize a preferred product
or service in the future despite situational
influences and marketing efforts having
the potential to cause switching behavior.

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A Tale of A Loyal Consumer

Morgan Spurlock @ 2004

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The Value Proposition

The whole cluster


of benefits the
company promises
to deliver

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Untuk para Do-It-Yourselfers yang merasa bangga
karena bisa menghasilkan sesuatu selayaknya
profesional dalam melakukan perbaikan rumah
(target), alat-alat pertukangan Black & Decker
(frame of reference) lebih unggul dibandingkan
alat-alat pertukangan lain dalam membantu Anda
untuk menciptakan hasil akhir yang berkualitas
(point of difference) karena alat-alat ini dirancang
untuk dan dipilih oleh para tukang profesional yang
memang menggantungkan hidup mereka dari
profesi mereka tersebut (reasons to believe).

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Total Customer Satisfaction

Satisfaction :
a person’s feelings of pleasure or
disappointment resulting from comparing
a product’s perceived performance (or
outcome) in relation to his or her
expectations.

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Measuring Satisfaction
◼ Periodic surveys
◼ Customer loss rate
◼ Mystery shoppers
◼ Monitor competitive performance

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Product and Service Quality

Quality is the totality of features and


characteristics of a product or
service that bear on its
ability to satisfy
stated or implied needs.

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Quality
◼ Conformance (delivering promised quality)
◼ Performance (the grade of the quality)

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Total Quality Management

TQM is an organization-wide
approach to continuously
improving the quality of
all the organization’s processes,
products, and services.

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Maximizing Customer Lifetime Value
◼ Customer profitability
Pendekatan manajemen biaya untuk mengidentifikasi biaya dan manfaat dari pelayanan kepada
pelanggan atau kelompok pelanggan tertentu untuk meningkatkan profitabilitas organisasi
(perusahaan) secara keseluruhan (Hilton et al, 2003)
◼ Customer lifetime value (Nilai Umur Pelanggan)
(the NPV of the stream of future profits expected over the customer’s
lifetime purchases)
Optimalisasi antara interaksi dengan percakapan dalam rangka menciptakan ikatan hubungan
pelanggan yang akan mengantarkan pada retensi pelanggan, pengulangan pembelian, rekomendasi
pelanggan, pengurangan biaya, pemberian harga premium
◼ Customer equity (Ekuitas Pelanggan)
(the total of the discounted lifetime values of ALL of the firm’s
customers)
Ekuitas Pelanggan adalah aliran pendapatan yang diharapkan dari konsumen perusahaan sekarang
dan yang akan datang pada periode tertentu (Perrerault, Cannon, Mc.Carthy, 2009)

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Loyalty
◼ Will satisfaction lead to loyalty? (Moderating
variable of variety-seeking behavior)
◼ Two levels of loyalty: attitudinal loyalty (sikap
loyalitas) and behavioral loyalty (perilaku
loyalitas)
◼ Four levels of loyalty:
- Contractual loyalty
- Transactional loyalty
- Functional loyalty
- Emotional loyalty

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Drivers of Customer Equity
◼ Value equity
customer’s objective assessment of the utility of an
offering based on perceptions of its benefits relative to its
costs.
◼ Brand equity
customer’s subjective and intangible assessment of the
brand, above and beyond its objectively perceived value.
◼ Relationship equity
customer’s tendency to stick with the brand, above and
beyond objective and subjective assessment of its worth.

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Framework for CRM
◼ Identify prospects and customers
◼ Differentiate customers by needs and
value to company
◼ Interact to improve knowledge
◼ Customize for each customer (mass
customization).

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CRM Strategies
◼ Reduce rate of defection
◼ Increase longevity
◼ Enhance share of wallet
◼ Terminate low-profit customers
◼ Focus more effort on high-profit customers

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Mass vs. One-to-One Marketing

Mass One-to-One
◼ Average customer ◼ Individual customer
◼ Customer anonymity ◼ Customer profile
◼ Standard product ◼ Customized market
◼ Mass production offering
◼ Mass distribution ◼ Customized production

◼ Mass advertising ◼ Economies of scope

◼ One-way message ◼ Share of customer

◼ Economies of scale

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Customer Retention
◼ Acquisition of customers can cost 5 times more
than retaining current customers.
◼ The average customer loses 10% of its
customers each year.
◼ A 5% reduction to the customer defection rate
can increase profits by 25% to 85%.
◼ The customer profit rate increases over the life
of a retained customer.

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Describing Market Dynamics
◼ Permanent capture markets
(once a customer, always a customer)
◼ Simple retention markets
(customers can permanently lost after
each period)
◼ Customer migration markets
(customer can leave and come back)

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Building Loyalty
◼ Basic marketing
◼ Reactive marketing
◼ Accountable marketing
◼ Proactive marketing
◼ Partnership marketing

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Reducing Customer Defection

◼ Define and measure retention rate


◼ Distinguish causes of customer attrition
◼ Estimate profit loss associated with loss of
customers
◼ Assess cost to reduce defection rate
◼ Gather customer feedback

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Forming Strong Customer Bonds
◼ Add financial benefits
(e.g., Frequent flyer
program)
◼ Add social benefits
(e.g., Karimun Club)
◼ Add structural ties
(via contracts, lower
price to large buyers,
long term service)

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Creating Customer Evangelists

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Database Key Concepts
◼ Customer database
◼ Database marketing
◼ Mailing list

◼ Business database
◼ Data warehouse
◼ Data mining

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Using the Database
◼ To identify prospects
◼ To target offers
◼ To deepen loyalty
◼ To reactivate customers
◼ To avoid mistakes

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The Downside of Database
Marketing and CRM
◼ Database marketing is useful when:
product is a once-in-a-lifetime purchase,
customers show little loyalty to the company,
and the cost of gathering information is too high.
◼ Difficulty of getting everyone in the company to
be customer oriented.
◼ Not all customers want a relationship with the
company
◼ It may not cost less to serve loyal customers.
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