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All of these factors are taken into account in the development of the research findings and validation or refuting of the hypotheses that form the basis of the methodology in the model.
Major Points of Analysis
The authors' ambitious research agenda looks to define how companies can attain greater share of wallet through more effective profitable lifetime duration strategies. Implicit in this analysis is the need to invest in customer relationships to nurture, defend and retain them over time and create reward programs that accelerate customer loyalty as well (Reinartz, Kumar, 2003). The authors also point to the issues of cost reduction of marketing expenses, divestment strategies and customer outsourcing as all being indicators of a company generating low share-of-wallet and low profits per customer over time (Reinartz, Kumar, 2003). As a result of these insights the article and its research puts forth a significantly different view of lifetime customer value than previous studies which tended to support more of a comprehensive spending approach rather than a targeted one (Campbell, Frei, 2010). This study centers more on how customer loyalty in non-contractual markets can be earned over time by paying attention demographic and income variables over marketing and promotion spending alone. This is useful advice for practitioners who believe they need to spend more to get more sales...
Social networks over time are revolutionizing how trust is created and communication, a key point the authors make (Reinartz, Kumar, 2003). Finally their article defines the critical issues of customer loyalty not from just the standpoint of marketing spend but from providing customers with what they need to continually do business and purchase how they choose to (Campbell, Frei, 2010). The analysis shows how critically important it is to stay up with customers' changing preferences in how they want to buy if lifetime customer value is to be achieved.
References
Bernoff, J., & Li, C.. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.
Campbell, D., & Frei, F. (2010). Cost Structure, Customer Profitability, and Retention Implications of Self-Service Distribution Channels: Evidence from Customer Behavior in an Online Banking Channel. Management Science, 56(1), 4-24.
Reinartz, W.J., & Kumar, V. (2003, January). The impact of customer relationship characteristics on profitable lifetime duration, Journal of Marketing, 67(1), 77-99.
Customer Satisfaction as a Kind of Nonfinancial Performance Measure The Effect of Using Customer Satisfaction as an Integral Performance Measure, as evidenced by Chinese Manufacturers Challenges to manufacturers as well as many other business structures are significant and often carry a great deal of weight in decision making and future business success. Performance measures are also often focused singularly on financial performance, ROA, ROE i.e. how much revenue the organization has received
Customer Perspective Balanced Scorecard On what specific customer perspectives did each company focus, and what measures did each company use to ascertain how well it was meeting the goals implied by those specific perspectives? As far as Hyde Park Electronics is concerned, they were concentrating on the quality of the product that was delivered to determine customer perspectives. The measures that were used to achieve these objectives were: manufacturing / labor efficiency
For any hospitality services business to attain the role of trusted advisor they must consistently keep these elements of the proposed Services Expectation Model synchronized with each other. The approaches companies take to create Cooperative Advantage of accomplishing improved organizational performance on the one hand and superior customer value on the other require the prerequisite of their being a tightly coupled integration between Validation and Reinforcement of Trust and Social
It is possible to find examples of nearly every service business in existence using SERVQUAL or a variation of this methodology to quantify customer service performance. An interesting second development is the correlation found between customer satisfaction, market share and profitability (Anderson, Fornell, Lehmann, 1994). Based on the strength of this association many companies are investing heavily in analytics to evaluate just how effective their customer service strategies are
Customer relationship Management (CRM) and customer loyalty are successful marketing strategies in banking industry in Hong Kong The role of customer relationship management is significant to facilitate the customer satisfaction within several industries including banking. Integration of marketing strategy, customer relationship and customer satisfaction processes results into reduced cost and performance improvement. Business allows the optimal use of resources resulting into optimal performance; it is facilitated through several initiatives of customer
Tesco, the largest UK company, employs 260,000 people. This corporation has global aspirations and has come a long way in a relatively short period of time" (2003, p. 3). According to the company's promotional literature, the employment figure for 2003 has almost doubled today, as shown in Table 1 below. Table 1 Current Key Figures for Tesco Category Statistic Staff worldwide 472,000 Staff in the UK 287,669 Stores worldwide 5,008 Total stores in the UK 2,545 Extra 13 Homeplus Superstore Metro Express OneStop Number of markets 14 Which markets China, Czech Republic, Hungary,