BUILDING CUSTOMER SATISFACTION, VALUE RETENTION

BUILDING
CUSTOMER
SATISFACTION,
VALUE &
RETENTION
ESRA INDRA BANUREA 55108120127
ANDI SUMANGELIPU 55108120033

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SCOPE
A. CUSTOMER
 CUSTOMER VALUE
 CUSTOMER SATISFACTION
 CUSTOMER LOYALTY
 CUSTOMER LIFETIME VALUE
 CUSTOMER EQUITY
 CUSTOMER PRODUCT PROFITABILITY
 CUSTOMER RELATIONSHIP MANAGEMENT

B. …
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B. CUSTOMER & BUSINESS MARKET
 INFLUENCING MARKET

 BUYING PROCESS
 BUYING DECISION

C. PRODUCT MARKET ANALYSIS

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Costumer Value
Value is a consumer
perception that after comparing

the cost and price
with benefits that are received. If
the consumer rate
product (brand) used to meet the
needs and provide benefits
more than the other brands, so
called costumer value.

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Total
Customer
value

Customer
Delivered
Value

Total
Customer
Cost

Product
value

Monetary
cost

Service
Value

Time
cost

Personal
value

Energy

cost

Image
value

Psychic
cost

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Costumer Satisfaction
 Satisfaction is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s
perceived performance (or outcome ) in relation to
his or her expectations

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Tools for measuring
Customers satisfaction
 Complaints and suggestions systems
 Customers satisfaction surveys
 Ghost shopping
 Lost customers analysis

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Highly Satisfied Customers
•Stays Buyer Longer
•Buys More
•Talks Favorably about Products
•Offers Ideas
•Costs Less than New Customer

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COSTUMER NEEDS
• Factors related to the product
- Quality Products
- Product form
- Reliability
Factors associated with the service
- Warranties
- Response and how to solve
Factors associated with the purchase of
- Employee Experience
- Customer loyalty
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The term customer loyalty is used to
describe the behavior of repeat customers, as
well as those that offer good ratings, reviews,
or testimonials.

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There are three

drivers (factors)
to customer equity, all of which
refer to three sides of the same thing:

Value equity: What the customer assesses
the value of the product or service provided
by the company to be;
Brand equity: What the customer assesses
the value of the brand is, above its objective

value;
Retention equity: The tendency of the
customer to stick with the brand even when it
is priced higher than an otherwise equal
product;
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Profitability &
Quality concepts
 A profitable customer is a person,household or
company that over time yields a revenue stream that
exceeds by an acceptable amount the company’s cost
stream of attracting, selling and servicing that customer

 TQM is an organisational approach to continuously
improving the quality Of all the processes, products and
services
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CONSUMER & BUSINESS MARKET
•INFLUENCING FACTORS
•BUYING PROCESS
•BUYING DECISION

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Nature and Scope of the Business Market
The business market consists of all individuals and
organizations that buy goods and services for one or
more of the following purposes:
- To make other goods and services
- To resell to other business users or to consumers
- To conduct the organization’s operations

Business Buying Behavior
A. Multiple Buying Influences – the Buying Center

B. Buying-Decision Process in Business

PRODUCT – MARKET ANALYSIS

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Intent of market research
What results are you looking for?

• Define measurement of market potential
• Determination of market characteristics
• Market share analysis
• Sales analysis
• Business trends

Refine opportunities to pursue and “how”

• Market segmentation and niche markets
• Features and benefits required for market success
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Market Analysis

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Market Position

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Market Objectives

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Market Segments

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Market Structure

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Customer Relationships Management
*Customer Relationship
Management is the
establishment, development,
maintenance and
optimization of long-term
mutually valuable
relationships between
consumers and
organizations.

*A commonly cited
definition of CRM is that of CRM (UK) Ltd (2002)

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Why do Market Research
 Knowledge is King
 Learn from others…you will have plenty of your own lessons
 Find “strategic” competitive advantages
 What are your barriers of entry? What are the competitors?

 Develop competitive differential opportunities
 Why are you better? How can you be the best?






Understanding of core competencies and core rigidities
Develop pricing models
Targeted alliances/partnerships that extend reach
Create the product roadmap
 Features, benefits to fit customer/consumer need

 Support the creation of the company/product/service vision
 Feed the machine with information

 Identify unmet needs
 Product extension into current market
 Extension into new markets
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Market Research is
the Critical component
to any business plan
 Know the self
 Know the customer
 Know the market
 Know the industry
 Know the government
OBJECTIVE: To develop an informed
business in a vibrant high growth
market
through strategic competitive
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advantages

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Types of market research
 Exploratory research
 Review of literature (pubs, online, mags)
 Discussion with experts, officials, friends and family
 Study of competitors or case studies in similar industries
 Descriptive research
 Targeted at specific question or hypothesis
 Surveys/questionnaires
 random sample from a relevant population
 Focus groups
 Industry or product specific (usually expensive)
 Use your network! As a student…ask for help from a
targeted CEO
 Experimental research
 Looking for cause and effect (i.e. pharma research)
 Watching a user group “use” the product
 Story boarding service offerings/product offerings to group
of targeted consumers
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Targeted research topics and why?
 Advertising research
 Motivation research
 Ad effectiveness

 Business Economics and
Corporate research





Forecasting
Business Trends
Pricing studies
Acquisition/merger research

 Product research





Product acceptance or potential
Competitive product studies
Testing of existing products
Packaging design, etc.

 Sales and Market

research








Market potential
Market share analysis
Market characteristics
Sales Analysis
Distribution sales channel studies
Test marketing/focus groups
Promotional research and studies

 Financial research
 Turnover and ratio analysis (public

companies annual reports)

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Competitive research
 Direct competition – important
 Indirect competition – critically important
 What to look for..






Map their strategy
Differentiate your offering
Find pricing advantages
Develop barriers to entry
How to fill the “whole” need for
customer/consumer
 Financial stability
 Market share and focus on new markets
 where are they going

 Take the short and long term view
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Short term advantages
 Refined tactics for customer reach
 Measurement of market potential
 Market characteristics

 Market share
 New product acceptance
 Produce evaluation
 Improvements
 Extensions

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Long range advantages






Planning, goal setting, developing strategies
Understanding business trends
Global market opportunities
Forecasting growth
Management uses MR to reduce errors in decision
marketing, expand sales and locate new
opportunities
 Uninformed decisions can be failures
Market research is done so that all marketing efforts can
be strategically integrated into the wants and needs of
customers.
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Primary Market Research
 Surveys
 Telephone, mail, in-person, (email)

 Focus groups
 Random sampling of population

 Scientific approach for primary market research
 Define the problem


Don’t confuse problems w/a symptom

 Analyze the situation



What do you already have and what do you need
Use secondary data

 Refine the “specific problem”
 Attain and interpret the data

 Solve the problem
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Secondary Market research tools
 The internet
 Competitive research
 White papers
 Press releases (statistics”

 Industry tradeshows
 School databases
 Industry analysts
 Gartner Group
 IDS

 Internal records (sales, etc)
 Libraries
 Government
 SIC codes/Industry codes
 Demographics

 Commercial firms (competitors, partners, “like” companies)
 Press releases, conferences, tradeshows
 AC Nielsen, Dun and Bradstreet

 Trade, professional and business associations
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Decisions driven by market research
 Overall company vision
 Product or service positioning
 Product or service innovations/extensions

 Investment in marketing at segments of market
 Understanding of potential distribution channels

 Branding

 Credibility
 Lock in or switching costs
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Bibliography

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





Berger, Paul D. and Nada I. Nasr (1998), "Customer lifetime value: Marketing models and
applications," Journal of Interactive Marketing, 12 (1), 17 - 30
Department of marketing & Decision sciences, San Jose State University, presentation Part 22Identifying and Selecting Markets
Pfeifer, Phillip E., Haskins, Mark E., and Conroy, Robert M. (2005), "Customer Lifetime Value,
Customer Profitability, and the Treatment of Acquisition Spending," Journal of Managerial Issues, 17
(1), 11-25
Rust, Roland T.; Lemon, Katherine N.; Zeithaml, Valarie A.: Return on Marketing: Using Customer
Equity to Focus Marketing Strategy, Journal of Marketing 68(1), 2004, 109-127
www.bized.co.uk

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