Managing Customers for Profit

In this book, the author analyzes the most effective marketing strategies to support sustained growth. He takes an objective look at the “customer orientation at any price” craze, and underlines the need for a scientific approach to optimize the retention strategy.
According to the author, the point is not to define a universally effective strategy, but to select the right strategies using the most suitable indicators. In particular, he encourages managers to get back to the basics in their thinking, the ultimate goal being to increase the profitability of the sales strategy, rather than the number or lifespan of customers.
His main message focuses on the need to adopt a differentiated strategy depending on total customer value over their entire lifespan (Customer Lifetime Value). He proposes various methods to calculate customer contribution to company performance, in a usable form.
In the process, he helps readers become aware of many popular misconceptions about retention. For example, the most valuable customers are not necessarily the most loyal, and the profitability of a retention strategy depends not only on its efficiency in reducing the attrition rate, but also on how well resources are invested according to the profitability of each customer segment.
Finally, he proposes a set of ideas on adapting the marketing strategy to each customer profile, including relevant management of various possible sales and distribution channels and potential customization of service levels.
A book that incites companies to take an objective look at the way they understand and manager customer retention.