AN IN DEPTH REVIEW OF TOOLS AND TECHNIQUES FOR CUSTOMER VALUE MANAGEMENT

ABSTRACT

Over time, it has become obvious that satisfying customers’ needs must be a key element in strategy formulation, for differentiation and competitive advantage to be achieved, and sustained.  Any customer-related initiative or interaction must differentiate customers to give insight into the value-creating potential of those customers. Nevertheless, at the strategy level, many companies remain focused on pushing out products rather than drawing in customers. If a company’s strategic focus is to sell as many products as possible, customers will be overwhelmed by irrelevant marketing and sales offers, and their satisfaction will be lowered. This study objective is to find out the value of the customer to the company, and to analyze the various tools that a company can used to measure and manage the customers. The objective of this study range from evaluating the value of the customer toward higher profitability, how a company can migrate unprofitable customers and what motivate customers to strengthen their relationships with the company. To be able to test our findings four hypotheses will be tested. The second part of the study talks about related literature on customer value management and various measurement tools. Data collection for this thesis has been through a survey questionnaire from companies in different areas of production ranging from manufacturing to service delivery. The data was analyzed using chi square test. The findings of the research shows that finance, customer relationship management and improve customer loyalty by companies will lead to profitability of the company. It was also agreed that corporate reputation and how the customer view the organization contribute in creating customer satisfaction. Finally it should be noted that not all customers can be profitable today and some provide learning opportunities, whilst others are strategically important or may be unprofitable today but are tomorrows ‘cash cows’. Customer profitability measurement informs many important business decisions and is becoming a ‘must-have’ inside many organizations.Download Full Material-N5000

CHAPTER ONE

INTRODUCTION

1.0   BACKGROUND OF THE STUDY

Change is a re-occurring demand in our daily existence and takes place from time to time as innovations and inventions are introduced to meet up with current trends.

According to Stewart (1996) the future is uncertain and any particular or specific change will generate other changes. It is well known and widely accepted that organizations and business enterprises like banks, insurance companies, among others are in existence to produce, make profits and develop.

A change is any deviation from a normal situation and its management requires specific skills. There is nothing as certain as change.

Cardinal Newman once said “to live is to change, to live a long life is to change many times. We experience several changes in our course of development from childhood to adulthood. Such changes are accepted as challenges and opportunities.

According to Megginson et al (1989: 55) change is the term of the famous adage that nothing is certain but death and taxes. Everyday people experience significant change in their lives and careers. These changes may involve accepting a promotion at work, transferring to new office or even starting a new family. The way people react to change differs. One will likely welcome changes which provides one with options and resist changes that give you no choice.

Change and change management are concepts that have come to assume greater importance in the discussions of the executive of most companies. This is partly born out of the fact that the only thing certain in life is change. Mokikan (1996:96). In view of this it is importance that individuals, group and corporate bodies must consciously plan for managing change if the rewards from it are to be maximized. Since change is something we have to live with, the better we are able to manage its introduction and consequences the better for all.

If an organization refused to change such organization will be changed, many organization have collapsed because they refused to change or manage change when it occurred.

Forces of change are also known as change drivers or change initiators. They can either be external or internal. The external drivers are those forces that are outside the control of management has little control over the; they have a greater effect on organizational change. No organization can operate in vacuum. An organization must interact with its external environment if it’s to survive. The organization’s physical, financial and human resources are obtained from outside and the clients and customers for the organisation’s products and services are also there.

Internal change forces are pressures for change, which come from within the organization for which reasonable measure of control. These may include the appointment of new chief executive officer, new organization objectives, managerial policies, technologies, employees attitudes, operation start ups, business relocation, mergers and acquisitions.

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Our research was exclusively on work motivation, we examine progress made in theory and research on needs, traits, values, cognition, and affect as well as three bodies of literature dealing with the context of motivation: national culture, job design, and models of person-environment fit. The major problem of the study is necessitated by the fact that most organization are performing below expectations notwithstanding the amount of motivational tools adopted; and also to highlight on organizational unique corporate culture. The research explored the following objectives among others. One’ concept of motivation and its strategies; two-motivational factors that positively affects organizational performance in Nigeria and tools that facilitates effective motivational planning and implementation. The study used both primary and secondary sources of data. A total number of 92 frequency distribution; percentages and chi-square(x²) were used in testing the hypothesis. The research findings reflects our conviction that organizations and people want results not minding the fact that many organizational motivation strategy may not encourage productivity. This addresses itself to a comprehensive, total approach to productivity problems as affected by poor motivational strategies. It is underlined that motivational factors affecting employee productivity or performance in the banking sector are of broadly the same as those affecting non-bank institutions. We conclude that there is a significant positive relationship between organizational motivation and employee performance, and that organizational motivation influences employee performance as well as affecting management decision significantly. We conclude that there is a significant positive performance, and that organizational motivation and employee performance, and that organizational motivation influences employee performance as well as affecting management decision significantly. We recommend that management executive should realize that people are unique and sometimes irrational and complex and may not be motivated with the same motivational tools.