Customer Strategies is a versatile concept. It is very important because it gives us an opportunity to find the ways to make customers behave in a profitable way and adding value to themselves at the same time. To start we need one dimension we are using. I would like to draw this so that we take this one dimension which is adaptability. I will divide it into three parts.
What we are interested in is how to increase the value of customer relationship and what are the angles, how to do it. Following picture illustrates the Value of Customer Relationship.
We aim at increasing the customer relationship value and we can talk about what are:
And let us analyse this problem by taking a look at the structure of the customer relationship.
The purpose of this article is to detail customer value & customer relationship value thinking .
Customer relationship value, is more customer life-time value and customer value is more or less yearly or budgeted value for the customer. We are trying to figure out for example the profitability of the customer this year.
First of all, we have to think what different dimensions determine relationship value. What are the dimensions of customer relationship value in your business. Dimensions are business and industry specific although there are few similar dimensions in all businesses.
- Instead of a product-centered, "make-and-sell" philosophy, business shifted to a customer-centered, "sense-and-respond" philosophy.
- Instead of "hunting," marketing is "gardening."
- The job is not to find the right customers for your products, but the right products for your customers.
- The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets.
The new marketing paradigm has shifted the emphasis from product and production, to selling, then integrated marketing within the holistic marketing concept.Read more...