Managing Customer Retention: Through Satisfaction & Loyalty

Program overview:

One of the primary goals of any firm is to satisfy its customers in an effort to build market share and increase profitability by maintaining the loyalty of its customers to the firm. Customer satisfaction is key issue for every company wishing to increase customer loyalty and thereby create a better business performance. Customer Satisfaction and loyalty is a measurement of customer attitudes regarding products, services, and the act of customers making repeat purchases of current brands, rather than choosing competitor brands. Customers are the link to business success. Business simply cannot afford to lose customers to competition. Customer satisfaction and loyalty should be incorporated into the long-term goals of any business.

For whom:

This program is designed for all marketing staff at any level in the organization, Customer Relationship Management (CRM) departments, market research, loyalty scheme managers and supervisors, product managers, business unit managers, sales managers and supervisors, customer care managers and supervisors, analysts and any interested decision maker, department head or supervisor.

Learning objectives:

At the end of the course, participants will be able to: 

• explain customer satisfaction, retention and loyalty and measure them in a meaningful and systematic way;
• defend the use of a profitability dimension to any customer loyalty strategy;
• arrange, plan and manage impactful customer satisfaction surveys;
• define customer segments, profiles and models for maximum strategic as well as tactical impact;
• create ‘customer value propositions’ that work; and
• develop effective loyalty schemes: know what to avoid and how to improve them.

Course outline:

Day 1: Understanding Customer Satisfaction and Loyalty: Overview

• Customer satisfaction, retention, loyalty and delight
  • Levels of loyalty, Customer satisfaction and loyalty,
  • Customer delight
• Key loyalty measurements
  • Customer Satisfaction Index (CSI) and Customer Retention Rate (CRR)
  • Profit impact of CRR, Customer life expectancy
  • Customer loyalty index
• Loyalty and profits
  • The cost of loyalty
  • Activity Based Costing (ABC), Customer profitability and the whale curve
• Customer profitability at best practice companies, the strategy quadrants

Day 2: Customer satisfaction surveys

• Surveys and questionnaires, Objective of the survey
  • Population of interest, writing the questions
  • Sampling methods, Administration and analysis
  • Customer surveys guidelines, Different survey metrics

• Types of satisfaction surveys: transactional versus  image-based satisfaction surveys

• Who and what to measure, how to ask, Loyalty components

• The importance of demographics

• Segmenting your customers
  • Attitudinal and behavioral dimensions
  • Demographic variables, consumer and business
  • Customer profiling, Customer modeling
• Types of business customers (B2B)

Day 3: Key to loyalty: a ‘customer value proposition’ that works

• The value proposition: definitions
  • Why is value proposition, Building the value proposition?

• Articulating the value proposition, The strong value proposition: conclusion

• Customer loyalty and loyalty schemes
  • How to foster loyalty, The 6 Ps of customer loyalty
  • The two-tier approach, the laws of customer loyalty
  • Loyalty schemes: background and justification
  • Loyalty schemes: what to avoid, Types of loyalty programs

• Reasons to join, Different loyalty schemes,

• Rewards and perceived value
• Maximizing the results

Training Methodology

Lectures, discussions, exercises, case studies, audio-visual aids will be used to reinforce these teaching/learning methods.