Marketing
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PART II Connecting with Customers
C H A P T E R
4
Creating Customer Value, Satisfaction, and Loyalty
In this chapter, we will address the following questions:
1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management?
MARKETING MANAGEMENT AT RITZ-CARLTON
The Ritz-Carlton hotel chain, owned by Marriott International, is known throughout the world for its singular focus on providing exceptional service and luxurious amenities. This customer-centered approach is expressed by the company’s motto: “We are ladies and gentlemen serving ladies and gentlemen.” Guests at any of the 62 Ritz-Carlton hotels in 21 countries notice the brand’s famed personal touch immediately upon checking in, when they are greeted by name. Ritz-Carlton creates a daily “Service Quality Index”(SQI) at each of its locations, so employees can continually monitor key guest service processes and swiftly address any potential problems. At corporate headquarters in Maryland, management can check the SQIs of all Ritz-Carlton hotels and instantly analyze each location’s performance. Other customer service initiatives include the CLASS (Customer Loyalty Anticipation Satisfaction System) database that contains the preferences and requirements of repeat Ritz-Carlton guests, and the CARE (Clean and Repair Everything) room maintenance system that ensures all guestrooms are 59
A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall.
PART II Connecting with Customers
C H A P T E R
4
Creating Customer Value, Satisfaction, and Loyalty
In this chapter, we will address the following questions:
1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management?
MARKETING MANAGEMENT AT RITZ-CARLTON
The Ritz-Carlton hotel chain, owned by Marriott International, is known throughout the world for its singular focus on providing exceptional service and luxurious amenities. This customer-centered approach is expressed by the company’s motto: “We are ladies and gentlemen serving ladies and gentlemen.” Guests at any of the 62 Ritz-Carlton hotels in 21 countries notice the brand’s famed personal touch immediately upon checking in, when they are greeted by name. Ritz-Carlton creates a daily “Service Quality Index”(SQI) at each of its locations, so employees can continually monitor key guest service processes and swiftly address any potential problems. At corporate headquarters in Maryland, management can check the SQIs of all Ritz-Carlton hotels and instantly analyze each location’s performance. Other customer service initiatives include the CLASS (Customer Loyalty Anticipation Satisfaction System) database that contains the preferences and requirements of repeat Ritz-Carlton guests, and the CARE (Clean and Repair Everything) room maintenance system that ensures all guestrooms are 59
A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall.