Customer Loyalty

Customer Loyalty -Values drive value

-the crm hierarchy

Classification of customers as per loyalty& satisfaction  Mercenaries (High satisfaction Low Loyalty) -On a look-out for better opportunity  Apostles (high satisfaction high loyalty) -More valuable than any promotion  Defectors(Low satisfaction Low loyalty) -Spread bad word about organization. Move on without informing.  Hostages (Low

satisfaction high loyalty) -Dissatisfied but can’t leave due to exit barriers

Values derived by the customer

Types of customer value 1.Choice based value 2.Employee Based Value 3. Information value 4. Association value 5. Supplier relationship value 6. Customer unique value 7. Experience value 8. Product-for-price value 9. Access/ convenience value

Customer Lifetime Value Understanding profitability per customer CLTV=Total revenues-(fixed cost + variable costs) Enhancing segmentation….. Identify more profitable customers Find more customers that match the profile of profitable customers Calculate the product combinations which are more profitable.

Customer Value Management Components of CVM Needs and value based segmentation (moving from ‘opinion based to data based decisions) Value proposition development Product and service delivery Integrated channel strategy( bringing in accountability) Customer service Expanding customer relations Moving customers to new products