A Systematic Approach to Managing Customer Profitability in a Saturated and Competitive Market

• Main Authors: Wei-Kuo Hong, 洪維國
• Other Authors: Hsiao-Fan Wang
• Format: Others
• Language: en_US
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/72832235611732749072

博士 === 國立清華大學 === 工業工程與工程管理學系 === 94 === In a saturated and competitive market, the dynamic nature of customers’ behavior increases the unsteadiness and unpredictability of customer profitability, making marketing planning and tactics development inefficient and ineffective. This thesis provides a framework of Customer Profitability Management (CPM) and its implementation that enables a firm to be more responsive to customer needs and facilitates the growth of customer equity. The basic approach is first, the mechanism of Customer Profitability Monitoring is built by making use of huge database and customer analysis to help a firm lead customer migration along desired tracks to eventually achieve its marketing goals. Next, based on the Voices of Customers (VOC) accumulated in the process of customer profitability monitoring, a firm can develop an integrated service strategy by the proposed Quality Function Deployment (QFD) system to guide her organizational breakthrough and consolidate her CPM operations. Finally, a fuzzy optimization model is adopted to improve the effectiveness and assessment quality of QFD process. The proposed system has been implemented by a telecom company. From the improvement on the number of active customers, the product usage, the adoption of new products, and the growth of customer profitability, the developed CPM system has shown its effectiveness in practice. Moreover, through the application, the company has cultivated the skills and abilities to develop an integrated and customer-oriented service strategy to consolidate the stability of customer profitability while exploiting possible resources.