Customer Pyramid: Creating and Serving Profitable Customers Harvard Case Solution & Analysis

As relationships and services is becoming more and more crucial role in the business, customer profitability is more important than product profitability. In this environment, the marketing success is equivalent to generating the maximum profit from a complete set of firm clients. This requires the allocation of management resources for groups of clients that can be grown in the most efficient firm. This article is a management methodology called the "Customer Pyramid", which allows the firm to supercharge your profits by adjusting their responses to different levels of customer profitability. Customer pyramid is a tool for managers to strengthen the link between service quality and profitability, and to determine the optimal allocation of often scarce resources to maximize profits. products and services strategies adapted to each client's level, to be more closely related to the basic functions of individual customer utility. This leads to a more effective and profitable strategy for customer service. also provides numerous examples and practical advice to improve profits company, moving customers to the customers of the pyramid. "Hide
by Valarie A. Zeithaml, Roland T. Rust, Katherine N. Lemon Source: California Management Review 26 pages. Publication Date: July 1, 2001. Prod. #: CMR211 -PDF-ENG

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