PowerPoint PresentationLouisiana State University - Shreveport
2003 Prentice Hall, Inc.
Identify the factors that make a high performance business.
Understand how companies attract and retain customers.
2003 Prentice Hall, Inc.
Realize how companies can improve both customer and company profitability.
Understand how companies can deliver total quality.
2003 Prentice Hall, Inc.
estimating which offer (product/firm) delivers the most value (CPV)
forming an expectation of value and acting upon it (purchase)
evaluating their usage experience against the expectations
Satisfaction results when expectations are equaled or surpassed
2003 Prentice Hall, Inc.
Total customer costs
Total customer value
Reduce perceptions of costs or enhance perceptions of value
2003 Prentice Hall, Inc.
Satisfaction is defined as . . .
“a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.”
2003 Prentice Hall, Inc.
To maximize satisfaction . . .
Don’t exaggerate the product / service’s capabilities in advertising or other communications
Dissatisfaction will result
Market size will be limited
2003 Prentice Hall, Inc.
Identify several stakeholder groups for your University
How might the needs of these groups conflict with each other?
2003 Prentice Hall, Inc.
2003 Prentice Hall, Inc.
Organization refers to the organization’s policies, structures, and corporate culture
Corporate culture: shared experiences, stories, beliefs, and norms within an organization
2003 Prentice Hall, Inc.
Define and measure retention rate
Identify causes of attrition
Estimate cost to reduce defection; take appropriate action
2003 Prentice Hall, Inc.
Drivers of Customer Equity
2003 Prentice Hall, Inc.
20 – 80 – 30 Rule
20% of your customers
Half of your profit is lost serving the bottom 30% of your customer base
Generate 80% of your profit
30
80
20