Creating Customer Value, Satisfaction and Loyalty Flashcards
What is customer value?
Customer value is the perceived benefit that a customer receives from a product or service relative to its cost.
True or False: Customer satisfaction is the same as customer loyalty.
False
Fill in the blank: Customer loyalty is primarily driven by __________.
Customer satisfaction
What are the two main components of customer satisfaction?
Expectation and experience
Define customer retention.
Customer retention is the ability of a company to keep its customers over time.
What is the purpose of a customer satisfaction survey?
To gather feedback on customer experiences and identify areas for improvement.
Multiple Choice: Which of the following is NOT a factor in creating customer value?
A) Quality
B) Price
C) Brand loyalty
D) Competition
D) Competition
What role does brand loyalty play in customer retention?
Brand loyalty encourages repeat purchases and reduces the likelihood of switching to competitors.
True or False: Higher customer satisfaction always leads to higher customer loyalty.
False
What is the Customer Lifetime Value (CLV)?
CLV is the total worth of a customer to a business over the entirety of their relationship.
Fill in the blank: __________ is a measure of how products and services meet or exceed customer expectations.
Customer satisfaction
What is the importance of understanding customer needs?
Understanding customer needs helps businesses tailor their offerings and improve customer satisfaction.
Multiple Choice: Which strategy is effective for enhancing customer loyalty?
A) Price cuts
B) Personalized communication
C) Limited product variety
D) Ignoring customer feedback
B) Personalized communication
What is a key driver of customer satisfaction?
Quality of service or product.
True or False: Customer loyalty programs are only beneficial for businesses.
False
What is the relationship between customer satisfaction and customer referrals?
Higher customer satisfaction often leads to increased customer referrals.
Fill in the blank: A strong brand can create __________ by differentiating itself from competitors.
Customer value
What is one way to measure customer loyalty?
Net Promoter Score (NPS)
Multiple Choice: What can negatively impact customer loyalty?
A) Excellent customer service
B) Inconsistent product quality
C) Regular communication
D) Loyalty rewards
B) Inconsistent product quality
What is the impact of social media on customer satisfaction?
Social media allows customers to share their experiences, influencing perceptions and satisfaction levels.
True or False: Only large companies need to focus on customer satisfaction.
False
What is a common obstacle to achieving high customer satisfaction?
Lack of understanding of customer needs.
Fill in the blank: The __________ is the emotional connection that customers have with a brand.
Brand loyalty
What is the significance of feedback in enhancing customer satisfaction?
Feedback provides insights into customer preferences and areas for improvement.
