Abstract
References
- Banabakova, C. (2013). Logistics as a source of competitive advantages - views and fragmentation.Department of Economics, NMU-Veliko Tarnovo. Makedonska, D. et al.; (2001). Logistics. University of Economics - Varna, pages 128, 131. Kotler, F. (1996). Marketing Management. 1. Vasileva, L. et al. (2002). Distribution policy. Part 2. Ed. Thrace-M. S. Petro, Th. (1990). Profitability: The Fifth "P" of Marketing, Bank Marketing. Banabakova, V. (2013). Marketing model to satisfy the client with quality logistical service. Land Forces Academy Review. Terziev, V. and V. Banabakova, (2017). Marketing. Institute of Knowledge Management, Skopje, Macedonia, p. 107. Zhelezarov, I. (2008). Metodi za statistichesko upravlenie na protsesite. „UNITEH”, Tehnicheski universitet, Gabrovo. (Железаров, И. (2008). Методи за статистическо управление на процесите. „УНИТЕХ”, Технически университет, Габрово). Zhelezarov, I., H. Hristov. (2007). Integrated Management Systems. Radmi. Belgrade. Dichev, D., I. Zhelezarov. (2008) Interval estimate of constant quantity at known variance. HIPNEF.
Abstract
Marketing is an art
to attract and retain customers, but not to any but profitable customers.
Unfortunately, organizations often understand that 20 to 40 percent of their
customers are unprofitable. Also, many organizations report the fact that their
most profitable customers are not the ones who buy the most, but the average
shoppers. Major customers require special service and get the biggest
discounts, thus reducing the company's profits. The smallest customers pay the
full price and get a minimum of service, but the expenses connected with the deals
reduces the profitability they earn.
Average customers
enjoy good service, pay almost the whole price, and in many cases prove to be
the most profitable. Therefore, a number of large organizations, which
initially target only large customers are then orientated towards the average
customer market. An organization should not pursue and satisfy every client.
Orientation should be to cost-effective customers. This in turn requires the
definition of a „cost-effective customer“. A
cost-effective customer is a person, a household, or a business that earns
revenue over a certain period of time, and the contribution is higher than the
company’s expenses connected with attracting, persuading, purchasing, and
servicing. Attention should be paid to the profits and expenses that the
customer carries to the organization for a long time rather than a specific
purchase.
Most organizations
do not pay attention to the customer's profitability.
It is also
appropriate to improve this activity by first applying a model of customer
profitability analysis. One of the basic principles of customer return
analysis, which the provider must implement, is to disclose and describe all
the expenses, specific to each individual customer. A useful way to uncover
these costs is to determine which expenses will be dropped if the customer is
discontinued. Appropriate use of ABC is a differentiation analysis to identify
which goods and services, which customers are more and which are less
profitable for the organization, and depending on how to define the policy for
serving different categories of customers and the sale of goods and services
with different participation in sales and profits.
The present study
explores the possibilities for measuring customer profitability, analyzes the
connection- service’ expenses, a cost-effective client and presents the
application of the ABC method - analysis to distinguish the customer service
policy.
References
- Banabakova, C. (2013). Logistics as a source of competitive advantages - views and fragmentation.Department of Economics, NMU-Veliko Tarnovo. Makedonska, D. et al.; (2001). Logistics. University of Economics - Varna, pages 128, 131. Kotler, F. (1996). Marketing Management. 1. Vasileva, L. et al. (2002). Distribution policy. Part 2. Ed. Thrace-M. S. Petro, Th. (1990). Profitability: The Fifth "P" of Marketing, Bank Marketing. Banabakova, V. (2013). Marketing model to satisfy the client with quality logistical service. Land Forces Academy Review. Terziev, V. and V. Banabakova, (2017). Marketing. Institute of Knowledge Management, Skopje, Macedonia, p. 107. Zhelezarov, I. (2008). Metodi za statistichesko upravlenie na protsesite. „UNITEH”, Tehnicheski universitet, Gabrovo. (Железаров, И. (2008). Методи за статистическо управление на процесите. „УНИТЕХ”, Технически университет, Габрово). Zhelezarov, I., H. Hristov. (2007). Integrated Management Systems. Radmi. Belgrade. Dichev, D., I. Zhelezarov. (2008) Interval estimate of constant quantity at known variance. HIPNEF.
Details
| Primary Language | English |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | April 30, 2018 |
| Submission Date | February 7, 2018 |
| Published in Issue | Year 2018Volume: 4 Issue: 10 |
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