Capturing Value from the customer

Creating Customer Loyalty and Retention

Good customer relationship management creates customer delight. In turn, delighted customer remains loyal and talks favorably to other about the company and its products.

CUSTOMER LIFE TIME VALUE:

The value of the entire stream of purchase that the customer would make over of patronage

Growing share of customer

·         Share of customer;

The portion of the customer’s purchasing that a company gets in its products categories.

To increase share of customer, firm can offer greater verity to current customer. Or they can create programs to cross-sell and up sell in order to market more products and services to existing customer.

Building Customer Equity

Total combine customer lifetime values of all of the company’s customer.

Building Right Relation with the right customer.

The company can classify customers according to their potential profitability and mange its relationships with them accordingly to their potential profitability and manage its relationships with them accordingly.

Building Prpfitable Customer Relationship | Customer Relationship Management

Customer Relationship Management

Maintaining profitable relationship by delivering superior customer value and satisfaction.
Customer Value and Satisfaction
Customer Value;
    the perception about the product is the customer value.
Customer Perceive Value;
The difference between benefits and cost of marketing offering.
CPV = benefits - cost
Customer Satisfaction;
How much product's performance match to the customer expectations

• Performance < Expectation : Dissatisfied 
• Performance = Expectation : Satisfied
• Performance > Expectation : Delighted

Customer Relationship Level and Tools;

• Basic relationship e.g; Unilever's FMCG consumers
• Full partnerships e.g; Walmart and Metro/Macro shopping mall's customer 

many companies use many tools for stronger the customer relationships like

1. Frequency Marketing Programs (reward to the customers who buy frequently or in large amount)
2. Club Marketing Programs  (offer special benefits and create member communities)

Consumer Generated Marketing;

Marketing messages, ads and other brand exchange created by the consumer by themselves

3rd Step In Marketing Process | Preparing An Integrated Marketing Plan And Program | Marketing Mix | 4Ps of Marketing

Marketer develop a plan that deliver the value to the target customer and also build strong relations.
The major marketing mix tools are classified into four broad groups, called the  4Ps of marketing strategies;

1. PRODUCT
2. PRICE
3. PLACEMENT
4. PROMOTION

Product;

the firm must create a need-satisfying market offering.

Price;

How much a company will charge for the offering

Placement;

How it will make the offering available to the customer

Promotion;

How it will communicate to the customer about the market offering