TOP 10 CONCEPTS

CREATING CUSTOMER VALUELOYALTY & SATISFACTION

GWENDOLYN KU WONGATENEO GRADUATE SCHOOL OF BUSINESS REGIS CLASS

We Create Customer Value, Loyalty and Satisfaction when:

1. Make Customer is the Center

2. Perceived Value should be Greater than Cost.

3. Live up to Promise and Expectations.

4. Performance Meets Expectations for Satisfaction.

5. Quality Supports Profitability.

We Create Customer Value, Loyalty and Satisfaction when:

6. Satisfaction is the Goal.

7. Empowerment is Key.

8. Complaints is a Cornerstone for Customer Relationship.

9. CRM supports excellent service.

10. Customer base is strong company.

CONCEPT 1: MAKE THE CUSTOMER THE CENTER TO BE PROFITABLE

1. Holistic approach by training organization to focus on customer satisfaction.

CUSTOMERCUSTOMER

TOP MANAGEMENT TOP MANAGEMENT

DELL HEWLETT PACKARD

SM RUSTAN’S

LK GLOBAL REALTY & DEVELOPMENT CORPORATIONConscious decision to train all members of organization to make Customer No. 1

EXAMPLES

Customer has Choices Greater Benefits to Customer Customer Chooses Maximum Benefits Customer Buys Product

CONCEPT 2:

CUSTOMER PERCEIVED VALUE SHOULD BE GREATER THAN CUSTOMER COST TO RESULT IN A BUY DECISION.

EXAMPLES

Caterpillar vs Komatsu Ateneo MBA vs La Salle Management

Technology LK Global Realty: All units are finished

Perceived value: no more building permit, renovation hassle

Customer Cost: 1.868M ,vs 1.70M SM GrassCost and challenge of renovation > 1.868M

CONCEPT 3

PROMISE AND EXPERIENCE MUST MATCH TO BUILD CUSTOMER VALUE AND LOYALTY Product positioning is the Promise Delivery involves the whole Organization Key Result of Delivery is the Experience Experience = Promise = VALUE VALUE = LOYALTY LOYALTY = BRAND EQUITY = REPEAT

BUY

EXAMPLES

BMW = Luxury & Performance Disneyland = the Disney Experience Fitness First Retro class = Retro Addicts LK Global Realty: Live in Luxury, Sleep like a

BabyWe are hoping to live up to this positioningHomes that are as promisedTo encourage repeat buys and referrals

CONCEPT 4

WHEN PERFORMANCE MEETS EXPECTATION, CUSTOMERS GAIN SATISFACTION

LOW EXPECTATIONS = NO ATTRACTION HIGH EXPECTATIONS = CHANCES OF

DISAPPOINTMENT EXPECTATIONS MET = SATISFACTION =

BRAND LOYALTY = REPEAT BUY LOW PRICE HIGH QUALITY BRINGS BEST

CUSTOMER SATISFACTION

EXAMPLES

CHERY CARS: low expectation KIA = 5 YEAR WARRANTY HYUNDAI = 5 YEAR WARRANTY LK GLOBAL REALTY & DEV CORP

SM GRASS LK CHERRY ORCHARDPRICE: 1.8M 1.688MAREA: 22 SQM 22 SQMBALCONY: NO YESFINISHING: SEE PICS

CONCEPT 5

TOTAL QUALITY SUPPORTS PROFITABILITY

QUALITY MEETS OR EXCEEDS EXPECTATIONS = CUSTOMER SATISFACTION

QUALITY SUPPORTS PREMIUM PRICING PREMIUM PRICING ACCEPTABLE ALL ARE ELEMENTS OF BRAND EQUITY

EXAMPLES

Louis Vuitton Hermes Ayala Land / Ayala Developments LK Global Realty:

goals: treasured homes retains equityPremium priced Pagibig homes

CONCEPT 6

CUSTOMER SATISFACTION IS THE DESIRED MARKETING TOOL

LOYALTY RETENTION ACCEPTANCE OF NEW OFFERS WORD OF MOUTH ADVERTISING ALL THESE RESULT TO REPEAT BUYS

Example

Disneyland – from children to grandparents

Louis Vuitton – bag collection Toyota – all car categories are accepted LK Global Realty – we want to grow with

our market, from 1st homes to repeat buys

CONCEPT 7

CUSTOMER EMPOWERMENT IS KEY TODAY

Internet Social Networking and Blogs Have Own Blog for Positive Reinforcement Increase Positive reviews and

expectations Build a Buzz Community Create a Cause

EXAMPLES

The Purse Forum – reviews all IT bags, where bag addicts find support

Travelocity – all hotels are reviewed, airline prices can be compared

Consumer Report USA – reviews cars, electronics, etc.

Join local real estate market blogs

CONCEPT 8

CUSTOMER COMPLAINTS IS A CORNER STONE OF CUSTOMER RELATIONSHIP.

Resolve customer complaints immediately Quick resolution = 95% customer retention Non resolution = gripe publicity Always reinforce the Positive Experience

EXAMPLES AT&T customer relationship department. No

questions asked. Grew out of Sprint complaints. Nieman Marcus – return and exchange allowed

within 180 days. Rustan’s – credit exchange within 14 days SM Dept store – credit exchange within 7 days LK Global Realty established customer

relationship department

CONCEPT 9

CRM SUPPORTS DETAILED CUSTOMER UNDERSTANDING AND EXCELLENT CUSTOMER SERVICE

Gathers data at touch points. Provides one to one marketing opportunities. Increase market offerings. Increase Customer Retention and Loyalty Induces Repeat Buys

EXAMPLES

Las Vegas casinos – member cards Resort World casino – free membership Philippine Airlines – Mabuhay Miles SM Rewards Card LK Global Realty: Customer Info File

CONCEPT 10

CUSTOMER BASE IS HIGH VALUE TO COMPANY.

Reduce customer defection Increase longevity of customer relationship Increase offers by cross sell and up sell methods Focus efforts on High Value Customers Convert low profit customers or terminate them. Keeping a customer is cheaper.

EXAMPLES

Google Skype Ebay PLDT Smart 38 Million subscribers LK Global Realty: 325 clients and 100+ agents

Source of referrals and repeat buysDevelop as Buyer AgentsSource of New Leads

CONCLUSIONWe create customer value, loyalty and satisfaction when:

1. We Make the Customer the Center

2. Perceived Value is Greater than Cost

3. Promise Lives up to Expectations

4. Performance Meets Expectations

5. Quality Supports Profitability.

CONCLUSIONWe create customer value, loyalty and satisfaction when:

6. Satisfaction is the Achieved Goal.

7. Customer is Empowered.

8. Resolved complaints build long term relationships.

9. CRM supports excellent service.

10. Customer base = company value.

TOP 10 CONCEPTS

CREATING CUSTOMER VALUELOYALTY & SATISFACTION

GWENDOLYN KU WONGATENEO GRADUATE SCHOOL OF BUSINESS REGIS CLASS