?2000 Prentice Hall
Objectives
? 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
?2000 Prentice Hall
Resources Organization and aligning..,
High Performance Business
Processes By improving critical business..,
Stake-
holders
Set strategies to
satisfy key..,
?2000 Prentice Hall
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
?2000 Prentice Hall
Inactive or
ex-customers
Customer Development
Partners Advocates Clients Repeat customers First-time customers
Suspects
Prospects
Disqualified
prospects
?2000 Prentice Hall
Customer/Product
Profitability Analysis
P1 Highly profitable
product
P2 Profitable product
P3 Losing product
P4 Mixed-bag product
P
r
o
d
u
c
t
s
+
+
+
High
profit
customer
+
-
Mixed-bag
customer
+
- -
Losing
customer
C1 C2 C3
Customers