BUILDING THE RIGHT

RELATIONSHIPS WITH THE RIGHT

CUSTOMERS

BLAISE B. NIEVE

| DAVAO DOCTORS COLLEGE,

MASTER OF ARTS IN NURSING

INTRODUCTION

OBJECTIVES
At the end of this report, the learners will be able

to:
Define customer equity;
Discuss its relevance and the ways how it can be

garnered;
Discuss the different types of consumer relationship
management; and
Conceptualize the implications of building the right
relationships with the right customers.

WHAT IS COSTUMER EQUITY?

Total combined customer lifetime values of all the

companys current and potential customers;

The measure of the future value of a companys
customer base.

WHAT IS COSTUMER EQUITY?

Loyal customers = Higher customer equity
Customer equity may be a better measure of a

companys performance than current sales or

market share.
Whereas sales and market share reflect the past,
customer equity suggests the future.

EXAMPLE: CADILLAC VS. BMW

CUSTOMER RELATIONSHIP GROUPS

What to do:
Projected profitability

High

Butterflies

True
friends

Strangers

Barnacles

Low potential profitability;

ttle projected loyalty

Little fit with companys

fferings and their needs

Dont invest
anything in them!

Low
Projected loyalty
Short-term

Long-term

CUSTOMER RELATIONSHIP GROUPS

What to do:

Potentially profitable,
ot loyal;

Projected profitability

High

Good fit with companys

fferings and their needs

Butterflies

True
friends

Strangers

Barnacles

Enjoy the butterfli

for the moment!

Low
Projected loyalty
Short-term

Long-term

CUSTOMER RELATIONSHIP GROUPS

What to do:
Projected profitability

High

Butterflies

Profitable and loyal;

Strong fit with companys
fferings and their needs
Strangers

Low

True * Make continuous

friends relationship investmen

to delight these costum

and nurture, retain, &
grow them;
Barnacles* Turn customers into
being true believers!

Projected loyalty
Short-term

Long-term

CUSTOMER RELATIONSHIP GROUPS

What to do:

Highly loyal; but not

rofitable;

Limited fit with

ompanys offerings and
eir needs.

Projected profitability

High

Butterflies

Strangers

True Improve profitability by

friends selling them more, rais

their fees, or reducing

service to them;
Or else, fire them.

Barnacles

Low
Projected loyalty
Short-term

Long-term

EVALUATION

Potentially profitable, but not loyal?

Strong fit with companys offerings and their needs?
Dont invest anything in them!
Loyal, but not profitable?

IMPORTANT NOTE:

Different types of customers require

different relationship management
strategies.

GOAL:

Build the right relationships with the

right customers.

THANK YOU FOR LISTENING

References:
Armstrong, G., & Kotler, P. (2014). Principles of marketing,
global edition (15th ed.). Edinburgh Gate, Harlow, England:
Pearson Education Limited. ISBN 978-0-13-325541-6.