Bài giảng Business Marketing - Chapter 16: Customer Retention and Maximization

McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Chapter 16Customer Retentionand MaximizationTHE NATURE OF A CUSTOMER Customer Relationships can be found at any levelAlways-A-ShareCustomerLost-For-GoodCustomersLowest LevelRelationshipHighest LevelRelationshipTHE KEY FACTOR:SWITCHING COSTSThe Direct and Indirect costs a buyer will haveto pay to go to another supplier16-*LOST-FOR-GOODALWAYS-A-SHARE Customers are tied to a system. Switching costs may include: Specific investments Cancellation penalties Setup costs for a new supplierRetrainingFinding/Evaluating a new supplierCustomers can allocatetheir purchases toseveral vendors . Aperiod of no purchasescan be followed by anumber of purchases.Doesn’t want to rely on a single vendor.Suppliers are largelyinterchangeableDEFINING THE EXTREMES OF CUSTOMER NATUREExhibit 16-116-*PAYOFFS TO SELLERS FROMLONG TERM CUSTOMER RELATIONSHIPSGROWS ADDITIONAL BUSINESS OPPORTUNITIES for new products or increased purchasesPREMIUM PRICES result from giving first-rate service and product qualityREDUCED SELLING COSTS from tighter coordination of production and logisticsADDITIONAL REVENUES POSSIBLE from customers’ referrals and joint sales calls with customers16-*132546Years in RelationshipExhibit 16-5RELATIONSHIP BENEFITS TO SELLERS0500400300200100ProfitsReferralsReducedcostsIncreased PurchasesBase profitPricePremium16-*TWO REASONS COMPANIES STAYIN A BUSINESS RELATIONSHIP REASON 1. THEY HAVE TO No alternatives, binding actions such as contracts, product ties REASON 2. THEY WANT TO Relationship is satisfying because of cooperation and meeting financial objectives16-*TIES THAT BUILD RELATIONSHIPSSUPERIOR PERFORMANCE at a good price (value)SOCIAL RELATIONSHIPS created by frequent interactionTECHNICAL DEPENDENCIES brought about by reliance on a supplier’s products or supportFORMAL AGREEMENTS involving investments or contracts16-*SOURCES OFCOMPETITIVE ADVANTAGESuperior performanceQuality products and support as defined by the customerDistinctive and reliable serviceTO BUILD CUSTOMER LOYALTY, DEVELOP A COMPETITIVE ADVANTAGE BY PROVIDING16-*Exhibit 16-8RelationshipTerminationCostsRelationshipBenefitsShared ValuesCommunicationOpportunisticBehaviorUncertaintyFunctionalConflictCooperationPropensityTo leaveAcquiescenceRelationshipCommitmentTrust+++++---++++THE IMPACT OF TRUST AND COMMITMENT ON BUSINESS RELATIONSHIPS+16-*COMMUNICATING WITH CUSTOMERSTelephoneConfirm appointmentAnswer a questionnaire about deliveryFaxSummarize yesterday’s meetingFYI: an article in a trade magazineE-mailRequest the name of a former consultantGive congratulations on a story in the pressRequest easy-to-find data in a planning documentBusiness LetterFormally introduce a new account representativeSummarize reasons for next quarter’s price increaseThank you for the orderFace-to-faceNegotiate production commitmentsResolve dispute about marketing effortExhibit 16-916-*REQUIREMENTS FOR A USEFUL SURVEY:CHOOSE MAIL OR TELEPHONE TO DO THE SURVEYDETERMINE THE KIND OF INFORMATION YOU NEEDAscertain satisfaction with overall relationshipMeasure specific aspects of the relationshipThe unspoken concerns of customersDetermine what will get measured regarding customer expectations (The TERRA model works well)Having meaningful and measurable ratings and scoresA TOOL FOR CUSTOMER RETENTION:CUSTOMER SATISFACTION SURVEYS16-*Process 5(etc.)Attribute 1Attribute 2Attribute 3Suggestchange for improvementProcess 4(Technical Support)Attribute 1Attribute 2Attribute 3Suggestchange for improvementProcess 3(Service manuals)Attribute 1Attribute 2Attribute 3Suggestchange for improvementProcess 2(Parts reps)Attribute 1Attribute 2Attribute 3Suggestchange for improvementProcess 1(Parts handling)Attribute 1Attribute 2Attribute 3Suggestchange for improvementLoyalty questions Willingness to recommend Repurchase intentionsGeneral overallSatisfaction question21344-QUESTION SATISFACTION SURVEYExhibit 16-1016-*MEASURING SATISFACTIONAFTER THE SURVEYSMANAGEMENT QUESTIONSWHAT DO THE SURVEYS TELL US?HOW DO WE USE THE INFORMATION WE HAVE?HOW RELIABLE IS THE INFORMATION?16-*SATISFACTION SURVEYS:GUIDELINES FOR USELOOK AT OVERALL SCORESCOMPARE SCORES TO PREVIOUS MEASURES, PREFERABLY OVER SEVERAL YEARSARE TRENDS UP, DOWN, STABLE?HOW MANY FACETS OF SATISFACTION DO WE MEASURE?HOW MANY ATTRIBUTES FOR EACH FACET SHOULD WE MEASUREWHAT IS OUR RELATIONSHIP FACET PERFORMANCE SCORE (RFPscore )?16-*DETERMINING THE RFP SCOREOVERALL SATISFACTION = fsales reps. report cards, warranty claims, product lit., tech support, etc.OVERALL SATISFACTION = 3.2 + .82 (RFPwarranty) + .53 (RFPrep) + .06 (RFPlit ) + .12 (RFPtech support) + eTHE REGRESSION COEFFICIENTS SHOW RELATIVE IMPORTANCE OF EACH FACET. 0.82 FOR WARRANTY CLAIMS IS MOST IMPORTANT FOR OVERALL SATISFACTION, FOLLOWED BY SALES REP PERFORMANCE16-*STRONG STATISTICAL MODELOF CUSTOMER SATISFACTIONWarrantyService RFP ScoreSatisfactionScoreExhibit 16-1216-*WEAK STATISTICAL MODELOF CUSTOMER SATISFACTIONTechnicalSupport RFP ScoreSatisfactionScoreExhibit 16-1316-*