This is a rich topic that bridges marketing, customer relationship management (CRM), and service
quality. Below is a detailed breakdown of the key points associated with managing customer-
experienced value:
Understanding Value
1. Definition: Customer-experienced value refers to the perceived benefit a customer gains
from a product or service relative to the cost incurred (monetary, time, or effort).
2. Types of Value:
• Functional Value: Based on the performance or functionality of the product/service.
• Emotional Value: How the product/service makes the customer feel.
• Economic Value: Savings or financial benefit perceived by the customer.
• Social Value: The status or connection associated with using the product/service.
Modeling Customer-Perceived Value
1. Value Perception Frameworks:
• Means-End Chain Model: Links product attributes to personal values (attribute →
benefit → value).
• Net Value Model: Customer Value = Perceived Benefits – Perceived Costs.
2. Factors Affecting Value Perception:
• Product quality, brand reputation, customer service, and post-purchase experiences.
• External factors such as peer reviews, cultural values, and market trends.
Sources of Customer-Perceived Value
1. Core Product/Service: Meeting the primary need of the customer.
2. Supplementary Services: Added benefits like customer support, customization, and loyalty
programs.
3. Brand Trust and Emotional Connection: Building long-term relationships based on
reliability and shared values.
Customization
1. Definition: Tailoring products or services to meet individual customer preferences and
needs.
2. Benefits:
• Enhances customer satisfaction and loyalty.
• Creates a competitive advantage.
3. Examples:
• Personalized recommendations (e.g., Amazon, Spotify).
• Customizable product designs (e.g., Nike ID, Dell laptops).
Value Through the Marketing Mix
1. Product: High-quality, innovative, and tailored to customer needs.
2. Price: Perceived fairness and affordability.
3. Place: Easy accessibility and convenience of purchase.
4. Promotion: Effective communication that emphasizes the value proposition.
5. People: Skilled and empathetic customer-facing staff.
6. Process: Seamless customer journey from awareness to post-purchase.
7. Physical Evidence: Tangible and intangible elements reinforcing brand promise.
Customer Experience (CX) Concepts
1. Definition: The overall perception a customer forms based on interactions with a brand
across touchpoints.
2. Key Elements:
• Usability and design of digital platforms.
• Consistent service across all channels.
• Emotional resonance through storytelling and personalization.
Service Marketing
1. Characteristics of Services:
• Intangibility, inseparability, variability, and perishability.
2. Key Strategies:
• Focus on building relationships rather than transactions.
• Highlighting service quality and employee expertise.
Total Quality Management (TQM)
1. Definition: An organizational approach focused on long-term success through customer
satisfaction.
2. Principles:
• Continuous improvement in processes.
• Employee involvement and training.
• Customer-focused strategies.
Relationship Management
1. Importance:
• Drives customer loyalty and retention.
• Builds trust and long-term engagement.
2. Key Practices:
• Proactive communication.
• Delivering on promises and resolving complaints efficiently.
CRM's Influence on Customer Experience
1. Definition: CRM (Customer Relationship Management) refers to strategies and tools used to
manage customer relationships.
2. Influence on CX:
• Enhances customer insights through data analytics.
• Improves personalization by understanding customer preferences.
• Strengthens communication via multiple channels (email, chat, SMS).
How CRM Software Applications Influence Customer Experience
1. Customer Insights:
• Collect and analyze customer behavior, preferences, and feedback.
• Provide actionable insights for marketing and sales teams.
2. Personalization:
• Generate personalized recommendations and targeted campaigns.
• Automate reminders and special offers based on customer history.
3. Efficient Service:
• Centralized data enables faster issue resolution.
• AI-powered chatbots provide 24/7 assistance.
4. Seamless Multi-Channel Engagement:
• CRM tools integrate various communication channels for consistent messaging.
5. Automation:
• Streamlines workflows like follow-ups, feedback collection, and order management.
Conclusion
Managing customer-experienced value requires a holistic approach, integrating concepts like
customization, service quality, and TQM with modern tools like CRM software. By leveraging
these elements effectively, businesses can not only meet customer expectations but exceed them,
ensuring loyalty and long-term growth.
