Management Essay

717 Words Jan 17th, 2016 3 Pages
SHIVA SRIVASTAVA/ PGDM20170094 / Sec. -B

DESCRIPTION
How, in a business climate in which building relationships with customers has dominated both managerial thought and marketing budgets, could Filene's Basement have fired a loyal customer, one who was formally and informally recognized as a best customer? This case allows to customer's relationship with discount retailer Filene's Basement, from her perspective, to uncover the critical incidents and behaviours of each party that shaped their relationship. The company's customer relationship management (CRM) programs are analysed to show how they influenced and encouraged unprofitable customer behaviour.
Problem
The main problem facing Filene’s Basement was the shifting management.
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A lot of the problems that Filene’s Basement and Norma were experiencing were mainly the result of lack of communication with customers. Filene’s Basement could create a better form of understanding through, that are:

* Being clear about company rules and regulations regarding the return and exchange process. * Informing the staff on proper employee-customer interaction. This means no more personal favours and things of that nature. * This will help prevent customers and employees from having expectations about what they feel about our product. * Maintain the customer profitability pyramid in which customers are classified as Platinum, Gold, Bronze and Lead. While maintaining these classifications is important to ensuring that time is not wasted, the company should still pay some mind to remembering that the customer is important. * The other level of pyramid also helping by remembering the Gold, Bronze and even the Lead customer’s this could push them to spend more and therefore move towards the platinum phase. It’s important to focus on long term relationship building. * Make an effort to move the customer up the pyramid to platinum status. This may not work for all customers but is worth the effort and could potentially create positive thought in customer mind. * Make your most profitable customers feel special with methods such as continuing the Insider Club

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