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Customer Relationship Group

1. The document discusses four types of customer relationships: strangers, who provide little revenue and loyalty; butterflies, who constantly search for better deals; barnacles, who are loyal but unprofitable; and true friends, who are both profitable and loyal. 2. For strangers, companies should differentiate them and avoid investing in them. Butterflies should be captured for short-term value but investment should stop when unprofitable. Barnacles may require reducing service or increasing fees to become profitable, or could be "fired". 3. True friends are the most valuable, so companies should constantly delight and nurture them to retain their loyalty.

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104 views3 pages

Customer Relationship Group

1. The document discusses four types of customer relationships: strangers, who provide little revenue and loyalty; butterflies, who constantly search for better deals; barnacles, who are loyal but unprofitable; and true friends, who are both profitable and loyal. 2. For strangers, companies should differentiate them and avoid investing in them. Butterflies should be captured for short-term value but investment should stop when unprofitable. Barnacles may require reducing service or increasing fees to become profitable, or could be "fired". 3. True friends are the most valuable, so companies should constantly delight and nurture them to retain their loyalty.

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CUSTOMER RELATIONSHIP GROUP

Course: Principles of Marketing


Group: 1
Members:
1. Phạm Lê Phương Thảo
2. Nguyễn Thanh Việt
3. Văn Sĩ An
4. Nguyễn Hồ Hoài Nam
5. Trần Phước Đạt
----

Overview
Customer relationship group
Firstly, strangers are those that barely bring in any revenue and are not
necessarily loyal to your company. An example would be an individual that
occasionally stops into a drug store to buy a stick of gum, but otherwise never
buy drug in the store. The key to dealing with strangers is to differentiate them quickly, and do
not invest in them at all. In an other word, it is not necessity to create or commit a
long-run relationship with this customer group.
Secondly, "Butterfly customers" are defined by O'Dell and Pajunen to be people
that flit from one store or supplier to another, always searching for a lower price
or a different shopping experience. They have no loyalty to any particular store
and are always in search of a better deal or a new promotion. This is
compounded by the fact that many consumers no longer trust retailers and
service providers to deliver what they say they will and to live up to
expectations. An evitable example is someone who supports Dell in general, but
buys the MacBook since it happened to be the best available laptop on the
market. So, Dell can initially promote its product to those customers to capture
as much value from them as possible in the short time. After that, when they
become unprofitable, Dell should stop investing in butterflies.

In contrast to strangers and butterflies, barnacles are highly loyal. However, they are not
profitable. There is a limited fit between their needs and the company’s offerings. The
company might be able to improve their profitability by selling them more, raising
their fees, or reducing service to them. But if even such a course of action does not bring about
increased profits, then the company might consider 'firing' such customers.
For example, Vinmart has a chain of convenience stores, when thier commedities are
going to be out of date. They will sale these commodities with half price so that there
are few customer wait to the time Vinmart discount these product and they will buy
them. These people rarely pay for products in Vinmart if these products were not
discounted

True friends are both profitable and loyal. There is a strong fit between their needs
and the company’s offerings. The firm wants to make continuous relationship
investments to delight these customers and engage, nurture, retain, and grow them.
Obviously, businesses should treasure these customers, they should constantly delight them, nurture
them and retain their loyalty by communicating with them in a regular but yet unobtrusive manner.

For example, Apple has many true friends, who alway purchase for brand new
Apple’s products (iphone, ipad, macbook) when they are released into the market.
They are also tendency to criticize others Apple’s competitors and appreciate Apple’s
products although Apple’s products are more expensive when comparing with its
rivals

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