1. Building Customer Satisfaction, Value, and Retention by

2. Kotler on Marketing
It is no longer enough to satisfy customers. You must delight them.

3. Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers

4. Customer-Oriented Organization Chart
Customers
Front-line people
Customers
Middle management
Top
manage-
ment
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5. Customer Perceived Value
Customers tend to be value maximizers , within the bounds of search costs and limited knowledge, mobility, and income.
Customer perceived value is the difference between the prospective customer’s evaluation of all benefits and all the costs of an offering and the perceived alternatives
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6. Customer Perceived Value
Image value
Personnel value
Services value
Product value
Total
customer
value
Customer
delivered
value
Monetary cost
Time cost
Energy cost
Psychic cost
Total
customer
cost
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7. Customer Satisfaction
A company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfaction.
Methods:
Customer loss rate
Mystery shoppers
Competitor’s performance (Their satisfaction rate)
Product and service quality

8. Customer Relationship Management
Process of managing detailed information about individual customers and carefully managing all customer “touch points” to maximize customer loyalty.
Touch point: Any occasion on which a customer encounters the brand and product – from actual experience to personal or mass communications to casual observation.
Customer touch point for hotel ? For airline?
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