Paper Written on the Importance of the High Value Customer

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Paper Written on the Importance of the High Value Customer for a college course.

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Paper Written on the Importance of the High Value Customer

  1. 1. RUNNINGHEAD: IMPORTANCE OF THE HIGH VALUE CUSTOMER1 Importance of the High Value Customer Brian Rakowski Wilmington University
  2. 2. RUNNINGHEAD: IMPORTANCE OF THE HIGH VALUE CUSTOMER2 ABSTRACT In today’s world, it is of the upmost importance to understand the needs of their customers. This paper will answer two assigned questions concerning this matter as it relates to industrial concerns. The information based upon these responses has been based upon lectures from the CEO of Onxy as well as the Seattle Mariners during their cutting edge implementation of their systems in 2003.
  3. 3. RUNNINGHEAD: IMPORTANCE OF THE HIGH VALUE CUSTOMER3 Return on investment is an estimation typically based upon a financial return over a certain number of years. This paper will discuss not only the immediate advantages a company will gain through upgrading their systems to a customer oriented database but also the benefits of man hours spent repeating tasks. The first part of this process I will discuss is the benefits of identifying high value customers. In business, every customer should be treated as a high value customer. With that being said, this course of action is not always practical as the rewards from all customers are not always the same. The receiving of group purchases as opposed to individual purchases tend to deliver much larger returns. It is crucial to recognize the individual as important, but companies need to ensure that certain individuals carry a larger standing than the average customer. This is most important in the area of personal interest as opposed to financial interest of certain individuals. Many companies have strict policies concerning their customers which pertain to everyone regardless of who they are. This is a mistake which can easily be avoided by having as much information on a company’s customers as possible. A decision based upon an individual high executive’s personal interests may weigh heavily on the company they represents decision to continue business with a company. This cross information could be the determining factor when it is time to renew contracts. The determining factor on point of return should be the overall benefits granted to the entire company compare to returns. While many suggest that a 20% increase is the basis to install new technology, I disagree with a firm number. The overall advantages should be gauged against the financial cost as technology is able to lower expenses as well as establish new connections for the future. Although these are my opinions, it goes against the current business world’s trend of changing CEO’s unless they maintain a certain growth in stock revenues every
  4. 4. RUNNINGHEAD: IMPORTANCE OF THE HIGH VALUE CUSTOMER4 year. This places many decision makers in a situation where although an implementation may be good for their company in the long term, they are scared of being replaced if it does not show immediate returns. The thoughts that a company will build its customer base through long term customer loyalty has become a thing of the past. Understanding how high value customer recognition is important can easily be understood through an example of my own life which has happened recently. I have been going to the same doctor for about a year now, with my wife and children also going there. This represents six patients with a variety of needs. During my last visit, the office was backed up to the point where I waited a half hour past my scheduled appointment time with no explanation or other communication. At this point I then asked the receptionist how much longer the wait would be. I was told that it would at least be another forty-five minutes before I would be seen. To me this was totally unacceptable and I not only immediately cancelled my current appointment but also those of my entire families. While it does not sound like much, we average about 25 visits every year. This all could have been avoided by the staff simply understanding the situation and explaining the situation when I came in and offering me the opportunity to reschedule or to decide to wait. The way it was handled, ensured that my family will not visit this doctor again, but any of my extended family or friends will also not go there. In the immediate future, that practice lost 25 visits a year, but just between the members of my immediate family, they lost 125 appointments over the next five years.
  5. 5. RUNNINGHEAD: IMPORTANCE OF THE HIGH VALUE CUSTOMER5

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