Managing Customer Relationships
Essay Preview: Managing Customer Relationships
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This weeks lesion discussed Managing Customer Relationships, and in chapter 5 there were two out of 4 specific food for thought questions that went in depth and caused for a comprehension of this weeks reading. The questions will cover several topics from the text to include: Customer Value Is a Future oriented Variable, covering the discussion on Customer Lifetime Value (LTV) and Growing Share of Customer. Growing Share of Customer went over distinct aspects of a customers unrealized potential value to enterprises, which are competitive business, behavior change and customer growth (. In this essay I will discuss the following questions as they relate to the actual and potential value of a customer: 3. what are likely to be the best measures of actual and potential value for each of the following customer bases? Would the company likely be best served by proxy, financial or statistical value analysis? 4. For each of the preceding companies, whats the next step? How does a company use the information about customer value to make managerial decisions? Both sets of questions will be answered based on vital information discussed in this weeks required reading.
What are likely to be the best measures of actual and potential value for each of the following customer bases? Of all the companies listed five companys measures as a Most
Customer Relationships 3
Valuable Customer (MVCs), and they were: Dry Cleaner, Munitions Firm, Large Regional Supermarket Chain, American Cancer Society and Habitat for Humanity. The nine companies that landed in the Most Growable Customers (MGCs) column were: Automobile Manufacturer, Automobile Dealer, Discount Department Store, Long-Haul Trucking Company, Disney World, Six Flags, Club Med, Political Campaign and National Public Radio. I analyzed two each for Below-zeros (BZs) and Migrators: Electronics Components Distributor (BZ), Chemical Supply Company (BZ), CBS (Migrator), and HBO (Migrator). To confirm that my answers are correct, I will discuss each Customer values category. For every company that I chose would be better suited in the MVC column, they demonstrate customers with the highest actual value to the enterprise-these are the customers who do the most business, yield the highest margins, are most willing to collaborate, and tend to be the most loyal, (Peppers, 122). For example, a person that uses their local dry cleaner company may not use the company that often, but when the company is