Why Customer Relationships Is A Key Factor On The Overall Success Of Any Business

Given such a turbulent business environment, building relationships with important stakeholders is crucial to a firm’s well-being. Both customers and employees are major concerns for firms that want to develop loyalty and competitive advantages. The challenge for long-run success in business is to continually increase the customer’s dependence on the company to provide products in an environment of mutual respect and perceived fairness. Creating mutually beneficial exchange relationship with customers mean that both parties work together to understand needs and develop trust.

Through sustaining the customer relationships, leaders of the company have realized that “becoming nearer to the consumer” is vital for the progression.

Customer relational management is an essential aspect to maintaining a company’s competitiveness and longevity since loyal customers are, “reluctant to patronize [competitive] firms” (textbook citation). SHOP.CA struggles within this aspect due to the lack of communication between customer service and the customer, and lack of stock available and uncompetitive prices.

When you build a strong, ongoing relationship with a customer, there is a personal connection made. And it is less likely that a customer is going to do something to jeopardize a close business relationship.

For most business owners, they would all be in agreement and say that the connection they have with their customers is very important to them because it decides if the business is going to be a great success, or if the business is going to take a nose-dive. As a result, of an increase in customer standards and financial difficulties most firms no matter how big they are, they are taking a second look and thinking about how technology can help them to develop healthier and stronger relationships, and how to capitalize on their business. The best way to handle this situation is to choose a good customer relationship management system this can help a business they can become more efficient while maximizing their productivity. However, CRM systems could only be used by enterprise organizations; that has all changed this system is now being used as an influential factor when determining how well an organization will do (Saab, 2011).

This paper will address the customer relationships of Southwest Airlines based on the following benchmarks: Employee Relationship, Sales & Marketing/Competitive Advantage, Value Creation, Internal & External Environmental Factors, Ethical Issues, and Customer Orientation. Research from Southwest Airlines’ website, Indeed.com, Dallas Morning News, JetBlue, Spirit, Forbes, Investopedia.com, Yourbusiness.com, Ethicsdiscovery.com, and Contemporary Selling Building Relationships, Creating Value 4th Edition, will support findings. This report illustrates how Southwest Airlines flourishes in its industry with both customer and employee satisfaction. Findings will demonstrate how the airline uses customer relationship management to create value with its products and services.

CUSTOMER LOYALTY DRIVES PROFITABILITY AND GROWTH: To maximize profit, managers have pursued the Holy Grail of becoming number-one or -two in their industries for nearly two decades. Recently, however, new measures of service industries like software and banking suggest that customer loyalty is a more important determinant of profit (see Frederick F. Reichheld and W. Earl Sasser, Jr., “Zero Defections: Quality Comes to Services,” HBR September–October 1990). Reichheld and Sasser estimate that a 5% increase in customer loyalty can produce profit increases from 25% to 85%. They conclude that quality of market share, measured in terms of customer loyalty, deserves as much attention as quantity of share.

d. Customers: These vary from domestic fuel users to agricultural and aviation users of bulk LPG. All BP customers should be contacted and informed of the spillage as this might affect the supply of various products as supplied by BP. The multiplier effect of shortage of products by BP would not only mean a loss in revenue for the customer whose livelihood depend s on sale of products but also on the end user as might be in the case of retail fuel consumer and inadvertently more loss to BP.

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

Today, customer relationship management is very important to the business world. Most of the companies established a department and the programs to manage their relationship with the customers. Customer relationship management (CRM) is a business strategy which designed to help a company to understand and look forward to the needs of its potential and current customers (Anderson & Stang, 2000). Customer data is being collected in several different areas of the company, stored in a central database, analyzed, and distributed to key points (Anderson & Stang, 2000).The business world once was “product-centric”, the companies just provided what they could produce. However, it is now become “customer-centric”, they provide products and service

Building relationships with customers is basics step of success. Businesses spend millions trying to attract new customers or win back lapsed ones and yet often neglect to develop their existing customer relationships.

Creating and keeping up long-term client relations requires that an association see past the transactions that happen today to take a greater look at the long-term capability of a client. To do this, the organization must endeavor to build up a relationship with every client as opposed to creating discrete transactions. To build relationship capital, an organization should have the capacity to satisfy the necessities of its clients better that its competitors. Consumer satisfaction is the key way to maintaining customers. Completely satisfied clients will probably become loyal customers, less likely to move to competitors, less likely to look for alternative products, less price sensitive, and more likely to spread positive informal about the firm and its items.

When examined historically, relationship marketing and customer relationship management have been two central essentials in marketing strategy in the past decades. “Customer Relationship Management” term originated at the beginning of the 20th century when the concept of marketing shifted from transactional to relational. The shift toward this more personal marketing approach has been stemmed from the increased demand for attention of consumers who want to ensure that the brands they choose not only offer and sell products or services, but they sincerely care about them. This emotional demand caused companies to act accordingly and thus human-like brand communication systems and relationship marketing strategies which try to understand and answer customers more deeply and carefully started to occur. Brands started to emphasize the real human beings behind their logos, pay the attention what their customers need and display human-like humour and intelligence in the way they communicate with their customers to get ahead and compete in the market. Being “friends” with the customers and providing every necessary information and support for them on different social media accounts regularly became one of the key success factors for companies today.

Building enduring relationships with customers is a key marketing objective for most firms (Elbedweihy et al., 2016). Customers choose to identify with brands they perceive as attractive, motivated by their self-definitional needs fulfillment (Bhattacharya & Sen, 2003). Identifying with a company that has an attractive perceived identity may result in benefits to customers in terms of self-enhancement (Marin et al., 2009). Customers will feel the motivational impulse to attain a psychological attachment to a brand when they perceive the brand as attractive and as partially fulfilling one or more of their fundamental self-definitional needs (Currás-Pérez et al., 2009).

Most companies struggle for customer loyalty as the competition reaches at its peak in telecommunication sector. Indeed, customer satisfaction is integral part in determining why customers leave or stay with an organization. Therefore, organizations need to know how to keep their customers. Every organization has come to realize that in order to survive, it has to acquire and then retain profitable customers. Company should consider those customers which shows high satisfaction which leads to customer loyalty .this result in increasing company’s profitability. Company should also focus on customers who are not satisfied in order to increase profitability.