Reference no: EM133203897

Assignment: Long Term Customer Loyalty

I. If retention is so much more profitable than acquisition, why have companies persisted for so long in spending more on getting new customers than keeping the ones they have?

II. Think about the companies you do business with as a customer. Name an example of a company that identified and recognized you, one that differentiated you by need or value, one that has made interaction easy and fun, and one that has changed something about the way it does business with you now, based on what it knows about you.

III. Consider the relationship enhancers and building blocks mentioned by Edell and Rose. For each one, think of a for-profit or a nonprofit enterprise that serves as an example and provide why you think so. You should submit a chart similar to below, but feel free to pick your own enterprises.

i. For-Profit Enterprise
ii. (e.g., Costco Warehouse Club)
iii. Nonprofit Enterprise
iv. (e.g., University Alumni Association)
v. Trust
vi. Commitment
vii. Satisfaction
viii. Fairness
ix. Symmetry

IV. In a 300+ word essay, describe and name two companies you have done business with as a customer. One of them treats you as though you are a new customer every time you show up, or at least any time you show up anywhere you haven't done business with the company before. At the other company, you are recognized as you every time you have any dealings with the company. What's the effect on you of these disparate approaches? How would you guess each company manages its data, given their different approaches to customers?