Scribd
Upload
47 views9 pages

Building Customer Satisfaction

Building customer satisfaction requires delivering high value and low costs to customers. Customer value comes from the product, services, personnel, and brand image, while costs include monetary payments, time, effort, and psychological costs. Satisfaction occurs when perceived performance meets or exceeds expectations. It can be measured through complaint systems, surveys, mystery shopping, and analyzing lost customers. Developing strong customer relationships through understanding their needs helps create more value and retain customers over time.

Uploaded by

Pankit Kedia
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
47 views9 pages

Building Customer Satisfaction

Building customer satisfaction requires delivering high value and low costs to customers. Customer value comes from the product, services, personnel, and brand image, while costs include monetary payments, time, effort, and psychological costs. Satisfaction occurs when perceived performance meets or exceeds expectations. It can be measured through complaint systems, surveys, mystery shopping, and analyzing lost customers. Developing strong customer relationships through understanding their needs helps create more value and retain customers over time.

Uploaded by

Pankit Kedia
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 9

Building Customer Satisfaction

A customer is satisfied when he gets a high Customer Delivered Value. Customer Delivered Value is the difference or a ratio between Total Customer Value (Benefits) and Total Customer Costs. Total Customer Value: Product Value + Services
Value + Personnel Value + Image Value

Total Customer Cost: Monetary Cost + Time Cost


+ Energy Cost + Psychic Cost
11

Satisfaction is defined as . . .

a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations.

Methods to track or measure Customer Satisfaction:


Complaint & Suggestion Systems Customer Satisfaction Surveys Ghost Shopping Lost Customer Analysis
21

Factors influencing performance of Business:

Stakeholders: Customers, Employees, Suppliers, Distributors etc. Processes Resources: Include labor, materials, machines, energy, and information. Organization: refers to the organizations policies, structures, and corporate culture.
31

Value Chain: What does it take to


produce & deliver Customer Value?

Value Chain is:

A tool for identifying ways to create more customer value Nine strategically relevant activities that create value and cost in a specific business. These activities are divided into:

Value Chain identifies:

Primary Activities Support Activities


41

Generic Value Chain Given by Porter


Activities S U P P O R T

Firm Infrastructure Human Resource Management Technology Development Procurement M A R G I N

P R I M A R Y

Inbound Outbound Marketing Operations Service Logistics Logistics & sales

51

Value Delivery Network: When apart from its own value chain, the firm tries to influence the value chain of its suppliers, distributors etc.

Attracting Customers: Lead generation, lead qualification and account conversion.


Computing the Cost of lost Customers:
E.g. A Company has 10,000 accounts in one small city Company losses 10% = 1,000 of these accounts due to poor service Ave. lost a/c represented Rs. 12,000/- loss in revenue. Thus, the company lost Rs. 1,20,00,000/- revenue Assuming 20% profit rate, the company lost = Rs. 24,00,000/-

61

Need for Customer Retention:

Increased Revenue Decrease in cost of selling Advertising by old, loyal customers Cross selling possibilities

William Sherdens 80-20-30 principle.

71

Relationship Marketing:

Refers to understanding and responding to customer needs and preferences to build more meaningful and long-term connections with customers
Levels of Customer relationship Building:
Basic marketing Reactive Marketing Accountable Marketing Proactive marketing Partnership marketing
81

Some generic Concepts:


Concept of a Profitable Customer:
This is a person, household or company that over time yields a revenue stream that exceed by an acceptable amount the companys cost stream of attracting, selling and servicing that customer.

Total Quality Management:


An organization-wide approach to continuously improve the quality of all the organizations processes, products and services.
91

You might also like