Every company should invest in its customers according to their profitability and loyalty. This investment will vary. All those customers which are loyal and profitable should be provided with special treatment. Lets analyze how should the company treat its different customers in terms of time, money and effort. The different customer groups are Strangers, Butterflies, True Friends and Barnacles.
Strangers:
The company should not invest in the Strangers because they are not loyal to the company. Also, they are not a source of large profits for the company.
Butterflies:
This group is not loyal, but it is extremely profitable for the company for the time this group interacts with the company. The company should invest in this group for the time period when this group is interacting or buying from the company. When the transaction is over, the company should cease to invest in this group as it is not loyal to the company.
True Friends:
These are those customer groups which are extremely loyal and profitable for the company. They are the real strength of the company. So, the company should continuously invest in this group and make sure that this group does not get disappointed from the company.
Barnacles:
This customer group is loyal but it is not profitable for the company. The company should try to make this group profitable. If this does not happen, then the company should fire these customers.
So, the company should ensure this fact that it invests properly and adequately in different customer groups so that it is able to increase its profits and market share.
Tuesday, October 27, 2009
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1 comments:
Hassan you have mentioned about firing those customers which are not profitable....... how would you exactly do that?
Secondly, wouldn't that create a kind of outrage amongst the customers, they might even spread the word to their peers about how the company treats its customers and might turn out to be bad publicity for the company as no company wants to be noted for having bad Public Relations or be known for ignoring specific customers.
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