How to Differentiate Customers Essay Example | Topics and Well Written Essays - 1000 words

How to Differentiate Customers - Essay Example Average Revenue: Businesses need to evaluate the average revenue earned over a period of time. From the accounts perspective, the management needs to check what is the current spending of the customer and what would be the projected revenue. Based on it the average revenue against a customer needs to be calculated. If average revenue is good or is very good then definitely the business should spend more time on the customer.Revenue Change Score: The annual changes in revenue are given the maximum weight where the management can analyze and comprehend the percentage change over the last fiscal years with the current year. The analysts need to study the increase / decrease in revenue to get the change graph. The analysts also need to forecast future revenue change based on current market scenario, customer relationship and other internal and external factors. Lewis (2005) stated that firms should identify their profitable customers and strategically plan their marketing based on custom er asset value. He also specified that the forecasting of the future value of customers is of paramount importance. The management can decide which customers should be allocated more time due to current net worth and prediction of future net worth.Current Relationship: The current relationship with the customer plays an important role in identifying the various parameters related to current revenue and future revenue projections. Customer relationship remains at the core of the entire business where a transparent., flexible and service orientation relation helps in gaining customer satisfaction. Reliability and confidence build up are important in ensuring future revenue and growth of the company. Conflict management should reduce any communication errors and help the firm project its growth plan. Technology Entanglement: Technology plays yet another important role in customer relationship management. Proper reporting, web conferencing and email management helps in communicating with the client. Log maintenance helps reduce communication issues. System integration helps the management in knowing what value additions are given to the customer and vice versa. This helps the organization to differentiate between the various customers and their net worth to the organization. Share of client: The share of outsourced work needs to be evaluated for the customer. There are a lot of instances where outsourcing is required and the business should assess it. Partnership: There needs to be a constant partnership with the customer with communication being a vital aspect of it. Constant