CUSTOMER MARKETING MANAGEMENT

Customer Marketing Management



Chapter 1 :Introduction

Overview

The sole purpose of a domestic, Peter Drucker (1973, pp 90-189) once famously claimed, was “to create a customer”. However, keeping the customer has become regarded as equally, if not more important, since Dawkins and Reichheld (1990, pp.42-7) reported that a 5 per cent increase in customer retention generated an increase in customer net present value of between 25 per cent and 95 per cent across a wide range of domestic environments. This finding generated a huge amount of interest and activity in academic and domestic communities, as researchers and consultants attempted to examine and verify these claims. There was a growing recognition that customers, like services, have a life-cycle that organizations can attempt to manage. Customer's are acquired, retained and can be grown in value over time.

Company Profile

Centrica Energy is the leading energy provider in the UK, recently expanding its home and commercial services to North America and Continental Europe while employing domestic management strategies that will improve its overall customer service and operations. The company sources gas and electricity to residential units as well as industrial clients all over Great Britain. Its operations include gas production, electricity generation and renewable asset operations, wholesale and industrial gas sales activities, energy procurement optimization and scheduling unit. Access appropriations to gas and power supplies make it possible for the organization to be successful in the energy retail domestic (www.centrica.com).

RESEARCH METHODS

Qualitative and Quantitative Analysis

Quantitative Research

Research questions

Our main goal in conducting this research was to understand the consumer behaviour and how gas and electric customer responds to different promotions and tactics of companies and what they perceived about them. The processes which are the focus of our research are customer retention and Gaining New Customers. We wanted to be adept to identify which methods are more powerfully affiliated with the accomplishment of customer keeping objectives. From the literature summarized overhead we derived the following hypotheses. The first three hypotheses draw on the modernist planning literature. The fourth hypothesis draws on the publications on complaints handling.

Hypothesis

H1. Centrica Energy customer retention and Gaining New Customers have an explicit, documented customer retention plan.

H2. Centrica Energy customer retention and Gaining New Customers have budget dedicated to customer retention activities.

H3. Centrica Energy customer retention and Gaining New Customers have nominated a particular person or group to be responsible for customer retention.

H4. Centrica Energy customer retention and Gaining New Customers have a documented process.

Methodology

Our methodology involved gathering data by mail-administered survey of a stratified random sample of Centrica Energy. Details of the trying strategy, data assemblage procedures, equipment development and investigation follow.

Sampling

Centrica Energy have been found to implement relational aspects of marketing (Coviello et al., 2002, pp.33-46), our population of interest was the full range of Centrica Energy.A stratified random sample of Centrica Energy was selected. The community was stratified into three annual revenue assemblies: $50 to $99 million, $100 to $500 million, and above $500 million.

Data collection

Aposted letters questionnaire was ...