3 pages/≈825 words
Business & Marketing
Consumer value (Essay Sample)
Are long-term customers more valuable? Using examples, explain what types of companies are most likely to profit from retaining customers over long-term? Similarly using examples, what types of companies are more unlikely to profit from retaining customers over long-term?
Consumers are the most important players in the market. In any business, the needs of the consumers must be addressed in order to enhance consumer satisfaction. Consumer satisfaction leads to consumer loyalty and increased market share. Eventually, this leads to increased profits. However, the value of consumers tends to vary depending on the type of companies.
Consumer loyalty is determined by the retention rate of the consumers within the company. Companies that do no not implement the CRM strategies in the running of the company are less likely to become more profitable. This is clearly depicted by low returns on investment. Service companies are less likely to benefit from long term value of customers. This is because the services that they offer may eventually not be required within the company.
Airline companies, for instance, may not benefit from long term value of customers. This is because they get new customers travelling every time. A comparison between an airline company and a bakery explains the reason why a goods’ selling company must value long term relationships with their customers. This is because they will be purchasing the goods over and over again.
In order to retain customers over the long term period, it is extremely crucial to implement Kotlers’s four business orientation. This ensures that the final product that the company presents to the consume...
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