CUSTOMER RELATIONSHIPS:

RELATIONSHIP MARKETING
TEACHER THESS
CUSTOMER RELATIONSHIPS: RELATIONSHIP MARKETING
INTRODUCTION: CRM

• The increasingly competition in many markets has

compelled companies to focus on customer needs and
wants and understand how customer value products
so that they can earn their loyalty.
• With evolving trend in business and market research,
there appears to be a need for a relationship- oriented
approach.
• Marketers were faced with a challenge of connecting
more closely to its market,and companies now see the
need to develop marketing programs that would result
in more personal relationship with its customers.
CUSTOMER SATISFACTION
CUSTOMER SATISFACTION
CUSTOMER VALUE, SATISFACTION AND RELATIONSHIPS

• Many brands and products vie for the attention

of customers, causing consumers to be easily
sidetracked and preoccupied.
• It is quite difficult to get their attention, much
less get them to buy a product.
• To be able to develop an effective marketing
programs, therefore, marketers would need to
understand the concepts of customer value,
customer satisfaction and customer
relationships.
 CUSTOMER VALUE
• It is the unique combination of benefits received by targeted
buyers that include quality, price, convenience, on- time delivery
and both before-sale service.
• The multiple factors that comprise customer value emphasize
the complexity and difficulty in providing this combination of
benefits.
• Customer perceive value differently based on the product, its
benefits and many other external factors.
• A better understanding of the consumer would enable a
company provide the product values that consumers desire,
leading to customer loyalty.
• These are challenges that companies must address in order to
build a long-term relationship with their customers.
CUSTOMER VALUE
 CUSTOMER VALUE
• VALUE PROPOSITION –this is seen as the brand’s promise to the
customers to provide a set of benefits that would satisfy their needs and
wants.
• The key factor for success would lie in the uniqueness of value
proposition, example how different and how special the proposition is to
consumer.
• The customer is expected to favor a product or service that provides them
the highest perceived value.
 ALTERNATIVE WAYS FOR CREATING VALUE
• INCREASING THE BENEFITS Increasing the
benefits given by the product can create value. This means
adding something to the product that customers would find
meaningful, important, useful and unique. A unique value
proposition can be developed based on either one of the
following strategies: best price, best product or best service.
• BEST PRICE
• BEST PRODUCT
• BEST SERVICE
ALTERNATIVE WAYS FOR CREATING VALUE

• BEST PRICE
• Many companies that cater to price- sensitive markets choose to have the
best price strategy. Some examples of companies that do so are Cebu
Pacific Air and Puregold. These companies seek to provide added value by
emphasizing that customers get the most value out of their products
because they of relatively low price that they can offer. Such strategy
would appeal to customers that have to work within a budget and whose
choices are limited because of financial considerations.
• BEST PRODUCT
• A best product strategy would appeal to customers who are more selective
in terms of what they look for and would have the financial resources to
satisfy their discriminating tastes. These people believe that the quality of
their products is an important consideration and are willing to pay a little
extra for this. Companies such as Apple, Philippine Airlines and Rustan’s
Department Store use this strategy to appeal to this kind of customers
 ALTERNATIVE WAYS for CREATING VALUE
• BEST SERVICE
• A best service strategy is used by companies that believe that
their customer would like to be well taken care of and find value in
services that cater to their special needs. For example, Singapore
Airlines highlights in its advertising the Singapore girl who
epitomizes the quality of service provided by their airline. Starbucks
Coffee likewise differentiates their service by the ambience of their
stores and the presence of their friendly baristas.
• CREATING VALUE
• It is not necessarily limited to merely increasing the benefits.
Creating value for the consumer could also mean reducing the
“sacrifice” the customers must experience in order to purchase the
product. This simply means making it easier for the customers to
enjoy the benefits that the product would provide. This could include
having on-time home delivery, providing installment payment
schemes or making it more convenient to avail of the product by
having pop- up stores.
CUSTOMER SATISFACTION

• Whenever a customer buys a product, there is a level of

expectation as to how the product satisfies the buyer’s
preferences. If the product perceived performance is less than
the expectations, then the possibility of customer
dissatisfaction arises and would be reasonable to expect the
customer would no longer buy the product.
• The customer is satisfied or even delighted with the purchase
if the product’s perceived performance meets or exceeds
expectations.
• The marketers job is to satisfy or even exceed expectations of
customers as high satisfaction levels have been found to lead to
higher levels of loyalty.
• A relationship with happy, loyal customers is something that all
companies would want to work for.
CUSTOMER VALUE, SATISFACTION AND RETENTION

CUSTOMER VALUE CUSTOMER CUSTOMER

SATISFACTION RETENTION
The customer’s The customer’s The company’s effort
perception of the evaluation of the to maintain loyalty of
benefits that he or she performance of the customers.
is getting from a product in relation to It is an effort made by
product, in relation to his or her companies in order to
the price paid to obtain expectations. keep customers happy
those benefits. and loyal.
It is the ratio between
the customer’s
perceive benefits and
resources to obtain
those benefits
 BIG IDEA

• IF A CUSTOMER SEES THE

VALUE OF A PRODUCTAND
SATISFIED WITH THE BENEFITS
OBTAINED FROM USING IT, A
COMPANY HAS A HIGHER
CHANCE OF KEEPING THAT
CUSTOMER LOYAL.
 LOYAL CUSTOMERS
• THERE ARE MANY REASONS WHY COMPANIES WANT LOYAL
CUSTOMERS. AMONG WHICH ARE AS FOLLOWS:
• 1. Loyal customers buy more products. If a customer trusts a company,
he or she will buy more products from it, even if these are newly
launched products.
• 2. They are less price- sensitive. Customers usually will not mind price
increases or premium prices of a product if it meets their needs. For
loyalty- driven product categories such as skin care products, customers
tend to be loyal to a product as long as it provides solution to a
particular skincare problem.
• 3. They spread positive word of mouth. Loyal customers usually spread
positive feedback about a product or brand. They may either share their
positive experience about a product or brand to their circle of friends or
post them on their social media accounts.