SUPERIOR CUSTOMER VALUE

Transcription

1 SUPERIOR CUSTOMER VALUE Strategies for Winning and Retaining Customers Third Edition ART WEINSTEIN CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an informa business

2 Contents Preface Acknowledgments About the Author xiii xv xvii SECTION I CUSTOMER VALUE THE BUILDING BLOCKS 1 Customers Want Exceptional Value! 3 Importance of Customer Value 4 So, What Does Value Really Mean? 4 Service, Quality, Image, and Price: The Essence of Customer Value...6 Business Climate for Value Creation 7 Rise and Fall of the New Economy 7 Newer Economy 8 Overcoming the Great Recession 12 Value-Creating Organization 14 Customer Value Marketing Management Implications 16 Summary 18 2 Be Customer Driven and Market Driving 21 Customer Commitment: Follow the Market Leaders 22 Revisiting and Extending the Marketing Concept 24 Building a Market Orientation 27 Business Orientations 27 Becoming Customer Oriented 29 Market Orientation and Business Performance: Research Findings...31 Market-Driving Practices 32 Creating a Bias for Action 33 Corporate Entrepreneurship 35 Cocreation of Value: An Overview 36 Summary 36 VII

3 viii Contents 3 Process Management Best Practices 39 Demings (PDCA) Cycle 41 Plan 41 Do 41 Check 43 Act 43 Creating Value Process Innovation 44 Connecting Value Customer Experience Management 46 CEM Research Findings 47 Checking Value Benchmarking and Related Process Tools 48 Other Process-Checking Tools 51 Summary...52 SECTION II DESIGNING A SUCCESSFUL CUSTOMER STRATEGY 4 Building a Winning Business Model and Value Proposition 57 Business Models 58 Value Proposition 60 Service, Quality, Image, and Price The Crux of Customer Value Differentiation Adding Value 68 Strategic Implications of Differentiation 69 Summary 70 Appendix: Customer Value Assessment Tool (CVAT ) 72 Guidelines for Using the Customer Value Assessment Tool 72 Perceived Service Quality 72 Perceived Product Quality 74 Perceived Image 75 Perceived Value-Based Price 76 5 Service and Quality The Core Offering 79 Services Create Value 80 What Is a Service? 80 Cocreation of Services 81 Customer Service Research Findings and Managerial Implications 82 Quality Matters 86 What Is Quality? 87 Managing Service Quality 90 Service Delivery Stages From Pre- to Postsale 91 SERVQUAL and Gap Analysis 92

4 Contents ix Explicating Service Quality 94 Improving Service Quality 96 Summary 99 6 Price and Image The Communicators 101 How Price Relates to Value 102 About Reference Prices 103 Strategic Pricing 104 Pricing Methods 106 Making Good Pricing Decisions 112 Why Price Cuts Are Seldom the Answer 114 Future Pricing Issues 115 Image The Other Communicator 117 Image-Based Differentiation and Positioning 120 "Cool" Companies 121 Summary 122 SECTION III EXCELLING IN THE MARKETSPACE 7 E-Commerce Opportunities in Marketspace 127 E-Commerce and Customer Satisfaction 128 Going Mobile and New Technologies 131 Defining E-Service Quality 133 E-SQand Customer Loyalty 133 Improving E-Service Quality 134 Summary Integrated Marketing Communications and Social Media 141 Communicating Value through an IMC Program 142 Creating an IMC Program 144 Social Media 146 Online Consumer Typologies 149 Viral Marketing 149 Measuring the Impact of Social Networks and New Media 151 Summary 158 SECTION IV RETAINING CUSTOMERS ANALYSIS AND STRATEGY 9 Creating Value through Relationship Marketing 163 What Is Relationship Marketing? 164 Relationship Marketing Success 165 Building Strong Customer Relationships 166

5 Contents Analyzing Buyer Relationships 168 Improving Supply Chain Relationships 171 Customer Relationship Management 175 Social Customer Relationship Management 177 Marketing Automation 178 Relationship Marketing Keys to Success 179 Summary Customer Loyalty and Retention 185 Why Focus on Customer Retention? 186 Customer Loyalty Issues, Strategies, and Analysis 187 Measuring Customer Loyalty 189 NPS 189 RFM 189 Usage Analysis and Customer Retention 191 Customer Value/Retention Model 194 Designing a Customer Retention Program 195 Customer Retention Approaches 197 Summary Customer Value Metrics 201 Accountability in Marketing 202 Creating a New Mindset about Measuring Marketing Performance 202 The 5C Approach to Customer Value Metrics 205 Collect VOC Data 205 Customer Lifetime Value (CLV) 207 Customer Retention 209 Customer Revenue 209 Communications 211 Marketing Dashboards 211 Summary 213 Notes 215 SECTION V CUSTOMER VALUE CASE STUDIES Appendix: Analyzing Business Situations The Customer-Value Funnel Approach 233 Case 1: Enterprise Rent-A-Car A Market-Driven Company 236 Customers and Environmental Factors 237 Customer Expectations 238 Competitive Practices 240

6 Contents xi Economic Influences 242 Global Opportunities 243 Value Creation Approach 243 Case 2: FedEx Corporation A Customer Value Funnel Assessment 246 Global Business Community (Macroenvironment) 247 Market (Microenvironment) 249 Organization 251 Branding 252 Customer Value and Business Performance 252 Stumbling Blocks 253 Strategic Changes 253 Case 3: The Grateful Dead Creating Deadheads by Providing Drop-Dead Customer Service 254 Reliability 255 Availability 256 Tangibles 256 Empathy 258 Responsiveness 259 Recent Developments 260 Summary 260 Case 4: Harrah's Entertainment Loyalty Management 261 Harrah's Strategy 261 Creating Loyal Patronage 264 Migration to the Web 266 Online Gaming 268 Case 5: Publix Super Markets Achieving Customer Intimacy 269 Background and Company Philosophy 269 Key Success Factors 272 Industry Trends and Rankings 274 Industry Trends 274 Industry Rankings 274 Company Earnings 277 Service with a Smile: The Publix Style 278 Publix Goes Online (and Off) 281 Current Trends 284 Concluding Remark 286 Case 6: StatePride Industrial Laundry Value Chain Analysis 287 What Is Value? 287 Creating Value: The Value Chain Analysis 288 Applying Value Chain Analysis 290 Index 293