How Firm's Profitability is Analyzed in Relationship Marketing

2018 ◽  
Vol 19 (1) ◽  
pp. 34-49
Author(s):  
Said Echchakoui ◽  
Rachid Ghilal
Keyword(s):  
Relationship Marketing ◽  
Acquisition Cost ◽  
Retention Rate ◽  
Exchange Model ◽  
Customer Relationship ◽  
Customer Acquisition ◽  
Dynamic Exchange ◽  
Marketing Budget ◽  
Customer Life Value

While relationship marketing is viewed as an important driver in the development of the firm’s profitability, the condition of this profitability seldom receives much attention. In this study, we employ a dynamic exchange model between firm and customer to explore the conditions affecting the firm’s profitability from a relationship perspective. The application of this model reveals explicitly that relationship marketing is not always profitable. The firm-customer relationship profitability depends on the customer life value (margin and retention rate), the duration of the firm-customer relationship, and the marketing budget to retain the customer and the customer acquisition cost.

Salesperson profitability in relationship marketing

2014 ◽  
Vol 9 (3) ◽  
pp. 306-323 ◽  
Author(s):  
Said Echchakoui
Keyword(s):  
Relationship Marketing ◽  
Transaction Cost Economics ◽  
Retention Rate ◽  
Sales Force ◽  
Customer Relationship ◽  
Critical Duration ◽  
Sales Managers ◽  
Content Type ◽  
Dynamic Exchange ◽  
The Relationship

Purpose – This paper aims to answer a prominent question that arises for the manager who wishes to recruit a salesperson to maintain and develop a portfolio–customer relationship: Under which condition is this decision profitable for the firm? Though several authors have underscored the importance of the salesperson's role in the creation of purchaser–salesperson relationships, in the author's knowledge, no study has focused on the salesperson's profitability in the relationship approach. This issue is significant for sales managers because the investment in sales force is greater, and the relationship profitability with customers is not guaranteed. Design/methodology/approach – Econometric model based on transaction cost economics theory and dynamic exchange between firm, salesperson and a customer. Specifically, this model links between customer life value, firm financial value, salesperson cost and relationship time. Findings – Three zones are identified that can characterize the dynamic salesperson profitability. It was shown that only one zone can be profitable to the firm. Research limitations/implications – This result is important because it can solve the equivocal posit between scholars with regard to the success or the failure of relationship marketing. This study also specifies the critical retention rate, the critical duration time in which a salesperson begins to be profitable. Originality/value – In the author's knowledge, this study is the first to use an exchange model to show in which conditions the salesperson will be profitable in relationship marketing.

Maru Batting Center: Customer Lifetime Value

2017 ◽  
pp. 1-7
Author(s):  
Julie Hennessy ◽  
Evan Meagher
Keyword(s):  
Acquisition Cost ◽  
Customer Lifetime Value ◽  
Customer Relationship ◽  
Retention Rates ◽  
Customer Acquisition ◽  
Management Service ◽  
Oxford University ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
The Cost

This exercise is one in a series intended to help students learn how to perform financial calculations in marketing contexts.Maru Keitou, a decorated former collegiate softball player with a PhD from Oxford University, ran Maru Batting Center in the Roppongi district of Tokyo's Minato ward. She had a deep knowledge of the game and of her customers, but she lacked a marketing background. She had recently signed up for a hosted customer relationship management service that would allow her to track the cost of acquiring and serving each of her four main customer segments. Using this data, she could determine which segments to target in the upcoming year.The exercise describes the use of calculations of customer acquisition cost, retention rates, and customer lifetime value in picking between market segments and various options for activities to acquire customers.Maru Keitou, a decorated former collegiate softball player with a PhD from Oxford University, ran Maru Batting Center in the Roppongi district of Tokyo's Minato ward. She had a deep knowledge of the game and of her customers, but she lacked a marketing background. She had recently signed up for a hosted customer relationship management service that would allow her to track the cost of acquiring and serving each of her four main customer segments. Using this data, she could determine which segments to target in the upcoming year.The exercise describes the use of calculations of customer acquisition cost, retention rates, and customer lifetime value in picking between market segments and various options for activities to acquire customers.After completing the exercise, students should be able to: Calculate customer acquisition cost Determine customer break-even Calculate and explain customer lifetime value

Developing Service Marketing Through Successful Involvement of Customer

2015 ◽  
Vol 2 (1) ◽  
pp. 6
Author(s):  
_______ Naveen
Keyword(s):  
Relationship Marketing ◽  
Service Marketing ◽  
Marketing Strategies ◽  
Customer Relationship ◽  
Successful Implementation ◽  
Process Automation ◽  
Customer Contact ◽  
Use Of Technology ◽  
Marketing Systems ◽  
Technological Means

Customer Relationship Management has its roots in service marketing which is based in turn on the formative work of Berry (1983) and the IMP. Its purpose is to integrate marketing, sales and service functions through business process automation, technological solutions and information resources to maximize each customer contact. In this way service marketing systems facilitate relationships among enterprises, their customers, suppliers and employees and so provide the technological means to put relationship marketing philosophy into practice. Organizations that fail to keep up with competitor’s service marketing capabilities risk being seriously disadvantaged. However, the use of technology on its own is not sufficient and firms must combine developments in IT with a philosophy that calls for the re-organisation of the entire firm around its customers. This shift will not be easily achieved. Our purpose, based on collaborative Canfield/CSC Computer Sciences Corporation studies, is to identify the pitfalls, and offer advice on the successful implementation of service marketing systems in support of relationship marketing strategies, including an audit of the organization’s readiness to proceed. 

PENGARUH KARAKTERISTIK WIRAUSAHA TERHADAP KEBERHASILAN USAHA PERABOT RUMAH TANGGA DI KECAMATAN JAMBI TIMUR KOTA JAMBI

2017 ◽  
Vol 1 (1) ◽  
pp. 38-56
Author(s):  
Novita Ekasari ◽  
Nurhasanah Nurhasanah
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Customer Relationship ◽  
Customer Relationship Marketing

Dewasa ini perkembangan jasa dirasakan mengalami peningkatan, hal tersebut di iringi oleh berkembangnya berbagai sektor jasa seperti jasa pembiayaan kendaraan (finance) baik untuk kendaraan roda dua maupun roda empat.. Kebutuhan akan jasa pembiayaan ini semankin dibutuhkan masyarakat, pentingnya konsumsi akan jasa pembiayaan kendaraan tersebut makin dirasakan memiliki potensi yang besar dalam diri individu maupun dalam  kegiatan usaha, dikarenakan  jasa pembiayaan (finance)  saat ini merupakan  suatu  pilihan  yang baik dalam menghadapi berbagai resiko terutama dari sisi proses yang relatif lebih cepat dan mudah dibandingkan perbankan. Dalam penelitian ini perusahaan jasa pembiayaan yang akan diangkat untuk diteliti yaitu PT. BFI Finance Jambi. Penelitian ini bertujuan untuk mengetahui dampak dari Customer Relationship Marketing terhadap Loyalitas Nasabah Pada PT.BFI Finance Jambi. Sumber data dalam penelitian  ini adalah data primer dan data sekunder. Data primer diperoleh melalui observasi, wawancara dan kuisioner yang di susun penulis menegenai customer relationship marketing terhadap customer loyalty. Sedangkan Data sekunder adalah data yang di peroleh dari PT. BFI Finance dan diperoleh pula melalui literatur buku dan internet. Penelitian ini menganalisis pengaruh relationship marketing ((People  (X1), Knowledge and Insight (X2), Process (X3), Technology (X4)) terhadap Customer Loyalty. Penelitian ini dilakukan di PT. BFI Finance Jambi. Jumlah sampel yang diambil dalam penelitian ini berjumlah 100 orang.

scholarly journals A Preliminary Analysis of CRM Practices among Banks frome the Customers' Perspectives

2011 ◽  
Vol 1 (1) ◽  
pp. 274
Author(s):  
Izah Mohd Tahir ◽  
Zuliana Zulkifli
Keyword(s):  
Customer Relationship Management ◽  
Preliminary Analysis ◽  
Customer Value ◽  
Management Practices ◽  
Customer Relationship ◽  
Customer Acquisition ◽  
Five Dimensions ◽  
Value Evaluation ◽  
Customer Information ◽  
Preliminary Study

Firms especially banks have realized the importance of becoming customer oriented and therefore Customer Relationship Management Practices (CRM) is seen to be very important to these firms. This study reports on the preliminary findings of CRM practices among banks from the customers’ perspectives. Five dimensions comprising of 48 statements are proposed for this study: Customer Acquisition (11 items), Customer Response (10 items), Customer Knowledge (10 items), Customer Information System (9 items), and Customer Value Evaluation (8 items). The results of the internal consistency tests are considered good with Cronbach’s alphas ranging from 0.73 to 0.92. Overall, the results suggest that respondents somewhat agreed and strongly agreed on all the items proposed. The results from this preliminary study are important to us to understand the perceptions of the customers so as to adjust and modify items that are important and not.

scholarly journals Pengaruh Kualitas Layanan Terhadap Komitmen Afektif, Komitmen Normatif, Komitmen Kontinuan Serta Loyalitas Nasabah Debitur Pada Pt. Bank Kalbar Di Kalimantan Barat

2012 ◽  
Vol 5 (2) ◽  
Author(s):  
Nur Afifah
Keyword(s):  
Structural Equation Modeling ◽  
Relationship Marketing ◽  
Structural Equation ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Cluster Sampling ◽  
Outcome Quality ◽  
Interaction Quality ◽  
Environment Quality

Perusahaan perbankan saat ini harus berupaya semaksimal mungkin untuk menciptakan pengalaman pelanggan terhadap kualitas layanan, dikarenakan memiliki dampak terhadap hasil hubungan pelanggan (Customer Relationship). Salah satu kunci sukses dalam industri perbankan adalah dibutuhkannya interaksi personal dalam bentuk implementasi strategi relationship marketing (pemasaran relasi), hal ini dikarenakan sifat layanan yang tidak berwujud dan tidak bisa dipisahkan dari penyedia layanan dengan demikian lembaga perbankan harus peduli dengan pengembangan dan pengelolaan hubungan dengan pelanggan.Tujuan studi ini mengkaji pengaruh kualitas layanan terhadap komitmen afektif, komitmen normatif, komitmen kontinuan serta loyalitas nasabah debitur pada PT. Bank Kalbar di Kalimantan Barat. Hal ini di karenakan, kualitas layanan selain memiliki efek pada komitmen hubungan, kualitas layanan yang disampaikan dapat menjadi motivasi dalam diri nasabah debitur untuk melanjutkan hubungan dengan perusahaan perbankan. Komitmen pelanggan dipandang sebagai faktor kunci dalam retensi pelanggan dan loyalitas, sedangkan kualitas layanan umumnya dipandang sebagai struktur utama yang mendorong loyalitas pelanggan. Dalam studi ini, ukuran kualitas layanan diantaranya, adalah; kualitas interaksi (interaction quality), kualitas lingkungan (environment quality) dan kualitas hasil akhir (outcome quality). Adapun komitmen pelanggan, dalam hal ini dibedakan menjadi tiga yaitu, komitmen afektif, komitmen normatif dan komitmen kontinuan.Sampel dalam studi ini adalah 126 nasabah debitur PT. Bank Kalbar di Kalimantan Barat yang menggunakan kredit untuk kegiatan usaha dan minimal satu kali transaksi peminjaman, dengan menggunakan teknik cluster sampling untuk menentukan kantor cabang dikarenakan lokasi PT. Bank Kalbar menyebar secara geografis serta proporsional sampel dalam menetapkan jumlah responden pada masing-masing cabang. Teknik analisi data dengan Structural Equation Modeling (SEM). Hasil study mengatakan bahwa kualitas layanan berpengaruh signifikan terhadap komitmen afektif, komitmen normatif, dan komitmen kontinuan, dan kualitas layanan berpengaruh signifikan terhadap loyalitas, serta komitmen afektif, komitmen normatif dan komitmen kontinuan berpengaruh signifikan terhadap loyalitas nasabah debitur PT. Bank Kalbar di Kalimantan Barat.

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