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Posted: March 20th, 2017
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Some companies have a systematic way of analyzing their customer’s profitability and non-profitability by using an analytics tool that to compute customer lifetime-value scores and other relevant metrics. For example, in the late 1990’s Fedex run the numbers of the top 30 largest clients with has the total highest revenue and volume within the company. This numbers helped Febex analysis that the certain clients who have a lot of residential deliveries were not able to bring that much revenue to the company as much as they are supposed to bring as per the proposed plan at the initial phase of starting a business. This led to Fedex raising the customer's rates due to the high business risk involved with low company revenue (Lassar, Mittal, Sharma, 1995). This implies that companies should just not stop the business with low profit generating customers though they should always keep a check on the revenues and strategically re-draft the plans so that they are encouraged to generate more profit in future.
Where the phrase “The customer is always right” was originally given by Harry Gordon Selfridge in 1909’s, the founder of Selfridge’s department store in London, and is typically used by businesses to convince customers that they will get good service at this company and convince employees to give customers good service. Customer service experiences are one of the leading causes of customer loyalty and customer loss. Approach your marketing and lead conversion activities in this mindset and you will find that you will attract clients that value what you do, listen to your advice and communicate what they expect and when they are not getting it. If this is accomplished, the rewards can be monumental (Ballantyne, 2014: 2024 - Essay Writing Service. Custom Essay Services Cheap). Customers are like blood to a business and the absence of a proper clientele is deleterious to the business making it unable to survive in this competition. It is this premise that leads to the saying that the customer is always right.
References:
Walfried Lassar, Banwari Mittal, Arun Sharma, (1995) "Measuring customer‐based brand equity", Journal of Consumer Marketing, Vol. 12 Issue: 4, pp.11-19, https://doi.org/10.1108/07363769510095270
Craig Ballantyne, May 22, 2014: 2024 - Essay Writing Service. Custom Essay Services Cheap. Why the Customer is Always Right.
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