Archives tagged: customer loyalty
In this missive, I examine how companies selling to end customers through distributors and retailers can design their commercial policy.
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Amazon’s Choice began as a solution for its Echo home device, which, when prompted by a user to buy an item not previously purchased, needed to know what to get. But its increasing presence in Amazon search results illustrates a problem with those results: there are simply too many.
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That structural problem is the “deep divide” between manufacturers and dealers. While manufacturers spend millions of dollars on image advertising to promote the brands, the dealers care little about the long-term brand value and instead put their emphasis on the transaction.
More Whereas airlines are a particularly visible example of an industry struggling with price structures and value offerings, every company in every industry should pay close attention to their customers and what their customers value. Airlines are a particularly visible example of an industry struggling to think creatively about how best to capture the right price for the value provided.
More There are other fields – like airlines and hotels – where providers have invested heavily in customer loyalty programs. Here these programs are effective as long as the provider can fly to the right destination of the hotel company has a property there. When that is not the case, the customer seeks other choices and may be attracted into competitors’ customer loyalty programs.
More Customer satisfaction has become one of the most discussed leading indicators of business growth and profitability. But is this real? Does it last?
More Rebates, discounts, and other forms of incentives are common parts of customer loyalty programs. Done right, they improve the profitability of the…
More The much-anticipated Bombardier CSeries commercial airplane line provides a uniquely positioned offering, boasting 20% fewer CO2 emissions, 20% fuel savings, and 15%…
More Charting a winning corporate strategy is rarely an easy task, and 2012 has been particularly difficult for executive decision-making. Yet difficult times do not get executives off the hook for poor performance. A case in point: Sears is floundering while Target is advancing. What is driving the significant divergence in performance between these two competitors? Is a role reversal possible in the next 18 months?
More The negative impact on industry profit due to price compression from firms engaging in price wars can possibly be avoided by a better understanding of strategic games. Observing competing firm’s historical behavior and current price announcements offers valuable indications of future actions. Modeling such strategies in a game theoretical scope allows for more informed pricing decisions and possible profit saving maneuvers.
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