belcher-o - ww dispute resolution

8/13/2019 Belcher-O - WW Dispute Resolution

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Choosing a Loyalty Strategy

Butterflies

-good fit between company's

offerings and customers' needs

-high profit potential

Actions:

-aim to achieve transactional

satisfaction, not attitudinal loyalty

-milk the accounts only as long

as they are active

-key challenge is to cease

investing soon enough

True Friends

-good fit between company's

offerings and customers' needs

-highest profit potential

Actions:

-communicate consistently but

not too often

-build both attitudinal and

behavioral loyalty

-delight these customers to

nurture, defend, and retain them

Strangers

-little fit between company's

offerings and customers' needs-lowest profit potential

Actions:

-make no investment in these

relationships

-make profit on every transaction

Barnacles

-limited fit between company's

offerings and customers' needs-low profit potential

Actions:

-measure both the size and

share of wallet

-if share of wallet is low, focus on

up-and cross-selling

-if size of wallet is small, impose

strict cost controls

Low

Profitability

High

Profitability

Short-termcustomers

Long-termcustomers


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