Customer Value Analysis PDF

The Value of Customer Let’s Have a Lesson Proper  is the diff erence between the prospective customer’s evaluation of all the benefits and all the costs of an off ering and perceived alternatives. - The total benefit is the perceived value of the bundle of economic, functional, and psychol...

The Value of Customer Let’s Have a Lesson Proper  is the diff erence between the prospective customer’s evaluation of all the benefits and all the costs of an off ering and perceived alternatives. - The total benefit is the perceived value of the bundle of economic, functional, and psychological benefits customers expect from a given market off ering because of the product, service, people, and image. is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy and psychological costs.  STEPS IN A CUSTOMER VALUE ANALYSIS  Identify the major attributes and benefits of customer value.  Assess the quantitative importance of the different attributes and benefits.  Assess the company’s and competitors’ performances on the different customer values against their rated importance.  specific segment rate the company’s performance against a specific major competitor on an individual attribute or benefit basis.  Monitor customer values over time. feelings of pleasure or disappointment that result from comparing a product’s perceived performance (outcome) to expectations. If the performance falls short of expectations the customer is dissatisfied. If it matches expectations the customer is satisfied. If it exceeds expectations the customer is highly satisfied or delighted. MEASURIN G SATISFACTI ON customer satisfaction directly and ask additional questions to measure repurchase intention and the respondent’s likelihood or willingness to recommend a company and brand to others. Loss Rate and contact those who have stepped buying or who have switched to another supplier to find out why. Shoppers to pose as potential buyers and report on the strong and weak points experienced in buying the company’s and competitors’ products. ~Monitoring of Competitive Performance 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. THE MAIN STEPS IN CUSTOMER LOYALTY Management? CRM is the process of carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty. A customer touch point is any occasion on which a customer encounters the brand and product form actual experience to personal or mass communication to casual observation. 1. Identify your prospects and customers. Don’t go after everyone. Build, maintain, and mine a rich customer database with information from all the channels and customer touch points. customers in terms of (1) their needs and (2) their value to your company. Spend proportionately more effort on the most valuable customers (MVCs) customers to improve your knowledge about their individual needs and to build stronger relationships. Formulate customized offerings you can communicate in a personalized way. 4. Customized products, services, and messages for each customer. Facilitate customer interaction through the company contact centeres and website. ~It is not enough to attract new customers, the company must also retain them increase their business. Too many companies suff er from high customer churn or defection. Acquisition of customers can cause five times more than retaining current customers. company must: - Define and measure its retention rate. - Distinguish the causes of customer attrition and identify those that can be managed better. - Compare the last customer’s lifetime value to the costs of reducing the defection rate. defection ~Increasing the longevity of the customer relationship. ~Enhancing the growth potential of each customer through “share of wallet”, cross selling, and up- selling. ~Making low-profit customers more profitable or terminating them. ~Focusing disproportionate effort on high-profit customers. ~Customer lifetime Value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases.  Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Thank you