1 / 12

V. Kumar

PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies. V. Kumar. Chapter 5 Linking Brand Value to Customer Value. Instructor’s Presentation Slides. Link Brand Value to Customer Value. How to Link Brand Value to Customer Value. Select a set of customers

charla
Download Presentation

V. Kumar

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies V. Kumar

  2. Chapter 5 Linking Brand Value to Customer Value Instructor’s Presentation Slides

  3. Link Brand Value to Customer Value

  4. How to Link Brand Value to Customer Value • Select a set of customers • Survey these customers on a 10-point scale and compute various components of CBV • For the same customers compute CLV based on their transaction data • The following equations explain how an individual’s brand knowledge translates into brand attitude , brand purchase intention, brand behavior, and finally to his or her lifetime value to a firm.

  5. How to Link Brand Value to Customer Value • Brand Attitude = f(Brand Knowledge) • Trust = f (Awareness, Image) • Affect = f (Awareness, Image) • Brand Behavior intention = f(Trust, Affect) • Pintent = f (Trust, Affect) • Brand Behavior = f (Brand Behavior Intention) Cont’d….

  6. Linking Brand Value to Customer Value • Brand Behavior = f (Brand Behavior Intention) • Loyalty = f (Pintent) • Pprice = f (Loyalty) • Advocacy = f (Loyalty) • CLV = f (Pprice, Advocacy)

  7. Linking Brand Value to Customer Value • CLV is calculated based on customer behavior outcome • Brand building is the most important as it eventually leads to favorable brand behavior outcomes • Hence, when components of CBV are simultaneously optimized CLV scores are maximized for a customer

  8. Implementation

  9. Implementation • By examining the various components of customers brand value, companies can evaluate the brand value for each customer • Develop branding strategies to address any branding shortcomings that may exist in current branding communications • By strengthening the brand, companies eventually maximize the CLV of each customer

  10. Segmentation strategies to manage CLV and CBV • ACQUAINTANCES • Increase Brand Investment • Build Customer Relationships. • TRUE LOYALISTS • Brand Investment to maintain High Brand Value. • Nurture the Customer Relationship. • STRANGERS • Kill the Brand if no association. • Invest in the Brand if association exists. • POOR PATRONS • Align the Brand with the right customer segment.

  11. Conclusion • By understanding the individual CBV scores of customers, companies will be in a better position to develop strategies to strengthen the customer–firm relationship • By enhancing customer–firm relationships, firms will be in a position to positively impact the behavior of its customers thereby maximizing their profits.

  12. End of Chapter 5

More Related