76. Marketers have found that the most
essential role to be played in defining and delivering high-quality goods and
services to target customers is that of price (e.g., price it right and it will
77. The midsize customers
for most organizations receive good
service, pay nearly full price for
the products and services they purchase, and are often the most profitable.
78. A profitable customer is a person, household,
or company that over time yields a
revenue stream that exceeds by an acceptable amount
the companyâ€™s cost stream of
attracting, selling, and servicing the customer.
79. Most companies measure
customer satisfaction and individual customer profitability.
80. Unprofitable customers who defect to a competitor should be encouraged to do so.
81. Customer profitability analysis (CPA) is best
conducted with the tools of an accounting technique called Activity-Based
82. According to customer profitability analysis (CPA), platinum
customers spend the most money with the organization thereby making them
83. Any competitive advantage
must be seen by customers as a customer advantage.
84. Customer lifetime value (CLV) describes the net present value of the
stream of future profits expected over the customerâ€™s lifetime purchases.
Carl Sewell, in Customers for Life, estimated that a customer entering his car
dealership for the first time represents a potential lifetime value of over
86. The aim of customer
relationship management is to keep the costs of meeting and tracking consumers
as low as possible.
87. Brand equity is the
customerâ€™s objective assessment of the utility of an offering based on
perceptions of its benefits relative to its costs.
88. Customer equity is
driven by three components:
acquisition, retention, and add on selling.
89. A good illustration of a personal touch in the hotel business would
be if the hotel employees (e.g.,
registration, maid service, et cetera) call a guest by his or her name.
90. A customer touch point is the time when the customer makes a
91. A key driver of shareholder value is the
aggregate value of the customer base.
92. One of the characteristics of mass marketing is using a one-way
message in promotions.
93. Customer churn is how rapidly a store can move
customers through its checkout facility or process.
94. Ninety-six percent of dissatisfied customers donâ€™t complain; they just stop buying.
95. The average
company loses 25 percent of its
customers each year.
96. A good description of a permanent
capture marketwould be â€œonce a customer, always a customer.â€
97. In proactive marketing the salesperson simply sells the product.
customer database is simply a
listing of a customerâ€™s name, address, and phone
number for credit reference.
analysis is a good example of a
statistical technique that might be employed
Database marketing is most
frequently used by business marketers and service providers (hotels, banks, airlines,
and insurance, credit card, and telephone companies)
that normally and easily collect a lot of customer data.