A snapshot of the summary - Market-based Management Strategies for Growing Customer Value and Profitability
1 Customer Focus, Customer Performance, and Profit Impact
What are the areas of commitment for market orientation?
- Customer orientation
- Competitor orientation
- Working as an integrated team
1.1 Customer satisfaction and profitability
Customers will continue to change in:
- Consumption behaviour
Competitors will continue to change as:
- New technologies emerge
- Barriers to foreign competition shifts
The environment in which businesses operate will continue to change as certain forces shifts. What are these shifts?
1.2 Customer focus and profitability
What are two short-term benefits of a strong market-orientation?
Outperforming competition in:
- Delivering high levels of customer satisfaction
- Delivering high profits
What is the American Customer Satisfaction Index (ACSI)? What can managers gain from this?It's a customer satisfaction database. Managers can gain important insights from this database because it is a good measure to see what customer satisfaction does to your company.
1.2.1 Building a strong customer focus
Building a strong customer focus is driven by three forces:
- Customer leadership
- Voice of customer
- Customer metrics
One force of customer focus is customer leadership. What are the three elements customer leadership consist of?
- Senior management leadership
- Employee customer training
- Customer involvement
What happens if senior management is not fully committed to adopting a strong customer focus?It will be unlikely that the rest of the organisation will adopt one.
What happens to customer focus if a business does nothing in the area of employee customer training?Employees will not make extra efforts to create positive customer experiences.
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