Take Away:
Customer value and the value creation framework have helped shaped my marketing thinking by providing me with a new perspective. This framework has opened me up to change and allowed me to shift my focus to customers and their experience rather than on the action that would result in the greatest return. I’ve discovered that companies will measure customer satisfaction and experience, but will not share the data or hold anyone accountable for using the information to improve the customer experience. In an article entitled “Learning from Customer Defections” the author states that companies whose primary focus is profits will not be able to uncover customer issues until after the fact. Thus, Frederick Reichheld proposes that businesses …show more content…
One way in which I will approach this task is to first focus on failure analysis in an attempt to understand where the company is making mistakes and defecting customers. I will also work to generate new leads in addition to focusing a portion of my efforts on existing, loyal customers. An important concept from the “Learning from Customer Defections” article was that customer defections have a direct link to company profits and that not having an understanding of key metrics will result in a loss in profits. CEO’s of U.S. corporations lose half their customers every five years and are unaware of this as they are not measuring customer defection (Reichheld, 1996). Customer defection is simply the loss of clients or customers. The number one reason for customers leave is because of billing mistakes (Rustogi, 2015b). Failing to understand why customers leave or choose to switch a portion of their business can be severely detrimental for companies and impact the bottom line. Once I discover the failures of Climate Design by conducting a failure analysis I can take action to work with other employees within the company to change the procedures that are resulting in the …show more content…
When businesses choose to conform to a low cost strategy they construct lower prices whilst still achieving desirable profit margins. A business can achieve three different types of cost advantage; variable, marketing or operating cost advantages. A variable cost advantage allows firms to achieve a lower variable cost per unit sold when selling in bulk. Marketing cost advantage depicts a lower level of marketing and sales expenses while an operating cost advantage provides for a lower level of operating and overhead expense (Best, 2013b). Employing a cost advantage relative to rivalry will contribute to advanced levels of
Customer value and the value creation framework have helped shaped my marketing thinking by providing me with a new perspective. This framework has opened me up to change and allowed me to shift my focus to customers and their experience rather than on the action that would result in the greatest return. I’ve discovered that companies will measure customer satisfaction and experience, but will not share the data or hold anyone accountable for using the information to improve the customer experience. In an article entitled “Learning from Customer Defections” the author states that companies whose primary focus is profits will not be able to uncover customer issues until after the fact. Thus, Frederick Reichheld proposes that businesses …show more content…
One way in which I will approach this task is to first focus on failure analysis in an attempt to understand where the company is making mistakes and defecting customers. I will also work to generate new leads in addition to focusing a portion of my efforts on existing, loyal customers. An important concept from the “Learning from Customer Defections” article was that customer defections have a direct link to company profits and that not having an understanding of key metrics will result in a loss in profits. CEO’s of U.S. corporations lose half their customers every five years and are unaware of this as they are not measuring customer defection (Reichheld, 1996). Customer defection is simply the loss of clients or customers. The number one reason for customers leave is because of billing mistakes (Rustogi, 2015b). Failing to understand why customers leave or choose to switch a portion of their business can be severely detrimental for companies and impact the bottom line. Once I discover the failures of Climate Design by conducting a failure analysis I can take action to work with other employees within the company to change the procedures that are resulting in the …show more content…
When businesses choose to conform to a low cost strategy they construct lower prices whilst still achieving desirable profit margins. A business can achieve three different types of cost advantage; variable, marketing or operating cost advantages. A variable cost advantage allows firms to achieve a lower variable cost per unit sold when selling in bulk. Marketing cost advantage depicts a lower level of marketing and sales expenses while an operating cost advantage provides for a lower level of operating and overhead expense (Best, 2013b). Employing a cost advantage relative to rivalry will contribute to advanced levels of