Flashcards
Lecture 4
Flashcards do conjunto (38)
- 1Understanding customer requirements: Gap 1: Marketing researchProcess of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. Include listening strategies that allow
companies to deliver service to meet customer expectations.
The first step in designing services marketing research is defining the problem and research objectives.
Using marketing research information is important because:
• it is a key way to close the gap between customer expectations and management perceptions of customer expectations;
• when customers participate in marketing research studies but never see changes in the way the company does business, they feel frustrated and annoyed with the company. - 2Understanding customer requirements Gap 1: Marketing research Research Objectives• Customer requirements or expectations
• Define standards for service delivery
• Competitors performance
• Identify dissatisfied customers
• Measure effectiveness in service delivery
• Determine customer expectations for a new service
• Forecast changing and future expectations of customers - 3Understanding customer requirements Gap 1: Marketing research Service research should focus• human performance - at the level of individual employee, team, branch, organization as a whole and competition;
• documenting the process by which service is performed (even when service employees are performing well, a service provider must continue to track performance because the potential
for variation in service delivery always exists). - 4Understanding customer requirements Gap 1: Marketing research Research approaches: Complaint solicitation• Complaint solicitation: recoding of numbers and types of complains
through many channels, identifying the most frequent problems and working on eliminating them by improving service and service employees; - 5Understanding customer requirements Gap 1: Marketing research Research approaches: Critical incident studiesCritical incident studies (qualitative interview procedure) customers are asked to provide stories about satisfying and dissatisfying service encounters they have experienced.
Benefits: 1) data are usually vivid because they are expressed in customer’s own words;
2) provides concrete info on company’s and its employees behavior, so it is easy to translate the research into action;
3) useful when the topic or service is new and very little information exists;
4) well suited for assessing perceptions of customers from different culture because it allows respondents to share their perceptions rather than answer researcher defined questions; - 6Understanding customer requirements Gap 1: Marketing research Research approaches: Researching customer needsResearching customer needs: involves identifying the benefits and attributes that customers expect in a service.
This research determines the type of questions that will be asked in surveys and ultimately the improvements that will be attempted by the firm.
Another approach would be to examine existing research about customer requirements in similar service industries.
Disadvantage - surveys are often developed on he basis of intuition or company direction rather than through customer examination. - 7Understanding customer requirements Gap 1: Marketing research Research approaches: Customer satisfaction and SERVQUAL surveysCustomer satisfaction and SERVQUAL surveys:
- Relationship surveys: pose questions about all the elements of customer's relationship with the company (including product, service, price);
-Helps a company diagnose its relationship strengths and weaknesses;
- Is effective in comparing company performance with that of competitors (questions are asked about both the company and one or more competitors).
- SERVQUAL survey is an instrument to measure service quality.
- The SERVQUAL scale involves a survey containing 21 service attributes, grouped into the 5 service quality dimensions: reliability, responsiveness, assurance, empathy and tangibles.
- Ask to evaluated the expected value and the perception of an actual value performed of the service.
Criticism - dimensions are not appropriate for all service offerings, therefore it may be necessary to add or delete some dimensions. - 8Understanding customer requirements Gap 1: Marketing research Research approaches: Database marketing researchTo identify the individual requirements of customers using information technology and database information.
- 9Understanding customer requirements Gap 1: Marketing research Research approaches: Exit surveysExit surveys:
- Capture information about 1 or all of the key service encounters with the customer.
- Customers are asked a short list of questions immediately after a particular
transaction about their satisfaction with the transaction and contact personnel.
- It is more effective than complain solicitation here the info comes only from dissatisfied customers.
Benefits: allows management to associate service quality performance with individual contact personnel (reward/corrections);
- Serves as an incentive for employees to provide better service. - 10Understanding customer requirements Gap 1: Marketing research Research approaches: Service expectation meetings and reviewsService expectation meetings and reviews: (for B2B)
- Clarify the expectations of the client at a specified time of the year and then following up later (usually after a year) to determine whether the expectations were fulfilled.
- It is important to be able to listen carefully to customers needs and NOT to defend or explain but instead to understand. - 11Understanding customer requirements Gap 1: Marketing research Research approaches: Process checkpoint evaluationProcess checkpoint evaluation:
(for professional services that are provided over a long period (ex. consulting, construction and architecture)).
- Includes defining the process for
delivering the services and then structuring the feedback around the process, checking in at frequent points to ensure that the client’s expectations are being met. - 12Understanding customer requirements Gap 1: Marketing research Research approaches: Market-oriented ethnographyMarket-oriented ethnography:
- Allows researchers to observe consummation behavior in natural settings.
- Techniques involve: observation, interviews, documents and examination of
material possessions such as artifacts.
- Observation invokes entering the experience as a participant observer and watching what occurs rather than asking questions about it. - 13Understanding customer requirements Gap 1: Marketing research Research approaches: Monitoring User-Generated ContentMonitoring User-Generated Content: search through Web-based comments, views and opinions and analyze the material which is relevant and of value.
- 14Understanding customer requirements Gap 1: Marketing research Research approaches: NetnographyNetnography: online ethnography - the ethnographic study of communities on the World Wide Web.
- Involves a researcher participating fully as a member of the online community, without the participants being aware of the researcher’s identity.
Advantage: customers may speak more freely within their online community than when they are taking part in traditional marketing.
Disadvantage: customers may not be accurately posting their views but may instead posting comments they enhance their own reputation or reinforce the online persona that they are trying to create - 15Understanding customer requirements Gap 1: Marketing research Research approaches: Mystery shoppingMystery shopping:
- Companies employ outside research organizations to send people into service establishments and experience the service as if they were customers.
- These mystery shoppers deliver objective assessments about service performance by completing questionaries about service standards.
- Questionaries contain items that represent important quality or service issues to customers.
Advantage - keeps workers alert because they know they may be evaluated on the company’s service standards at any time, therefore this approach can be very effective of reinforcing service standards. - 16Understanding customer requirements Gap 1: Marketing research Research approaches: Customer panelsCustomer panels: ongoing groups of customers assembled to provide attitudes and perceptions about a service over time
(ex. customer panels are used in the
entertainment industry to screen movies before they are released to the public. Customers participate in post-screening interviews or focus groups in which they report on their responses to the movie).
- Adjustments are being made according to customers feedback. - 17Understanding customer requirements Gap 1: Marketing research Research approaches: Lost customer follow-upLost customer follow-up: seeking out customers who have dropped the company’s service, to inquire about their reasons for leaving.
Advantages: 1) identifies failure points and common problems in the service, and can help establish an early-warning system for future defectors.
2) can be used to calculate the cost of lost customers. - 18Understanding customer requirements Gap 1: Marketing research Research approaches: Future expectations researchFuture expectations research: include different types:
1) feature research which involves environmental scanning and querying of customers about desirable features of possible services;
2) Lead user research brings in customers who are opinion leaders/innovators and
asks them what requirements are not currently being met by existing products or services;
3) synectics approach, which defines lead users more broadly than in standard lead user research.
Criticism - customers do not know what they might want, especially in industries or services that are new and rapidly changing. - 19Steps in the Marketing Research ProcessStep 1: Establish the Need for Marketing Research;
Step 2: Define the Problem; (most important of all)
Step 3: Establish Objectives;
Step 4: Determine Research Design;
Step 5: Identify Information Types and Sources;
Step 6: Determine Methods of Accessing Data;
Step 7: Design Data Collection Forms;
Step 8a: Determine Sample Plan
Step 8b: Determine Sample Size;
Step 9: Collect Data;
Step 10: Analyze Data;
Step 11: Prepare and Present the Final Research Report; - 20Upward communicationInformation flow from the lower levels of a hierarchy to the upper levels. The larger
a company is, the more difficult is to achieve upward communication. - 21Upward communication: ObjectivesObjectives include:
• gaining first-hand knowledge about customers;
• improving internal service quality;
• gaining first-hand knowledge of employees and obtaining ideas for service improvement.
These objectives can be met by:
• improving the type and effectiveness of communications from customers to management;
• improving communications between employees and management. - 22Upward communication: Types of research• Executive or Management Listening to Customers (frequently used in B2B);
• Research on Intermediate Customers;
• Research on Internal Customers (employees) - insights on WHY;
• Executive or Management Listening Approaches to Employees;
• Employee suggestions; - 23Net Promoter ScoreThe best way to gauge the efficiency of a company’s growth engine is to take the percentage of customers who are promoters (P) and subtract the percentage who are detractors (D). This equation is how we calculate a Net Promoter Score for a company: P – D = NPS
- 24Building Customer Relationship Relationship marketingRelationship marketing:
- From an acquisition/ transaction focus toward a retention/relationship focus.
- Philosophy of doing business, a strategic orientation;
- Focuses on keeping and improving relationships with current customers rather that on acquiring new customers
Advantages: By concentrating on new customer firms can easily fall into traps of short-term promotions, price discounts or catchy advertisements that bring customers in but are not enough to bring them back.
• By adopting a relationship philosophy, companies begin to understand customers over time and in great depth, are better able to meet their changing needs and expectations thus making them to stay and create profit.
- It is also cheeper to keep current customers that to acquire new. - 25Bucket theory of marketing1. As long as advertising and promotion programs are effective, the bucket stays full;
2. There is a hole in the bucket which is small (meaning that few customers are leaving) when business running well and delivering on its promises;
3. When operations are week and customers are nor satisfied - customers are falling out of the bucket throughout the holes faster than they can be poured in through the top.
- Relationship management focuses on plugging the holes in the bucket. - 26The evolution of customer relationship- Customers as strangers: not aware of or have not yet had any transactions with a firm.
• Goal - initiate communication with them to attract and acquire them.
- Customers as acquaintances: when customer awareness and trial are achieved
• Goal - satisfying customers. Provide value comparable to the competition.
- Customers as friends: when companies have enough information, to directly address the customer’s situation.
• Goal - customer retention. Requires development of trust.
- Customers as partners: when the level of trust deepens, commitment is established, highly personalized and customized offerings are created. This reduce the customer’s need to solve problems in the traditional sense of “finding a better alternative”.
• The key to success - firm’s ability to organize and use information about individual customer more effectively than competitors.
Note: not all customers may be interested in forming relationships with their suppliers or service providers. - 27Benefits of relationship marketing for customers1. Confidence benefits (the most important to the customer):
• Trust;
• Confidence in provider;
• Reduced anxiety;
• Comfort;
2. Social benefits:
• Familiarity (more fun to deal with someone you are used to);
• Social support (ex.: the pharmacist who knows an entire family and its special
needs);
• Personal relationships (important to the consumer’s quality of life; because of this reason a leaving employee may take customers with him/her).
3. Special treatment benefits:
• Special offers/'limited editions’;
• Price breaks; - 28Benefits of relationship marketing for firms1. Economic benefits:
• Increased revenues;
• Reduced marketing and administrative costs (in attracting and getting to know customers; serving the customers as they do not ask as many questions as new customers);
• Regular revenue stream;
2. Customer behaviour benefits:
• Strong word-of-mouth endorsements;
• Customer voluntary performance (ex. clearing their own table at a restaurant);
• Social benefits to other customers (ex. providing encouragement and guidance
during fitness session to a new customer);
• Mentors to other customers;
3. Human resource management benefits:
• Easier jobs for employees (customers contribute to the co-porduction of the service as they know they know how for example to schedule the next appointment without help);
• Social benefits for employees;
• Employee retention (it is easier to retain employees when there is a stable base of satisfied customers). - 29Relationship value of customersRelationship value of customers - a concept or calculation that looks at customers from the point of view of their lifetime revenue and/or profitability contributions to a company.
- 30Customer profitability segmentsCustomers differ in their relationship value so it may be neither practical nor profitable to meet all customers’ expectations, even though companies want to provide excellent service to all.
- 31Profitability tiers - the customer pyramid1. Platinum tier: most profitable, heavy users, not really sensitive to price customers;
2. Gold tier: want price discounts, not as loyal as platinum, could be heavy users;
3. Iron tier: volume to utilise capacity of the companie's capacities. Loyalty and profitability are not enough for special treatment;
4. Lear tier: cost money to the company, complain to others, demand attention.
80/20 rule - 20%of
customers produce 80% of sales or profit.
Profitability Tiers help to increase the potential of each customer:
- lower levels of customers: the firm must work either to change the customers’ behavior - to make them more profitable through increases in revenue - or to change the firm’s cost structure to make them more profitable through decreases in costs;
- loyal customers: the firm should strengthen relationship with them; - 32Relationship development strategies: Relationship development model Relationship drivers (1; 2)1. Core service provision (the most successful strategies are build on this):
• Service foundations built upon delivery of excellent service: - Satisfaction, service quality, perceived value;
2. Switching barriers (To retain customers, companies may consider increasing both customer inertia and switching costs)
• Customer inertia – customers are conservative and stay. They do not want to put an effort which may be required in changing service providers (ex. an old car repairer may have a history of your car repair, so switching a provider would mean that a customer needs to explain the whole history himself to a new provider).
• Switching costs: - Set up costs, search costs, learning costs, contractual costs. - 33Relationship development strategies: Relationship development model Relationship drivers (3)3. Relationship bonds (what to do, so that customers stay not because they need to but because they want to):
• Financial bonds (ex. better price for greater volumes; airlines have reward programs with hotels);
• Social bonds (ex. dentist, gym, university)
• Customization bonds (ex. tailor made solutions);
• Structural bonds: often created by providing customized service (joint investments, integrated systems); - 34Relationship challengesSometimes a firm might consider ending the relationship with customers - customer is not always right.
- Wrong segment (full-time working people apply for morning classes);
- Not profitable in the long term (when costs exceed revenue; ex. bank loans to bad credit history clients);
- Difficult customers - (un)intentionally act in a manner that in some why disrupts otherwise functional service encounters. Can negatively affect staff, create costs,
encourage other customers behave the same way. (ex. drunk, arguing, not willing to pay customers); - 35Relationship challenges: Some customers may not want relationshipsSome customers may not want relationships. This may be due to relationship marketing activities:
• Irritating (the customer feels like being forced into relationship);
• Intrusive (ex. overuse of database to communicate with the customer);
• Time-consuming (ex. registration which requires a lot of paper work);
• Unattractive (the customer does not value benefits offered).
Customer who wants to provide details info about their likes and dislikes to hotels do not necessarily want to do so with their banks. - 36Relationships to employees instead of companies. Stop exodus strategies.When a key employee leaves and customers follow.
3 proven strategies can stop exodus:
1) Customers can become attached to a particular key employee, and if that person leaves, they wonder whether service will suffer.
- Create a broader relationship by ensuring that customers interact with many employees - deploying teams and rotating staff.
2) Customers fear that a replacement won't be as good as the employee who left.
Stress the quality of all your employees—not just superstars. Publicize hiring practices, training, and employees' achievements.
3) Customers want information about the changeover and how you will manage the transition.
- Communicate replacements in advance of a departure, and have the outgoing employee introduce the new person. - 37Managing the co-creation of valueBy successfully managing value co-creation and exchange, companies can seek to maximize the lifetime value of desirable customer segments.
- 38Value co-creation framework3 components:
1. Customer value-creating processes:
- In B2C relationship, the processes, resources and practices which customers use to manage their activities.
- In a B2B, the processes are ones which the customer organization uses to
manage its business and its relationships with suppliers.
2. Supplier value-creating processes: the processes, resources and practices which the supplier uses to manage its business and its relationships with customer and other relevant stakeholders.
3. Encounter processes: the processes and practices of interaction and exchange that take place within customer and supplier relationships and which need to be managed in order to develop successful co-creation opportunities.
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- FlashCards sobre Lecture 4 , criado por Roberta Daugelai em 28-03-2016.
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- Roberta Daugelai
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