MarketingNPV has an interesting article this month exploring the relationship between customer management strategies and profitability. An excerpt from their review:
Still, firms cannot manage their customer relationships in isolation, celebrating satisfaction survey results without an eye to share of wallet or assuming profitability will follow either satisfaction or share of total spend. They need to watch their customers’ relationships with competitors and allocate their resources not at market or segment levels but at the individual customer level, weighing every spending decision as to what they’ll lose for what they will gain.
The article was written by Douglas Bowman, associate professor of marketing and Caldwell Research Fellow at the Goizueta Business School of Emory University; and Das Narayandas, professor of business administration at Harvard Business School and published in the November 2004 issue of Journal of Marketing Research.
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