Case 8-1 Telco Corporation

Case 8-1 Telco Corporation

Introduction

Major Facts

In the business organizations, there is always the importance of customer relationship management (CRM). CRM helps the marketing operations of the businesses in many ways. It is always difficult for every organization to get the new and potential customers that can generate potential profits to the organization. CRM helps the marketing managers to attain and retain the potential customers with the help of its customized marketing campaigns, customer service abilities etc. CRM is often used to develop customer loyalty.

Major Problems

Customer loyalty is essential for businesses and CRM is the best marketing tool that develop new ways to maintain the profit base from the existing customers and it is an essential tool to keep retain and impress the existing customers Lacoma, T. (2012). The major problem that all the companies face is to retain the loyalty.

Answer to case study questions

Telco approach in segmenting its customers

As the case study shows that the Telco Corporation (Telco) has many customers that are potential for few divisions of the organization and for the other divisions such customers generate lower profit and they costs high to the organization. Since it is found crucial for the organization to segment the customers based on cost potential or based on profitability.

Choice and rationale

It is suggested that the organization must segment the customers based on the profitability along with the appropriate mix of customer services. The customers must be segmented based on the effectiveness on profitability of majority of the organization's divisions. Efficient and effective segmentation is the key to CRM and CRM helps the organizations to find the potential customers.

Service offerings to each customer segment

The customer services is also an essential aspect of CRM, but defining the estimated cost implementation up to a certain level will help the organization to ...