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Chapter Content
Define value & satisfaction - understand how to deliver them The nature of high-performance businesses How to attract & retain customers Improving customer profitability Total quality management
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2-2
Total Total customer customer value value Customer Customer delivered delivered value value Total Total customer customer cost cost
2-3
Satisfaction is...
...a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations.
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2-4
Stakeholders Processes
Resources
Organization
2-5
Support Activities
Service
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Primary Activities
in
rg i Ma n
Delivery
Delivery
Delivery
Delivery
Competition is between networks, not companies. The winner is the company with the better network.
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2-7
Satisfied Customers:
Are loyal longer Buy more (new products & upgrades) Spread favorable word-of-mouth Are more brand loyal (less price sensitive) Offer feedback Reduce transaction costs
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2-8
Proactive
Accountable
2-9
Customer Development
Suspects
Prospects
Clients
Advocates
Partners
Disqualified prospects
Inactive or ex-customers
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2-10
C2
C3
P1 P2 P3 P4
+ + +
High profit customer
Mixed-bag customer
Losing customer
2-11
e Int
io n
a rn
re
at
r pe lo
Va lu ec
Profit Profit
ns io at
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Competitive advantage
2-12
Quality
Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
#1
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2-13
Next...
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2-14