customer satisfaction versus sales hugo demaegd 21/09/2011 page 1 does customer satisfaction sell...

Customer satisfaction versus sales

Hugo Demaegd21/09/2011

does customer satisfaction sell (cars)?a BMW Belux case



Does customer satisfaction sell cars through loyalty and word of mouth?

= loyalty = repurchase+ cross selling+ up selling

= word of mouth = customer acquisition

?

+ + +...

+

?customer satisfaction

maximum customer satisfaction = maximum sales?



Customer Satisfaction for BMW Belux

Customer satisfaction survey> 100.000 satisfaction enquiries per yearcustomer dialogue methodcontinuous, daily measurement

RMDB

CARMEN

CRM database Integration of all data sources in BMW

environmentdata quality = customer contact quality

*contact history*customer profile

optimization of contact interval

Consulting for customer satisfaction improvementOnline, dynamic reporting portal



Does customer satisfaction sell cars through loyalty and word of mouth?

Customer satisfaction > 98%, yearly sales increase 8,5%

but...Many examples of not loyal, satisfied customers... Many examples of satisfied customers not referring to

other people...

Satisfaction ≠ guarantee for loyalty

≠ guarantee for word of mouth

NO, customer satisfaction does not sell cars, but...



Does customer satisfaction sell cars through loyalty?



?

+ + +...

+




customer satisfaction versus customer loyalty

A Sale is the result of a customers choice between 2 alternatives. The alternative with the best perceived total value is chosen.

expected fulfillment of needs

+ emotional bond with the brand

+ relational bond with wholesaler and dealer

perceived total value alternative A

expected fulfillment of needs

+ emotional bond with the brand

+ relational bond with wholesaler and dealer

perceived total value alternative B

objective: obtain the (comparatively) highest perceived total value in a profitable way



Customer satisfaction versus customer loyalty

1. expected fulfillment of needs (satisfaction)

2. emotional bond with the brand

3. relational bond with wholesaler and dealer

perceived total value

Three components = three possible domains of action

! changes over time (satisfaction tends to diminish as car ages)!

! efficiency principle (optimizing satisfaction >< maximizing satisfaction)!

! critical moments in product life cycle (replacement time, maintenance,...)!



Customer satisfaction versus customer loyalty

1. expected fulfillment of needs (satisfaction)

2. emotional bond with the brand

3. relational bond with wholesaler and dealer

perceived total value

1. Optimizing the expected fulfillment of needs (satisfaction)

Precise measuring and monitoring tool: which needs, how important, how satisfied Efficient action where needed: - modify product/service - communication

2. Optimizing brand loyalty

Measurement of comparative brands-related perceived value

3. Optimizing relational bond

Pay attention to customers on behalf of the wholesaler and dealer: right interval, right quantity, right quality

Eindcontrole

Facturatie

Uitleg

Snelheid werk

Onopgeloste gebreken

Kwaliteit voertuig

Advies,service

Onvolledige uitvoering

Prijzen

Vervangwagen

-4

-3

-2

-1

0

1

2

3

4

5

6

0,00 0,02 0,04 0,06 0,08 0,10 0,12 0,14 0,16 0,18

Belang

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pië

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vull

ing



Does customer satisfaction sell cars through word of mouth?



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+ + +...

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Customer satisfaction versus word of mouth

Three required conditions to stimulate customers to spread positive word of mouth: context, motive and activator

Motive

Context

Activator

Offering an instrument/ contentImprove awareness(Communication on reward principle)

1. improve personal prestige

2. Pioneers (and early adopters)

3. Exchange experiences Negative Positive

4. (Reward (MGM))

Customer has a social network:family, friends, acquaintances,..

Customer is socially active:societies, facebook, congresses,

etc...



Does customer satisfaction sell cars ?

Yes, customer satisfaction sells cars,

but...- satisfaction is a requirement not

a guarantee for sales- satisfaction has a cost- satisfaction is inefficient in

terms of objective if selling is the final target

Rephrase the statement:Demand strategy sells cars!



Does demand strategy sell cars ?

Loyal,profitable,

relationshipsAmbassadors

Adjusting relationships

provide

Insightinto

relationships

Acquire knowledge

about relationships

Reporting, consulting Structure and manage data

Generate data: survey, sampling

Customer loyalty program

Word of mouth

First line contact centre

Social media monitoring

Marketing events coordin.

Mobility Service



Thank you for your attention,

hope you are satisfied...

customer satisfaction versus sales hugo demaegd 21/09/2011 page 1 does customer satisfaction sell...

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