Discussion2

Week 2 Learning Activities.html

WEEK 2

1.  Customers and Customer Communities

Just what is the difference between a need and a want? As the course readings explain, a need doesn't become a want until a customer has the resources to fill the need. Can you distinguish between your own needs and wants? Think of something you need and something you want. What resources will it take for the need to become a want? 

Amazon's web site offers a "wish list." It may be in the shopping cart area. Amazon wants to keep track of items you may potentially buy when you have the resources. The company is trying to help you turn needs into wants.

Listen to this audio clip with Laura Carros, a JCPenney executive responsible for many of the company's customer initiates who can give us some insight into the practical implications of customers and communities. http://app.wistia.com/embed/medias/376e05324b

Then, listen to Carros again as she talks about how she developed the Ambrielle customer communities. http://app.wistia.com/embed/medias/6c19a49421

2.  Satisfaction, loyalty & empowerment

In one of this week's discussion topics you will have the opportunity to review some corporate websites.  You will visit the three web sites to choose one to evaluate. You will have to go through more than just the main landing page—click on the current contests and other pages to get the data you need.

What does this company do to build customer loyalty? To build community? Are customers are empowered to do anything here? Are there opportunities for customer feedback?  Anything else? Does the company partner with other organizations to leverage the loyalty those other companies enjoy with their customers? If so, what organizations?  What partnering activities is the company doing with those organizations? Are you a loyal customer of this company or might be consider becoming one? Why or why not? 

What's your favorite loyalty program? Why? What effect does it have on you, e.g., blocker, spreader, or accelerator affect? Does the loyalty program pass the criteria for successful loyalty programs outlined in the Week 2 readings?

Many companies use cause-related marketing to build their customer relationships. You see this when a product or service indicates a portion of each sale will benefit a specific charity. 

Check out the examples in the Week 2 Discussion Topic 2 and share your findings from this search.

3.  Customer Satisfaction

Review the customer satisfaction scores in Table 2.2 of the Week 2 readings. What do you think? Do you find these particularly low, and would you prefer to see them close to 100 percent? Why do you think they fluctuate? Can any company ever achieve 100 percent customer satisfaction? As a customer, what are some of the sources you use to assess customer satisfaction with a product or service you are considering? How dependable do you view that source? (Think of consumer sources like Consumer Reports, or customer-provided reviews, etc.)

Required: Post your thoughts on this topic in Week 2 Discussion Topic 3. Feel free to comment on classmates' posts, especially if they already identified one of your sources for customer satisfaction.

Latest available data (updated May 2018):

National ACSI = 76.7 (weighted average of all sectors and industries)

National, Sector, and Industry Results

The American Customer Satisfaction Index (ACSI) produces customer satisfaction results on four levels: national, sector, industry, and company/agency. The diagram shows the 46 industries and 10 sectors that comprise the Index, as well as the most recent scores available at the national, sector, and industry levels.

Banks 81 Credit Unions 82 Financial Advisors 81 Internet Investment Services 79 Health Insurance 73 Life Insurance 78 Property & Casualty Insurance 80	Finance and Insurance 77.2				Telecommunications and Information 71.7	70 Fixed-Line Telephone 62 Internet Service Providers 62 Subscription Television  68 Video on Demand 75 Video Streaming 74 Wireless Telephone  78 Computer Software 75 Internet News & Opinion 76 Internet Search Engines & Information 73 Internet Social Media
Apparel 80 Athletic Shoes 80 Breweries 84 Food Manufacturing 81 Personal Care & Cleaning Products 80 Soft Drinks 84	Manufacturing/ Nondurable Goods 81.1				Retail Trade 78.1	77 Department & Discount Stores 76 Gasoline Stations 79 Health & Personal Care Stores 82 Internet Retail 79 Specialty Retail Stores 79 Supermarkets
Federal Government 69.7 Local Government 71.3	Public Administration/ Government 70.5				Health Care and Social Assistance 76.5	77 Ambulatory Care 76 Hospitals
Automobiles & Light Vehicles 81 Cellular Telephones 79 Household Appliances 80 Personal Computers 77 Televisions & Video Players 85	Manufacturing/ Durable Goods 80.9				Accommodation and Food Services 78.0	76 Hotels 78 Internet Travel Services 78 Full-Service Restaurants 79 Limited-Service Restaurants
Cooperative Utilities 77 Investor-Owned Utilities 75 Municipal Utilities 75	Energy Utilities 75.2				Transportation 76.1	73 Airlines 81 Consumer Shipping 73 U.S. Postal Service
Updated May 2018

National, Sector, and Industry Results (May 2018) Retrieved June 15, 2018: http://www.theacsi.org/national-economic-indicator/national-sector-and-industry-results

4. Customer Relationship Management (CRM)

The goal of any formal customer relationship management program is to attract and retain profitable customers with high customer lifetime value. Can you identify a company for which you might be considered a most valuable customer, where you are in Level 1 of their customers (See Figure 2.5, Levels of Customers Based on Profitability)? 

In this week's writing assignment, you will get a chance to calculate a customer lifetime value. This will be a simple calculation, but if you want more details about the calculation or perhaps use it for your writing assignment, visit https://blog.ometria.com/how-to-calculate-customer-lifetime-value-clv-in-ecommerce. This site will give you an example of lifetime value using Starbucks as an example. Note all the variables that go into lifetime value calculations.

Required: Record your lifetime value calculation and discuss how the company tries to retain and grow your business as a most valuable customer in Week 2 Discussion

5. Ethics, Laws, and Customer Empowerment

All companies now have privacy policies in an effort to assure customers they are protecting their privacy. Yet, there are frequent and far-reaching damages caused by hackers who are able to access our private data such as the Target data breach discussed in the following article: 

McGrath, M. (2014). "Target Data Breach Spilled Info on As Many As 70 Million Customers." 

One way Apple is trying to help us protect our privacy above and beyond any companies' individual privacy policy is the use of Apple Pay, a service that adds another level of security to any purchases made using a debit or credit card the consumer has registered with Apple Pay. 

What do you think? Were you a "target" of the Target data breach? How much damage did it cause you? How safe do you think companies keep our private data and what do you think companies can do to protect us even more? Are you using Apple Pay for your purchases? 

Recap of Week 2 Learning Activities

Since you are a customer, you should find the Week 2 Learning Activities easy to digest. The main point is to understand that customers are now empowered to participate in the marketing process. Inasmuch as customers should be at the center of all marketing activities, our role is key to ensuring we get the products and services we want and need.