1. The document discusses the benefits of increased customer retention and Reichheld's Loyalty Management Strategy. It notes that retaining customers is cheaper than acquiring new ones and can significantly increase profits.
2. Reichheld's strategy involves building superior customer value, finding the right customers, earning customer loyalty, finding and earning employee loyalty, gaining cost advantages through productivity, finding the right investors, and earning investor loyalty.
3. Implementing a strong customer retention strategy can increase customer lifetime value, reduce costs, and boost brand reputation through word-of-mouth, leading to increased revenues and profits.
This is the powerpoint version of the content from my latest article posted on LinkedIn: https://www.linkedin.com/pulse/discussion-pricing-concepts-easy-recipe-healthcare-marketers-tangun
Sources Of Sustainable Competitive Advantage Powerpoint Presentation SlidesSlideTeam
Introducing Sources Of Sustainable Competitive Advantage PowerPoint Presentation Slides. Showcase the unique features of the product that are perceived by the target market as significant and superior to the competition. Discuss the reasons for the company to have competitive advantages such as customer satisfaction, an increase in loyalty, an increase in profit, etc. by using core competency PPT visuals. The comparative advantage slide deck explains the sources of a competitive advantage which constitutes high skilled labor, geographic location, high entry barriers, access to new technology. Take the assistance of the generic competitive strategy PPT infographics and describe generic strategies of competitive advantage like differentiation, cost leadership, cost focus, differentiation focus. A well-structured competitor analysis framework will help you evaluate your competitive advantage effortlessly. The competitive advantage presentation is professionally designed for your convenience. Make an impact on your audience with a visually attractive yet simple PowerPoint presentation. https://bit.ly/3qYPdXu
Sustaining Value Creation through Knowledge of Customer ExpectationsIOSR Journals
As the pursuit of knowledge becomes increasingly central to firms’ competitiveness, we argued that knowing what the customer expects of product offerings is a prerequisite for sustaining the delivery of value. Thus, this paper seeks to provide a theoretical contribution to the growing recognition of researches on customer as a source of firms’ competence. By building on extant literature of value creation, customer satisfaction/dissatisfaction, and the theories of firm knowledge creation, we proposed a framework of how firms can sustain value creation through knowledge of customer expectations. We argued that sustaining firms’ value creation resides in the ability of firms to continuously anticipate, integrate and configure knowledge of customer expectations to create product offerings that meet or exceed customer expectations and generate better economic returns than other competing alternative firms
This webinar covers the fundamentals of Value Pricing so that participants can:
Understand the relationship of pricing with the other elements of the marketing mix.
Achieve the value you deserve through optimal pricing strategies that maximize profits.
Ensure that marketing is more proactive to optimize value for new products and maintaining value over different life cycles.
This document reviews best practice in pricing processes to provide a reference against which current practices and proposals can be tested. Our objectives have been: to research the attributes of world-class pricing through publications and academic sources; to investigate how these attributes are applied in practice to products and services; to assess pricing processes in successful businesses.
In recent years a new attitude toward pricing has emerged. Deregulation and international free trade agreements have increased competition. Price promotion has eroded the power of brand loyalty. Pricing has assumed greater importance to most businesses.
As markets increasingly assume a global dimension, customers can more easily compare prices between one region or country and another, using the internet or a fax machine. They can often locate the same product, or an
acceptable substitute, from another source. Customers are more demanding and fickle, and their expectations increasingly difficult to fulfil.
Price inflation in western economies is now at its lowest for decades. Price increases are no longer accepted without protest from customers, if at all.
The Chairman of General Electric has predicted the onset of the ‘Value Decade’. Global price competition will strengthen because of: reduced product differentiation; global over-capacity for production; significantly diminished trade barriers; efficient information and distribution systems; providing customers with easy access to the prices of suppliers; a growing lack of customers’ loyalty to individual suppliers. Choice will be increasingly driven by price.
This is a challenging scenario that reinforces the need for an integrated strategy and concerted managerial action on pricing.
Pricing processes have lagged behind developments in the market place. They are often characterised by internal conflict between accountants wishing to maximise profit per unit and marketing specialists who seek to maximise
throughput. They are also affected by the potential for strained relations with good customers.
Some companies have downsized their operations to a level where diminishing returns cause them to question the benefits of continuing to focus upon reducing costs. As they switch their attention from cost cutting to adding
value, pricing naturally assumes increased weight in the marketing mix.
We have found many companies reluctant to discuss their own processes.
Some may wish to avoid betraying a lack of sophistication.
This is the powerpoint version of the content from my latest article posted on LinkedIn: https://www.linkedin.com/pulse/discussion-pricing-concepts-easy-recipe-healthcare-marketers-tangun
Sources Of Sustainable Competitive Advantage Powerpoint Presentation SlidesSlideTeam
Introducing Sources Of Sustainable Competitive Advantage PowerPoint Presentation Slides. Showcase the unique features of the product that are perceived by the target market as significant and superior to the competition. Discuss the reasons for the company to have competitive advantages such as customer satisfaction, an increase in loyalty, an increase in profit, etc. by using core competency PPT visuals. The comparative advantage slide deck explains the sources of a competitive advantage which constitutes high skilled labor, geographic location, high entry barriers, access to new technology. Take the assistance of the generic competitive strategy PPT infographics and describe generic strategies of competitive advantage like differentiation, cost leadership, cost focus, differentiation focus. A well-structured competitor analysis framework will help you evaluate your competitive advantage effortlessly. The competitive advantage presentation is professionally designed for your convenience. Make an impact on your audience with a visually attractive yet simple PowerPoint presentation. https://bit.ly/3qYPdXu
Sustaining Value Creation through Knowledge of Customer ExpectationsIOSR Journals
As the pursuit of knowledge becomes increasingly central to firms’ competitiveness, we argued that knowing what the customer expects of product offerings is a prerequisite for sustaining the delivery of value. Thus, this paper seeks to provide a theoretical contribution to the growing recognition of researches on customer as a source of firms’ competence. By building on extant literature of value creation, customer satisfaction/dissatisfaction, and the theories of firm knowledge creation, we proposed a framework of how firms can sustain value creation through knowledge of customer expectations. We argued that sustaining firms’ value creation resides in the ability of firms to continuously anticipate, integrate and configure knowledge of customer expectations to create product offerings that meet or exceed customer expectations and generate better economic returns than other competing alternative firms
This webinar covers the fundamentals of Value Pricing so that participants can:
Understand the relationship of pricing with the other elements of the marketing mix.
Achieve the value you deserve through optimal pricing strategies that maximize profits.
Ensure that marketing is more proactive to optimize value for new products and maintaining value over different life cycles.
This document reviews best practice in pricing processes to provide a reference against which current practices and proposals can be tested. Our objectives have been: to research the attributes of world-class pricing through publications and academic sources; to investigate how these attributes are applied in practice to products and services; to assess pricing processes in successful businesses.
In recent years a new attitude toward pricing has emerged. Deregulation and international free trade agreements have increased competition. Price promotion has eroded the power of brand loyalty. Pricing has assumed greater importance to most businesses.
As markets increasingly assume a global dimension, customers can more easily compare prices between one region or country and another, using the internet or a fax machine. They can often locate the same product, or an
acceptable substitute, from another source. Customers are more demanding and fickle, and their expectations increasingly difficult to fulfil.
Price inflation in western economies is now at its lowest for decades. Price increases are no longer accepted without protest from customers, if at all.
The Chairman of General Electric has predicted the onset of the ‘Value Decade’. Global price competition will strengthen because of: reduced product differentiation; global over-capacity for production; significantly diminished trade barriers; efficient information and distribution systems; providing customers with easy access to the prices of suppliers; a growing lack of customers’ loyalty to individual suppliers. Choice will be increasingly driven by price.
This is a challenging scenario that reinforces the need for an integrated strategy and concerted managerial action on pricing.
Pricing processes have lagged behind developments in the market place. They are often characterised by internal conflict between accountants wishing to maximise profit per unit and marketing specialists who seek to maximise
throughput. They are also affected by the potential for strained relations with good customers.
Some companies have downsized their operations to a level where diminishing returns cause them to question the benefits of continuing to focus upon reducing costs. As they switch their attention from cost cutting to adding
value, pricing naturally assumes increased weight in the marketing mix.
We have found many companies reluctant to discuss their own processes.
Some may wish to avoid betraying a lack of sophistication.
Presented by:
- Ji-Hoon Dierckx, CMK Associate Director at Procter & Gamble
Currently leading Gillette Consumer and Market Department for Europe, IMEA and Asia
- Dirk Huisman, Founder and Chairman of SKIM
- John Ashraf, Pricing and Portfolio Director at SKIM
We began by answering a variety of business questions and unraveling the different stakeholders’ perspectives and needs across different industries. As you well know, outcomes and insights are generally discussed across a wider group of stakeholders: finance and operations; marketing, brand, and category managers; and sales, account, or channel management.
What does each of these stakeholders use in order to make a decision, what do they expect in a changing daily reality, how are they using the insights and outcomes, and what do they decide based on the outcomes or based on their mutation of the outcomes? We dug deep into the so what and what’s next questions they will have. In the morning, attendees learned based on active participation in case studies and roleplays.
In the afternoon session, we dug deeper by tackling how to fulfill the needs of your stakeholders and make them happy while sticking to the solidity of the insights. For each issue, we showed how to generate the insights. We nailed down what’s possible and not and what the strengths and weaknesses of the different options are.
At the end of the workshop, we discussed the changing reality of strategic pricing. What’s new, what will change, and what it means for you as an insights professional in the context of generating and using pricing insights. We dug into e-commerce pricing, the mobile reality, and more new trends in pricing.
B Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Leaders use procurement to catalyze lasting, superior business performance through excellence in managing categories, suppliers, and teams. The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world. Faced with so much uncertainty, companies raced to shed costs—and procurement rose to the challenge, delivering exceptional results. With this came an increase in procurement's stature, influence, and reach. A.T. Kearney's Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study. In 2011, we projected that this upward trajectory would continue: procurement appeared poised to deliver even greater impact to the business. Our 2014 AEP study finds that while leading companies continued their trajectory, most procurement organizations only sustained the gains in influence and reach made between 2008 and 2011. In short, the typical company may be "wasting a crisis" by not continuing to enhance one of the most powerful levers to improve profitability and competitive advantage. - See more at: http://www.atkearney.de/studie/-/asset_publisher/Rv2vNmilj1Kf/content/procurement-powered-business-performance?_101_INSTANCE_Rv2vNmilj1Kf_redirect=%2Fresearch-studies#sthash.CJibvJBu.dpuf
Strategic Pricing - International CEO Forum 2011Pricing Insight
Strategic pricing - driving improved profitability and earnings growth. Presented by Ron Wood, Director of Pricing Insight at the International CEO Forum, 18th October 2011
Customer Relationship Management and Banking Sector Market Share performanceinventionjournals
The influence of customer relationship management (CRM) on Nigeria banking sector market share performance is the focus of this study. It examined the influence of customer identification, customer retention and technology on customer relationship management and banks market share performance. The ever increasing competition and dynamics in the market place and the need for banks to survive, grow and meet the stakeholders objectives calls for a meaningful long lasting relationship between marketers and all other stakeholders in the organisation. The population of this study consists of all 617 headquarters employees of the 21 deposit money banks in Port Harcourt metropolis that is registered with Nigeria Deposit Insurance Corporation (NDIC); while the sample size of 243 determined through the Tara Yamani formula. Questionnaire was used as an instrument for primary data collection. The Spearman’s Rank Order Correlation was the statistical technique employed for hypothesis testing in the statistical package for social sciences (SPSS) version 17. The findings of this study revealed that there is significant relationship between customer identification, retention, and market share; while technology positively influence CRM and bank market share performance. Customer identification and retention are dimensions of CRM, while market share is the measure of performance, with technology as moderating variable influence between CRM as a measure of bank performance. It is therefore noted that banks will have better competitive advantage when all relevant stakeholders appreciate and demonstrate these customer relationship management strategies with a view of achieving the desired corporate objectives.
Presented by:
- Ji-Hoon Dierckx, CMK Associate Director at Procter & Gamble
Currently leading Gillette Consumer and Market Department for Europe, IMEA and Asia
- Dirk Huisman, Founder and Chairman of SKIM
- John Ashraf, Pricing and Portfolio Director at SKIM
We began by answering a variety of business questions and unraveling the different stakeholders’ perspectives and needs across different industries. As you well know, outcomes and insights are generally discussed across a wider group of stakeholders: finance and operations; marketing, brand, and category managers; and sales, account, or channel management.
What does each of these stakeholders use in order to make a decision, what do they expect in a changing daily reality, how are they using the insights and outcomes, and what do they decide based on the outcomes or based on their mutation of the outcomes? We dug deep into the so what and what’s next questions they will have. In the morning, attendees learned based on active participation in case studies and roleplays.
In the afternoon session, we dug deeper by tackling how to fulfill the needs of your stakeholders and make them happy while sticking to the solidity of the insights. For each issue, we showed how to generate the insights. We nailed down what’s possible and not and what the strengths and weaknesses of the different options are.
At the end of the workshop, we discussed the changing reality of strategic pricing. What’s new, what will change, and what it means for you as an insights professional in the context of generating and using pricing insights. We dug into e-commerce pricing, the mobile reality, and more new trends in pricing.
B Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Leaders use procurement to catalyze lasting, superior business performance through excellence in managing categories, suppliers, and teams. The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world. Faced with so much uncertainty, companies raced to shed costs—and procurement rose to the challenge, delivering exceptional results. With this came an increase in procurement's stature, influence, and reach. A.T. Kearney's Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study. In 2011, we projected that this upward trajectory would continue: procurement appeared poised to deliver even greater impact to the business. Our 2014 AEP study finds that while leading companies continued their trajectory, most procurement organizations only sustained the gains in influence and reach made between 2008 and 2011. In short, the typical company may be "wasting a crisis" by not continuing to enhance one of the most powerful levers to improve profitability and competitive advantage. - See more at: http://www.atkearney.de/studie/-/asset_publisher/Rv2vNmilj1Kf/content/procurement-powered-business-performance?_101_INSTANCE_Rv2vNmilj1Kf_redirect=%2Fresearch-studies#sthash.CJibvJBu.dpuf
Strategic Pricing - International CEO Forum 2011Pricing Insight
Strategic pricing - driving improved profitability and earnings growth. Presented by Ron Wood, Director of Pricing Insight at the International CEO Forum, 18th October 2011
Customer Relationship Management and Banking Sector Market Share performanceinventionjournals
The influence of customer relationship management (CRM) on Nigeria banking sector market share performance is the focus of this study. It examined the influence of customer identification, customer retention and technology on customer relationship management and banks market share performance. The ever increasing competition and dynamics in the market place and the need for banks to survive, grow and meet the stakeholders objectives calls for a meaningful long lasting relationship between marketers and all other stakeholders in the organisation. The population of this study consists of all 617 headquarters employees of the 21 deposit money banks in Port Harcourt metropolis that is registered with Nigeria Deposit Insurance Corporation (NDIC); while the sample size of 243 determined through the Tara Yamani formula. Questionnaire was used as an instrument for primary data collection. The Spearman’s Rank Order Correlation was the statistical technique employed for hypothesis testing in the statistical package for social sciences (SPSS) version 17. The findings of this study revealed that there is significant relationship between customer identification, retention, and market share; while technology positively influence CRM and bank market share performance. Customer identification and retention are dimensions of CRM, while market share is the measure of performance, with technology as moderating variable influence between CRM as a measure of bank performance. It is therefore noted that banks will have better competitive advantage when all relevant stakeholders appreciate and demonstrate these customer relationship management strategies with a view of achieving the desired corporate objectives.
TOPIC What is Strategic PlanningFollowing the co.docxlillie234567
TOPIC:
What is Strategic Planning?
Following the completion of this week’s reading/content assignments, complete each of the following:
· Write a one-two sentence personal definition of strategic planning. Base your definition on what you have encountered in the reading/materials this week, as well as on what you have already learned about the topic.
· Discuss this statement by Roger L. Martin: ". . . good strategy is not the product of hours of careful research and modeling that lead to an inevitable and almost perfect conclusion. Instead, it’s the result of a simple and quite rough-and-ready process of thinking through what it would take to achieve what you want and then assessing whether it’s realistic to try. If executives adopt this definition, then maybe, just maybe, they can keep strategy where it should be: outside the comfort zone.”
· Finally, describe the differences between strategic planning and business planning.
JOURNAL OF MANAGERIAL. ISSUES
Vol. XXXI Number 2 Summer 2019
Is Customer Satisfaction Really a Catch-All?
The Discrepancy between Financial Performance
and Survey Results
Kevin W. James
Assistant Professor o f Marketing
The University of Texas at Tyler
[email protected]
Hui James
Assistant Professor o f Finance
The University of Texas at Tyler
[email protected]
Barry J. Babin
Chair, Department o f Marketing and Analysis
Louisiana Tech University
[email protected]
Janna M. Parker
Assistant Professor o f Marketing
James Madison University
[email protected]
Marketing as a discipline traditionally places customer satisfaction as a focal theme,
thereby encouraging considerable amounts of marketing research (Churchill and
Surprenant, 1982). Satisfaction is indeed a core marketing concept and, in many cases,
retail marketing managers and academicians alike treat the concept as a catch-all term
that captures the entirety of consumer results from consumption (Dixon et at., 2010).
The expectancy-disconfirmation model provides marketers with a deep understanding
of how expectations align with current performance outcomes to arrive at a level of
JOURNAL OF MANAGERIAL ISSUES VOL. XXXI NUMBER 2 Summer 2019
( 137)
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
138 Is Customer Satisfaction a Catch-All?
satisfaction (Oliver, 1980; Ganesh et al., 2000). Satisfaction research covers topics
including the “gaps” model (Zeithaml et al., 1993), satisfied switchers (Maxham and
Netemeyer, 2002), and an index termed the American Customer Satisfaction Index
(theacsi.org), which remains a measuring stick for performance for many companies
worldwide, including many retailers (Fornell, 1992).
Despite the richness of the satisfaction concept, researchers find evidence that
merely satisfying the retail customer might not be enough to secure strong performance
(Blankson et al., 2017; Balabanis et al, 2006; Dahlsten, 2003). Evidence suggests that a.
The Influence Of Relationship Marketing On Switching Barrier, Customer Satisf...inventionjournals
This study was aimed at testing and analyzing influence of relationship marketing on switching barrier, customer satisfaction, customer trust, and customer retention. The study was conducted with respondents of 141 Emerald BNI BANK customers in Indonesia. Data were collected by using instruments of questionnaires. The test on the model was done using structural equation model analysis with GSCA approach. Switching barrier significantly influenced on customer satisfaction and customer trust. Furthermore, customer satisfaction and customer trust significanly influenced on customer retention. Partially, it was identified that variable of customer trust was the most dominant variable influencing on the customer retention.
Embracing Customer Relationship Management (CRM) to Improve Organisational Vi...IOSRJBM
The study aimed at finding ways of improving organisational viability by small businesses in Chinhoyi through applying Customer Relationship Management (CRM). This study was prompted by lack of growth of the sector. These firms have been facing a business environment characterised by low Gross Domestic Product (GDP), foreign currency challenges, high unemployment, brain drain, liquidity crisis, high competition and low demand for domestic products. The descriptive design was used. Thirty registered small businesses, with approximately 100 subordinates and 25 managers/supervisors formed the target population for the study. The sample size was 40 and comprised of 30 subordinates and 10 managers/supervisors. Simple random sampling was used to select respondents for the study. The research instruments used were questionnaires, observations and interviews. The study found out that many small businesses do not have a comprehensive CRM programme. The study concluded that lack of a comprehensive customer relationship management programmes by small businesses has been hampering performance of the sector. The study recommends the implementation of CRM programmes by small businesses in Zimbabwe through information centres and embracing information technology. Feedback processes are also necessary for CRM. There is need to carry out a national survey on CRM for small businesses for generalisation of findings across the entire Zimbabwean economy.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Running head STR 581 - Strategic Choice and EvaluationSTR 581 -.docxagnesdcarey33086
Running head: STR 581 - Strategic Choice and Evaluation
STR 581 - Strategic Choice and Evaluation
STR 581 - Strategic Choice and Evaluation
University of Phoenix
By choosing an optimum strategic direction, Weight Loss Singles Dating Agency will be assured of a long-term growth and prosperity. Given the fact that the online dating industry is extremely competitive and subject to using by a majority of the world populations, the company has to analyze the trends keenly for the purpose of making strategic choices that would bring about shareholder value (Pearce, & Robinson, 2013). The value discipline that should be designed in a way that helps the company to achieves its corporate culture. For this to be attained, Weight Loss and Singles Dating Agency will also have to implement a generic strategy and grand strategy on the basis of the long-term growth value (Pearce, & Robinson, 2013). Value Discipline
One discipline that suits the company is operational excellence as it will push its growth strategy. The importance of the value discipline to this company is that it will help in the improvement of the internal business operations as well as elimination of the waste within the internal processes value (Pearce, & Robinson, 2013). The company will operate a vast supply chain and as such, it is critical that the company serves both the local and international populations by operating at peak efficiency in maintaining competitive price points in the online dating industry value (Pearce, & Robinson, 2013). That is informed by the fact that if the competitors come with low prices it is likely to result in a decreased market share, profit margin or a combination of the two. Insisting on operational excellence helps mitigate the risk of being shortchanged by the competitor’s lower prices value (Pearce, & Robinson, 2013).
The company will implement policies and services that will bring about a reduced cost for using the site form online dating services in comparison with the competitors. Reduced overhead costs will include utilizing owners of organization with their expertise in human resources, finance and Information technology to assist in creation of budget, hiring of experienced personnel, and IT platform/website to be used.
Weight loss Singles Dating Agency should also adopt customer intimacy as its competitive strategy as it currently is the best value discipline for its mission. The company will hire specialized customer service reps to address customer’s needs and which services will best fit their needs. This strategy will ensure that the organization focuses on unique customer services which will allow for personalization of service as well as customization of products so that it can meet the varied customer needs. The main focus in this case is to establish the customer’s lifetime value in the organization and not just the value of the single transactions. As such, the organization will adapt to the operating model.
Torg.uz from the 4Ps perspectives and suggesting some enhancements and improvements that should be made by the management of the website to success in the future.
What are the methods used and challenges that are faced during the project ma...Miraziz Bazarov
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Nowadays, sport industry has become one of the main leisure activities for a large number of people all around the world in different but interrelated ways.
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Personal consumer behavior and preferences and decision-making process in selecting a broadband internet provider and implications for the marketing activities of conventional* internet providers.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
buy old yahoo accounts buy yahoo accountsSusan Laney
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At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
Top mailing list providers in the USA.pptxJeremyPeirce1
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Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
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An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
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Benefits of customer retention and reichheld’s loyalty management strategy
1. MirazizBazarov 2011 Миразиз Базаров
Benefits of Customer Retention and Reichheld’s Loyalty Management Strategy
Evidently, nowadays we all are observing the global economic turmoil and stagnation in
many countries and global industries, which inevitably leads to the increasing competition
between the market players and more active search for the opportunities to improve the
performance, as Thurik and Audretsch (2002) states. One of the most prolific ways of increasing
the performance of enterprises during the period of tightening economy is shifting attention to
providing better service and improving the customer retention, as Datamonitor (2008) says.
Another reason for this shift in attention is increasing costs of advertising while striving to
maintain the marketing budget on a certain level, as Jain and Singh (2002) says. Truly, with
growing global uncertainties to a new unprecedented level during the last years, Johnson
(2011) says that the shift in concentration at the organizational level from the acquisition to
retention of customer has never been stronger for almost all the industries globally. These
alterations are also accompanied by the global changes within the channels of distribution, and
new innovations in this area which are now implemented in the range of industries cased by
such reasons as increasing competition, creation of the new markets and rapid technological
development (Kalafatis 2004; Chu et al 2007; Lucy 2010; Roso 2011)
To add, the increasing penetration of the internet and improving the customers' skills of
searching necessary information about the products, alternatives and products specifications
make them very informed and thus rather skeptical to any of the products or service offered
comparing to the recent times, on the one hand (Clemons 2007; Poncibò and Incardona 2007;
de Souza 2011). On the other hand, this situation can be an opportunity for increasing the sales
since the new, better-informed customers demonstrate the higher consumption of the
products in the long run, comparing with less informed one, if the company will be able to
retain them (Gu et al 2002; Inderst and Peitz 2008).
So, what are the benefits of increased customer retention? Reichheld and Sasser (1990)
found out that the length of the time of the relationship with customers is directly related to
the profits in the companies engaged in service industry. Reichheld (1996) states that the 5%
reduction in the rate of customer reduction can result in the increase of the profits by 25% or
even 85%, depending on the industry. Gupta et al (2004) demonstrate that increase of the
retention only by 1% can increase the value of the company by 5%. Saunders (1999), as the
2. MirazizBazarov 2011 Миразиз Базаров
result of surveying more than 900 working in different industries suggested the fact that
targeting a goal of increasing customer retention and improving loyalty in the general
company’s strategy is proved to be 60% more profitable comparing with the strategies without
these goals. Reichheld (1996) also suggests that a 5% increase in customer retention leads to
the increase in average NPV of between 35% and 95%, significantly enhancing the profitability
of a company. Wallick (2011) also suggests that customer loyalty increases the revenues, sales,
market share and therefore profits of the company. Customers Focus Consulting (2003)
suggests that long-term customer relations harshly decrease the strength of competitors and
threat exposed from them. Reichheld (1996) also says that sustainable growth of the company
and it high level of approval by society attracts and keeps the best employer, and experienced
employees further reduce costs and improve quality.
Another approach to defining the benefits of increasing customer retention were
proposed by Villanueva and Hanssens (2007), who after the extensive research found out five
main advantages of properly implemented customer retention policy:
1. It is much cheaper to retain customers than to acquire them.
2. The costs of serving long-life customers are less than the costs of serving new customers.
3. Long-life customers significantly improve the reputation and increase the brand value of the
company, therefore attracting new customers via word-of-mouth advertising.
4. Long-life customers are usually less price sensitive than the new customers and in some
cases they are ready to pay higher prices
5. Long-life customers are more likely to buy more from the company, so that the company can
increase their assortment considerably.
So, if the benefits of high class and well developed retention and increasing loyalty
programs are well defined it is important to analyze the ways of gaining customers’ loyalty and
enhancing customers’ retention.
Weinstein & Johnson (1999) cites Pine II et al who state that the long customers
retained in an organizations increase the profitability of the organizations, because of the
enhanced customer purchasing behavior, lowered operational costs, readiness of the
customers to pay additional premiums, customer referrals, as well as the lowered customer
acquisition costs for the organization, and suggest that at least 75% of an organization’s
marketing budget should be allocated to customer retention strategy and strengthening these
relationships. But the increase of the spending is just the first step, well-tried and trusted
framework or strategies for increasing retention and loyalty should be implemented to make
the spending worthwhile.
3. MirazizBazarov 2011 Миразиз Базаров
One of the most prominent, convenient and trusted strategies in this field is the Reichheld’s
(1996) Loyalty Management Strategy who proposed the several steps that should be done in
this area, thus providing the framework for the creating the strategy:
1. Building the superior customer value proposition
Slater and Narver (1994) note the importance of building properly developed value proposition
that offers targeted customers the highest and superior value comparing with the competitor's
ones. This can be done by enhancing the quality of the products and their performance, in
addition to the design, implementing zero defects police and improving the quality of service at
ach point when customer contact the company, so retail intermediaries should be also
managed correctly ( Slater and Narver 1994; Parasuraman 1997)
2. Finding the right customer
The next step is also evident, since the proper targeting at inherently loyal to particular value
proposition customers who prefer more stable and long term relationships are considered to
be a starting point for creating the audience of loyal profitable customers, who spend more and
require less. (Anderson et al 2006; Jones and Sasser 1995). Jones and Sasser (1995) however
give a warning that the value should be targeted to the consumers who will consider company’s
proposition as more valuable, comparing with competitors' ones, they also warns about well-
developed fitting the strength of the company with the required needs of the targeted
customers.
3. Earning customer loyalty
Reichheld (1996) says that the main aim of this step is increasing lifetime value and
customers retentions. So, earning customer loyalty can be done my managing the loyalty via
proposing customer-value in the products offer, service quality, employees’ motivations
programs and well-defined pricing policies (O’Malley 1998; Dick and Basu 1994)
4. Finding the right employees
Employee management is an integral part of managing customer value and relationship
management, therefore a company should be very selective while finding the most appropriate
employees, since they have to be highly productive and competitive, they also should share
company's values, as Payne and Holt (2001), in addition to Woodruff (1997) says. They also
4. MirazizBazarov 2011 Миразиз Базаров
suggest developing the strategy of attracting, motivating and rewarding the employees which
deliver costumer value, and this is especially important for service companies.
5. Earning employee loyalty
Timm (2011) suggest that one of the most important factors in building the loyalty of
customers is earning employee loyalty. Thus can be done via investing into the trainings and
career devolvement of the employees, creating the structure that will help to expose the most
of the employees’ abilities and reward them accordingly, and addition to the development of
the reward systemwhich is dependent on the performance of the whole company (Reichheld
1993; Timm 2011)
6. Gaining the cost advantage via enhanced productivity
Schuler and MacMillan (1984) and Reichheld (1996) say that enhanced employee and
customer loyalty leads to the creation of ‘productivity surplus’, when employees can receive
higher salaries and modest bonuses, which are allocated to the main incentives. It is also
important to notice that reducing the costs should not be done by decreasing the salaries and
quality of the raw materials or equipment, instead all the assets should be enabled to produce
very high value via increased incentives and salaries and point increase of the expenses on
quality of the assets (Peteraf 1993; Reichheld 1996; Anderson et al 1997). For example,
Reichheld quotes of Henry Ford who said: “Cutting wages does not reduce costs – it increases
them. The only way to get a low cost product is to pay a high price for a high grade of human
service”
7. Finding the right investors
Reichheld (1996) says that mutual and private-owned companies are considered to be more
appropriate investors since they are targeting to stable growth in the long-term. On the other
hand, investments accrued from stick market expectation have generally negative influence on
long-term and stable growth. Reichheld (1993), (1996) also notes that growth should be
considered from the point of delivering customer value, and not shareholders one.
8. Earning investor loyalty.
In order to earn the loyalty of investors, a company has to develop trusted reputation
via paying the fair return to the investors before the decision over the managers' bonuses, in
5. MirazizBazarov 2011 Миразиз Базаров
addition to the development of the systemwhen managers are encouraged to re-invest the
profits to create the maximum value to both customers and investors (Finnie and Randall 2002;
Helm 2007)
To summarize, the literature review has clearly demonstrated that improving customer
retention leads to indisputable enhancement of the performance. This was supported by the
range of the sources and researches, which were using various approaches, strategies and areas
of the studies related to customer retention and loyalty. So, in case if the benefits of adopting
the program for increasing the customers retaining are evident, the next step is to create such a
program. Therefore, the literature review was then aimed at the analysis of the sources that
support and provide the additional information about the framework of Loyalty Management
Strategy proposed by Reichheld. The literature reviews therefore demonstrated that this
strategy is considered to be viable and useful in worsening economic conditions, which is
observing nowadays.
6. MirazizBazarov 2011 Миразиз Базаров
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