Creating Customer Value

and Satisfaction
Dr. Manish Agarwal
What is Value ?
Mathematically

It refers to the 'output' of a

function.
Personal and Culture
Is a concept that describes the beliefs of an
individual or culture.
Values are considered subjective and vary
across people and cultures.
Types of values include ethical/moral
values, doctrinal/ideological (political,
religious) values, social values, and
aesthetic values.
Economically
The economic value of something is how
much a product or service is worth to
someone relative to other things
It can be either an assessment of what it
could or should be the price (Valuation), or
an explanation of its actual market value
(Price).
Marketing

Value of a product within the context of

marketing means the relationship between
the consumer’s expectations of product
quality to the actual amount paid for it.
Customer Perceived Value

(CPV) is the difference between the

prospective customer's evaluation of all the
benefits and all the costs of an offering
relative to perceived alternatives.
Total Customer Value

bundle of benefits from product

Total Customer Cost

Bundle of Cost customer expect to incur in

evaluating, obtaining, using and disposing
of the given market offering, including
monetary , time, energy and psychic cost.
How to deliver high Customer
Value?
Delivery
Value Proposition :
The whole cluster of Benefits the company
promises to deliver
Value Delivery System
What the Company has promised to provide
the customer has to be actually provided.
Customer Satisfaction

CS =Product Perceived performance

(outcome) – His Expectation
CRM

Covers concepts used by companies to

manage their relationships with customers,
including the capture, storage and analysis
of customer information.
How to go about CRM?
Identify your prospects and customers.
Differentiate customers in terms of their
(i)need and (ii) their value to your company
Interact with customers to improve your
knowledge about their individual needs and to
build stronger relationships.
Customize products , services and messages to
each customer.
Aspects of CRM
Operational CRM- automation or support of
customer processes that include a company’s sales
or service representative
Collaborative CRM- direct communication with
customers that does not include a company’s sales
or service representative (“self service”)
Analytical CRM- analysis of customer data for a
broad range of purposes
Operational CRM
Operational CRM provides support to “front office"
business processes, including sales, marketing and
service. Each interaction with a customer is generally
added to a customer's contact history, and staff can
retrieve information on customers from the database as
necessary.
One of the main benefits of this contact history is that
customers can interact with different people or different
contact “channels” in a company over time without
having to repeat the history of their interaction each
time.
Collaborative CRM
Collaborative CRM covers the direct interaction
with customers, for a variety of different purposes,
including feedback and issue-reporting.
Interaction can be through a variety of channels,
such as email, automated phone (Automated
Voice Response AVR) or SMS.
The objectives of Collaborative CRM can be
broad, including cost reduction and service
improvements.
Analytical CRM
Design and execution of targeted marketing
campaigns to optimize marketing effectiveness.
design and execution of specific customer
campaigns, including customer acquisition, cross
selling- retention
analysis of customer behavior to aid product and
service decision making (e.g. pricing, new product
development etc.)
management decisions, e.g. financial forecasting and
customer profitability analysis
prediction of the probability of customer defection
(churn).