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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$% " # Renovation Project
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Custo
merL
oyalt
y
Inflat
ion/Disi
nflati
on/Deflat
ion
QA/Q
CAn
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Disp
uteRes
olutio
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Proje
ctGo
als
Proje
ctCo
sts
Proje
ctSche
dule
Market
forSim
ilarP
rojec
t
MarketRe
putat
ion
Key Data Points
Offering
s
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0
2
4
6
8
10
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merL
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CAn
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Disp
uteRes
olutio
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ctGo
als
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ctCo
sts
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ctSche
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forSim
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rojec
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putat
ion
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Offerings