Building Profitable Customer Relationships

Managing demand means managing the customers because:

A.  A demand comes from the new customers and repeat customers.

B. Nowadays, besides making efforts to attract the new customers, marketers are going all out to retain and build relationships with the existing customers. This costs five times as much to attract a new customer as it does to keep a current customer satisfied.

C. Because of the changing demographics, more sophisticated competitors, a slow-growth economy, and overcapacity in various industries, several markets and market shares are shrinking. Key to successful customer retention is superior customer value and their satisfaction.