Relationship Value Of Customer

Relationship value of a customer is a concept or calculation that looks at customers from the point of view of their lifetime revenue and profitability contributions to a company.This type of calculation is needed when companies start thinking of building long-term relationships with their customers. Factors That Influence Relationship Value: The Lifetime or relationship value of a customer is influenced by the length...

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Benefits for Customers and Firms

Both parties in the customer firm relationship can benefit from customer retention.This is,it is not only in the best interest of the organization to build and maintain a loyal customer base,but customers themselves also benefit from long term associations. Benefits for Customers: Assuming they have a choice,customers will remain loyal to a firm when they receive greater value relative to what they expect from competing...

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The Evolution of Customer Relationship

Scholars have suggested that marketing exchange relationships between providers and customers often have the potential to evolve from strangers to acquaintances to friends to partners. 1.Customers as Strangers: Strangers are those customers who have not yet had any transactions with a firm and may not even be aware of the firm.At the industry level,strangers may be conceptualized as customers who have not yet entered...

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What is Customer Satisfaction?

                   "Customer is the King" Everyone knows what satisfaction is,until asked to give a definition.Then,it seems,nobody knows.This quote from Richard Oliver,respected expert and long time writer and researcher on the topic of customer satisfaction,expresses the challenge of defining this basic of customer concepts. In less technical terms,we interpret this...

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