Loyal customers need to be identified and managed in an effective manner. The loyal customer represents the most profitable type of consumer, as retention costs are far lower than acquisition costs. Furthermore, the loyal consumer is highly dedicated and will spend significant amounts of money. Below is the segmentation of customers according to profitability and… Read More
Relationship marketing represents the recent shift of focus within marketing that went from a concentration on acquisitions and sales to relationship and retention. It is a business philosophy that focuses on retaining and maintaining relationships with current customers rather than a focus solely on business development and sales. The underlying assumption with relationship marketing is… Read More
Although most companies value meeting customer expectations as a priority, many do not invest the time and resources in investigating what customers have come to expect. The gap between actual consumer expectations and the company’s perceptions of the customers’ expectations can lead to lower levels of customer satisfaction and product / service performance. This is especially true in the services industry due to the intangible nature of the service being provided.
The importance and pivotal role of employees in creating customer satisfaction through service quality cannot be overstated. Employee happiness is especially useful in creating satisfied customers. In turn, long-term customer relationships that go beyond the mental and physical capability of the employee are established. As an example, successful companies in the service industry all recognize… Read More