13
Jun

Taking Care of Affinity

Escrito el 13 junio 2010 por Jesus Guerro en General

Often Companies underestimate how the design of their Sales Offering determines their target. Sometimes last minute discounts, calls for customers which break customers affinity, and then brand power.
Especially within luxury products or services markets, customers do not feel disappointed when someone else shares the same product or service but Who is doing it.
Habitually Hotels or Cruises deal with agencies which work as wholesalers to fulfill capacity. They are offered with commissions between 10% and 20% and receive a bonus if they reach certain sales objectives. By these practices, agencies are encouraged to reduce final prices, sacrificing their margin to obtain a final bonus.
With these pricing policies we lose the control over our target and it could be extremely dangerous. Favoring last minute discounts we penalize good customers. Those who are willing to buy during the full season, or willing to pay the full hotel or cruise ticket “in advance” basis. Doubtless they will feel frustrated if we provide the same proposition to those customers who don´t fit with those Primary Customers Affinity Expectations.
In addition, by encouraging diversity of customers profiles, we will be obligated to provide a higher variety in services, dedicating resources there where do not get customer satisfaction, missing the opportunity to fix those services and products by the expected dedication of resources in terms of personnel, product features of other investment which really support the Essentials of our Value Proposition.
As important as defining our target market, so that, the customer we really want and get loyal, is defining the design of our Sales Offering. This should contain the elements which are really appreciated by our customers while at the same time, keeping away those elements which the customer considers dispensable and doesn´t want to pay for them. In other words, the Waste of our Sales Offering..
Then it becomes essential to control the Sales Process, keeping in mind that price determines target and the fact that customers need to feel Affinity with the rest of customers whom are offered the same products or services. Otherwise, we run the risk of loosing the customers who certainly makes sense to the Branding Message and comprise the reason of our business.
So, It is crucial to decide whether focusing our business on the customers we really want to retain although it supposes keep end-of-season inventories or remain some departments (rooms) empty , or by contrast, trying to sell out our inventories or fulfill our departments at any price.
Whatever the decision we make, never forget the impact of that in the sustainability of the brand in the future.
Becoming Un-defined or Ambiguous in our positioning trying to satisfy a excessively wide range of customers might be the shortest way to close up the company in the mid-term.-
So firstly decide the market Target, so that, the customers we want. Then, design the Value Proposition to seduce and retain It. So focusing on high valued elements whereas eliminating waste.
And finally design the sales process and pricing policies to keep previous keys under control, fostering the Experience of Affinity among customers within that target market.

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