Engineered Strategies Kiamarie Might Use to Capture Repeat Sales
Capturing repeat customers is vital in maintaining business sustainability. According to El-Zayaty & Coff (2017), repeat business increases customer retention, word-of-mouth marketing, and customer spending. One engineered strategy that Kiamarie might use to capture repeat sales from past customers is creating a loyalty program. The company might offer exclusive offers for repeat customers, rewards, and bonus points. Customers can be encouraged to redeem their bonus points when purchasing another car. The bonus points can be awarded based on the type of car a customer has purchased at the dealership. The second strategy is offering personalized customer service. For example, customer service can be provided by customer service agents with expertise about a specific car so that one agent addresses a customer’s questions and issues. The third strategy is sending re-engagement emails to get customer feedback on the purchase experience. Customers can also be encouraged to suggest improvement areas.
Effective CRM Strategies and the Ones to Avoid
According to Baran & Galka (2016), Customer Relationship Management (CRM) is the process of maximizing the value a business or organization proposes to customers through marketing activities founded on customer knowledge established through leverage, management, and collection of customer data and contact history. One of the CRM strategies that I believe is most effective for Kiamarie is using Customer Relationship Management software to track all communications between the company and customers to identify customers’ needs and complaints easily. Another CRM strategy is personalizing the car’s configurations to meet customers’ needs and preferences. The company should avoid automating customer relationship management because it would limit customer engagement because automation includes using a specific set of questions and pre-established responses. Therefore, automation may discourage customers from contacting the company due to the assumption that they will get the same feedback.
Baran, R. J., & Galka, R. J. (2016). Customer relationship management: The foundation of contemporary marketing strategy. Taylor & Francis.
El-Zayaty, A., & Coff, R. (2017). Appropriation of value from competitive advantages. Oxford Research Encyclopedia of Business and Management. https://doi.org/10.1093/acrefore/9780190224851.013.18.
We’ll write everything from scratch
Unit 7 DB: Customer RelationshipsUnit 7 DB: Customer Relationships
its all about relationships
We already know that competition is fierce in most every business sector. This drives smart business owners to add to their competitiveness in the market place. Successful businesses have created strategies to shield their current customers from their rivals.
For example, the Apple brand that has earned the trust of their customers and turned them into raving repeat customers. They offer more than a good product, they offer cool products! Their competitors offer comparable products at much lower price points, but in the eyes of Apple fans… they are not cool! Apple has created thick walls surrounding each of their fans – walls that are nearly impossible for their rivals to penetrate.
Kiamarie is recently promoted sales manager of a Honda car dealership in Memphis, Tennessee. As a salesperson, she’s consistently been at or near the top of the sales team for over 10 years and has built a large repeat business from her client list.
Now that she’s in the position of sales manager, the owner of the dealership has given her a goal to increase year-over-year sales by 20 percent. Kiamarie intends to roll out a new strategy which is similar to the one she used when she was a salesperson.
Research by the Honda Dealership Network (HDN) indicates that most new car buyers trade-in and/or buy a new car every 3-4 years. Based on this statistic, the owner wants Kiamarie to create a Customer Relationship Management (CRM) plan and asked her to present it him at the end of the month.
What engineered strategies might Kiamarie use to capture repeat sales from the past customers of the dealership?
What CRM strategies do you think are most effective? Which should be avoided?