Developing a customer equity model for guiding marketing spend in the financial services sector
- Authors: Bick, Geoffrey Norman Charles
- Date: 2008-05-26T06:29:06Z
- Subjects: Customer relations , Relationship marketing , Financial services industry , Customer services marketing
- Type: Thesis
- Identifier: uj:2221 , http://hdl.handle.net/10210/461
- Description: Organisations are increasingly under pressure to meet financial and other objectives in dynamic and competitive markets, that are being driven more by services than by products. Marketing as a function needs to become more accountable with respect to the marketing investments that are made and the returns generated from these programmes, and hence to increase shareholder value. Intangible assets are comprising a growing proportion of this shareholder value, to the extent that 75% of the value of the organisation is currently made up of intangibles such as Human Equity, Brand Equity and Customer Equity. Thus the marketer needs to build the marketing-based intangible assets of Brand Equity, the inherent value of the brand, and Customer Equity, the sum of the lifetime values to the organisation of its current and future customers. To be able to monitor and manage marketing’s contribution, these assets need to be measured, and the effectiveness of marketing programmes needs to be determined ideally in financial terms, e.g. ROMI – Return on Marketing Investment. The purpose of this research study was to develop and test a framework of Customer Equity in the financial services sector, to guide marketing spend so that shareholder value is built by leveraging the marketing intangibles. Consequently, the objectives were to develop a model of Customer Equity, to calculate Customer Lifetime Value of customers in a segment, to determine the value drivers and the elasticity relation of Customer Equity, and finally to provide guidelines to organisations to improve their Customer Equity. The first area of research was in the field of Marketing metrics, the set of measures that helps organisations to understand their marketing performance. The recommendation for organisations is to develop a marketing dashboard, or range of key marketing indicators, which would include short-term performance measures, e.g. market share or customer satisfaction, as well as long-term planning measures, e.g. Brand Equity and Customer Lifetime Value. Brand Equity was then reviewed as a valuable intangible asset. Various models have been developed to explain the different sources, components and outcomes of ii Brand Equity, as it is a multidimensional construct. The measurement and valuation of Brand Equity was also researched, and its link to shareholder value. Customer Equity, an alternative market-based intangible asset that can be a driver of shareholder value, was also reviewed. The conclusion from a review of the models is that there are two schools: the Blattberg, Gupta and colleagues school, which tends to focus on internal analysis as typically used in direct marketing applications; and the Rust and colleagues school, which tends to focus externally on the customer and the competition. Both schools have something to contribute: the internal school, on accurate understanding of Customer Lifetime Value, and the external school, on the relative importance of the drivers of Customer Equity. This research also makes a contribution to the Brand Equity / Customer Equity debate, analysing similarities and differences, and developing a model to explain the trade-off between the two concepts. A combination of the two schools was used to develop a model of Customer Equity, including supply side inputs (for accurate CLTV calculations) and demand side inputs (for determining drivers and their elasticities). Using input from the databases of a financial institution, Customer Lifetime Value and Customer Equity for customers in the SME market sector were calculated. A convenience sample of 251 SME’s was interviewed on the demand side using a structured questionnaire, to develop data on the drivers of their importance and the relative performance of banks. A statistical model was then developed, using Principal Components Regression (PCR) analysis, to determine the drivers of Customer Equity, the factors influencing these and the relative sensitivities. A key contribution of this research was the development of the Probability of Defection as a measure of the dependent variable in the multiple regression. The model was tested by determining the ROI of two marketing programmes from the financial institution, to guide their marketing spend. Finally, a Customer Equity Management Process was developed to assist organisations in implementing a Customer Equity focus. , Prof. Chris Jooste
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Online community portals for enhanced alumni networking
- Authors: Barnard, Zenia
- Date: 2008-08-13T12:18:49Z
- Subjects: Web portals , Selective dissemination of information , Universities and colleges mergers , Relationship marketing , Customer relations , Corporate image , Alumni and alumnae , University of Johannesburg
- Type: Thesis
- Identifier: uj:7650 , http://hdl.handle.net/10210/851
- Description: A university’s alumnus grouping is one of its most valuable assets in terms of its potential financial, strategic and social contribution towards the credibility and longevity of the institution. The goodwill and support of a primary stakeholder grouping such as the alumni is crucial to the aspirations of a Higher Education institution wanting to prosper in a fast-changing and highly competitive market. Alumni members have the capacity to assist in strategically positioning a tertiary institution as a market leader in the South African Higher Education Sector (SAHES) by means of representation on the institutional council and their involvement in networking, lifelong learning, career services, mentoring, fundraising and community development activities. In light of the restructuring and transformation that this sector has undergone since 1994, building and maintaining valuable relationships with alumni stakeholders of tertiary institutions in South Africa has become a new and more difficult challenge. The integrated network approach of relationship management could give an institution the opportunity to create a win-win situation for all stakeholders involved. Information technology has had a significant impact on the power structure and relationship between organisations and their publics, stakeholders and the media. It has become extremely difficult for organisations to define and segment these audiences as, for example, Internet audiences are widely spread across geographical, cultural, and economic boundaries. This makes the packaging and dissemination of information a much more challenging task, as information needs to be generic enough to be commonly understood, but should also be personalised in such a way that it still addresses the different audience segmentations effectively. However, the identification and profiling of target audiences is critical for successful information dissemination, as this knowledge will guide the information managers within organisations in compiling relevant (to the target audiences) content and packaging the information in a way that is most suitable to the needs and resources of the targeted group. At the core of developing an alumni network is a secure database with an interactive Web-based platform allowing the alumni management teams and members to disseminate and share relevant information freely. According to a research project (the first phase of a longitudinal study) about disseminating information to UJ alumni, 98,2% of the respondents indicated that they wanted to have contact with the UJ Alumni Relations Office (Barnard, Rensleigh & Niemann, 2005). The majority of respondents, 86,7%, indicated that they preferred to receive the information via electronic mail or from the website. The research findings indicated that the UJ alumni stakeholder group is part of a privileged section of the South African population in the global and national digital divide. Thus, the alumni management of UJ had the opportunity to explore and use the information-sharing options offered by online and digital technologies. This research project forms the second phase of the ongoing research project in an attempt to discard the “one-size-fits-all” notion with regard to information sharing with the alumni stakeholders of tertiary institutions in South Africa. The aim of this research project is to determine the extent to which an online community portal could manage the information needs of alumni stakeholders in the SAHES, using the alumni of the University of Johannesburg as a case study. Establishing an online (virtual) community Web portal for UJ alumni will support a customised approach in terms of information content, dissemination, context and commerce. An online community environment will offer alumni opportunities to re-establish contact with peers and nurture relationships with one another through frequent social interaction (chat). Such a facility would allow and encourage conversations that are of value to all stakeholders, as these communities can exist beyond the boundaries of location and time. They foster not only the potential to promote business-to-business (B2B) and business-to-consumer (B2C), but also consumer-to-consumer (C2C) interaction and could even exploit the possibilities of human-resource placements. The research consisted of an extensive literature review followed by a quantitative empirical survey and a qualitative discussion forum. The purpose of the literature review was to establish a theoretical framework in order to lay a solid foundation from which the empirical research was conducted. The different components of the research problem were discussed as well as possible variables that could influence the research problem. The restructuring of the South African Higher Education Sector was investigated, with specific focus on the University of Johannesburg and its alumni stakeholder group, taking an in-depth look into the value that an alumni stakeholder group holds for an institution. The management of alumni information needs was discussed, using Web-technology as focal point. Online community portals were defined, emphasising the benefits that this information tool could have for Higher Education alumni. As part of the quantitative study, an empirical survey was conducted in April 2006 among the alumni of the University of Johannesburg to determine their information needs concerning an online community portal, and the content required of such an online community model. A total number of 10 380 questionnaires was distributed to graduates of the University of Johannesburg at the Autumn Graduation ceremonies. The questionnaire consisted of four sections, namely Section A: Biographical Information, Section B: Online Activities, Section C: Alumni Information Services and Section D: Alumni Community Needs. In total, 1 703 questionnaires were completed and returned by these graduates to the UJ Alumni Relations Office. In addition, a qualitative discussion forum was conducted among 35 alumni management representatives from fourteen SAHES institutions during August 2006. The representatives indicated how information was disseminated electronically to alumni target audiences and their opinions towards alumni online community portals were tested. The research results indicated that an online community portal, could manage, to a great extent, the information needs of alumni in the South African Higher Education Sector (UJ alumni case study). Consequently, a prototype was proposed for an online community portal for SAHES alumni that would have a significant impact on the information and communication methods used to build alumni networks, for the benefit of both the alumni stakeholders and the Higher Education institutions in South Africa. Although the alumni of the University of Johannesburg served as a case study for this research project, the proposed prototype could be tailored to the needs of other alumni organisations throughout the South African Higher Education Sector. In terms of inter-institutional collaboration, this research project offers an opportunity to liaise and share information with other alumni organisations of the SAHES. This could result in successfully identifying a best practice model for managing the information needs of alumni stakeholder groups of tertiary institutions in developing countries, which is significantly different from the philanthropic approach to these stakeholder groups in first world countries. As a result, the employment sector of Higher Education institutions in South Africa could gain from the research outcomes, as the proposed prototype will offer an ICT and Web-based solution which could be applied for the mutual benefit of the relevant stakeholder groups and the institutions. , Prof. Chris Rensleigh
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Employees as customers - an internal marketing study of the Avis Motor Vehicle Rental Group in South Africa.
- Authors: Roberts-Lombard, M.
- Date: 2009
- Subjects: Employee relationships , Customer relations , Avis Motor Vehicle Rental Group (South Africa)
- Type: Article
- Identifier: uj:6199 , ISBN 978-086970-6619 , http://hdl.handle.net/10210/5279
- Description: The purpose of the paper is to investigate the mutually beneficial nature of establishing long term relationships with employees as internal customers of the business. The target population for this study was 225 Avis motor vehicle rental branch managers in South Africa. A total of 155 managers of Avis branches participated through structured, personal interviews in the completion of questionnaires. Data analysis was done by calculating averages and standard deviations, Explorative Factor Analysis, Cronbach Alpha-values and practical significance by means of effect sizes. The findings of the study stipulate that a more coherent attempt must be made to improve the level of internal communication between the managers of Avis motor vehicle rental branches and their employees. This creates an environment within the Avis motor vehicle rental group that promotes mutual respect, trust and concern between management and employees.
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The customer market practices of the travel agency industry in the Gauteng Province of South Africa
- Authors: Roberts-Lombard, M.
- Date: 2011
- Subjects: Relationship marketing , Customer relations , Travel agencies (Gauteng, South Africa)
- Type: Article
- Identifier: uj:5725 , ISSN 1993-8233 , http://hdl.handle.net/10210/5268
- Description: Relationship marketing stresses the importance of continuous interaction between the seller and the buyer in order to cultivate a long-term, mutually beneficial relationship. High interest rates, increasing prices of basic goods and services and a weakening rand has reduced consumer spending on domestic and international travel. Therefore, there is continued pressure on South African travel suppliers to review their current relationship marketing practices to secure customer retention in a competitive and volatile travel market. The purpose of the article is to indicate the current status of the customer market practices of the travel agency industry in Gauteng, and to provide recommendations to the management of travel agencies in the province regarding the improved application of the principles of relationship marketing. The target population for this study was 280 travel agencies of which 170 managers and/or owners participated through personal interviews in the completion of questionnaires. The findings of the study indicate that the owners and managers of travel agencies must create an environment which is more accessible for the critical interaction with customers. The loyalty of customers can be increased when customers are provided with the opportunity to share their experiences and comments with the travel agency in an interactive manner.
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Marketing guidelines based on quality service that secure customer added value
Investigating client relationship needs and wants within the banking industry in South Africa
Banking customers’ attitudes toward complaining : their likelihood of voicing a complaint and service recovery they consider appropriate.
- Authors: Petzer, D. J. , Mostert, P. G.
- Date: 2012
- Subjects: Banking industry - South Africa , Customer complaints , Services marketing , Service recovery responses , Customer relations
- Type: Article
- Identifier: uj:5899 , ISSN 1993-8233 , http://hdl.handle.net/10210/8018
- Description: This paper measures the attitude of banking customers towards complaining and their likelihood to complain when a service failure is experienced at their current and another bank. Insight is also provided into the service recovery responses customers consider appropriate when a service failure is experienced. The target population included individuals in the Gauteng Province of South Africa who hold a bank account in their personal capacity. An interviewer-administered survey was used to collect data using non-probability quota sampling based upon population group and gender. A demographic profile of respondents, as well as the findings in terms of the aforementioned constructs and related hypotheses is provided. The study found that respondents have a positive attitude towards complaining, and that they are significantly more likely to voice a complaint when experiencing a service failure at their current bank than at another bank. Significant differences also exist with regard to the individual responses respondents consider appropriate when confronted with a hypothetical service failure experienced at their current bank and another bank.
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The building of customer relations within the retail industry
- Authors: Botha, Pieter Hendrik
- Date: 2012-08-20
- Subjects: Customer relations , Retail trade -- Customer services
- Type: Thesis
- Identifier: uj:2807 , http://hdl.handle.net/10210/6245
- Description: M.Comm. , The first objective of this study is to determine the techniques appropriate for building customer relations. The second objective of this study is to establish the guidelines necessary for improving customer relations. The third objective is to establish the levels of relationships that have taken place between the respective manufacturing and customer (retail) companies under study. The fourth objective is to discover if any best practices with regards to relationship building can be identified. Restrictions/Limitations The study under focus relates only to a small sample in the South African economy. Although one could probably use the findings as a representative sample, a more valid statistical measure will be gleaned from a larger sample. Unfortunately little research has been reported on relationship marketing in South Africa in recent years. A report by Jordaan et. al. (1997) was released on key account management, which is an instrument to successful marketing relationships. In fact, no concrete conclusions have been drawn with regards to South African companies' channel relationship positions between suppliers and customers. Due to the latter, the research study has been of an exploratory nature. The hypothesis put forward, together with the research study, will serve as an excellent cornerstone for further research developments. Research methodology Part One: Theory Information for this study has been collected by making use of the following ways. Firstly information concerning the development of customer relations from the pre 1960's, was retrieved from a product manager at Unilever, by means of an interview. Secondly, information was captured from published and unpublished literature about the development of the concept of relationship marketing and its rightful place within the general field of marketing. Information concerning techniques, guidelines and best practices for relationship/partnership building, have been extracted from various literature sources. Part Two: Empirical study An empirical study has been undertaken to determine to what extent South African fast moving consumer goods companies have progressed towards a synergistic partnership between supplier and customer. The information was collected by means of an unstructured questionnaire directed at the following five focus group companies, namely, Cadbury's/Schweppes, Coca-Cola, Nestle, National Brands and Unilever.
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Strategic advantage through customer value
- Authors: Harding, Vernon Victor
- Date: 2012-08-21
- Subjects: Total quality management , Strategic planning , Customer relations , Consumer satisfaction
- Type: Mini-Dissertation
- Identifier: uj:2909 , http://hdl.handle.net/10210/6339
- Description: M.Comm. , Lots have been said in the literature in regard to customer value and the way it should influence the company and its management strategy. Customer focused, close to the customer, building customer relations creating customer value, becoming customer driven and exceeding customer expectations are some of the hottest subject executives are talking about. If so way are most companies in South Africa and in the world still content with their internal measurements without asking whether what they are measuring has any relevance on the companies performance (Fagiano, 1997:6). For South African companies competitiveness have never been more important because of the rapidly changing global environment and the swift changes in the demographic and socio-economic locally (De Villiers & Slabbert, 1996:35). The death of distance and the (Peters, 1997:2) current exchange rate of the rand makes it advantageous for international companies to invest in South-Africa putting local companies under a lot of strain. It is proposed to use customer value as a strategic performance measure tool and to develop a customer driven culture to insure that the perceived value of the product is above expectation and that branding is achieved through customer value. It was indicated that customer value can be a performance measurement tool and a major component in the strategic management process and that it is here to stay and will be a vehicle for many a company to achieve competitive advantage. The principle of customer value is not new and has been proven in the Total Quality Management process. It would thus be building on existing capabilities that have been acquired from total quality management of internal processes and products. The challenge lies in refocusing from the internal quality processes to an external customer value. This movement of focus will not be easy and organisations will have to rethink their culture, structure and managerial capabilities. Employees will need to learn a few new skills such as (1) customer responsiveness and evaluation, (2) innovation, (3) strategic thinking, (4) radical thinking and internal motivation
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Evaluating the service quality within the aftermarket components industry in South Africa
- Authors: Van Coller, Riana
- Date: 2012-09-12
- Subjects: Customer services - Management , Consumer satisfaction , Customer relations , Service industries - Quality control , Service industries - Customer services
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/382548 , uj:10108 , http://hdl.handle.net/10210/7491
- Description: M.Comm. , Previously the engine components industry relied on being in the game by competing on product availability, product quality and pricing. The cost of not having customer driven strategic plans created certain drawbacks. These include: the use of crisis management (companies being reactive rather than proactive), diverse directions being taken and redundancy, loss of competitive edge and openness to outside influences. Local component manufacturers have to reduce their dependence on OEM manufacturing alone. This means that they will have to move into the after market, locally and overseas, and export more to foreign OEMs and component producers. Those who do not make the transition will have to diversify or close their doors. The result is that South African engine component companies do not only have to adapt to the reality of pricing pressure of intense competition, but also have to adapt to the increased service expectations of customers on all levels. Service quality can be defined as the extent of discrepancy between customers' expectations and their perceptions (Zeithaml, et al, 1990: 19). The question arises whether engine component companies in the current climate are basing their competitive advantage on a customer-orientated culture with an inner driving force. Service quality is an abstract and elusive concept, because it is intangible, heterogeneous and inseparable from production and consumption. In the process of growing towards customer retention and moving away from the initial concept of just providing customer satisfaction through product availability, product quality, basic service and pricing, superior service quality must be obtained. The measurement of perceived service quality within the engine component industry has not received much attention up till now. This dissertation addresses the problem of measuring the current quality of service (in the engine component industry), and provides guidelines on closing existing gaps. The objectives of the study can be summarised as follows: To assess the service expectations of engine component suppliers' customers. To assess customer perceptions of the performance of the engine component suppliers. To assess which customer - orientated strategies are perceived to be employed by engine component suppliers. To assess how engine component suppliers can narrow or eliminate the customerprovider gaps that exist.
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Towards a managed service encounter process as an instrument to improved customer satisfaction
A measurement of client satisfaction with services provided by Radiopark Studios to internal clients
- Authors: Dladla, David Toto
- Date: 2014-07-23
- Subjects: Consumer satisfaction , Customer relations
- Type: Thesis
- Identifier: uj:11742 , http://hdl.handle.net/10210/11469
- Description: M.Tech. (Business Administration) , The purpose of this study was to determine the service quality perceptions of the internal clients who use Radiopark Studios' facilities. This subject is regarded as important in that Radiopark Studios now competes with outside facilities. Internal clients can hire studio facilities and personnel from different production houses. Radiopark Studios should, therefore, improve its clients relationship. The aim was to find out whether there were gaps between the internal clients' service expectations and the services delivered by Radiopark Studios. Zeithaml, Parasuraman, and Berry (1990) Servqual analysis was used as the primary theory base. The researcher investigated the following sections: • Booking office, • Production assistants, • Radio block (studios), • Technicians, • Radio main control, • Security and reception, and • Marketing. The main findings were that there were gaps between the service received by Radiopark Studios internal clients and the service they would like to get. It also showed that Radiopark Studios internal clients were receiving inconsistent service in that some were satisfied with the service delivery whereas others were dissatisfied. Recommendations are made in this report on how to close the service gaps identified in the study.
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Managing the client and supplier relationship at Eskom power delivery projects
- Authors: Sithole, Menzeleleli
- Date: 2016
- Subjects: Eskom (Firm) , Eskom (Firm) - Customer services , Customer relations
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/225928 , uj:22830
- Description: M.Com. (Business Management) , Abstract: Background Organisations today are often involved in client-supplier relationships with the suppliers of services or products. The reason for this is that most organisations would rather buy a service or product if it requires specialised knowledge and constant research, as long as an effective supplier is available (Hugo, Van Biljon & Badernhorst-Weiss, 2004: 51). In Eskom Power Delivery Projects (EPDP), there is a capacity constraint on the prerequisite expertise and on the workforce responsible for the physical construction of transmission lines and substations. Thus, the service of physical construction of a transmission line and substation is insourced from a supplier that provides the service. Purpose The purpose of this study is to establish how the client-supplier relationship is established and managed in Eskom Power Delivery Projects (EPDP) for the supply of a service or product. Research method The dissertation studies the process of establishing client-supplier relationship, managing client-supplier relationship and managing supplier performance for the supply of a service or product; and how this is applied in EPDP for the supply of a service or product. To develop this understanding, it is necessary to conduct a qualitative study; this is the reason why qualitative research methodology was used in this dissertation. Conclusion Client-supplier relationship involves both the client and supplier. It needs to be established on a fair basis to avoid conflicts during the supply of a service or product. The client needs to provide the supplier with the scope of service which entails the exact specifications of the required service or product and furthermore provides the supplier with a time schedule that contains due dates by which the supplier is required to deliver. The client needs to set the service or product delivery dates that are realistic and consider the effort and time that is required by the supplier to do the...
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The influence of employee engagement on customer experience in a customer centric climate and culture
- Authors: Slabbert, H.O.
- Date: 2018
- Subjects: Financial institutions - Customer services , Consumer satisfaction , Customer services , Customer relations
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/292386 , uj:31773
- Description: M.Com. (Business Management) , Abstract: According to popular opinion, happy employees lead to happy customers. Many businesses are realising having great products and services are no longer enough. How organisations service their customers is as important as the products or services provided. Customer experience is therefore more than just managing customer interactions. It is putting customers at the centre of everything an organisation does, supported by a culture of engaged employees. Engaged employees are considered an important and influential factor in creating superior customer experiences. Despite of the increased attention, there is a lack of empirical research on customer experience and employee engagement in the academic literature on aspects relating to the drivers, measurement and value to organisations. This dissertation investigated the proposed relationship between employee engagement and customer experience in a South African financial services company. This study advances the current knowledge in the employee engagement and customer experience field of study by combining the constructs into a theoretical model. Employee engagement and the influence on customer experience of the service interaction are postulated to influence total customer experience and business success. Data was collected using two surveys from 386 customer respondents and 82 employee respondents. The collective data was empirically tested using Structural Equation Modelling. The conceptual model examines various pre-requisites of employee engagement, linking resources to customers' perceived level of service employees’ performance (service interaction). The model further examines employee engagement as a dynamic and important variable influencing total customer experience. The results indicate a positive relationship exists between climate and culture, employee engagement and customer experience of the service interaction.
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