Creating customer value,

satisfaction and Loyalty

Chapter – 5 Philip Kotler
Building customer value, satisfaction and
loyalty
• Customer Perceived Value (CPV)
• Applying value concepts
• Identify major attributes and benefits that customer value
• Assess the quantitative importance of the different attributes and benefits
• Assess company’s and competitors performance
• Examine how customers rate company’s performance
• Monitor customer value over time
• Choices and implications
• Buyer under order to buy at lower price
• Buyer will retire
• Buyer enjoys long term friendship
• Delivering high customer value
• Total customer satisfaction
• Person’s feelings of pleasure or disappointment
• Comparing product’s perceived performance (expectation to outcome)
• Monitoring satisfaction
• Measurement techniques- periodic survey, mystery shoppers
• Influence of customer satisfaction
• Customer complaints
• Product and service quality
• Impact of quality
• Total quality Management.
Maximizing customer life time value (CLV)
• Customer profitability
• Customer profitability analysis (CPA)
• Customer portfolio
• Measuring customer lifetime value
• Cultivating customer relationships(mass commercialization-NIKE)
• Customer relationship management(customer touch point)
• One-to-one marketing
• Increasing value of customer base
• Attracting and retaining customer
• Reducing defection(Churn rate)
• Retention dynamics(Marketing Funnel)
• Manage customer base(share of wallet)
• Building Loyalty
• Interacting with customer
• Developing loyalty program
• Personalizing marketing
• Creating institutional ties
• Win backs
Customer product profitability analysis
Marketing funnel
Customer database and database marketing
• Customer Data Bases: customer database is an organized collection of
comprehensive information about individual customers or prospects that is
current, accessible, and actionable for lead generation, lead qualification,
sale of a product or service, or maintenance of customer relationships.
• Database marketing: is the process of building, maintaining, and using
customer databases and other databases (products, suppliers, resellers) to
contact, transact, and build customer relationships.
• Data Warehouses and Data Mining : Savvy companies capture information
every time a customer comes into contact with any of their departments,
whether it is a customer purchase, a customer-requested service call, an
online query, or a mail-in rebate card.