The ultimate aim of customer relationship management is to produce high customer customer equity.
Customer equity is the total combined customer lifetime value of all the company’s current and potential customers.
Building the Right Relationship with the Right Customers…… companies should manage customer equity carefully.They should view customer as assests that need to be managed and maximized.
The company can classify customers according to their potential profitability and manage its relationship with them accordingly.
Customer Relationships Group
1.Strangers show low potential profitability and little projected loyality. 2.Butterflies are potentially profitable but not loyal. 3.True Friends are both profitable and loyal. 4.Barnacles are highly loyal but not profitable
Therefore,the point here is an important one…..Different types of customer require different engagements and relationships management strategies.The goal is to build the right relationships with the right customers.
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