Case Study : Customer Strategy Enterprise

With the new CEO wanting to produce profitability within two years, the current problem is how to re-position the organization’s strategy and define which customer base to focus on. By starting with which type of customer to target, the organization can be more focused on its tactics.

Business-level strategy is an integrated and coordinated collection of commitments and actions that are used by firms to achieve a competitive advantage. The firms utilize core competencies in certain product markets. Under this strategy, firms specify their choices on how they plan to compete in individual product markets. It’s important that every firm develop a business-level strategy to create differences between its position and its competitors’ positions. The relationship between customers and business-level strategies is very important because customers are the source of the strategy’s success. It’s imperative that the firm differentiate who the customer will be (market segmentation), what are the customers’ needs,

The aspects of business success that Jones (2012) chooses to study are that of customer retention and employee satisfaction. Being able to minimize the loss of customers correlates to improved financial

Customers enable the organization to treat each customer in a different way on the basis of the contribution they make towards the firm (Kleinaltenkamp & Wengler, 2007). The analysis of customer lifetime value aids the organization to rank and order customers on the basis of their contribution to organization’s revenues. It also helps the organization to determine as to how much it can invest in retaining customers to gain positive returns on the investment.

| A recent survey found that 84% of “satisfied” customers will “jump ship” for a better deal if the opportunity arises. With the marketplace becoming increasingly commoditized, customer retention has become a critical part of business strategy. (E)

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

For decades the foremost emphasis of business managers has been the quest of customer satisfaction. However, in an increasing competitive atmosphere, organizations have come to realization that customer satisfaction is not sufficient; but rather that delighting the customer is the key to longevity. (Yang, 2011).

In order to operate a successful and profitable business, certain strategies must be put in place. One very important strategy is customer relationship management. To ensure that every customer has the opportunity to receive exceptional customer service and the ability to become a loyal customer, an organization must follow these steps. First, the organization must evaluate their current customer service strategies and organizational goals. This will help decipher strengths and weaknesses of the organization. Once the organization’s weaknesses are determined, action must be taken immediately. The weaknesses should act as opportunities, while the strengths can be used as something to capitalize off of. If an organization lacks a loyalty program, their next step would be to design one that correlates with their business model and organization goals. Once an organization redesigns their customer service strategies and customer loyalty programs, they will need to accurately apply metrics to successfully measure the value of the changes being made.

Suddenly, the customer had succeeded in capturing all the attention of the companies towards him, so much so, that the once famous maxim,. ‘customer is the god’ has become so true and relevant today. There has been a paradigm shift in the thinking of these companies and none other then the customer has brought this about.

According to Curtis, N. Bingham (2009), Customer strategy not only can maximize the value you deliver to and derive from each customer, it also can align you with your most profitable customer segments. Customer strategy integrate satisfaction, loyalty, and customer experience as tools that can be used to varying level with each desirable customer segment (Curtis N. Bingham, 2009). Moreover, customer strategy purpose is always put the customer first, creating procedures, conducting daily operations and training new employees. Customer strategy use to acquire and retain customers, normally business in the market wants to gain a competitive edge in the marketplace by building a large and loyal customer base. There are four basic customer

In todays competitive environment, the issue of customer relations has become ever more important. With such wide choices available to the customer, the slightest dissatisfaction can easily result in customer taking their business else where. There are many methods available for an organisation to establish and maintain positive relationships with customer to help them retain their business.

There are different types of customers in the market, part of the business plan is to divide and concentrate on market strategies, which can be achieved by Segmentation, targeting and positioning (Chamber & Gray, 2010).

The management of organizations can often be improved through systematic attention to the “customer’s needs” that must be satisfied if the organization is to survive. There are two implications deriving from this statement:

* Dissatisfied customers are also a threat to the organisation. They spread bad word of mouth which create negative image of the company and de-motivate potential customers

There are different types of customers in the market, part of the business plan is to divide and concentrate on market strategies, which can be achieved by Segmentation, targeting and positioning (Chamber & Gray, 2010).