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Customer Value: (Trung Nguyên, Qu NH) : Key Concept

The document discusses key concepts around customer value including customer satisfaction and loyalty value. It provides definitions for these terms and examples of how companies can communicate value and build loyalty relationships with profitable customers through programs like loyalty apps and location-based promotions. The document also discusses strategies for locating new profitable customers through partnerships with other local businesses and finding ways to deal with unprofitable customers, noting that some companies terminate relationships with customers that are overly demanding on customer service.

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48 views2 pages

Customer Value: (Trung Nguyên, Qu NH) : Key Concept

The document discusses key concepts around customer value including customer satisfaction and loyalty value. It provides definitions for these terms and examples of how companies can communicate value and build loyalty relationships with profitable customers through programs like loyalty apps and location-based promotions. The document also discusses strategies for locating new profitable customers through partnerships with other local businesses and finding ways to deal with unprofitable customers, noting that some companies terminate relationships with customers that are overly demanding on customer service.

Uploaded by

Dương Diệp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Key concept:

Customer Value: (Trung Nguyên, Quỳnh)


“Customer Value is the perception of what a product or service is worth to a Customer versus the
possible alternatives. Worth means whether the Customer feels s/he or he got benefits and
services over what s/he paid.”
“Customer value is the satisfaction the customer experiences (or expects to experience) by taking
a given action relative to the cost of that action.”
These days, brands must try ever harder to create and communicate value in everything we do.
Customers have an overwhelming abundance of choice. They have high expectations and little
loyalty to spare if brands fail to meet them. It’s very much a buyer’s market. To communicate
value to our customers, we have to understand what value really is, and more importantly, what
it is not.
Customer value is the satisfaction the customer experiences (or expects to experience) by taking
a given action relative to the cost of that action.

Satisfaction (Khanh, Uyên):


A person’s feelings of pleasure or disappointment that result from comparing a product’s
perceived performance (or outcome) to expectations.
Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes its
products and services.

Loyalty Value (Thi, Thanh Nguyên)


Loyalty value 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.
Give examples:
Relationships with profitable customers (Trung Nguyên, Quỳnh)
KFC has signed an agreement with The Cloud to roll out free Wifi in its 548 UK stores to attract
more customers. The website's in-store Wi-Fi access requires user registration, and this
information is stored and used to send users special privileges and promotions.In addition to
subscriptions, they introduced a loyalty app to get more out of their CRM system.
When customers download the application and register data, through the application they will
have the opportunity to access special promotions and accumulate points with each order.The
app tracks the customer's location and helps them locate the nearest store. It also offers location-
based offers and promotions.As the app tracks customers' shopping habits, KFC can launch
personalized marketing campaigns.

Locating and enticing new customers that will be profitable (Khanh, Uyên)
One issue that many restaurants run into when using specials, discounts, or other promotions to
drive sales is the cost. In order to create an offer that is tempting enough to bring new customers
in, you generally need to offer a pretty substantial price reduction. Many people are not willing
to gamble their evening out or fun money on a restaurant they have never been to at full price.
Offering buy-one-get-one discounts and similar sales could draw in people, but it may not really
bring the right demographic. Worse, you may find that you don’t actually attract repeat
customers.
An often overlooked but the great solution is to partner with other local businesses for
promotions. As a restaurant, you are a perfect partner for promotion with movie theaters,
entertainment venues, and another fun place like escape room. If you are a pizza place,
partnering with a local video arcade could be a good idea. If you are fine dining, consider
working with the local civic theater.
Try to reaching out to some nearby entertainment hot spots to see if any of them would like to
share the costs of driving more business to both of your companies.

Finding appropriate strategies to deal with unprofitable customers, including the


termination of relationships (Thi, Thanh Nguyên)
John Gaffney has an interesting story over at Think Customers

It appears that Sprint has fired 1000 of its most demanding and unprofitable customers. Some of
customers have been calling customer service over 25 times a month.

But is firing them the right answer to Sprint’s problems, or it just plain laziness on the part of its
executives

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