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By: Razaki Puteh
B.Econ(Hons), M.B. A
18hb Julai 2010 10.30 Pg
Understanding Your Customers
Understanding Your Customers
Understanding Your Customers 4/29/2012 4 .
Understanding Your Customers 4/29/2012 5 .
Understanding Your Customers 4/29/2012 6 .
Understanding Your Customers 4/29/2012 7 .
What is Marketing? Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Simply put: Marketing is the delivery of customer satisfaction at a profit. 4/29/2012 8 .
Core Marketing Concepts Needs. transactions. satisfaction. and demands Markets Products and services Exchange. and relationships 4/29/2012 Value. and quality 9 . wants.
Marketing Management Philosophies Production Concept Selling Concept Market Concept Societal Marketing Concept 4/29/2012 10 .
Market and Sales Concepts Contrasted Starting Point Factory Focus Existing Products Means Selling and Promoting Ends Profits through Volume The Sales Concept Market Customer Needs Integrated Marketing Profits through Satisfaction The Market Concept 4/29/2012 11 .
Key Issues BUILDING RELATIONSHIPS CUSTOMER SATISFACTIONS CUSTOMER VALUE 4/29/2012 12 .
Customer Development Process 4/29/2012 13 .
Customers Value Development Cycle RIGHT CUSTOMERS RIGHT RELATIONSHIPS RIGHT RETENTION 4/29/2012 14 .
It costs 5 times to attract a new customer.but share with others. Research 60% revenue.CUSTOMER RETENTION • Customer retention is powerful than customer satisfaction. 82-95% customer retain if responded properly. 4/29/2012 15 .existing customer 96% customer don’t complaint.
Facts about Customers • The Customer is the business’ biggest asset • The Customer pays all our salaries wages and bonuses • The customer will go where he/she receives the best attention • There is no profit. . J Hence. no jobs without the customer • Life blood of business. You must be your customers’ best choice! 4/29/2012 16 . no growth.
• If you resolve a complaint on the spot. • 7 out of 10 complaining customers will do business with you again if you resolve the complaint in their favor. J Satisfied customers create profits. Profits. 95% will do business again.Facts about Customers • A typical dissatisfied customer will tell 8-10 people about their problem. in turn create 4/29/2012 organizational success and the ability to pay employees 17 .
priceless! 4/29/2012 18 . Starbucks solves the problem of where to find a comfortable.. sociable environment. relaxing. where you can enjoy 40 minutes of friendly conversation with friends..Customers want Benefits and Solutions Customer satisfaction is about problem solving and enabling achievement What does your product or service really deliver? Starbucks doesn’t sell expensive coffee..
courtesy.Customer Expectations PERFORMANCE • Primary operating characteristics DURABILITY • Length of practical use FEATURES • ‘’Bells and whistles’’ SERVICEABLITY • speed. and competence of repair RELIABILITY • Probability of survival AESTHATICS CONFORMANCE • Degree to which a products meet standard 4/29/2012 19 • How a product looks. feels. taste or smell . sounds.
Japanese Value Delivery Process 1 2 • Zero customers feedback time • Zero product improvement time • Zero purchasing time • Zero setup time 3 4 5 4/29/2012 • Zero defects 20 .
Performance Fitness for use Product/ service is ready for use. Features Secondary character Extra facilities 4/29/2012 21 .1. Availability Reliability Maintainability 2.
4. Forces the org to correct the action system. Force the org to focus on customer needs.3. Service Provide the service at right time. even though the customer don’t complaint. It attracts and build the market 4/29/2012 22 . Warranty Represents a promise of a quality product.
To Succeed the org should identify.5. verify the perception of value. Customer’s perception of value is continuously changing. Expects to get good product in lower price. Price Nowadays customer is ready to give high price towards Quality. 4/29/2012 23 .
So org should strive for customer for life. 4/29/2012 24 .6. Reputation brings market to the Org. Reputation Customer wills to buy product from a known company.
Determinants of Customer Perceived Value Total customer benefit Total customer cost Product benefit Monetary cost Services benefit Time cost Personal benefit Energy cost Image benefit Psychological cost 4/29/2012 25 .
Added value satisfies customers
• • • • • • • Bigger Simpler More compact More reliable More convenient More durable Easier to maintain
• Friendlier • More imaginative
• Quicker • More Frequent
• More informative • Better written • More visual
How Do Consumers Choose Among Products and Services?
Value Gained From Owning a Product and Costs of Obtaining the Product is Customer Value
Product’s Perceived Performance in Delivering Value Relative to Buyer’s Expectations is Customer Satisfaction
Interfunctional activities involves Improving the Quality of Products, Servic es, and Marketing Processes
Factors That Affects The Consumer Decision-Making Process
Culture and values Social class
Reference group Opinion leader family
Consumer decision making process
Gender Age & family Personality Self concept Life style
Perception Motivation Beliefs & attitudes 4/29/2012 28
CUSTOMER SATISFACTION 4/29/2012 29 .
Customer Loyalty VS Satisfaction Customer Expectations Customer Satisfaction Customer Loyalty Not meeting expectations Meeting expectations Exceeding expectation Dissatisfaction Defection Satisfaction. but “taken for granted” Enthusiasm & Surprise Variety Seeking Customer Loyalty 4/29/2012 30 .
Customer Delight The Bridge to Our Customers 4/29/2012 31 .
4/29/2012 32 .
individuality.Customer Service • Any or all interactions which the customer has with your organization while conducting business • It is the ability to provide a service or product in the way it has been promised • It is also about treating customers with respect. and personal attention 4/29/2012 33 .
TELEPHONE STANDARDS Answer phone by third ring Smile and Greet customer by saying “Askm. Thank you for calling TTI. This is ……… Inform customer before placing on hold or transferring the call Your emotions and feelings are transferred to people calling you Return calls same day before sundown 4/29/2012 34 .
GUEST Greet the customer Understand customer needs Explain features & benefits Suggest additional items Thank the customers 4/29/2012 35 .Customer Service .
. Invite me back. . . . . Help me. Value me. Greet me.The Customer Wants You To… . . . . . . 4/29/2012 36 . . . Listen to me. . .
YOU as a customer… Share an experience of Good Customer Service 4/29/2012 37 .
YOU as a customer… Share an experience of Bad Customer Service 4/29/2012 38 .
Why Customers leave? Poor Service 69% 13% Product Dissatisfaction 9% 9% Better Prices Elsewhere Others 4/29/2012 39 .
Do You Know Why They Leave? 1% die. 9% leave for competitive reasons. 68% leave because of rude or discourteous service. 3% move away. 5% develop other relationships. 14% are dissatisfied with product or service. 4/29/2012 40 .
For every customer who complains. On average. customers who have had a bad experience will tell at least 9 other people. there are 26 other customers who have had similar problems. 4/29/2012 41 .Cost of a Negative Experience… Some facts 96% of the customers who have had a bad experience will not complain… 90% of these customers will not return.
Good. & Excellent Service 4/29/2012 42 . Bad.
Good Customer Service Good service is when the customer gets treatment that meets his/her expectations. Customer Expectation What Customer receives 4/29/2012 43 .
Bad Customer Service Bad Service is when customer gets treatment which is less than his/her expectations Customer Expectation What Customer receives 4/29/2012 44 .
Excellent Customer Service When the customer gets a little more than what he/she expected. Good Service becomes Excellent Service + Customer Expectation What Customer receives 4/29/2012 45 .
and is it completed on time? is an overnight package delivered overnight? 2. Completeness is everything customer asked for provided? is a mail order from a catalogue company complete when delivered? 4/29/2012 46 .What qualities are important to our customers? 1. Time and timeliness how long must a customer wait for service.
What qualities are important to our customers? 3. Consistency is same level of service provided to each customer each time? is your newspaper delivered on time every morning? 4/29/2012 47 . Courtesy how are customers treated by employees? are catalogue phone operators nice and are their voices pleasant? 4.
What qualities are important to our customers? 5. Accessibility and convenience how easy is it to obtain service? does service representative answer you calls quickly? 6. Accuracy is service performed right every time? is your bank or credit card statement correct every month? 7. Responsiveness 4/29/2012 how well does company react to unusual situations? how well is a telephone operator able to respond to a customer’s questions? 48 .
Final Perspective Consumer’s and producer’s perspectives depend on each other Producer’s perspective: Production process and COST Consumer’s perspective: Fitness for use and PRICE Consumer’s view must dominate 4/29/2012 49 .
4/29/2012 50 .Handling difficult customers is like removing obstacles that block the customer path to be a committed “long-term” loyal customer.
also Known By Many Other Names 4/29/2012 51 .The Pareto Principal ….
. With Many Names! • The “Pareto Principle” • “The Law of The Vital Few and the Trivial Many” • The “Power Law” • “Participation Inequality” • The “80 – 20 Rule” • ABC Analysis Technique 4/29/2012 52 .A ‘GREAT” Management Tool .
4/29/2012 53 . noticed that 80% of Italy’s wealth was controlled by 20% of the population.Alfred PARETO • In 1879. the famous Italian economist Alfred Pareto. • This concept is known as “Pareto’s Law” or “Pareto’s Rule” or “Pareto Principle” or “Principle of imbalance” or simply “The 80/20 Rule”.
Examples of Pareto Principle / 80 – 20 Rule Input Output Cause Effect Efforts Products .
20 – 80 Rule 20 80 20% of your customers Generate 80% of your profit 4/29/2012 55 .
an 80/20 individual looks at the 20% that is responsible for 80% of their results and then they focus on improving this 20%! 4/29/2012 56 . they don't need to be increasing their effort by 110%. • Instead.Have YOU Become An 80/20 Individual? • An 80/20 Individual is a person who has learned that in order to have success. Most people who do this are simply doing the wrong things more often.
THANK YOU Questions and Comments are Welcome 4/29/2012 57 .
Understanding Your Customers 4/29/2012 58 .
Understanding Your Customers 4/29/2012 59 .
Understanding Your Customers 4/29/2012 60 .
collaborate rather than compete. • Where customer complaints are considered as opportunities to improve 4/29/2012 61 .Service Quality Culture • Where serving customer is primary business objective • Where everyone takes personal responsibility and initiative for providing quality services • Where managers ensure that the staff gives customers more importance than their bosses • Where staff support each other and depts.
rates.How does a customer perceive a caring Organization? Customer-focused Organization Convenient Responsive Appreciates/ Values Customers Take Ownership Transparent (fees. policies) 4/29/2012 62 .
dependably & accurately ASSURANCE Knowledge & courtesy of employees that conveys trust & confidence TANGIBLES Physical facilities & appearance EMPATHY Degree of caring & individual attention provided to customers 4/29/2012 RESPONSIVENESS Willingness to help customers & provide prompt services 63 .Service Quality Dimensions RELIABILITY Ability to provide what was promised.
Positioning the Firm COST SPEED QUALITY 4/29/2012 FLEXIBILITY 64 .
Key Dimensions of Service Quality RELIABILITY ASSURANCE TANGIBLES 4/29/2012 • ability to provide what was promised • knowledge and courtesy of employees and ability to convey trust • physical facilities appearance of personnel and 65 .
Key Dimensions of Service Quality EMPATHY • degree of caring and individual attention RESPONSIVENESS • willingness to help customers and provide prompt service 4/29/2012 66 .
Understanding Your Customers 4/29/2012 67 .
Understanding Your Customers 4/29/2012 68 .
they buy good feelings & solutions • Make customers feel important & appreciated • Avoid rushing or doing too many things at once • Smile • Apologize when something goes wrong • Service a little more than they expect • Use positive verbal & body language • Smile 4/29/2012 69 .Tips for Good Customer Service • Identify & anticipate needs – Customers don’t just buy products/service.
and competence of repair • Aesthetics – look. smell 4/29/2012 70 . feel. courtesy. sound.amount of use before deterioration or replacement • Serviceability – speed. taste.Key Dimensions of Quality • Performance – primary operating characteristics • Features – “bells and whistles” • Reliability – probability of operating for specific time and conditions of use • Conformance – degree to which characteristics match standards • Durability .
Customer Service "Customer service is the ability to provide a service or product in the way that it has been promised“ "Customer service is about treating others as you would like to be treated yourself“ "Customer service is an organization's ability to supply their customers' wants and needs“ "Customer Service is a phrase that is used to describe the process of taking care of our customers in a positive manner" 4/29/2012 71 .
ASQ survey ranked six customer perceptions value 4/29/2012 72 . Quality is what customer perceives to be. Customer needs goes on changes Quality level needs are to be improved accordingly.
Quality and Profitability 4/29/2012 73 .
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