Answer Centre has contributed to increased customer relationship
value in three key areas:
First, resolving immediate problems results in a probability-of-repur-
chase rate of 80 per cent for the previously dissatisfied customer, as
compared to 10 per cent for the dissatisfied but uncomplaining cus-
tomer and 27 per cent for an average customer. In other words, by
making it easier to reach the company and by responding effectively,
GE gets more opportunities to convert dissatisfied customers and to
strengthen relationships. Second, contact with the centre significantly
increases customers’ awareness of the GE appliance line and their
consideration level. Finally, the knowledge that is generated through
customer interactions provides valuable input to the sales, marketing,
and new product development processes.The failure of many manufacturers to develop relationships with their
final consumers is fairly common. Many readers will have had disap-
pointing experiences in terms of purchasing a range of consumer
durable products like motor cars. They might have been motivated to
purchase a motor car as a result of promotional activity by a motor car
manufacturer. However, they may have been very disappointed by
the subsequent lack of interest the dealer who sold them the car has
in maintaining the car on an on-going basis and satisfactorily rectify-
ing faults that occurred within the warranty period. Consumers may
be further upset when they seek to obtain redress directly from the
manufacturer of the motor vehicle and find that the manufacturer is
totally uninterested in having any dialogue with them. Within the
motor car sector, radical changes in both distribution and other mar-
keting practices, such as the approach being adopted by Daewoo, are
now causing other motor car manufacturers to question what can be
done to develop closer relationships with the final consumer.
Organizations in other industries are now seeking to re-evaluate
how the marketing budget is spent with final consumers. In the UK,
Heinz have recently undertaken a radical departure from normal
marketing practices to final consumers. In this experiment Heinz
have dramatically reduced their product-based television advertis-
ing and are seeking to develop one-to-one relationships with final
consumers. This has been achieved by building detailed lists of
Heinz consumers and then creating a customized direct mail dia-
logue with them.
Other companies are also rethinking their marketing strategy and
The customer market domain: Managing relationships with buyers 41