Relationship U-Turn: Approaches to Increase the Value of an Unprofitable Customer

Relationship U-Turn: Approaches to Increase the Value of an Unprofitable Customer

4.11 - 1251 ratings - Source

Customer relationship management concentrates to a great extent on the profitable customers and how to enhance their profitability. Little insight has been given on how to treat the qwrongq customer. This literature research paper shows that customer profitability and overall firm profitability can be improved when dealing with unprofitable customers. The managerial approaches discussed focus on maintaining the customer relationship. For this reason, this paper differs from the general widespread strategy of termination or qfiringq an invaluable customer. First, relationship marketing and qRelationship U-turnq are introduced in this paper. Second, customer value and methods of measuring customer value are discussed. The body of this paper concentrates on different approaches that try to turn unprofitable customer relationships into profitable ones. Some of the approaches focus on letting the customer take over more of the value chain activities such as self-service. Other approaches look more at the non-monetary value a customer can provide such as positive word-of-mouth. Examples from business-to-business (B2B) and business-to-consumer (B2C) markets are given for each approach and discussed in detail. The paper concludes with ideas for future research and a discussion. It emphasizes that companies need to realize that every customer is an asset that contributes to the value of a firm. However, customers differ in their needs and a company has to tailor its offering to meet these needs. Only when a company takes a more customer-centric view can it be successful, especially in mature markets.aquot;Why Service Stinksaquot;. Business Week, October 23(3704), 118- 128. Buttle, Francis. (2009). Customer Relationship Management: concepts and technologies (2 ed.). Oxford: Butterworth-Heinemann. Campbell, Dennis and Frances Frei. ( 2010).

Title:Relationship U-Turn: Approaches to Increase the Value of an Unprofitable Customer
Author: Kerstin Helmes
Publisher:Diplomarbeiten Agentur - 2011-06

You must register with us as either a Registered User before you can Download this Book. You'll be greeted by a simple sign-up page.

Once you have finished the sign-up process, you will be redirected to your download Book page.

How it works:
  • 1. Register a free 1 month Trial Account.
  • 2. Download as many books as you like (Personal use)
  • 3. Cancel the membership at any time if not satisfied.

Click button below to register and download Ebook
Privacy Policy | Contact | DMCA