Chapter One Customer Focus and Managing Customer Loyalty

Customer Focus and Managing Customer Loyalty Customer focus and profitability Profit impact of customer retention Managing customer loyalty Market-based management and customer focus Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1-1 Underwhelming Customer and Shareholders Weak Customer Focus Figure 1-1 Underwhelming Customer and Shareholders Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1-2 Customer Focus, Customer Satisfaction, and Profitability Strong Customer Focus Figure 1-2 Customer Focus, Customer Satisfaction, and Profitability Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Customer Satisfaction Figure 1-5 De-averaging Customer Satisfaction and Customer Profitability Measuring Customer Satisfaction Customer Satisfaction Index (CSI) Why is it important? Directly correlated to profits Leading indicator of operating performance Impact of Dissatisfied Customers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Customer Satisfaction and Retention Figure 1-6 Customer Satisfaction, Complaint Behavior, and Customer Retention Why is customer retention important? How does a firm retain customers? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Measuring Customer Retention Figure 1-10 Customer Life Expectancy and Customer Retention Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1-13 Net Promoter Score Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1-14 Customer Loyalty Score Measuring Customer Loyalty Customer Loyalty Score (CLS) Why is it important? Customer Recommendations Figure 1-14 Customer Loyalty Score Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Managing Customer Loyalty Figure 1-15 Managing Customer Loyalty Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Customer Focus and Marketing Knowledge Figure 1-17 Customer Focus and Marketing Knowledge Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Market-Based Management Figure 1-18 Market-Based Management Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Market-Based Management and Customer Focus Voice of the Customer Customer Performance Customer Leadership Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Review Customer focus and profitability Profit impact of customer retention Managing customer loyalty Market-based management and customer focus Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall