Creating Value for Customers

Creating value can lead to the creation of relationship.  As long as there is the right degree of satisfaction, loyalty follows. Loyalty is rare in 2009, but it remains a goal of marketing. 

1. Customer Value – Customer value is the benefits a customer receives net of the costs of acquiring and using and disposing of a product or service. [ COST/BENEFIT ]

2. Customer Satisfaction – Customer Satisfaction is the degree to which a product or service meets or exceeds customer expectations.  [ DEGREE ]

3. Relationship Marketing – Relationship marketing refers to creating positive,  mutually beneficial, long term associations with customers.  [ ASSOCIATIONS ]

4. Customer Relationship Management – Customer Relationship Management (CRM) includes the activities that are used to establish, develop and grow sales. [ LOYALTY ]

How can organizations build loyalty?  What are the steps?  There will be variations based on target customers and industry, but here is a great article from BNET worth reading and considering.

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4 responses to “Creating Value for Customers

  1. In the BNET article it states in order to build customer loyalty you need to really know the customer and increase the customer contact. As a sales professional, I agree with that whole heartedly. It is necessary to stay visible and relevant to the customer or they will take their business elsewhere. There is a saying in our industry that “you are only as good as your last performance”. This means it is great that you made the customer happy last year, but what did you today? It is a continuous cycle.

  2. Tonja Rogers-Williams

    Building and retaining loyalty among customers is key to the long term success of every company in any industry. In addition to the information rendered in the article concerning strengthening customer relationships, companies should also concentrate on and monitor the training & execution of customer service given by its personnel. I believe most customers are lost because of interactions with individuals on the front line. Train employees and then monitor them regular to see if they are utilizing the training they recieved.

  3. Organizations can gain loyalty by having quality products. knowing their customers and making contact with them every so often. This can be done by using coupons or sending new advertisment magazines to their home or birthday notices. This will lead to the customers coming back and suggesting that organization to others which brings in new customers with no charge.

  4. Tiesha Philpott

    I think that when companies are creating values for customers that one of the most important things to consider is customer satisfaction. if the customer is satisfied with the overall quality of the product, and the price the customer will remain loyal to the business by continuing to patronize the business.

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