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Long-Term Loyalty Relationship Strategies

The document discusses strategies for creating long-term customer loyalty. It defines key concepts like customer perceived value, loyalty, quality, customer lifetime value, and customer relationship management. It also provides examples of top brands in customer loyalty and outlines steps for customer value analysis, measuring satisfaction, estimating lifetime value, and attracting and retaining customers through a marketing funnel approach. The overarching goal is to maximize long-term customer profitability and equity.

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Aheint Myet
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189 views19 pages

Long-Term Loyalty Relationship Strategies

The document discusses strategies for creating long-term customer loyalty. It defines key concepts like customer perceived value, loyalty, quality, customer lifetime value, and customer relationship management. It also provides examples of top brands in customer loyalty and outlines steps for customer value analysis, measuring satisfaction, estimating lifetime value, and attracting and retaining customers through a marketing funnel approach. The overarching goal is to maximize long-term customer profitability and equity.

Uploaded by

Aheint Myet
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 19

Chapter - 4

Creating Long-Term
Loyalty Relationships

1.1
Figure 5.1 Customer-Orientations

1.2
Dell Reestablished
Its Commitment to Value

1.3
What is Customer Perceived Value?

• Customer perceived value is the difference


between the prospective customer’s
evaluation of all the benefits and all the costs
of an offering and the perceived alternatives.

1.4
Figure 5.2 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

1.5
Caterpillar Maximizes
Customer Value

1.6
Steps in a Customer
Value Analysis
• Identify major attributes and benefits that customers
value
• Assess the qualitative importance of different
attributes and benefits
• Assess the company’s and competitor’s
performances on the different customer values
against rated importance
• Examine ratings of specific segments
• Monitor customer values over time

1.7
What is Loyalty?

Loyalty is a deeply held commitment to re-buy


or re-patronize a preferred product or service in
the future despite situational influences and
marketing efforts having the potential to cause
switching behavior.

1.8
Top Brands in Customer Loyalty

• Apple iPhone • Google


• Clairol • Amazon
• Samsung • Bing
• Mary Kay • J.Crew
• Grey Goose • AT&T Wireless
• Clinique • Discover Card
• Avis • Verizon Wireless
• Wal-Mart • Cheerios

1.9
Measuring Satisfaction

• Periodic surveys
• Customer loss rate
• Mystery shoppers
• Monitor competitive performance

1.10
What is Quality?

Quality is the totality of features and


characteristics of a product or
service that bear on its
ability to satisfy
stated or implied needs.

1.11
Maximizing Customer Lifetime Value

Customer Profitability

Customer Equity

Lifetime Value

1.12
Figure 5.3 Customer-Product
Profitability Analysis

1.13
Estimating Lifetime Value

• Annual customer revenue: $500


• Average number of loyal years: 20
• Company profit margin: 10
• Customer lifetime value: $1000

1.14
What is Customer
Relationship Management?

 CRM is the process of carefully managing


detailed information about individual
customers and all customer touch points to
maximize customer loyalty.

1.15
Framework for CRM

• Identify prospects and customers


• Differentiate customers by needs and value to
company
• Interact to improve knowledge
• Customize for each customer

1.16
Attracting and
Retaining Customers
• Reduce the rate of defection
• Increase longevity
• Enhance share of wallet
• Terminate low-profit customers
• Focus more effort on high-profit customers

1.17
Figure 5.4 The Marketing Funnel

1.18
Thank You

1.19

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