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Pillar 1 - Coggle Diagram
Pillar 1
Create and deliver value to targeted customers
understanding relationship
marketing strategies
transactional marketing
market share
transaction profitability
managing brands
quality in production
mass communication
neutral customer experience
relationship marketing
wallet share
longevity profitability
manages people
quality in all departments
individual communication
positive customer experience
customer lifetime value
CLV=m(r/1+i-r)
dimensions of customer loyalty
attitudinal loyalty
emotion based
customers' emotional bond with the brand
measured through qualitative surveys
determined by customer satisfaction, intention to repurchase, and willingness to recommend
behavioral loyalty
customers' financial contribution to the brand
measured using quantitative slaes statistics
determined by recency, frequency, and monetary value of purchase
customer loyalty model
true loyalty
high repeat purchases, strong attitude
latent loyalty
low level of purchase, strong attitude
spurious loyalty
high repeat purchase, weak attitude
no loyalty
low level of purchases, weak attitude
customer portfolio management
market segmentation process
identify the business that you are in
identify the segmentation variables
demographic
example: low income, 25-35
psychographic
example: vegan, loves animals
geographic
example: lives in the west side of singapore
behavioral
example: visits Starbucks 9 times a week
analyse market using these variables
assess value of the market segments
most growable customers
super growth customers
low maintenance customers
most valuable customers
select market segments to serve
based on market size, growth potential, company competency, and competitors
1: categorisation of business
product oriented
focus on the product features
myopic view of the business and market
may overlook competitors in the market
might neglect potential customer segments
customer oriented
focus on value to customers
holistic analysis of the business and market
better understanding of competitors
enable companies to expand the boundaries of the markets served
delivering customer value
why do customers buy?
value proposition: the value a company promises to deliver to their customers
strategies:
product leadership
example: the first company to introduce brown sugar milk tea
operational excellence
example: how it only takes a few clicks to make a purchase on shopee
customer intimacy
example: when a jewellery business offers customisation services
components of cost
monetary
when companies cut down on additional costs, like credit card surchages or GST
time
when companies reduce the time and effort needed to make the purchase
psychic
financial risk
economic loss from the purchasep
performance risk
product fails to do what it's supposed to
physical risk
bodily harm
social risk
reputation is affected
psychological risk
self-esteem or image is affected