The Cost Of Switching Business

1152 WordsApr 20, 20175 Pages
Topic Discussion In today’s industry, the cost of switching business has never been lower. The prevalence of the Internet, consolidation of distributors, and stable lead times have all contributed to this trend. As a distributor, it is vitally important for TTI to be proactive in addressing this threat to customer loyalty. Any improvements in these areas would likely pay off greatly for TTI. As a result, our group was tasked with researching the topic and ultimately brainstorming potential solutions to reduce customer churn and increase customer spending as a whole. What We Learned from TTI We were able to take a lot of value from our time with TTI. Learning a lot about the company and the industry of Electrical components as a whole.…show more content…
The research conducted by our group has been beneficial to the recommendations we have provided within this report. Recommendations to TTI Our first recommendation to TTI dealt with customer stratification model in terms of purchasing habits. TTI is currently using a relatively universal format that flags someone as yellow after 30 days without purchases and red at 90 days without purchases. These classifications assist salespeople with knowing who to contact to purchase products. Our revision to this was to create a stratification model that accounts for customers purchasing habits as well. So moderate volume customer who buys every two months would be flagged yellow after three months of inactivity, whereas a high volume customer who buys every two weeks would be red flagged after one month of inactivity. This will hopefully assist TTI’s salespeople to contact customers who are becoming disillusioned and taking their business elsewhere. Our second recommendation had to do with kitting and related products. The first facet of this approach was creating a suggested items menu next to every product on TTI’s website, so customers know what complementary products to buy. Seeing as most products in the electronic components world are relatively standardized in terms of size, material, or measures of properties, we thought it would benefit TTI to tell the customer what products would work with the ones
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