Resumen - Chapter 1 Customer Focus And Managing Customer Loyalty

CHAPTER 1
Customer Focus and Managing Customer Loyalty

• In today’s globally competitive world, customers expect more, have more choices, and are less brand loyal.
• The only constant is change.
• The companies that survive and grow will be the ones that understand change.

• Businesses that sense the direction of change and lead in bringing it about will prosper and grow.
• The majorbenefit of a strong customer focus is long-run survival.
• A customer-focused business creates greater customer value and manages customer loyalty as a way to create greater shareholder value.

• A business with a strong customer focus stays in close contact with customers in an effort to deliver a high level of customer satisfaction and build customer loyalty.
• Keeping good customers is thefirst priority of market-based managers.
• Customer satisfaction and loyalty drive customer profitability.

• 1 essential performance metric is customer satisfaction.
• The business that completely satisfies customers is the business that will keep them.
• One of the many ways to measure customer satisfaction is to compute a CSI (Customer Satisfaction Index) based on customers ratings oftheir overall satisfaction.

• The reason customer satisfaction is a valuable marketing performance metric is its ability to forecast future revenues and profits.
• Customer satisfaction is a forward-looking indicator of business success that measures how well customers will respond to the company in the future.

• “Very satisfied” customers not only buy more, but they also buy higher-marginproducts and services.
• Dissatisfied customers they will each tell 8 to 10 others of their dissatisfaction becoming “customer terrorists”.
• To prevent a poor reputation from developing by word of mouth, some businesses encourage dissatisfied customers to complain.
• When complaints can be resolved quickly, 95% of the complaining customers are retained.
• The job of a market-based managementteam includes not only tracking customer satisfaction but also encouraging dissatisfied customers to complain to take a corrective action.
• To hold market share in a mature market, a business must replace its lost customers.
• Dissatisfied customers who are retained result in a relatively low revenue per customer because of the additional costs of the efforts to keep them.
• New customers arealso less profitable.
• Retained customers are more profitable than new customers.

• In markets where relatively few choices are available, customers stay even when dissatisfied.
• In highly competitive markets, even high levels of customer satisfaction may not ensure against customer defection.

• To estimate retention rates, businesses can use a customer survey.

• The ultimateobjective of any marketing strategy should be to attract, satisfy, and retain target customers.
• The higher a business’s customer retention rate, the greater the profit impact and the average life of customers.
• As customer retention increases, the customer’s life expectancy increases.

• In general, it costs 5 times more to replace than to keep a customer.
• *Formula: Customer retention = 1 – 1N  (average customer life = # of years)

• Customer satisfaction and retention are important customer metrics.
• Another key determinant of customer loyalty is customer conviction.
• A customer’s recommendation of a brand or business to others stands as the best sign of customer conviction.
• One path to sales growth and higherprofits is to have customers promote a company’s product to potential customers.
• *Formula: Net Promoter Score = Promoters – Detractors
- Promoters: % of customers who should promote the brand or product
- Detractors: % who should not recommend the brand or product

• Any measurement of customer loyalty should include the elements of customer satisfaction and customer retention, as well...