Finding and keeping loyal and profitable customers is essential. The route to long- term success is to find loyal customers who represent a close strategic fit with the company and are also likely to be profitable. Rather than trying to meet the needs of a larger group of people, managers work to attract and keep the right customers. Loyalty-based strategies yield spectacular results for some companies.
MBNA, a credit card company, targets specific affinity groups whose members have above-average earning: sports clubs, universities and associations. The company produced Visas and Mastercards for 4,300 such groups, usually with personal logos. MBNA’s strategy is hitting the bull’s eye; the average balance held by its cardholders is three times the national average.
Technology is creating unprecedented opportunities to build a loyal consumer base by customising products. Levi-Strau
A. Right
B. Wrong
C. Doesn’t say
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