Question

Why do customers terminate relationships? Provide some examples.

What factors should be taken into account when planning reward and recognition programs?

Answer 1

Customers terminate relationships when they are not satisfied with the following aspects-

1) Attractive facilities or offers help to keep customers stay with the business . When they don't get good offers in regard to prices of products, quality of goods and services before and after sales , the customers quit the relations.eg customers of nokia quit the relationship with them , because they were not able to provide better updated services.

2) Emotional attachment of customer also reflects his relationship with business or company.Customer may wish to terminate the relations when he recognises unconcern from the salesperson.

3) If the customer feels that salesperson is not providing them services properly or with full commitment they will wish to terminate the relationship.

4) Customer want to know some information about the business or company, if the salesperson or service provider don't provide them with the information which will effect them , they feel separated and this doesn't built the confidence of the customer leading to termination.

5) The company or business should have knowledge about the needs of customers or what they may demand in future. If they are not able to make predictions about this , they fail to satisfy the customer somewhere, resulting in termination.

When planning for reward and recognition programmes following factors should be considered-

1)Be aware about their needs - The basic purpose to provide reward or recognition programmes is to make them happy and feel good. So before planning for rewards we should be aware about their needs. It means we should know about the things that will make them happy. To achieve this we need to search on them.

2) Know about why there is requirement of programme- Before planning , we should be aware why we need to implement the programme. The purpose may be different like to retain them, increase sales , profits etc.If the need or purpose of programme is know, it will be easy to plan accordingly and it will give better results.

3) Know about suitability and occurence of rewards - The planning should consider first , who are suitable for that reward i-e what kind of person or group should be given rewards and secondly , should see how frequently it will be given. Will company be able to give it that frequently.

4) There is a need to study that do the company has the availability of funds to meet the cost of awards.

5) Fixation of basis of giving reward - The company or business has to decide about the basis on which the rewards will be given .

6)Type of rewards or recognition programmes - The company should decide in advance what kind of rewards or programmes they will give.It can be in tangible form or intangible form.