Smith Systems Consulting is a B2B provider of web and business application services. The services focus on three areas: networks, applications and web sites (Scenario). Ever since the company has opened its doors, it has been losing money. Now the company faces a difficult decision if they should continue to treat every customer the same. The board feels as if larger companies bring more of a profit then the smaller corporation. However, the smaller corporations are able to spend more time with their customers, have a more personal relationship and known to stay with one company longer than the larger companies.
Competition is a growing factor that occurs every day. Companies want to be successful and the best way to do so is by offering products and services that customers will want. Companies benchmark other businesses to find out what their strategies are and to find means and ways how they can improve their selves. Consumers want to know if they their business is appreciated and treated fairly. If they feel they are then another, they may take their business elsewhere to receive the service they desire. The current CEO and founder of Smith Systems Consulting feel that it might not have been a good idea to treat every customer and consumer the same. The company has not earned enough profit to account all of their services to their existing customers and the CEO believes certain customers may need different services.
Situation Analysis
Issue and Opportunity Identification
SSC needs to focus more on their customer retention, which is how SSC can focus more on satisfying its customers. “Customer Retention uses behavioral analysis to categorize customers and design tactical strategies that will sustain and maximize the activities of the most valuable customers (BetterManagement.com, 2009, para1).” SSC has lost some of the vision on supporting and trying to satisfy its customers. Grant it they are in the business to make a profit and for a while now the...