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By: 
Krupanshu Hemani(16) 
Shreyansh Kejriwal (26) 
Ambarish Kulkarni(27) 
Devashree Kumar(28) 
Vishesh Saran(58)
The gulf between satisfied customers and 
completely satisfied customers can swallow 
a business……HOW??? 
Marketing II, PG...
Complete customer satisfaction is the key to securing 
customer loyalty and generating superior long-term 
financial perf...
There are 2 types of loyalty : true long-term loyalty 
and false loyalty 
Customers will remain rock-solid if they are 
...
The Satisfaction Loyalty link 
Only completely satisfied customers are the truly 
loyal customers 
Satisfied customers t...
The Satisfaction Loyalty link 
continued... 
Marketing II, PGDM (FS) 201414-16 6
How to Listen to Customers 
Customer – Satisfaction Indices 
Feedback 
Market Research 
Frontline Personnel 
Strategi...
Measures of Loyalty 
Intent to Repurchase 
Primary Behaviour - 
recency, frequency, amount, 
retention, and longevity. 
...
Apostles and Terrorists 
4 categories of customers: 
Loyalists 
Defectors 
Mercenaries 
Hostages 
Marketing II, PGDM ...
Individual Customer Satisfaction, 
Loyalty, and Behaviour 
Satisfaction Loyalty Behaviour 
Loyalist/Apostle High High Stay...
Using Customer Satisfaction 
Information 
Critical barometer – how well the company is serving 
its customers 
Shows a c...
Steps for measuring Customer 
Satisfaction 
1. Make the measurements of customer satisfaction 
and loyalty a priority and ...
Analyzing the customer curve 
Plotting individual customer responses on a curve. 
Assessing the satisfaction levels of t...
Determining strategies for 
improvement 
Scale Level of 
Satisfaction 
Remark 
2-3 Dissatisfied 
Provide basic product or ...
Implications of 3 step model & 
Analysis 
1. Different actions are required to raise satisfaction 
levels 
2. Order of ste...
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Why satisfied customers defect ??

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An important aspect in Marketing MBA.

As it is known that it costs 5 times to earn a new customer than to retain one. And hence every one wud be interested to hold back the customers.
And give no reason to the ones who are satisfied.
This presentation should help.

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Why satisfied customers defect ??

  1. 1. By: Krupanshu Hemani(16) Shreyansh Kejriwal (26) Ambarish Kulkarni(27) Devashree Kumar(28) Vishesh Saran(58)
  2. 2. The gulf between satisfied customers and completely satisfied customers can swallow a business……HOW??? Marketing II, PGDM (FS) 201414-16 2
  3. 3. Complete customer satisfaction is the key to securing customer loyalty and generating superior long-term financial performance Even in markets with relatively little competition, providing customers with outstanding value may be the only reliable way to achieve sustained customer satisfaction and loyalty Very poor service or products are not the only cause-and may not even be the main cause – of high dissatisfaction Different satisfaction levels reflect different issues and therefore, require different actions Marketing II, PGDM (FS) 201414-16 3
  4. 4. There are 2 types of loyalty : true long-term loyalty and false loyalty Customers will remain rock-solid if they are completely satisfied It is absolutely critical for a company to excel in both defining its target customers and delivering a product or service that completely meets their needs Totally satisfying the members of the targeted customer group should be a top priority Marketing II, PGDM (FS) 201414-16 4
  5. 5. The Satisfaction Loyalty link Only completely satisfied customers are the truly loyal customers Satisfied customers tend to switch much often in a competitive market than completely satisfied customers Marketing II, PGDM (FS) 201414-16 5
  6. 6. The Satisfaction Loyalty link continued... Marketing II, PGDM (FS) 201414-16 6
  7. 7. How to Listen to Customers Customer – Satisfaction Indices Feedback Market Research Frontline Personnel Strategic Activities Marketing II, PGDM (FS) 201414-16 7
  8. 8. Measures of Loyalty Intent to Repurchase Primary Behaviour - recency, frequency, amount, retention, and longevity. Secondary Behaviour - referrals, spreading the word Group 4 Marketing Management II, PGDM (FS) 201414-16 8
  9. 9. Apostles and Terrorists 4 categories of customers: Loyalists Defectors Mercenaries Hostages Marketing II, PGDM (FS) 201414-16 9
  10. 10. Individual Customer Satisfaction, Loyalty, and Behaviour Satisfaction Loyalty Behaviour Loyalist/Apostle High High Staying and Supportive Defector/Terrori st Low to Medium Low to Medium Leaving or having left and unhappy Mercenary High Low to Medium Coming and going; low commitment Hostage Low to Medium High Unable to switch; trapped Marketing II, PGDM (FS) 201414-16 10
  11. 11. Using Customer Satisfaction Information Critical barometer – how well the company is serving its customers Shows a company what it needs to do to increase its consumer satisfaction level Understanding what the customers are saying when they provide various responses Marketing II, PGDM (FS) 201414-16 11
  12. 12. Steps for measuring Customer Satisfaction 1. Make the measurements of customer satisfaction and loyalty a priority and to ensure the process is unbiased, consistent, broadly applied, and be able to capture and store information. 2. Create a curve by plotting individual customer responses. 3. Determine the most appropriate strategies for raising customer satisfaction. Marketing II, PGDM (FS) 201414-16 12
  13. 13. Analyzing the customer curve Plotting individual customer responses on a curve. Assessing the satisfaction levels of the customers Assessing the factors (good/bad) that caused the curve Comparing the curve with the competitors Cross check for false positives, if present. Marketing II, PGDM (FS) 201414-16 13
  14. 14. Determining strategies for improvement Scale Level of Satisfaction Remark 2-3 Dissatisfied Provide basic product or basic elements expected from any in industry 3-4 Neutral Happy with product. Challenge lies in ensuring that he does not fall below this scale 4-5 Satisfied Believes all needs, preference & values are addressed. TO maintain them, company must listen to customers & interpret their say. Marketing II, PGDM (FS) 201414-16 14
  15. 15. Implications of 3 step model & Analysis 1. Different actions are required to raise satisfaction levels 2. Order of steps is important.  For long term survival and flourishing it is imperative for a firm to understand the relationship between satisfaction and loyalty for each of its customers. Marketing II, PGDM (FS) 201414-16 15

An important aspect in Marketing MBA. As it is known that it costs 5 times to earn a new customer than to retain one. And hence every one wud be interested to hold back the customers. And give no reason to the ones who are satisfied. This presentation should help.

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