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CREATING LONG-
TERM
LOYALTY
RELATIONSHIPS
Ciela Cayton
September 18, 2013
OUTLINE
1. HOW TO BUILD CUSTOMER VALUE,
SATISFACTION, AND LOYALTY
a. Customers in the Organization Chart
b. Customer Perceived Value
c. Measuring Satisfaction
2. HOW TO MAXIMIZE CUSTOMER
LIFETIME VALUE
a. Customer Profitability
3. HOW TO CULTIVATE CUSTOMER
RELATIONSHIPS
a. Customer Relationship Management
b. CRM Strategies
CUSTOMER VALUE, SATISFACTION,
AND LOYALTY
1. TRADITIONAL VS. CUSTOMER-ORIENTED
ORGANIZATION CHART
TRADITIONAL ORG CHART CUSTOMER-ORIENTED ORG CHART
PRESIDENT/CEO
VICE PRESIDENTS
PRESIDENT/CEO
VICE PRESIDENTS
MANAGERS
DIVISION CHIEFS
MANAGERS
DIVISION CHIEFSACCOUNT
OFFICERS
ACCOUNT
OFFICERS
BUYERS
BUYERS
BUYERS
BUYERS
2. CUSTOMER-PERCEIVED VALUE
Customer-
Perceived
Value
Total
Customer
Benefit
Total
Customer
Cost
Product
Benefit
Monetary
Cost
Services
Benefit
Time
Cost
Personnel
Benefit
Energy
Cost
Image
Benefit
Psychological
Cost
Benefits A B Costs A B
Customer P100 P50 Monetary P90 P35
Services P20 P20 Time P10 P30
Personnel P30 P30 Energy P30 P40
Image P100 P50 Psychological P10 P20
Total P250 P150 Total P140 P125
CPV of A = (P250-P140) = P110
CPB of B = (P150-P125) = P25
Choose Product A
3. MEASURING SATISFACTION
HONDA CARS’
PERIODIC CUSTOMER
SURVEY
HONDA CARS’
PERIODIC CUSTOMER
SURVEY
BOOK BUYER/
CLIENT REVIVAL
PHONE BRIGADE
BOOK BUYER/
CLIENT REVIVAL
PHONE BRIGADE
SAN MIGUEL’S
MYSTERY SHOPPER
SAN MIGUEL’S
MYSTERY SHOPPER
COMPETITIVE WATCHCOMPETITIVE WATCH
MAXIMIZING CUSTOMER
LIFETIME VALUE
April Marisse Adriana
TJ Hotdogs + + + Highly
Profitable
Purefoods
Corned Beef
+ Profitable
Magnolia Oil - Unprofitable
Magnolia
Pancake
- - Highly
Unprofitable
Mixed-bag
customer
High-profit
customer
Losing
customer
4. CUSTOMER PROFITABILITY
CULTIVATING CUSTOMER
RELATIONSHIPS
5. CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) FRAMEWORK
1. Gathering of contacts from all touch points (mailing
lists, calling cards, inquiries)
1. Gathering of contacts from all touch points (mailing
lists, calling cards, inquiries)
2. Segregate clients between patrons, donors, sponsors,
volunteers
2. Segregate clients between patrons, donors, sponsors,
volunteers
3. Email specific invitations to each type of “partner”
(to donate, to attend/participate in an event, to sponsor, to
volunteer)
3. Email specific invitations to each type of “partner”
(to donate, to attend/participate in an event, to sponsor, to
volunteer)
4. Delegate personal contact method / implementation
for support follow-up to appropriate department
4. Delegate personal contact method / implementation
for support follow-up to appropriate department
6. CRM STRATEGIES
P & G: Face-to-
face
merchandising
promos
P & G: Face-to-
face
merchandising
promos
Ayala Foundation:
Donor Retention
Program
Ayala Foundation:
Donor Retention
Program
A-Deals: Ayala-
linked discounts
and purchase
bundles
A-Deals: Ayala-
linked discounts
and purchase
bundles
San Mig Coffee: 10
+ 1 promo
San Mig Coffee: 10
+ 1 promo
BPI: Preferred
Clients rewards
(exclusive
invitations,
promos, and gifts)
BPI: Preferred
Clients rewards
(exclusive
invitations,
promos, and gifts)
CREATING LONG-TERM
LOYALTY RELATIONSHIPS
Ciela Cayton
September 18, 2013
END

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Ch05 kotler ciela_cayton

  • 2. OUTLINE 1. HOW TO BUILD CUSTOMER VALUE, SATISFACTION, AND LOYALTY a. Customers in the Organization Chart b. Customer Perceived Value c. Measuring Satisfaction 2. HOW TO MAXIMIZE CUSTOMER LIFETIME VALUE a. Customer Profitability 3. HOW TO CULTIVATE CUSTOMER RELATIONSHIPS a. Customer Relationship Management b. CRM Strategies
  • 4. 1. TRADITIONAL VS. CUSTOMER-ORIENTED ORGANIZATION CHART TRADITIONAL ORG CHART CUSTOMER-ORIENTED ORG CHART PRESIDENT/CEO VICE PRESIDENTS PRESIDENT/CEO VICE PRESIDENTS MANAGERS DIVISION CHIEFS MANAGERS DIVISION CHIEFSACCOUNT OFFICERS ACCOUNT OFFICERS BUYERS BUYERS BUYERS BUYERS
  • 5. 2. CUSTOMER-PERCEIVED VALUE Customer- Perceived Value Total Customer Benefit Total Customer Cost Product Benefit Monetary Cost Services Benefit Time Cost Personnel Benefit Energy Cost Image Benefit Psychological Cost Benefits A B Costs A B Customer P100 P50 Monetary P90 P35 Services P20 P20 Time P10 P30 Personnel P30 P30 Energy P30 P40 Image P100 P50 Psychological P10 P20 Total P250 P150 Total P140 P125 CPV of A = (P250-P140) = P110 CPB of B = (P150-P125) = P25 Choose Product A
  • 6. 3. MEASURING SATISFACTION HONDA CARS’ PERIODIC CUSTOMER SURVEY HONDA CARS’ PERIODIC CUSTOMER SURVEY BOOK BUYER/ CLIENT REVIVAL PHONE BRIGADE BOOK BUYER/ CLIENT REVIVAL PHONE BRIGADE SAN MIGUEL’S MYSTERY SHOPPER SAN MIGUEL’S MYSTERY SHOPPER COMPETITIVE WATCHCOMPETITIVE WATCH
  • 8. April Marisse Adriana TJ Hotdogs + + + Highly Profitable Purefoods Corned Beef + Profitable Magnolia Oil - Unprofitable Magnolia Pancake - - Highly Unprofitable Mixed-bag customer High-profit customer Losing customer 4. CUSTOMER PROFITABILITY
  • 10. 5. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) FRAMEWORK 1. Gathering of contacts from all touch points (mailing lists, calling cards, inquiries) 1. Gathering of contacts from all touch points (mailing lists, calling cards, inquiries) 2. Segregate clients between patrons, donors, sponsors, volunteers 2. Segregate clients between patrons, donors, sponsors, volunteers 3. Email specific invitations to each type of “partner” (to donate, to attend/participate in an event, to sponsor, to volunteer) 3. Email specific invitations to each type of “partner” (to donate, to attend/participate in an event, to sponsor, to volunteer) 4. Delegate personal contact method / implementation for support follow-up to appropriate department 4. Delegate personal contact method / implementation for support follow-up to appropriate department
  • 11. 6. CRM STRATEGIES P & G: Face-to- face merchandising promos P & G: Face-to- face merchandising promos Ayala Foundation: Donor Retention Program Ayala Foundation: Donor Retention Program A-Deals: Ayala- linked discounts and purchase bundles A-Deals: Ayala- linked discounts and purchase bundles San Mig Coffee: 10 + 1 promo San Mig Coffee: 10 + 1 promo BPI: Preferred Clients rewards (exclusive invitations, promos, and gifts) BPI: Preferred Clients rewards (exclusive invitations, promos, and gifts)
  • 12. CREATING LONG-TERM LOYALTY RELATIONSHIPS Ciela Cayton September 18, 2013 END