A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by winning companies to improve the value of their customer base.
Answer: Winning companies improve the value of their customer base by excelling at the following five strategies:
1. Reducing the rate of customer defection
2. Increasing the longevity of the customer relationship
3. Enhancing the growth potential of each customer through "share-of-wallet," cross-selling, and up-selling
4. Making low-profit customers more profitable or terminating them
5. Focusing disproportionate effort on high-value customers
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Marketing
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- One important consideration in using a differentiated targeting strategy is that ________.
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- ___ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
- ______ segmentation divides buyers into different segments based on lifestyle or personality characteristics
- What is positioning?
- Which of the following statements about segmentation is true?
- What is the purpose of differentiation?
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- Which of the following is an advantage to businesses that use computer databases to manage their inventory?