Customer Acquisition

Customer acquisition is a broad term that is used to identify the processes and procedures used to
locate, qualify and ultimately secure the business of new customers. There are many different
strategies used as part of the acquisition process, with some methods being more effective with
specific types of potential clients. In spite of the many and sometimes contradictory ideas that
surround the central idea of how to earn a customer, there are a few essentials that are included in
just about any type of customer acquisition plan.

One of the basics of any customer acquisition effort is to identify and quality potential customers.
This is sometimes accomplished with the use of telemarketing as a means of locating individuals and
businesses who either express interest in or already use products similar to those produced by the
business. From this initial list, these leads are then qualified a little further, using various research
methods to determine if there is any solid chance of making a sale with a given lead. If there is a
good chance, and the contact is interested in learning more about the products offered, his or her
status is usually upgraded to that of prospect, and assigned to a salesperson for further interaction.

Establishing rapport with the prospect is essential to any successful customer acquisition effort. Here,
the salesperson finds ways to identify with the stated wants and needs of the prospect, and how the
products offered can relate to those wants and needs. At the same time, the salesperson will go
further and atteChoosing the best customer acquisition strategy for your business needs typically
involves understanding the habits, likes, and dislikes of the types of clients you wish to target. As
most sales and marketing people understand, reaching specific groups of consumers requires
adapting approaches so the company and its products stand out from all the other businesses offering
similar goods and services. Typically, a business will use more than one approach as part of the
overall strategy, making it possible to increase the chances of reaching the desired core audience on
more than one level.

The customer acquisition strategy for a small business that primarily operates on a local level will of
necessity be different than the method used by large corporations that want to reach a national or
global pool of prospective clients. For a local retailer, grocer, or similar business, focusing on local
media options is often a good choice. This means utilizing traditional outlets like television and radio
ads that run at strategic times during the day and evening. Use of local print media in the form of area
magazines and newspapers is often effective.

It is important to identify unstated needs, based on data provided in ongoing conversations with the
prospect. This type of activity can lead to identifying additional wants that can be met by other
products that the salesperson has to offer, or inspire additional ideas of how the prospect can obtain a
greater value from purchasing the products he or she already is considering.
Key to the customer acquisition process is understanding the role of customer perception throughout
the process. A successful salesperson knows how to really listen to the prospect, and get a firm idea
of how that prospect feels about the potential of the products offered for sale. Seeing the relationship
from the prospect’s point of view makes it possible to proactively deal with possible objections
raised by the prospect before they are voiced. In addition, the added perspective can help the
salesperson connect with the client in a manner that is rarely possible otherwise. The end result is
that understanding customer perceptions makes it easier to forge a relationship that not only results in
a sale, but also in strong customer loyalty, provided the products live up to the claims presented
during the sales cycle.

Small businesses can also include the use of the Internet in their overall customer acquisition
strategy. Even local businesses may find that creating pages or groups on social networking sites
makes it possible to connect with established customers who in turn create a potential connection
with all the individuals in their networks. At the same time, setting up a simple web site and
structuring the site so that local residents can visit, bookmark, and share the site with others can also
be an effective means of reaching new customers.

Larger businesses can also make use of these same basic approaches as part of customer acquisition
strategies. Using various customer analytics to create an effective e-marketing plan will provide the
company with some idea of what the use of online ads will have on attracting new customers. At the
same time, the analysis will also aid in creating the general content for the company web site, making
it possible to add text that includes keywords and key phrases that consumers are likely to use when
searching for the type of products the company offers. Print and electronic ads on television and
radio may also be part of a large corporation’s overall plan to reach new customers, possibly
structuring the ads to focus in on specific demographics in various nations or regions within a given
nation.

Any effective customer acquisition strategy will also allow for the maintenance of a sales team that
proactively contacts prospective customers. This may be accomplished by hiring full-time sales
people who receive a salary plus a commission, or establishing an affiliate program that allows
members of the sales force to receive compensation based on the sales revenue they generate for the
company. It is not unusual for a large company to utilize a full time sales team along with some sort
of affiliate program, effectively creating a larger sales force while still keeping costs within reason.

Choosing the best customer acquisition strategy involves understanding what you have to offer and
where to find customers that are likely to want those products, do well as identifying the most
effective ways to reach them. For the most part, a viable strategy will not be static; the ability to
modify the acquisition approach when and as necessary helps to keep the plan current and effective.
Take the time to identify all possible approaches to include in the overall strategy and find out how
each is effective with different demographics of consumers. Soon, you will have a good idea of what
elements to include and can begin the task of creating a campaign that makes good use of all those
elements.
The specific steps one must take to improve customer acquisition and retention will vary according to
several factors, including the type of business, the business's advertising and operating budget, the
region in which the business operates, the intended audience for the business, and various timing and
implementation considerations. An examination of the business itself is usually the first step in
customer acquisition and retention, and having a business plan in place will help the owner
immensely. If at all possible, it is important for the owner to set reasonable goals for acquiring and
retaining customers, and to research different advertising options that will reach the target audience.

Many business owners mistakenly believe that a wide campaign of advertising through all media is a
great way to improve customer acquisition and retention. In fact, this method may end up costing the
business owner a significant amount of money for little reward. The best strategies for customer
acquisition and retention are very focused and prepared specifically for a target audience; if, for
example, the business owner wants to reach new customers by advertising on the radio, he or she
may first want to listen to that station regularly to get an idea of who is listening. If the business
caters to the elderly, it does little good to advertise on a rock station, as elderly customers are
probably not likely to be listening. Asking the radio station about the demographics of the listeners is
an important first step.

Retaining customers is just as important as finding new ones. Many business owners make the
mistake of ending a transaction after payment or the initial interaction. Business owners should
instead improve customer acquisition and retention by maintaining an open dialogue with customers.
Mailers with special offers for past customers often work well for two reasons: first, the offer
improves the chances that the customer will come back for more services or products; second, if that
person has a positive experience, he or she is more likely to tell others about it, thereby giving the
business owner free advertising.

Loyalty programs often keep people coming back to a business. Some restaurants offer punch cards,
for example, that allow a customer to get a free lunch after he or she has dined at the restaurant a
certain number of times. This is good both because it brings a loyal customer back through the door,
and it gives the business owner free advertising by word of mouth from a satisfied customer.

Although gaining new customers is important, customer retention is important as well. Customer
retention involves a company continuing to develop its relationships with its current customer base.
This might seem like additional work, but a company stands to benefit greatly from implementing
customer retention practices. Some of the benefits that a company might experience because of
customer retention are keeping its current customer base, maintaining accurate customer
information, acquiring referral business, becoming an authority in its field and a better work
environment.

A company that keeps its current customer base is poised for consistent growth. Acquiring new
customers is important because it helps a company grow, but maintaining relationships with current
customers shows that the company cares about those who have decided to do business with it.
Customers enjoy doing repeat business with a company when they feel that the company is genuinely
concerned about them and their experience with the company.

It might not seem like an important aspect of customer retention, but maintaining accurate
customer information is very important for a company. By keeping accurate records of email
addresses, phone numbers and mailing addresses, a company can send its customers information
during future marketing campaigns or keep them apprised of developments that they might find
important. In addition, information such as birthdays, anniversaries and customer favorites might be
used to customize a customer’s experience with the company.

Most businesses agree that referrals are one of the most important and effective ways to gain
new customers. By focusing on customer retention, a business stands a much better chance of
gaining referrals from its current customer base. When a customer feels like his or her needs are
being cared for and his or her business is greatly valued, he or she will want to let others know about
the great experience that he or she had with the company.

By paying attention to the current customers, a business owner might become an expert in his or her
field. Being tuned in to current customers and working hard at a customer retention plan means that a
business owner knows what customers want, how to make that happen and what resources are
available in his or her specialty. Customers might feel compelled to go to the owner for insight
instead of choosing unreliable options.

Most of the focus of customer retention is outward, but a business also might enjoy internal benefits.
When customers feel appreciated, they are less likely to become hostile in situations such as a
miscommunication or error. This can help employees be less defensive and more willing to eagerly
help customers, which might help them enjoy their working environment more.

Customer satisfaction and retention are intrinsically connected because a customer’s loyalty is
usually based mostly on how the person feels about a company and its products. Many companies
spend a lot of time and money trying to maintain as much customer satisfaction as possible because
losing customers to a competitor is one of the most dangerous things that can happen in business.
There are many approaches to cultivating customer satisfaction, and the method used will often vary
depending on the exact type of business in question, and the company’s previous history of
operation. Customers who are truly dissatisfied can sometimes become hostile, which can lead to
negative word-of-mouth issues, possibly resulting in a multitude of people who have a bad opinion
about a company.

If a customer buys a product and feels generally happy with it, he or she could be considered
“satisfied” with the company, but that isn’t the same as being truly loyal. People who become loyal
to a company will actually put up with a lot of problems because they often feel like they are part of
the company’s team, and they will actively support the company even during troubled times. Many
companies consider the process of creating customers with real brand loyalty to be an important part
of their business model, and it is one of the most crucial aspects of the customer satisfaction and
retention equation. Customers with this kind of loyalty could generally be considered the safest
customers, and they also usually lead to very positive word of mouth.

In order to maximize customer satisfaction and retention, companies often come at the issue from
several different angles. On the one hand, there is the simple process of providing the best possible
product or service and making sure that the overall quality standards for the company are held at the
highest possible level. Another important aspect of customer satisfaction and retention is the way
people are treated when dealing with company representatives, and for this reason, many companies
spend a lot of time improving the customer relation skills of phone-operators and other people who
work with the public.

According to some experts, the most important goal when it comes to customer satisfaction and
retention is usually damage control. If one thing goes wrong and a customer becomes hostile, that
person can do enormous damage all by himself, simply by telling his friends and acquaintances about
his bad experience. Sometimes this sort of scenario isn’t entirely avoidable, but many companies
expend a lot of effort trying to mitigate the potential for these problems as much as possible by
offering no-strings-attached return policies and things like that.

Customer satisfaction

Customer satisfaction is the degree to which a buyer is satisfied with a product, service or company.
Customer satisfaction objectives can be broken down into three main groups. The first is satisfaction
with the purchase, which includes how well the product performed, and whether it met customer
expectations and similar perceptions. The second is satisfaction with the process, which includes ease
of making the purchase as well as customer service or warranty interactions after the purchase. The
third of the main customer satisfaction objectives is the degree to which satisfaction levels affect
future actions, such as recommending a product to others or buying again.

Companies are very interested in ensuring that customers are happy with the performance of a
product or the quality of service because it will affect future purchase decisions. In fact, quality may
be the most important of the customer satisfaction objectives because the consequences of a bad
product or poorly performed service are virtually impossible to overcome. Companies often perform
extensive market research and product testing to ensure that the product or service will meet as many
of a client's needs and expectations as possible.

Whether the product being purchased is a tangible item, an intangible item or a service, quality is
important. If a customer feels that the product does not work or does not work as well as anticipated,
or if she feels that the product is unsafe, hard to use or not worth the price, she will not be satisfied.
Misleading advertising or advertising that raises a customer's expectations beyond what the product
can deliver will also lead to customer dissatisfaction.
Satisfaction with the process also is important to consider when determining customer satisfaction
objectives. A customer who is unhappy with the process might go to a competitor next time, even if
she is happy with the performance of the actual product. Process incorporates all actions involved in
researching and purchasing a product, but also with resolving issues after the purchase.

It is important for buyers to feel that the purchase process is easy and that their business is valued.
This means that online and telephone ordering systems must be easy to use. Retail locations must be
properly staffed, and all personnel must be polite and willing to assist the customer as needed.
Warranty, return and issue-resolution processes must also be efficient and friendly.

A discussion of customer satisfaction objectives should always include the impact on future
behavior. While it is desirable that the customer have a good experience with both the product and
the process, a truly satisfied customer will return to make future purchases and will recommend the
product or service to others. This grows the company's customer base and contributes to long-term
customer relationships.

Customer expectations

Customer expectations and satisfaction are closely related. Customers feel less satisfied when they
expect something from a company but do not get what they expected. On the other hand, if they have
low expectations of a company and are pleasantly surprised, they may feel more satisfied than if they
had high expectations and feel they have been let down. Interestingly, companies are not always able
to accurately predict what customers will expect from them, and systems of gathering and analyzing
feedback are typically important.

Often, a customer's level of satisfaction is dependent on the expectations he has for a company. For
example, if he expects a company to offer prompt service, but he encounters delays in the processing
of his order, he may feel unsatisfied. Likewise, if he believes a company will provide a quality
product and his purchase seems cheaply made, he may feel unhappy. Additionally, a customer may
feel dissatisfied with a company if he believes his business is valued, but a company proves
otherwise by allowing its employees to ignore him, behave rudely, or fail to respond appropriately to
complaints.

In many cases, customer expectations and satisfaction are influenced by the advertisements a
company uses to sell its products or services. For example, if a company advertises that it processes
orders within a certain time frame but then fails to live up to this, its customers are likely to feel
misled by the advertisement and dissatisfied. Likewise, if a company advertises itself as putting
customer service first, but then shows only an average level of concern in this area, its customers are
likely to be less satisfied. In such cases, the connection between customer expectations and
satisfaction is one the company influenced with its advertising claims.

Sometimes a customer's own preconceived ideas about a company — unrelated to advertising — can
also affect the relationship between customer expectations and satisfaction. For example, if a
customer believes a company has the expertise to quickly and accurately diagnose an equipment
issue, but the company is unable to provide a diagnosis right away, the customer may feel let down.
The same may hold true if the customer expects a company to accept special orders but it refuses to
do so.

Many companies make the mistake of trying to meet assumed expectations rather than learning what
the customers' expectations really are. If the expectations are assumed, the company's priorities may
seem off kilter due to the fact that is does not really understand what its customers want or consider
most critical. In such cases, finding effective methods of gauging customer needs may prove critical
for the company's success.

Customer service is the practice of providing customers with a positive, helpful experience when
they enter a business, throughout the time they stay at the business, and even after the customer
leaves, should they have additional questions or products to return. Many stores and other businesses
spend a great deal of time training their employees to provide great customer service, because it
makes a customer more likely to become a returning, loyal client. There are a number of different
ways that employees can provide great service to a customer, and most do not take much extra effort
at all.

In a store, for example, all of the employees should be focused on providing excellent customer
service to everyone who comes in. This begins with greeting a customer when they enter the store,
and asking the customer if he or she needs help with anything. In addition, the employees should
remain available while the customer is shopping, in order to answer questions or offer assistance.
Many stores also have a designated counter for customer service, where customers may stop in order
to return products, place special orders, or ask questions.

Other businesses provide customer service in different ways. A company with a call center, for
example, will only interact with customers over the phone. It is important for employees in this
situation to be able to remain calm and polite when speaking to customers on the phone, particularly
because customers frequently only contact call centers when they have a problem. Employees should
do their best to listen carefully to a customer, resolve any problems or issues quickly, and to bring in
a manager or supervisor to solve the problem if necessary.

Businesses often give customers the opportunity to give feedback on their perceived levels of
customer service. This can take place through phone, mail-in, or on-line surveys with a few brief
questions. The responses to this type of survey can give businesses an idea of where they are
succeeding as well as areas where they need to improve. It is in the best interest of every business to
spend a lot of time focusing on customer service, because customers who feel that they are treated
poorly will simply go elsewhere. In addition, customers are not afraid to post scathing reviews online
when they feel that they receive poor service, which can be incredibly damaging to a business's
reputation, causing them to lose even more income.

Customer loyalty

Building customer loyalty is a complex process, and there are many different theories about how
customer service and customer loyalty are related. Generally, it is assumed that good customer
service translates directly into customer loyalty, but this is not the entire story. Particular types of
customer service do not instill in customers a sense of loyalty, even if employees are perfectly polite
and professional. It takes even more unique strategies to connect customer service and customer
loyalty, and attention to the needs of a customer base is the only way to identify which strategy will
be successful.

In most cases, customer loyalty is not built solely on customer service. The customer base must have
a genuine interest in the product or service offered and must also have a reason to patronize the
business even if that reason is purely social or related to prestige. That said, customer service and
customer loyalty are related in that customers are more likely to be loyal to an experience than
simply a product. Service provided by employees is one of the best ways to create an experience.

Some businesses pride themselves on their professional customer service, but professionalism is not
the key to building customer loyalty. Customers must feel that they are special to the company on an
individual level, which is an experience that can only be generated with a certain kind of customer
service. Warm, personal customer service that reads the needs of the customers effectively is
typically the best way to build customer loyalty, although there are some exceptions to this rule.
More broadly, making sure that the needs of the customers are met on an individual level is the best
way to achieve loyalty.

Although customer service and customer loyalty are not always related in the same way, it is
certainly true that where customer service is lacking, customer loyalty will be lost. Bad customer
service is a detriment to business in many ways and can destroy customer loyalty. It is difficult to
police all employees to the degree that no customer ever has a bad experience, but it is possible to
create the conditions in which employees feel they have an interest in providing effective customer
service.

One interesting connection between these two concepts is that companies that treat employees in
such a way that they provide good customer service often get customer loyalty as a benefit. In this
situation, loyalty is a result of the general appearance of the company, not a direct response to a
customer experience. Creating a good company solves both customer service and customer loyalty
problems
Customer dynamics is a term that is used to describe the flow of activity that takes place between a
customer and a vendor or supplier. The range of this type of activity will include the free exchange of
information as well as any type of transactions that occur between the two parties. As part of the
process, customer dynamics goes beyond simply looking at the purchasing activity generated by the
customer and includes consideration of the range of emotions and the establishment of relationships
that occurs as part of that ongoing exchange of information. This approach can aid in qualifying the
level of rapport and loyalty that each party exhibits toward the other, which in turn can help to define
the value of the relationship to each of the parties involved.

As part of assessing customer dynamics, a number of types of interaction are taken into
consideration. This begins with the level of rapport and trust that is established during the initial sales
contacts, moves on through the creation of customer accounts, the processing of customer orders and
the nature of the interactions between clients and customer support personnel. Within the scope of
these types of interactions, every type of communication is considered important to the dynamics of
the relationship. Telephone calls, emails, face to face meetings and the ease of placing and receiving
orders are all factors that help to provide a more accurate assessment of the relationship that exists
between customer and provider.

There are a number of benefits to understanding customer dynamics. One very important result of
this activity is that providers can identify ways to strengthen ties with customers. This is valuable in
that customers who feel more invested with a given provider are less likely to be led astray by
competitors, based on their loyalty to the provider. Even if competitors offer some very attractive
pricing or other incentives, the chances of the customer at least offering the provider a chance to
counter the offer are greatly improved. In some cases, the dynamics between the client and provider
may be so strong that consideration of working with a competitor is neither practical nor desirable.

Providers can also make use of strong customer dynamics as a means of obtaining feedback that
makes it possible to improve current products or even develop new ones in an effort to meet
additional needs expressed by customers. From this perspective, evaluating all the exchanges of
information between the two parties can pave the way for new ideas that ultimately benefit everyone
involved. Along with enhancing the range of the product line, this type of healthy exchange can
sometimes lead to changes in policies and procedures that provide additional benefits to customers
and aid in strengthening the ties already in place.

Customer engagement (CE)

Customer engagement (CE) is a concept in marketing which is used to refer to the types of
connections consumers make with other consumers, companies, and specific brands. Achieving a
high level of customer engagement is viewed as desirable because it tends to enhance brand loyalty.
Companies with a following of highly engaged customers have a dedicated fan base of people who
not only buy their products, but also encourage others to do the same, thus creating a ripple effect.

Customers can engage with companies and each other in a variety of media. Historically, customer
engagement was often very one sided, with companies marketing to consumers, but not experiencing
much communication from their clientele. With the advent of the Internet, this dynamic changed
radically and companies had to rethink the way they approached customer relationships.

Activities which could be considered facets of customer engagement include visiting a company
website and sharing it with others, creating content about a company or product such as writing a
blog entry about a product, engaging in social networks of people with shared interests, writing or
calling companies, and viewing print and television advertising for a given company or brand.
Highly engaged customers may do all of these things, while less engaged customers may have a less
solid relationship with the company.

Advertising often promotes a higher level of customer engagement by providing incentives to be a

Companies have different ways of approaching customer engagement and the development of
relationships with and between consumers in regards to their products. Some of these approaches are
industry-dependent, with certain industries lending themselves more to high engagement than others.
The philosophy of a company can also be an important aspect, as companies want to retain the
reputations they have built while attracting customers and deepening their relationships with their
customers.

Some consulting firms specialize in customer engagement. These companies can assist companies
with the process of building a more engaged customer base while also expanding their market and
remaining true to their core values. Fees charged by such companies vary, depending on the services
offered and the size of the campaign.

A customer base is a group of customers who could be served by a business. Many people define this
term as only the consumers who already patronize a business, but others include any consumer with
certain purchasing characteristics in this category, even if that customer has yet to be convinced to
enter the store or take advantage of a product. Within the larger group is a smaller subset of the
customer base that is made up of loyal shoppers, also called repeat customers. It is generally
considered an essential part of business strategy to convert members of the customer base into repeat
customers, although not every business aims to expand the customer base itself.

There are many theories about how to build a customer base. These range from advertising to
providing good customer service to special promotions. Customers who are lured to the store by any
mechanism are therefore potential consumers, and so may be treated as part of the customer base.
The challenge then becomes convincing these customers to come back.

Repeat customers are usually the most important part of the business's customer base, because these
customers are willing to spend money at the store consistently. These customers may also advertise
the store's positive qualities and spread the store's name by word of mouth. Some kinds of businesses
may not have customers who frequently shop at the establishment because of the type of product
sold, such as large purchases like a television or computer. These businesses may benefit from
customers who would repeat the experience without regret, though they will not shop at that
establishment again for some time, because these customers will often tell other potential consumers
of their positive experience.

Not all customer bases are pre-existing, because not all businesses are designed to fulfill a need in the
community. For instance, a business may offer a specific service with certain appeal that creates a
customer base that did not exist before, giving people a service they didn't even know they needed.

Thinking about customers as a unified group with certain purchasing characteristics may not always
be the best way to keep customers happy. Keeping the customer in mind is important, but designing a
business that only fulfills the needs and expectations of the customer without any standards
independent of the consumer may not result in the best business. Innovative business thinking
involves a constantly shifting perception of both the customer's needs and the business's goals, and
the knowledge to adapt the business's course to meet these ends.

Customer dynamics

Customer dynamics is a term that is used to describe the flow of activity that takes place between a
customer and a vendor or supplier. The range of this type of activity will include the free exchange of
information as well as any type of transactions that occur between the two parties. As part of the
process, customer dynamics goes beyond simply looking at the purchasing activity generated by the
customer and includes consideration of the range of emotions and the establishment of relationships
that occurs as part of that ongoing exchange of information. This approach can aid in qualifying the
level of rapport and loyalty that each party exhibits toward the other, which in turn can help to define
the value of the relationship to each of the parties involved.

As part of assessing customer dynamics, a number of types of interaction are taken into
consideration. This begins with the level of rapport and trust that is established during the initial sales
contacts, moves on through the creation of customer accounts, the processing of customer orders and
the nature of the interactions between clients and customer support personnel. Within the scope of
these types of interactions, every type of communication is considered important to the dynamics of
the relationship. Telephone calls, emails, face to face meetings and the ease of placing and receiving
orders are all factors that help to provide a more accurate assessment of the relationship that exists
between customer and provider.

There are a number of benefits to understanding customer dynamics. One very important result of
this activity is that providers can identify ways to strengthen ties with customers. This is valuable in
that customers who feel more invested with a given provider are less likely to be led astray by
competitors, based on their loyalty to the provider. Even if competitors offer some very attractive
pricing or other incentives, the chances of the customer at least offering the provider a chance to
counter the offer are greatly improved. In some cases, the dynamics between the client and provider
may be so strong that consideration of working with a competitor is neither practical nor desirable.

Providers can also make use of strong customer dynamics as a means of obtaining feedback that
makes it possible to improve current products or even develop new ones in an effort to meet
additional needs expressed by customers. From this perspective, evaluating all the exchanges of
information between the two parties can pave the way for new ideas that ultimately benefit everyone
involved. Along with enhancing the range of the product line, this type of healthy exchange can
sometimes lead to changes in policies and procedures that provide additional benefits to customers
and aid in strengthening the ties already in place.

As it is used in the business world, customer value is the amount of benefit that a customer will get
from a service or product relative to its cost. Some businesspeople explain customer value as
“realization” compared to “sacrifice.” Realization is a formal term for what customers get out of their
purchases. Sacrifice is what they pay for the product or service.

Businesses of all sizes use customer value as part of a greater analysis to determine how well they are
supplying their customer base. Detailed research might include what customers generally do with the
products they receive, or how they use services to increase the value of assets like real estate.
Businesses also look at the prices of their products in order to price them competitively.

Businesses that identify the value of their wares to customers might go a step further and consider
other similar ideas. In order to generate more thought about customer value, and to reach out to a
customer base, a business might promote a customer value proposition. The customer value
proposition is basically a promise of benefits from a vendor to customers.
We see examples of customer value propositions all the time in advertising. Companies pinpoint the
benefits that they believe a customer will realize, and display them in advertising to attract more
customers. The question is whether these propositions are made in good faith, or whether they may
not be entirely true.

When business leaders and others are talking about customer value, it is important that everyone at
the table understands that customer value does not relate to the value of customers, but to the value
that customers receive from the business. Those who are talking about how valuable customers are to
a business might use terms like customer retention, or refer to the customer base as “valued
customers,” or VIPs. Since customer service is also a critical element for many businesses, it's
possible that these two ideas might sometimes get confused.

Along with the basic idea of customer value, other terms help further define that value precisely.
Relative performance identifies how the product or service gives customer value relative to what
competitors offer. Access cost is something that business analysts add into the mix as an estimated
cost of the effort involved in purchase. Value propositions often include these levels of detail to help
leaders look at how well a business is serving its intended audience.

Customer Value Analysis (CVA

Customer value analysis (CVA) is an approach to consumers that involves presenting the worth of
value of a businesses products to those consumers. Considered a key element in the customer loyalty
management process, the idea is to identify any and all factors that are likely to motivate targeted
consumers to see quality in those products, with attractive pricing to increase that perception of
value. While this process is more commonly used in business to business settings, the same general
concept can be used by companies to increase market share with specific groups of consumers.

One of the tools used in a customer value analysis is the customer survey. The purpose of the survey
is to provide customers with the opportunity to share their thoughts on specific goods or services
offered by the company, along with comments and critiques that could be used to help enhance some
aspect of the product. Data collected using this customer satisfaction tool can influence the nature of
the product itself, or possibly have an impact on the marketing and sales techniques used to present
those products to new and potential clients. As a bonus, this process of customer satisfaction
marketing helps increase rapport with customers, which only aids in increasing customer loyalty.

Another benefit of customer value analysis is gaining a better understanding of how customers make
use of the products, and how they perceive the cost in relation to those uses. This can sometimes help
a company that offers average quality goods to get insights into why a company that offers a superior
product can command higher prices and still capture more market share. From this perspective, a
customer value analysis is not supposed to reinforce the company’s concept of itself, but provide the
incentive to improve and push quality boundaries while still offering products that consumers will
view as being priced equitably.

When designing a customer survey analysis, there are a few key thoughts to keep in mind. Ideally,
the structure will avoid phrasing questions in a manner that makes it possible for customers to
provide simplistic answers that reveal very little. The use of multiple choice responses, providing
scales, and allowing opportunities for customers to comment and offer more detailed input at
strategic points during the survey is very important. Doing so will help increase the amount of detail
obtained from the effort, and lead to a customer value analysis that yields more comprehensive and
helpful results.

Quantitative metrics

Quantitative metrics are results or statistics pertaining to a business or some aspect of its operations.
These results can often be represented in numbers and are, therefore, easily digestible by business
owners and marketing experts trying to see if the desired results are being delivered to customers.
One aspect of these metrics that makes them desirable to companies is the relatively low cost needed
to obtain them compared to qualitative metrics, which must be obtained through costly surveys or
other aggressive methods. An example of quantitative metrics is the number of times that users click
on to a website.

Companies must set up reliable methods to measure the success of their different business initiatives
or marketing campaigns. Metrics are the methods by which companies measure the success, or lack
thereof, of these disparate campaigns. These companies can set standards for the performance levels
that they wish to reach and see if their actual levels come close to matching up. The easiest to
measure metrics are quantitative metrics, which can often be broken down into hard numbers or
easily measurable data.

Those businesses that choose to employ quantitative metrics can generally sit back and let the data
roll into them. For example, a store that wants to see how a particular sale affected business can
check out the sales figures during the time the sale was executed. Marketers for a sports team can
find out how well a specific advertising campaign has fared by seeing the affect on attendance. These
examples illustrate how these metrics can be used to deliver results that businesses can use.

Once the quantitative metrics are digested by companies and their owners, steps can be taken to
ensure improvement in the future. Many businesses may choose to install benchmarks, which are
standards that they hope to achieve in a best-case scenario. With these benchmarks in place, the
metrics can be used to show how close a company is to achieving optimum performance.

Although quantitative metrics have their advantages, there may be occasions when companies choose
to pursue other methods. Instead, companies looking to find information that can be interpreted and
dissected for more speculative results might choose to go with qualitative metrics. These metrics are
often costlier to implement than quantitative ones, relying as they do on testing and surveys.
Choosing between quantitative and qualitative metrics may ultimately come down to what types of
questions that a company needs answered.

Performance metrics

Performance metrics define in quantitative terms the performance of various activities in a business.
Types of performance metrics include those used to analyze business productivity, marketing and
sales, financial performance, customer-relations management, and environmental metrics. This list is
not all inclusive, as metrics may include anything within a company's domain of activity that can be
measured analytically.

Metrics that measure productivity analyze factors such as output per hour, days lost to injury, and
frequency of supply-chain interruptions. An example would be using performance metrics to
determine which shifts are more productive or less, or how many man hours were lost due to injuries
in the workplace. Another example would be manufacturing output measured against performance
incentives.

Quantitative productivity data may be used to justify retooling costs, for example, or to reconfigure
the manufacturing operation in its entirety. Production metrics may also reveal bottlenecks, slack in
the system, or excessive waste. Some companies have significantly reduced manufacturing waste by
tracking and analyzing discarded material, then using those metrics to adjust future orders for goods
and materials up or down.

Marketing metrics

Marketing metrics may be used to measure the performance of product lines, sales team
performance, competitor analysis, or to gauge consumer demand and engagement. Responses to
advertising campaigns and data derived from public opinion polls are also examples of the types of
metrics that are used to quantify a company's marketing efforts. An article in CFO Magazine in 2007
reported that Best Buy® discovered, through tracking performance metrics, that a 0.1% boost in
customer engagement correlated with a $100,000 US Dollar (USD) increase in a store's annual
operating income. Financial metrics analyze a company's fiscal strength and performance in terms of
cash flow, profit margin, overhead costs, cash reserves, and other similar quantitative data.

Stakeholders, such as consumer advocacy groups, or stockholders of the company, may look at
corporate responsibility as it is revealed through an analysis of actual social performance. Such
environmental metrics may also track social responsibility by calculating the environmental footprint
of a company. Environmental metrics may also quantify the impact of weather patterns on
productivity, or how the local labor market may be impacting job recruitment and retention.

Tracking the feedback from performance metrics produces hard evidence, which a company uses to
chart a strategy. Collecting raw data alone is insufficient. The key to unlocking valuable nuggets of
information is in pairing one set of metrics to another. Only then are relationships of one key metric
to another revealed.

Customer satisfaction

Customer satisfaction typically is a way for companies to measure the number or percentage of
consumers who continually purchase goods or services offered by the business. The tools used to
measure customer satisfaction include surveys, field reports, data mining and similar methods. All
companies can create a system of customer satisfaction tools for determining the various degrees of
satisfaction from consumers. The purpose of the reports is to help companies discover where they
succeed and what improvements are necessary to improve customer relations.

Surveys are among the most common customer satisfaction tools. The reason behind this popularity
is the lower costs sometimes associated with surveys, the ease of gathering information and the
ability to reach a large group of consumers at a single time. Traditional surveys were paper forms
sent through the mail. Technology allows companies to send surveys via email or to direct consumers
to a website. Computerized surveys are highly customizable and allow companies to change or alter
the surveys for specific consumer groups.

Field reports generally are customer satisfaction tools that require companies to have a physical
presence in a specific location. For example, a company might send mystery shoppers into its retail
locations. These shoppers fill out forms and describe their experience while in the store and when
making a purchase. Field reports are often quite expensive and in some ways less informative than
surveys. The reports are less informative because they involve a smaller number of people from
whom the company collects information.

Data mining often requires the use of technology to gather consumer information. Customer
satisfaction tools that use data mining often gather information at the point of purchase in retail
stores. The collected data goes to a database located within the company’s physical location.
Workers then take the data and create reports on customer satisfaction using the information. Data
mining might need additional customer satisfaction tools to complement the gathered data.

Companies often need to take a hard look at their operations and consumer types when making a
selection from among the different customer satisfaction tools. In some cases, a tool that worked
previously might no longer work under current business conditions. A company’s management team
must be aware of the various conditions that can alter gathered consumer data. Adjusting data
collection methods or survey questions will typically overcome the shortfalls of previous collection
methods. Different methods might also be necessary for the various regions or locations in which a
company operates.

Customer satisfaction

Customer satisfaction is important to the success of any business. If customers are not happy with
their purchases and the circumstances surrounding those purchases, the potential for any repeat
business is severely limited. In order to attract and hold onto clients, using various methods of
customer satisfaction like providing around the clock access to a support team, conducting customer
satisfaction surveys, and making sure the ordering process is simple and direct will go a long way
toward enhancing growth and keeping customer turnover to a minimum.

One of the more common methods of customer satisfaction and support is to provide clients with
ways to seek additional information or voice concerns without having to go through some
complicated process. Several approaches can be used to establish and maintain an ongoing dialogue
with clients. A time-honored approach is the ability to reach customer service representatives by way
of a telephone call. In addition, many companies today offer live chats online, and set up email
addresses that clients can use. With all these options, minimizing the amount of time customers have
to wait in order to communicate with a representative enhances the potential to defuse negative
situations and perceptions, while increasing the chance of retaining those customer.

The various methods of customer satisfaction also focus on making sure clients are receiving the
quality they expect when making a purchase. This requires companies to have strong quality control
and assurance programs, minimizing the opportunity for faulty goods and services to leave the
facility and find their way to customers. This type of preventive measure can go a long way toward
establishing good customer relations at the onset of the relationship, a benefit that may be helpful at a
later time.

Methods of customer satisfaction generally involve setting reasonable expectations on the part of the
customer and living up to those expectations. This is true not only in terms of the quality of the
products purchased, but also the pricing and the ability to obtain help when needed. Never promise
customers something that cannot be delivered. Unless the company is prepared to provide around the
clock access to a customer service and support team, do not present the idea to customers. Be very
specific with customers so there is no chance for miscommunication and meeting customer
expectations will be much easier.
With all methods of customer satisfaction, honesty and integrity must be present. Interactions with
clients should always be productive, focusing on what will be done to correct an unfortunate situation
and what the company is prepared to do for the client in the future. Vague promises that never come
to pass only erode customer loyalty, while being honest and working with customers to resolve any
issues that arise will often salvage a bad situation and help the relationships with clients emerge
stronger than before.

Customer satisfaction

Monitoring customer satisfaction is a continuous process. The best way to determine shifts or
changes in customer satisfaction is to conduct surveys and analyze results regularly. Other methods
that can be used to monitor customer satisfaction include regularly using focus groups, recording the
number and types of complaints made to customer service representatives, and opening
communications through social networks. While each method is helpful to monitor customer
satisfaction levels, a combination of tools may provide the most well-rounded and accurate results.

Using surveys as a tool to monitor customer satisfaction is often the most cost efficient and accurate
method for determining if shifts in satisfaction have occurred. When done correctly, a survey can
provide the business with a precise understanding of customer perceptions and attitudes toward its
products or services. Questions should be carefully chosen in order to gain the information needed
and to avoid confusing customers taking the survey. The surveys should also include qualitative and
quantitative data so that information can be easily analyzed, with open-ended questions being used
sparingly.

Businesses can effectively monitor customer satisfaction by conducting regular surveys to measure
changes in satisfaction levels. These surveys should be strategically customized to the specific
business or product, include quantitative and qualitative questions, and be formatted for easy
analysis. When the surveys are completed by customers, they should be formally reviewed and
analyzed to determine if there are shifts in customer satisfaction and to locate areas in which
improvements could be made.

Depending on the nature of the business and product, the customer satisfaction survey should be
conducted either monthly, quarterly or annually. The more the industry, business or product changes
throughout the year, the more often a customer satisfaction survey should be conducted. Conducting
surveys in short intervals is helpful even if the business does not change often, as its competitors may
have started providing customers with better products or services.

After the surveys have been completed, they should be organized in a database that will allow them
to be easily accessed for analysis. The results of the surveys should be reviewed by top management
in order to determine what can be done if customer satisfaction is not improving or even declining.
This can lead to implementing changes and then monitoring customer satisfaction levels to determine
if the changes were successful. For instance, if the survey concludes that customers are dissatisfied
with the company’s ability to ship orders quickly, the company can later conduct a second survey to
determine if customers are now satisfied with its ability to ship orders faster.

Customer insight

Customer insight is a marketing term used to describe the way that information about customers is
gathered by companies in their efforts to stimulate future business. Cultivating excellent long-term
relationships with customers is crucial to any business hoping to succeed. For that reason, marketing
teams pay close attention to customer insight when devising promotions, marketing strategies, and
advertising campaigns. This concept also pays close attention to how different triggers stimulate
customer action and how the past behavior of customers can be projected in the future.

Marketing techniques have changed greatly over time. In the past, when media like television, radio,
and print media first gave companies new avenues to advertise, the focus was often placed on the
products and services that the companies had to offer. But that view has gradually evolved to the
point where much of marketing is based on predicting how it will affect the company's consumers.
This customer-driven approach is especially prevalent due to developments in computer technology,
which allow marketers to reach consumers just about anywhere. As a result, the concept of customer
insight is as crucial as any other in the world of modern marketing.

In many ways, customer insight is a concept with psychological elements. Companies are essentially
trying to get inside the heads of their customers to gain some knowledge of why they buy the things
they buy and how they can gain the customer's trust in a specific brand. The ability to do this would
conceivably allow the businesses to cater all of their efforts to the sensibilities of its consumers.

Since getting inside the heads of customers is technically impossible, companies rely on past
behavior to gain customer insight. To those ends, propensity modeling is a technique which takes the
past actions of customers are makes predictions on how they will act in the future. This is especially
useful when studying how past initiatives impacted the customer base, either negatively or positively.
Learning from these past lessons can give marketing personnel an educated guess about how future
promotions or sales campaigns will be received.

While customer insight can help make marketing decisions in the short term, it is also valuable for a
company looking beyond the next promotion to building a stable, long-term business. Treating
customers as assets with a specific value allows companies to judge their worth in a similar fashion
as they might judge the worth of a new piece of machinery. This makes the decision-making process
clearer when it comes to marketing choices related to customer attraction and retention.
Customer retention

Customer retention is a task that companies of all sizes and types must engage in if they are to thrive.
While there are many different programs, seminars, and strategies that provide insight into how to go
about retaining customers, most approaches center around a few essentials. In order to hold on to a
customer base, businesses must offer quality products at prices customers can afford, establish and
maintain a relationship with those customers, and motivate the customer to feel personally invested
in the company.
At the heart of any effort at retaining customers is the necessity of offering clients what they need or
want at a price they can afford. In the bargain, those products must also compare favorably with
anything the client can buy elsewhere. Strict attention must be made to maintaining customer
satisfaction by keeping the quality of the products from decreasing to a point that customers no
longer see those goods and services as worth the cost. At that point, customers are likely to begin
looking around for a new supplier.

Along with quality and price, building rapport with customers is very important. This means making
it a point to get to know clients and proactively discuss what the products offered can do to help meet
customer needs. One way to secure that information is to engage the client in conversation. Most
people enjoy talking about themselves and what they do. During the course of those conversations,
connections can be built that open the lines of communication in ways that allow salespeople and
customer relations personnel to pick up on little things they would probably miss otherwise. This
ongoing line of open communication can do wonders for retaining customers, who are more likely to
turn a deaf ear to competitors, simply because of the personalized attention.

One common approach to retaining customers is to create an environment that allows the customer to
feel invested in the business. This can involve something as simple as asking shoppers at the local
grocery what they would think about moving the produce closer to the front door, or asking a client
to help test drive a new product that has not been released to the general public. Proactively asking
the client for their assistance, with the implication that their opinions are very important, helps to
strengthen bonds and minimizes the chances that a customer will stray.

Keep in mind that while relationships and building loyalty are very important to retaining customers,
the bottom line is that undesirable shifts in quality and price will undermine even the closest of ties
between suppliers and clients. Attempting to cut corners as a way of increasing the bottom line is
fine, as long as those cuts do not impair the quality of the finished product. In like manner, customers
will often tolerate a price increase, as long as that price remains within a certain range, and the
quality is still there. Maintaining a foundation of quality at a great price, enhancing that foundation
with strong and open communications, and topping off with steps that help clients feel valued and
important for reasons other than their money will go a long way toward minimizing customer
turnover, and encouraging good word of mouth that leads to bringing even more customers in the
door.
Steps you can take to increase customer retention.

There are many steps you can take to increase customer retention. Among the most effective may be
improving your customer service, as many customers will stop buying from you if they feel
mistreated, ignored, or undervalued. Effective public relations campaigns can help you to hold onto
your customers as well. Additionally, incentive programs and sales, and events that cater to your
customers' unique needs and interests may help keep them loyal to your business.

One of the best ways to increase customer retention is by focusing on customer service. Often, one of
a customer's main reasons for leaving one company for another is because the customer service is
poor or lacking altogether. Usually, customers value both their money and their time. If your
business representatives seem not to value a customer's money and time, he may move on to another
company that has better customer service practices. This company may then hold onto your customer
by showing him how much it appreciates his business.

Public relations efforts can also go a long way when you want to increase customer retention. Once
you've obtained a customer, you may think the quality of your products and services should be
enough to keep him with your company. Often, however, public relations strategies serve to remind a
customer of why he chose your company in the first place and help renew his loyalty to your
business. For example, positive news stories about your company may help increase customer
retention. Additionally, they may offer the added benefit of helping you attract new customers as
well.

You might also find incentive programs helpful when it comes to customer retention. Your customers
get a product or service in return for the money they spend with you, but it may help to offer them a
little more. For example, you could offer a free product or service for every five or 10 purchases a
customer makes. If you cannot afford to give a product or service away absolutely free, you could
alternatively offer it at a significantly reduced price.

Sometimes customers like to feel they are special. You can help them feel this way by offering sales
and special events that cater to their interests and unique needs. For example, you could send
personalized emails to your customers, featuring sale items in which they are likely to be interested.
You can use past purchases, polls, and surveys to determine which types of sales and events you
should offer.
Customer acquisition.

A large part of growing and optimizing a business is to consistently acquire new customers. Then, if
the business offers genuinely helpful products or services, many of those new customers often turn
into loyal, repeat customers. Following four main guidelines should make it possible for most
businesses to help increase customer acquisition. These include providing real solutions for a
customer's problems, making the products or service simple to understand, using effective promotion
techniques and developing credibility through positive customer reviews.

One of the best things a business can do to increase customer acquisition is to simply offer a product
or service that solves a problem. Typically, when a consumer makes a purchase, odds are that he
believes that the purchase will fix a problem or make his life easier. For example, a customer buys a
workout machine in order to get into shape and achieve better health. The idea is to figure out what
problem the businesses' product or service will solve and focus on that aspect. Emphasizing those
benefits should help in the process of building a solid customer base.

Another important aspect of gaining customer acquisition is to make the product or service easy to
understand. Most potential customers don't want to sift through a mountain of details in order to
understand what a business is offering. That's why it's crucial to develop a simple, straightforward
sales presentation that efficiently explains why someone should become a customer. Making the
information easy for potential customers to digest should yield positive results.

Using effective promotion techniques is also vital for obtaining new customers. In order to be
effective, it's generally best to use a variety of marketing strategies. Using a combination of things
like social media, online marketing and offline marketing will cover all the bases and make a
business accessible to a large demographic of the population. In turn, this should make it easier for
potential customers to find the products or services a business is offering.

Another important tip for increasing customer acquisition is developing credibility. Any business that
wants to thrive must establish its legitimacy. A simple way to accomplish this is to set up something
like a website or online publication that features reviews from satisfied customers. Often if a
potential customer is unsure or skeptical about making a purchase, the turning point can be hearing a
positive testimonial from someone who already tried the product or service. Getting and sharing
testimonials is a strategy that can often do wonders for sales.
The specific steps one must take to improve customer acquisition and retention will vary according to
several factors, including the type of business, the business's advertising and operating budget, the
region in which the business operates, the intended audience for the business, and various timing and
implementation considerations. An examination of the business itself is usually the first step in
customer acquisition and retention, and having a business plan in place will help the owner
immensely. If at all possible, it is important for the owner to set reasonable goals for acquiring and
retaining customers, and to research different advertising options that will reach the target audience.

Many business owners mistakenly believe that a wide campaign of advertising through all media is a
great way to improve customer acquisition and retention. In fact, this method may end up costing the
business owner a significant amount of money for little reward. The best strategies for customer
acquisition and retention are very focused and prepared specifically for a target audience; if, for
example, the business owner wants to reach new customers by advertising on the radio, he or she
may first want to listen to that station regularly to get an idea of who is listening. If the business
caters to the elderly, it does little good to advertise on a rock station, as elderly customers are
probably not likely to be listening. Asking the radio station about the demographics of the listeners is
an important first step.

Retaining customers is just as important as finding new ones. Many business owners make the
mistake of ending a transaction after payment or the initial interaction. Business owners should
instead improve customer acquisition and retention by maintaining an open dialogue with customers.
Mailers with special offers for past customers often work well for two reasons: first, the offer
improves the chances that the customer will come back for more services or products; second, if that
person has a positive experience, he or she is more likely to tell others about it, thereby giving the
business owner free advertising.

Loyalty programs

Loyalty programs often keep people coming back to a business. Some restaurants offer punch cards,
for example, that allow a customer to get a free lunch after he or she has dined at the restaurant a
certain number of times. This is good both because it brings a loyal customer back through the door,
and it gives the business owner free advertising by word of mouth from a satisfied customer.

Customer acquisition

Customer acquisition is a broad term that is used to identify the processes and procedures used to
locate, qualify and ultimately secure the business of new customers. There are many different
strategies used as part of the acquisition process, with some methods being more effective with
specific types of potential clients. In spite of the many and sometimes contradictory ideas that
surround the central idea of how to earn a customer, there are a few essentials that are included in
just about any type of customer acquisition plan.

One of the basics of any customer acquisition effort is to identify and quality potential customers.
This is sometimes accomplished with the use of telemarketing as a means of locating individuals and
businesses who either express interest in or already use products similar to those produced by the
business. From this initial list, these leads are then qualified a little further, using various research
methods to determine if there is any solid chance of making a sale with a given lead. If there is a
good chance, and the contact is interested in learning more about the products offered, his or her
status is usually upgraded to that of prospect, and assigned to a salesperson for further interaction.

Establishing rapport with the prospect is essential to any successful customer acquisition effort. Here,
the salesperson finds ways to identify with the stated wants and needs of the prospect, and how the
products offered can relate to those wants and needs. At the same time, the salesperson will go
further and attempt to identify unstated needs, based on data provided in ongoing conversations with
the prospect. This type of activity can lead to identifying additional wants that can be met by other
products that the salesperson has to offer, or inspire additional ideas of how the prospect can obtain a
greater value from purchasing the products he or she already is considering.

Key to the customer acquisition process is understanding the role of customer perception throughout
the process. A successful salesperson knows how to really listen to the prospect, and get a firm idea
of how that prospect feels about the potential of the products offered for sale. Seeing the relationship
from the prospect’s point of view makes it possible to proactively deal with possible objections
raised by the prospect before they are voiced. In addition, the added perspective can help the
salesperson connect with the client in a manner that is rarely possible otherwise. The end result is
that understanding customer perceptions makes it easier to forge a relationship that not only results in
a sale, but also in strong customer loyalty, provided the products live up to the claims presented
during the sales cycle.
Customer logistics

The term "customer logistics" refers to a company’s relationship to its customers during the delivery
of goods or services. This process involves shipping, information, warehousing, repackaging and any
other services that are a part of the delivery process. It covers a much wider range than simply the
mechanisms of shipping and receiving, however. Logistics balances the costs and services in ways
that are cost effective, reflect company goals and provide good customer service.

How products are shipped is a consideration in customer logistics. Product shipment should reflect
the goals of the company, whether it is controlling costs or keeping product inventories at a certain
level. This process also should move smoothly while also meeting all of the goals.

For the movement to be smooth, it must take into account business fluctuations that include busy or
slow times. It also must be organized so that shipments that vary in size are coordinated with the
same efficiency. Each department of a business might handle a different aspect of the shipping
process, but all of the departments must coordinate smoothly. Obviously, large companies can have
very complex logistics.

Customer logistics also includes information on how an item is moving to customers. This is
becoming increasingly technical. One example is computer tracking systems that can tell exactly
when an item was shipped and where it is in the shipping process. Similar programs also are needed
to track inventory.

Time is one of the most important factors in customer logistics. Customers expect their orders to be
filled quickly and accurately. Businesses that fail to do this might not be able to keep place in a
global economy where speed often is everything. If a company cannot deliver what it promises, the
customer will go elsewhere.

Costs also are extremely important. A key objective in customer logistics is to find a system that
provides acceptable service to customers while keeping costs low for the business. All of this must be
done within reason. The most costly process does not necessarily equal the best service, nor does
lowest cost save much if the needs and expectations of customers are not met.
The final step in customer logistics is making it all work together smoothly. Each individual or
department must do its part in and understand its role. A written chart can help outline this process.
This chart works as a road map for how the process works and can help pinpoint areas that are
working properly, along with those that need improvement.