...commercial painting contractors—a key customer segment—the company learned that labor constituted the lion’s share of contractors’ costs, while paint made up just 15% of costs. Armed with this insight, the resin maker emphasized that its product dried so fast that contractors could apply two coats in one day—substantially lowering labor costs. Customers snapped up the product—and happily shelled out a 40% price premium for it. To craft compelling customer value propositions: UNDERSTAND CUSTOMERS’ BUSINESSES Invest time and effort to understand your customers’ businesses and identify their unique requirements and preferences. Example: The resin manufacturer deepened its understanding of key customers in several ways. It enrolled managers in courses on how painting contractors estimate jobs. It conducted focus groups and field tests to study products’ performance on crucial criteria. It also asked customers to identify performance trade-offs they were willing to make and to indicate their willingness to pay for paints that delivered enhanced performance. And it stayed current on customer needs by joining industry associations composed of key customer segments. SUBSTANTIATE YOUR VALUE CLAIMS “We can save you money!” won’t cut it as a customer value proposition. Back up this claim in accessible, persuasive language that describes the differences between your offerings and rivals’ that matter most to customers. And explain how those differences translate ...
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...Important of Customer Satisfaction and Loyalty in Business. 1.0 Introduction Customer satisfaction and loyalty is two important keys to be success in the business. It must be implement in all business areas such as servicing, hospitalisation, health care and others. In business environment, quality improvement have become part of everybody life and not a task or duty anymore. (Mehra & Ranganathan, 2008). It is not enough if only focus to satisfy the customer and it won’t be good to business until get the repurchase power from customer.(Kandampully & Suhartanto, 2000) Lot of research on customer satisfaction and loyalty has been done, especially on retention and economic performance.(Kristensen & Martensen, 1996; Rucci, 1998; Duboff & Heaton, 1999; Edvardsson, 2000; Bernhardt, 2000; Eskilden & Kristensen, 2013). More than that, this two keys also play role in business for revenue improvement, profitability and cash flows.(Heskett, 1994; Reichheld & Teal; 1996, Itner & Larcker; 1998; William & Nauman, 2011). This to make sure company has more than enough fund, can expend and become stronger. We will see how important this two keys in order to make business running smooth and at the same time can achieve company target. At the end, customer will get what they expected and business will get positive impact and avoid something bad from appear. 2.0 Customer Satisfaction and Customer Loyalty 2.1 Customer satisfaction...
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...Customer satisfaction is defined as an "evaluation of the perceived discrepancy between prior expectations and the actual performance of the product" (Tse and Wilton, 1988, Oliver 1999). Several studies have proven that customer satisfaction, together with quality provided, is one of the key drivers of service performance for a company (Anderson et al. 1994; Fornell 1992). Main reasons for which a company should seek customer satisfaction are increased loyalty, effective feedback and suggestions, attraction of new customers through free word-of-mouth publicity, saving marketing and advertising costs, as well as retaining existing ones. According to Keiningham, Munn, and Evans (2003, p. 37), “both practitioners and academics have accepted the premise that customer satisfaction results in customer behavior patterns that positively affect business results.” While it is highly argued that retaining current customers is easier than attracting new ones, as it would normally cost 20 times more to attract new customers rather than keeping existing ones per Carson Research Consulting, Inc. report. Continuous customer satisfaction from the offered product will lead to an easy purchase decision every time the need for these products and services arises. Thus, customers tend to become loyal to these providers, where their satisfaction helps to increase customer loyalty, reducing the need to allocate marketing budget to acquire new customers, where their word-of-mouth will also bring...
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...demand and facilitate easy access. In this case, it is no doubt that Business Intelligence systems (BIS) are excellent for the modern business. There have many reasons that Business Intelligence systems play an essential role in the success of an organization. First of all, it has the capacity to ensure smooth, incessant flow of information without negotiating on security. Secondly the Business Intelligence Systems duty is to ensure that correct decision is taken with the available data at the appreciate time and this is done basically on the information provided. Business Intelligence systems are used to enrich the timeliness of information necessary for the company, to allow access to all the information wherever it is stored and offer the information in business terminologies. It reduces the distribution costs spent on the information as well as the handling time, helping planning and forecasting. Understanding of its important role, eBay – the largest and most popular marketplace on Internet has applied and used IS in their business and become very successful company. Launched in 1995, eBay started as a place to trade collectables and hard-to-find items, after just few years eBay become more and more popular, known as a global marketplace where business and individuals can buy and sell practically anything. eBay is a highly visible company that has been immensely successful in their implementation of a business strategy that incorporates their information strategy. By remaining...
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...Customer Relationship and Corporate Governance in Sustainability of Business Vinod Krishna U. Makkimane Sr.Faculty Institute of Business Management & Technology Banashankari 3rd Stage, Bengaluru. Sustainability is a dynamic concept born out of the environmental debate of the last quarter century. There is growing concern nationally and internationally about biodiversity and protection of plants and animals and community based activity. It is important to view sustainable efforts from global perspective that addresses socio-economic and environmental issues. Sustainable Development as a norm has been accepted in the literature ever since the publication of the Brundtland Commission report in 1987.The Brundtland Commission defined Sustainable Development as that which "meets the needs of the present without compromising the ability of the future generations to meet their own needs". A primary goal of sustainable development is to achieve a reasonable and equitably distributed level of economic well being that can be perpetuated continually for many human generations. It also implies using renewable natural resources in a manner that does not eliminate or degrade them, or otherwise diminish their usefulness for future generations. Sustainable development also requires depleting non-renewable energy resources at a slow enough rate so as to ensure the high probability of an orderly society transition to renewable energy sources. Mahatma Gandhi has observed long back that...
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...Valeria Altamirano Business Ethics Reading Response Consumers: Responsibilities of Business to Customer and Product Safety There are many moral issues in the business world relevant to consumers. In particular, businesses have moral duties to consumers and some actions taken in business are morally preferable that have an impact on consumers. In this paper, I will discuss the responsibilities of business to consumer and product safety. Businesses have at least the following two general ethical duties to consumers, according to any theory of justice or morally that recognizes that contractual relationships give us obligations and that we have a right to non-injury. Businesses must give us what we pay for. Whenever we trade, we are exchanging goods and services within an implicit or explicit contrast. One person is obligated to give one thing in exchange for another. People should not be deceived about what they are buying. For example, when we buy a TV set we expect to get the TV set, that the TV set will function, that the TV set has minimally sufficient quality, and that the TV set will not harm us when used in ordinary ways. Business must not harm anyone, including consumers. Business can make moral decisions that are not necessarily ethical duties. Some moral decisions are morally favorable and some are morally unfavorable. For example, utilitarians will argue that a business can help people live better lives, even though its not necessarily obligated to do so...
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...What are the ethical issues in relations between business and customers? Nowadays the level of competition between businesses is high because of big quantity of producers of relatively same goods and services. Because of that, companies try to do as much work as it is necessary to somehow differentiate their product from competitors. Their profit is firstly dependent on how much money people are willing to pay for the product or service (based on their income), secondly on the level of customer loyalty and thirdly on the truthfulness of the company itself. To adapt to the high-competitive environment, companies need to build strong customer relationships, it is core component in future successful sales. If people are interested and satisfied with product and service, they will continue to repurchase it and long-term relations can be established. The aim of any company is to save existing customers and attract new ones. To attract new customers company should use any tools that will work. To establish long-term successful and profitable relations, company should definitely conduct its business in ethic way. However, sometimes there are probably situations, when doing wrong things (grey market, absence of customer care, bad/cheap product) may result in much higher income. This view indicates that ethics and profit are inversely related (Bowie 1998). The situation, when stated promotion does not coincide with the reality is rather common and is a good example of unethical...
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...IMPLEMENTING CUSTOMER RELATIONSHIP MANAGEMENT AS A CORE BUSINESS STRATEGY Presented to Adrian Lim School of Business Management Nanyang Polytechnic February 13, 2014 EXECUTIVE SUMMARY This report provides an analysis and evaluation of the current customer relationship management of Singapore Café Ptd Ltd. The purpose of this report is to enhance the existing customer’s experience at Singapore Café and to increase our presence in the F&B Industry. Sources of data collection include search engines and websites of the companies. The report finds that it is important for Singapore Café to focus on our one-to-one marketing management and knowing who our customers are, where they are and what they need. However, in order to nurture better relationship with customers and retaining them, Singapore Café needs to keep a consistent system of collating information from returned feedback forms and take a step further in enhancing our programme and activities in engaging with our customers. Recommendations discussed include: * Leveraging on Social Media * Develop a centralised customer database. TABLE OF CONTENTS IMPLEMENTING CUSTOMER 1 RELATIONSHIP MANAGEMENT 1 AS A CORE BUSINESS STRATEGY 1 TABLE OF CONTENTS 3 INTRODUCTION 5 STATEMENT OF PROBLEM 5 STATEMENT OF PURPOSE 5 SCOPE OF REPORT 6 SOURCES AND METHOD 6 FINDINGS AND ANALYSIS 7 CONCLUSION 14 RECOMMENDATION 15 LIST OF FIGURES Figures 1 Costa Coffee Six-Months Sales Projection...
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...EMBA 2011 | MKTG901 ASSIGNMENT 2 | INDIVIDUAL CONSUMER BEHAVIOR vs. BUSINESS CUSTOMER BEHAVIOR | | ALPER ARSLAN | 10/30/2010 | INDIVIDUAL CONSUMER BEHAVIOR vs. BUSINESS CUSTOMER BEHAVIOR Individual consumer behavior is the process of how “individuals” act in selecting, using and disposing of goods, services, ideas or experiences to satisfy their needs and wants. Business customer behavior or organizational buying behavior on the other hand is a decisions making process by which “formal organizations” identify, evaluate and select among alternative brands or suppliers to satisfy their needs for products or services. When, why, how, and where individual consumers buy or do not buy a product? What about the business customers? How do they behave? What kind of a buying process do the individuals and business customers go through? What are the factors affecting their behavior and in what ways the behavior of these two parties differ? Answers to all these questions raised will be examined through several examples to come up with the major differences between the individual consumer buying behavior and the business customer buying behavior. As individual consumers we make countless number of buying decisions throughout our lives. While some of our purchases are made unconsciously or requires low involvement, in some others we go through a long decision process. But in general, the individual consumer behavior is related to internal or external stimuli, shaped by consumer...
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...1 Introduction.................................................................................................................. 1 2. Problem Definition.................................................................................................. 2.1 Research question 3. Research Design 3. 1 Secondary Research Design 3.1.1 Social Listening System 3.2. Primary Research Design........................................................................ 3.2.1 Development of a Questionnaire.............................. 3.2.2 Development of a Focus Group......................... 4. Conclusion...................................................................................................... 5. Reference List................................................................................................... 6. Affidavit......................................................................................... 7. Appendix................................................................................................. 1. Introduction Social Media has made a huge impact to the entire world and not just to internet marketers. It changed the way in which we communicate – both personally and professionally. In the time before the development of the various social media platforms, the classical mass medias like Television, Radio and Newspapers were great tools to reach a huge audience. But these were tipically one way channels. You could reach out to people via these channels...
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...Customer Relationship Management and Key Account Management [Name of writer] [Name of institution] Table of Contents Introduction 1 Customer Relationship Management 1 Customer Relationship Management in Business to Business 1 Customer Relationship Management in Business to Customer 2 Issues related to CRM in B2B and B2C 2 Customer Privacy 3 Technical Immaturity 4 Ownership and Accountability 4 Importance of Customer Loyalty 5 Conclusion 5 References 7 Customer Relationship Management and Key Account Management Introduction This paper intends to focus on the importance and need of customer relationship management for business organizations. The paper will focus the role of customer relationship management in business to business marketplace. In addition to this, the paper will incorporate the role of customer relationship management in business to customer marketplace. The paper will further illustrate the issues which are associated with customer relationship management in business to business marketplace. Issues related to customer relationship management in business to customer marketplace will also be included in the paper. Positive and negative impacts of relations on business dealings will also be discussed in the paper. All of these discussions will help in understanding proper role of customer relationship management in the both B2C and B2B marketplace. Customer Relationship Management CRM i.e. Customer Relationship Management...
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...and principles. However, the most important thing in business is marketing because it creates awareness to customers of the products of a business. As this is the case, managing directors and marketing managers should always make sure that they employ effective marketing principles in attracting customers and retaining them. The objective of marketing is to retain existing customers and attracting new ones. Business is about satisfying customers and thus increasing their activity with your business. As in most business sectors there is tough competition meaning that businesses can only gain competitive advantage when they are effective in marketing & good customer service, which includes creating good rapport via public relations. However, this is not as easy as it sounds and much work has to be done in order to attain it. Customers will make choices of where to go for goods or services based on many things - including their perception of the attitudes of employees. Four main aspects have been selected as the main determinants of the success of any business. They include the place where the business is located, the product(s) itself, the price of the product and the manner in which the company promotes its products. A combination of the 4 P’s and a PEST analysis are likely to improve or produce excellent results. Introduction Applying marketing principles are the building blocks in business growth and provide a business with in-depth exposure to practical examples and application...
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...to a Small Business Content Page Introduction | Page 3 | Company Background | Page 3 | Current methods of customer service | Page 3 | Methods the business could use | Page 4 | Recommendation | Page 7 | Sources | Page 7 | Final Report Introduction My name is Mushhood Akhtar and I am required to investigate the quality of customer service provided by a small local business in order to see how well it satisfies customer needs. I am required to investigate an existing small business and to prepare a report which assesses the quality of its customer’s service. I am also required to consider how best the quality of customer service can be improved. Company Background The local business I have chosen is an Asian restaurant called ‘Kebabish’. The business has been running since 2006 but the owners have been changing since then. Generally the business is not too big, only 8 employees work there but with different shifts, 4 employees from 11:00am-6:00pm and 4 employees 6:00pm-01:00am, they also have one break during their shift which 30 minutes long. Roughly business has 1000-1500 customers on weekly bases according to the owner (Appendix A). The restaurant mostly offer Asian food and comes under mass industrial market. Prices are also not too high, at average £0-7. The types of products they offer are mostly Pakistani food as Naan Bread, Biryani, and Chicken Curry etc. Their target market is not specific (Appendix E); they target every kind of customers. Their main...
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...latest declared dividend if the business is a companyAmount of tax paid in latest accounts Facts and figures on the local people and organisationsTurnover of the business & facts and figures on number and type of customers, including market share | Internet Edexcel business textbookTalking to employeesTalking to the store owner | 2/2/2013 | 9th February 2013 | Attracting and retaining customers | Market shareProducts offeredPrices chargedPlaces where products are available, including onlinePromotion including activities other than advertising(Include evidence from 1. Compare and contrast main competitors) | Talking to the customersInternet Talking to employees | 2/2/2013 | 9th February 2013 | Conflict between stakeholders | An example of a situation when there was conflict between two stakeholders | InternetTalking to the employees | 2/2/2013 | 9th February 2013 | Evaluation of why stakeholders are important to Morrison’s PLC The meaning of stakeholders is when people or organisations have interest in the business. By having too many stakeholders it could cause a conflict between the stakeholders because different groups may have different interests. The stakeholders of Morrison’s PLC: * Shareholders (owners) * Customers * Employees (staff) * Suppliers * Local community * Government Shareholders Morrison’s PLC are owned by shareholders there are exactly 39,239 private shareholders that partly own the business, these private shareholders...
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...question chapter 4 & 5 Zeiti binti Muhamud@tan Review question chapter 4 : strategic customer relationship management Question 3. What is involved in estimating customer lifetime value (CLV) ? Customer lifetime value is used to indicate the potential achievement of a business in the future. It is used to examine and analysis customer purchase behaviour which is from before, during and past purchase of the product or service offered. It is a tools that helps business able to predict the future spending that will be made. This CLV also estimate the lifetime of the relationship between customer and the business. The customer feedback about the service and product offered also show level of thier interest to continue or discontinue purchase in the future. The business can take precaution and implement strategy to retain the customer to achieve long term purchase or repetitive purchase intention. To estimate the lifetime value, the business can analyze the pattern of customer purchase on thier product. This consist of several factor such as amount of purchase made. The higher amount of purchase show that the customer is satisfied and enjoy the service or product of the business, and the decrease of amount purchase made show that the business must take action to overcome from losing customer. Next factor that involve in estimating customer lifetime value is frequency of customer purchase of product or service provided. the indicatioin of purchase intention show by higher...
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