You are on page 1of 5

Customer Value & Satisfaction

Introduction

CUSTOMER VALUE What are customer perceived values It is the difference between the actual evaluation to perceived benefits (the values company promised to offer by advertisements/promotional measures or the customer gets through WOM) and costs of the offerings This would be the economic and the indirect benefits both that a customer gets by using the product

The marketer can increase the value by offering;


Economic value Functional value Emotional value

Reducing costs

The companies therefore need to do Customer Value Analysis in details for the attributes and benefits they are looking for, available with the companys and competitors product and the importance they give to such values. This will help companies to segregate the markets into different segments

Customer Value & Satisfaction

Introduction

What is Customer Satisfaction Fulfillment of - NEEDS

- DESIRES
The customer feels SATISFIED or DISSATISFIED when he compares actual performance with the expectations. The expectations are based on

Past experiences
Advice by friends, peers, colleagues or social groups

If the expectations MEET The customers feel SATISFIED If these do not MEET They feels DISSATISFIED If these EXCEED They feel DELIGHTED

Customer Value & Satisfaction

Introduction

How to achieve Customer Satisfaction 1. Quality By providing a quality product which gives a trouble free service for longer periods 2. Service

By ensuring that the customers get service during the use/life of product
3. Value Value of the product will differ from customer to customer. Value is the difference between the benefits he drives (from product or service) and the Cost of acquiring it. Wider is the gap between the benefits and cost, more is the satisfaction or dissatisfaction

Customer Value & Satisfaction

Introduction

CUSTOMER RELATIONSHIP Customer relationships can be built by a company at different levels

When the customers base is large;


Advertisements or mass communications programs are planned The customers may be asked to give a feedback on a customer care cell so that the feedback actions can be taken. This is done as the customers are large numbers and company can not afford to contact every customer

When the customers are large consumers (numbers may be small or large) or bulk buyers, the companies try to remain in touch and get feedback directly e.g. large department stores, industrial and government buyers The companies also take the approach of selecting customers who are profitable. In banks, certain customers who have large deposits and enjoy various services offered by the banks, they are entertained well or given priorities, while the customers who are small are sometimes asked to close accounts as they do not give desired profits.

Customer Value & Satisfaction

Introduction

LONG TERM CUSTOMERS The companies try to build long term profitable relationships. It is becoming quite challenging in view of; Changing demographic profiles Sophisticated competitors active and real competitive Overcapacity in manufacturing

LONG TERM CUSTOMER RELATIONSHIP IS VERY IMPORTANT AS IT COSTS 5 TO 10 TIMES MORE IN ATTRACTING NEW CUSTOMERS RATHER THAN RETAINING THE OLD CUSTOMERS DIRECT RELATIONS The companies apart from following the relationship building, also adopt other techniques; (DELL an example) Direct marketing Online selling Telephoning Mail order