The Cost Of Switching Business

With the shift in the end customers demographics, it would be wise for Stihl to consider alternative strategies to supplement their current reliance on independent specialty dealers. A company must always address who the end customer is, when you forget or choose to ignore who the customer is, then you tend to not be able to reach them. The marketing mix (product, price, placement, and promotion) has to be in tune with who the end customer is and what their economic situation might be. The case breaks down the changes or shift in demographics in the form of predictables and unpredictibles.

These customers value both low cost and excellent customer service. Providing both generates both branch loyalty and advertisement through word of mouth.

Developing a loyalty program is challenging. You team must understand what will keep your current customers interested and what will spark them to purchase multiple times.

This will be followed by well informed sets of recommendations that are deemed to be sufficient for this study. To this end, it is proper to note that the recommendations provided are strictly based on the analysis of the data collected by the recent survey.

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

It is much cheaper to retain an existing customer than to win a new customer. What is your strategy for retaining loyal customers? I think the strategy for retaining loyal customers relates to how good the product is. If you have a great product for a great price, the people will notice. They will crave your product. They will brag about it. I don’t think anything else needs to be done. If you feel that they should do something, then I would suggest rewards cards to loyal customers. It will make them feel special. They will sell your product for you just because of what you have done for them.

Our client was extremely happy with the service delivered, as he was able to track progress with contractors, the project was completed within the budget and time frame. We managed to minimalize any issues being reported to the client and dealt with everything ourselves, allowing the client to get on with their main responsibilities.

Since customer retention is one of the most important domains over which brands compete, I have a keen interest therefore to study in detail how renowned brands, such as McDonald food chain use such strategies to remain successful in the industry.

Trader Joe’s forgoes advertising for a strategy of customer relationship management because advertising “can’t create an experience. It’s the personal relationship with these people that builds loyalty” according to St. John, vice president of Trader Joe’s (Guth, and Marsh 183-187). Through this strategy, Trader Joe’s has seen much success. At the time of this case study, analysts estimated annual revenues to be around 3 billion. Today they are estimated to be around 8.5 billion. The effect is that the company has grown and still continues to grow. Trader Joe’s has gone from having 220 stores in 17 states in 2004 to 356 stores in 28 states as of June 2011 (“Trader Joe’s”). One area of attention for Trader Joe’s is to not lose sight of this customer relationship strategy as it continues to grow into a national or even global company. The company needs to continue to “pay attention to the information it

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

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

The SWOT analysis also reveals another weakness, “fickleness.” Fickleness of cable and satellite customers is based on the low brand loyalty and high churn rates. In order to reduce customer defection to competitors TFC must develop brand loyalty and not only attract new customers but retain those that it already possesses. The opportunity facing TFC is the fact that it is in a position to address its market

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

Based on the available data, customers could be segmented based on demographics (age, sex and income combination), purchase habits, channel preferences, and specific needs. Behavioral segmentation based on purchase habits is the best segmentation from C&C’s perspective. Deeper analysis indicates that within the segment of purchases made for personal occasions, there is a notable difference in the customer behavior when comparing purchases made for bigger events such as weddings or funerals, to those made for smaller occasions like birthdays. Also, there is value in further classifying general year-round purchasers into personal and corporate clients because of the difference in their spending capacity and needs.

with the service seems to be insufficient for customers to remain loyal. Creating customer loyalty is