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table 1.5 Customer Satisfaction orientation of traditional Mass Marketing versus Value
orientation of Customized Relationship Marketing
Traditional Mass Marketing's Customer
Satisfaction Orientation
Customized Relationship Marketing's
Customer Value Orientation
Focuses on the product—emphasizes the
firm's offering or tactical solution.
Focuses on the customer/product
interaction—emphasizes fundamental needs
of customer
Emphasizes product attributes and
features.
Considers all aspects of the customer/product
interaction, viz., attributes, values, and
consequences
This is inherently more short term and
unstable, leads to incremental or marginal
product/service change and improvement,
and results in historical orientation.
Is inherently more long term and stable, leads
to innovation and radical improvements, and
has a future orientation
Typically fails to measure trade-offs that
determine customer value.
Measures the trade-offs that determine
customer value
Often difficult to assess in the absence of
consequence-level information.
Helpful to assess because of available
interaction-level information and actionability
Top
Big
Medium
Small
Inactive
Figure 1.7
Customer Pyramid.
The objective of enhanced customer loyalty then translates into the movement of customers in,
up, and out of this pyramid. It helps in getting new customers into the pyramid, getting a larger
share of the business of the existing customers, and prevents losing those who are most profitable.
A 2% upward migration in the customer pyramid can mean 10% more revenues and 50% more
profit. Hence, the reason that CRM initiatives that are targeted at getting, growing, and keeping
valuable customers resulting in revenue and profit increases represent very high returns on the
company's CRM investments.
 
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