COMPANY GOALS
In highly competitive and complex market, these goals and value drivers do not help. Even the strategy of the customer retention does not ensue growth.
This is because of the type of customer who often gets retained in the organisation. Generally there are four categories of customers in any organisation’s portfolio.
Those who are resistant to change i.e. hate trying another brand or source and comfortable with their current purchases. These are customers who disbelieve any new product development.
Those who perceive they company’s product as being good value for money as its existing price. This segment is buying the product for price factor.
Customers who perceive company’s offer a better value for money than competition. Here, the customers are evaluating the total offer of the firm against similar offers of competition.
Customers who like the company and its offer because they see it as reflecting their needs and aspirations and meeting their expectation.
Generally, most successful companies ignore such understanding and their management is comfortable with the continuity of sales and market share statistics.
This is dangerous because 80 percent of company’s sales may be coming from the first segment and 20 percent from the second. If this is the situation, then the company’s growth and survival is threatened.
To avoid the above situation, the market leaders focus on the following
goals:
Enhancing customer loyalty
“G-SPOT”
Customer loyalty as a goal
In highly competitive and complex market, these goals and value drivers do not help. Even the strategy of the customer retention does not ensue growth.
This is because of the type of customer who often gets retained in the organisation. Generally there are four categories of customers in any organisation’s portfolio.
Those who are resistant to change i.e. hate trying another brand or source and comfortable with their current purchases. These are customers who disbelieve any new product development.
Those who perceive they company’s product as being good value for money as its existing price. This segment is buying the product for price factor.
Customers who perceive company’s offer a better value for money than competition. Here, the customers are evaluating the total offer of the firm against similar offers of competition.
Customers who like the company and its offer because they see it as reflecting their needs and aspirations and meeting their expectation.
Generally, most successful companies ignore such understanding and their management is comfortable with the continuity of sales and market share statistics.
This is dangerous because 80 percent of company’s sales may be coming from the first segment and 20 percent from the second. If this is the situation, then the company’s growth and survival is threatened.
To avoid the above situation, the market leaders focus on the following
goals:
Enhancing customer loyalty
“G-SPOT”
Customer loyalty as a goal