Script:

- The fourth and most important step in creating and capturing customer value.

- Customer relationship management  overall process of building and maintaining profitable customer
relationships by delivering superior value and satisfaction.

- Satisfied customers  loyal customer and give company larger share of their business.
relationship building block:
- Customers choose to buy a product  based on customer-perceived value but not accurately or
objectively (customer evaluation of difference between all benefits and the costs of a market offering)

2 types:

- Value: sensible products at affordable prices

- Value: pay more get more. (example: Louis Vuitton suitcase>< bến thành market suitcase)  to normal
customer, lv suitcase is not worth it, however In lv’ customer it makes them look luxurious and noble.

- customer satisfaction  to what extent that the product’s perceived performance meets customers’
expectation.

If product performance = customers’ expectation  satisfied

product performance > customers’ expectation  highly satisfied

product performance < customers’ expectation  dissatisfied

Higher levels of satisfaction  greater customer loyalty  better company performance. Delighted
customer : make repeat purchases/ willing marketing partner (spread their good experiences to others)

For example: Haidilao

This requires a very delicate balance: The marketer must continue to generate more customer value and
satisfaction but not “give away the house.”  primary goal of marketing is generating customer value
profitably

Customer relationship levels and tools

At one extreme, a company with many low-margin customers may seek to develop basic relationships
with them. For example, P&G’s Tide detergent does not phone or call on all of its consumers to get to
know them personally. Instead, Tide creates engagement and relationships through product
experiences, brand-building advertising, websites, and social media
P&G sales representatives work closely with Walmart, Kroger, and other large retailers that sell Tide

Beyond offering consistently high value and satisfaction, marketers can use specific marketing tools to
develop stronger bonds with customers. For example, many companies offer frequency marketing
programs that reward customers who buy frequently or in large amounts  build customer loyalty.

Customer engagement and today’s digital and social media

The digital age has spawned a dazzling set of new customer relationship-building tools, from websites,
online ads and videos, mobile ads and apps, and blogs to online communities and the major social
media, such as Twitter, Facebook, YouTube, Snapchat, and Instagram

n mass marketing to broad segments of customers at arm’s length.

using online, mobile, and

social media to refine their targeting and to engage customers more deeply and interactively.
The old marketing involved marketing brands to consumers. The new marketing
is customer-engagement marketing— fosters direct and continuous customer involvement in
shaping brand conversations, experiences, and community.

make the brand a meaningful part of consumers’ conversations and lives

Consumer-Generated Marketing Brand exchanges created by consumers themselves.  —both invited

and uninvited Consumers are playing an increasing role in shaping brand experiences. Source: Kotler and
Armstrong (2018

But increasingly, companies themselves are inviting consumers to play a more active role in shaping
products and brand content

As consumers become more connected and empowered, and as the boom in digital and social media
technologies continues, consumer brand engagement—whether invited by marketers or not—will be an
increasingly important marketing force

partner Relationship Management - involves working closely with partners in other company
departments and outside the company to jointly bring greater value to customers - Marketers must also
partner with suppliers, channel partners, and others outside the company.

Capturing value from customers

Creating customer loyalty and retention

The final step involves capturing value in return in the form of sales, market share, and profits.

Customer lifetime value is the value of the entire stream of purchases that the customer would make
over a lifetime of patronage

Growing Share of Customer: s increase their share of customer— the share they get of the customer’s
purchasing in their product categories.

Once they log onto Amazon.com, customers often buy more than they intend, and Amazon does all it
can to help make that happe

Building Customer Equity:  Customer equity can be understood as the future business value that the business
can derive from the company’s customers

e more loyal the firm’s profitable customers, the higher its customer equity. Customer equity may be a
better measure of a firm’s performance than current sales or market share. W