Managing Profitable Customer Relations

Prepare and submit a paper on managing profitable customer relations. A business can neither exist without it nor can profit without first conquering the minds and hearts of its customers. Therefore a company needs to come up with ways of managing its customer relations. This is the process through which a company builds and maintains profitable customer relationships through the delivery of superior customer value and satisfying their needs is the ability to acquire, keep, and grow customers.The secret to achieving lasting customer relationships is creating superior customer value and customer satisfaction. If customers are satisfied, they will be more loyal to the brand helping the company maintain a dominant position in the market share.Customer value: due to increased competition and saturation of similar products in the market customers will have a wide range of products to choose from. But customers will always go for the brand that is believed to offer the highest customer value. Customer value refers to the difference between one company’s products in terms of costs and benefits and the products of competing companies. For example, when a customer purchases a Toyota Prius Hybrid automobile, he derives a number of benefits. Not only will he have fuel efficiency but he also demands higher status and image in the society. He is seen as more environmentally responsible as compared to other brands. Therefore a customer will have all these perceived benefits in his mind together with the costs and efforts of acquiring it and compares it with another brand and select the one which weighs more than the other. The idea is not necessarily that the item has higher value but that the customers perceive it to have more value.Customer Satisfaction: this relates to the performance of the item as perceived by the customer according to his expectations. Where the product in question does not measure up to the expectations of the buyer he will be dissatisfied and may never buy from that company again.

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