Kansai Digital Phone Case
Do you really know your customers? In recent years, managers have come to realize the importance of measuring and maximizing the lifetime value of individual customers - and with good reason. After all, why spend valuable marketing dollars to attract and retain minimally profitable customers when you can spend the same amount - or less - to capture and cultivate more profitable ones?
The new model is customer lifetime value. This customer -centric strategy holds tremendous implications for managing customers for profitability. By understanding the principals, optimizing the use of databases, implementing best industry practices, and deploying the right marketing tools, you can make significant changes that will maximize your …show more content…
1. Competitive market * The market is very competitive. Docomo is the biggest competitor, which dictated ‘‘game rules’’, at that moment imposable for KDP to make some strong moves, because prices are set by copycat strategies.
2. Cash flow statement * KDP had major difficulties on cash flow statement, because they were focusing only in strengthening additional coverage and system capacity to accommodate future subscriber growth and deliver additional services.
3. Low Customer satisfaction * Customer satisfaction was very low. Only one in five of its customers would recommend it to a friend. This is one of the reasons why KDP was capturing on average only 5,3% of net gains.
4. Worst Brand * The brand is worst in the industry. It was so bad that Japanese consumers nicknamed it tacky‘.
5. Product orientation issues * The company is market-oriented, quantity-oriented not a quality-oriented. They are very customer service-oriented, but the marketing organization is not a customer-centric organization. It’s centered on a product around the handset.
6. Short customer lifetime * The main problem is short customer lifetime Customers stayed with the company 15 months, 50% of the customers leaved the company less than one year.
CURRENT RESEARCH EVIDENCE