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Significance of Customer Portfolio Management in Modern Business Environment - Essay Example
Author : njohnson
Pages 10 (2510 words)
Significance of Customer Portfolio Management in Modern Business Environment
Today the business world is facing too many challenges when it comes to rapidly changing customer needs and new business practices. …
In order to identify the changing customer preferences, firms are to manage their customer portfolios. Many advanced technologies are available today that can manage customer portfolios and thereby keep in touch with changing customer interests. Keeping well planned customer portfolios can strengthen customer relations and thereby customer retention for a long term. A loyal customer is an invaluable asset of any organisation that contributes to the accomplishment of the firm’s long term goals and objectives. Scholars reflect that efficient customer portfolio management at different levels of an organisation is a fundamental driver of strategic as well as financial success. The concept of customer portfolio can significantly contribute to the firm’s efforts to retain the profitable segments of its customers because customer portfolio is a potential way to achieve enhanced customer satisfaction. According to experts, “in much the same way that we can examine a portfolio of products or brands, the importance of customers as assets and investment centres mandates a similar portfolio analysis” (Hooley, et al. 2008, p.436). This paper will explore the concept of customer portfolio management. ...