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Chapter One Customer Focus and Managing Customer Loyalty.

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Presentation on theme: "Chapter One Customer Focus and Managing Customer Loyalty."— Presentation transcript:

1 Chapter One Customer Focus and Managing Customer Loyalty

2 1-2Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer Focus and Managing Customer Loyalty Customer focus and profitability Profit impact of customer retention Managing customer loyalty Market-based management and customer focus

3 1-3Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Weak Customer Focus Figure 1-1 Underwhelming Customer and Shareholders

4 1-4Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Strong Customer Focus Figure 1-2 Customer Focus, Customer Satisfaction, and Profitability

5 1-5Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer Satisfaction Measuring Customer Satisfaction –Customer Satisfaction Index (CSI) Why is it important? –Directly correlated to profits –Leading indicator of operating performance Impact of Dissatisfied Customers Figure 1-5 De-averaging Customer Satisfaction and Customer Profitability

6 1-6Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Why is customer retention important? How does a firm retain customers? Customer Satisfaction and Retention Figure 1-6 Customer Satisfaction, Complaint Behavior, and Customer Retention

7 1-7Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Measuring Customer Retention Figure 1-10 Customer Life Expectancy and Customer Retention

8 1-8Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Net Promoter Score Figure 1-13 Net Promoter Score

9 1-9Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer Loyalty Why is it important? –Customer Recommendations Measuring Customer Loyalty –Customer Loyalty Score (CLS) Figure 1-14 Customer Loyalty Score

10 1-10Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Managing Customer Loyalty Figure 1-15 Managing Customer Loyalty

11 1-11Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer Focus and Marketing Knowledge Figure 1-17 Customer Focus and Marketing Knowledge

12 1-12Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Market-Based Management Figure 1-18 Market-Based Management

13 1-13Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Market-Based Management and Customer Focus Voice of the Customer Customer Performance Customer Leadership

14 1-14Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Review Customer focus and profitability Profit impact of customer retention Managing customer loyalty Market-based management and customer focus

15 1-15Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall


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