1. CANTO 2008 Maximizing Customer Value Building Loyalty

2. Introduction Robert W. Fordon Xelex Technologies Inc. Maximizing customer value building loyalty

4. Successful businesses typically see 80 percent of their business come from 20 percent of their customers The cost to attract new customers is significantly more than to maintain your relationship with existing ones, your efforts toward building customer loyalty will certainly pay off. Training Overview Incentives Product Awareness Reliability Flexibility People / Technology Know Your Customers Employee Loyalty Customer Service Communication

5. Vocabulary Customer loyalty - the tendency of a customer to choose one business or product over another for a particular need or preference. Value proposition - what the customer gets for what the customer pays.

6. Customer Value Accordingly, a customer can evaluate a company's value-proposition on two broad dimensions: −relative performance: what the customer gets from the vendor relative to a competitor's offering; −price: The total cost which consists of the payment the customer makes to acquire the product or service; plus the access cost

7. Customer Value Higher buying rates and lower service costs make long-term customers more valuable (Lifetime Value).

8. Customer Value The lifetime value of a customer is a measure of the value of the customer to your business. −It is the potential contribution of the customer to your business over a period of time. −When you know the lifetime value of a customer, you have a benchmark for how much you would or should be willing to invest to acquire a customer.

9. Customer Value The calculation of customer-lifetime value (LV) must take three factors into account: −margin (the annual revenue that customers generate minus the operating expenses a company incurs in serving them) −retention rate (the percentage of customers expected to keep doing business with the company) −discount rate (the current cost of capital). The resulting dollar figure can yield a variety of insights.

10. How to achieve Customer Loyalty Training Incentives Product Awareness Reliability Flexibility People / Technology Know Your Customers Employee Loyalty Customer Service Communication

11. Customer Relationship Management Customer relationship management has to do with any methods, policies, and procedures that are utilized by a company to provide: − A high level of customer care to existing customers. −Orient new customers to the products and services offered by the business. −Encourage general customer retention. −Tools for customer analysis and CSR rapid response.

12. Customer Relationship Management Generally, competent customer relationship management involves providing customer assistance on a variety of levels: −Operational −Collaborative −Analytical

13. Check Points Do you have a mission statement? Talk with your CSRs −Do they know your mission statement? −Know your product/service offerings? −Employee loyalty? −What are the problems/issues? Internal Customer

14. Check Points Call your customer service line. Can you accurately tell your customer’s opinion of your company? −Talk to your customers