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Customer Value, Satisfaction &

Loyalty in Marketing
Management
Paper Type: Free Subject: Marketing
Essay

Wordcount: 2115 Published: 8th Feb

words 2020

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Explain as to what customer value, satisfaction and

loyalty represents in marketing management?

Customer value can be defined as receiving what is

desired, receiving quality for what is paid, receiving
something in return for what is given or a getting a
reasonable cost for the product/service.

Or

It can be defined as the satisfaction received by the

customer in regards of the money, data, time and his
knowledge.

The customer perceived value is seen in terms

satisfaction one received in return of the payment
made for the product or service.

Customer Perceived Value(CPV)= Total Perceived

Benefits – Total Perceived Cost

Money is an important factor in buying anything,

However, there are different parameters which can be
used by a seller to define the customer value. A
customer value can be in any form such as in respect
of their product or services, such as quality, time,
service, marketing, social influence, experience with
the product.

For Example, the cost price of the perfumes is very

low, but they are advertised by the celebrities to create
a perception of luxury in our mind and its perceived
value can be far greater. It provides us a psychological
as well as an image benefit.

The entire idea of a customer value means that, the

customer should feel the worth of their money spent
and satisfied by the product or services that they
receive.

Customer Satisfaction can be termed as the

measurement tool used to check how successful is a
business in providing quality product or services to
their customers to overcome their expectations.

If the performance of the product/services falls short

of expectations the customer is dissatisfied. It is
important to provide complete customer satisfaction
as it not only maintains an existing customer, but also
helps in bringing in new number of customers into the
business. It always falls cheaper to maintain the
relations with an existing customer, than spending out
a huge amount of finance in marketing to attract new
customers. If a customer remains satisfied with the
product and services they not only remain loyal to the
company, but they also bring up the goodwill of the
company by their word of mouth, which in return
attracts new customers into the business.

Customer Loyalty is defined by the entire process in

which a customer provides repeat business to an
organization by returning frequently. It is when a
customer chooses to buy the products or services of
the same business repeatedly rather than opting for
similar products by the other competitors. Customer
loyalty is important in maintaining the foundation of a
business. When a customer remains loyal to a
business they serve as medium in increasing the
business by their word of mouth. When a customer
remains loyal they serve as a important medium in
attracting new customer and hence saves a large
amount of finance expenditures for marketing.

Importance of empathising on customer value,

satisfaction and loyalty to the success of a
company

Customer Value: It is important to empathise on

customer value as it helps an organisation to grow
faster. Due to the changes in the current technology
and the existence of high competencies, customer
values also help in influencing the customers future
purchase which is integral for the growth of the
business. In short, the balance of power has been
shifted from the companies to the valuable customer.
Customer value is essential for analysing the customer
approach in this competitive market.

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If customer value is not given a high priority in a

business, it can result in the complete failure of the
system or a high loss in revenues. In short, for any
business to survive, it is very important that they
create superior values to their customers. Once
business understands their customer values they can
manage it properly and run it in an efficient manner. It
gives them the proper direction in which they should
work to succeed.

Customer Satisfaction: If a customer is satisfied by

the product or services, they tend to remain loyal to
the business and keep purchasing which keep us
ahead out of the competition and also helps in
increasing revenues. A loyal customer is worthier as it
becomes difficult to attract new customers into a
business. If we make them dissatisfied our competitors
can take the advantage and can get a chance to go
ahead. It would make them to say some bad words
which could result in creating a bad image or result in
losing the customer.

Customer Loyalty: Loyal customers contributes major

portion of the revenues so making them dissatisfied
can adversely affect our business. Loyal customers
can act as brand ambassador and words from their
mouth can bring more customers to the business than
another kind of advertisement. They protect the
business from the competition as new customers will
be more likely to switch to our competitors hurting the
sales. They could make us stand ahead in business
and also helps in building good reputation about the
business. Loyal customers offer honest feedback as
they know about the services and will help in building
future strategies and improving the loopholes.

Choose an established company and outline how

this company is managing the relationships with
their customers. Also, make suggestions on how
this company could improve relations with its
customers based on what you have learned in class
or based on any other ideas you might have. (If you
would rather talk about a company that you intend
to start as opposed to an established company, you
may do so)

The Crowne Plaza Hotel and Resorts have been

selected in order to understand the relationship of
business and customer. Many parameters are followed
by the Crowne Plaza to maintain long term
relationships with their customers over the years.
Some of the key main parameters are as follows:

Maintain feedbacks from the customers:

Feedback is the most fundamental tool to judge
the satisfaction level of the customer. Feedback
is taken from every customer even after a small
drink to regulate and maintain the services in the
hotel. Customer inputs can be given using the
website, on forms or by contacting them by their
24/7 available customer care services. The
Crowne Plaza stands out in their customer
services as they not only take the feedbacks, but
they believe in acting immediately to improve
their services. They also take every feedback
positively and try to satisfy the customer by
giving compensations for the services that have
failed to keep the customers happy.
Timely response through Apps and 24/7
customer care services: Using the customer
care services we can change the date of
reservation or cancel the reservation, can ask for
current offers, promotions and packages. The
live agents are available 24*7 to solve any kind of
queries.
Attractive Services:They provide sleep
advantage program in which there is provision of
aromatherapy kits and guaranteed wake up calls.
The Gym is provided to keep us fit and energetic.
We can ask for fresh meals at any point of time.
As internet has become has our basic need, so
they are giving free unlimited wireless services in
the Hotel.
Meeting Partner:Meeting partner is a group of
people who help the customers in arranging for
conferences or informal meetings. They guide
the customers about expenses and different
sorts of arrangements that could be done within
their budget. They also inform the customers
about the best space and how they can keep the
attendees happy and more energetic.
Giving Offers and Deals:Different kind of offers
and deals are given to make by the stay at the
Crowne Plaza more productive. One such service
is that customers get 1 night free stay if they
book their stay for more than 7 days. Many deals
are given to attract customers by giving extra
discount on booking for certain period of time i.e.
bookings made between January to March will
get extra 30% discount. Sometimes breakfast
meals with a wide spread of varieties are also
provided to customers who are willing to pay a
little extra. Kids are given complimentary meals
as well.
IHG Rewards Club Card:It is a loyalty card that
can be used to enjoy more savings on the given
rate, free internet and can earn free bonus points
for every big spend at the hotel and resort. They
have their tie up with many multinational brands
of different areas which provides us the facility to
use our bonus points for clothing,

travelling, food, lifestyle, airport and lounge facilities.

These points can also be used as cash at various
stores. Sometimes, they offer loyal card members a
chance to earn more points it might be 5 times or 10
times so as to keep them attached. It keeps customers
attached to them as well as loyal customers get a
chance to save a lot of money.

Provide Best Price:It is a deal that we can’t get

lower prices than their website if we become able
to find out the lowest rate on any other website
or agents for the hotel services, so they will offer
us 5 times of our booking price as bonus points
in our IHG Club Card which can be used on the
next stay or for purchasing.

The Crown Plaza is providing the best services in their

sector and they have maintained their level in hotel
industry from the day it started. But, I feel there is still
need of few small amendments that can make it more
attractive destination for the customer and make it
more interesting. There are some steps that can be
taken to improve our relationship with customers:

Kids Friendly Zone: Providing kids friendly

zones can be a stress buster to many parents
who often cancel their outings due to the
responsibility of their kids. This would not only let
the customers enjoy their stay at the hotel but
can also be a reason for them to return back to
the hotel.
Pampering customers: Pampering customers
by providing them with services that would make
them relax is another way of attracting
customers. For example, customers would
generally enjoy a cool drink on a hot day or vice
versa. Similarly providing customers with a
decorated room on their honeymoon or
chocolates in their rooms can also make them
feel special.
Pick up and drop services: Customersoften find
it difficult and expensive to arrange for travel
during their stay. If free pick up or drop services
are provided for return customers, it can be an
added advantage and an attractive facility as
well.
Free laundry service: Laundryservices are
expensive in most of the hotels, however they are
also a basic need of any customer. Hence
providing a free laundry service which can be
limited to a single outfit can be attractive to any
customer and can also not be a loss to the hotel
as well.
Free Spa for regular customers: Spa services
are the best means for customers to feel
completely relaxed. However, customers do not
opt for it as they are very expensive. Hence if
complimentary spa services can be offered
especially to the loyal customers this can be an
added advantage to them and a strong reason
for them to return.

References

1. Buttle, F., Maklan, S (2003). Customer

Relationship Management: Concepts and
Technologies (3rd ed.). London and New York:
RouledgeTaylor and Francis Group.
2. Cochran, C. (2003). Customer Satisfaction:
Tools, Techniques, and Formulas for Success.
California: Paton Professional.
3. Duchessi, P (2002). Crafting Customer Value:
The Art and Science. Indiana: Purdue University
Press.
4. Sheth, N. J., Parvatiyar A., Sheth J. N(Ed.)
(2000). Handbook of Relationship Marketing.
United States of America: Sage Publications, Inc.

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