Question

1. What conclusion can we draw from the customer profit analysis? Advise the management of the Floral Art Company as to whether any changes should be made in its relationships with customers. Advise Hector as to how he should go about executing these changes.

Answer 1

In a business profit is very important. Profit is made by selling the products to the customers at a price more than the cost price. In a business relationship between customers and management is essential. Customers are main key to the business. Without customers no business can survive.

As a business, irrespective of size, years, or industry they operate in, they should never underestimate the importance and need to analyse their customers. To answer that crucial question of “Who is your target audience?” you need to know and understand who your customers are. Why do you need to analyse your customers? Well, they ultimately help you sell more. Regardless of the nature of your business, your customers are the key to your success. Every one of them is responsible for some form of profit to your organisation. The more you know about your customers, their needs and behaviours, the easier it is to pinpoint the best ways to engage with them.

Understanding your customers also helps with planning and management of resources. If you can predict what they will buy and how much, you can plan your resources accordingly to minimise loss. The more information you have access to about your customers, the better you can interact with them. Focus on identifying customer type brings you the most value. You can then use these profiles to nurture and build relationships with existing customers and when researching prospects.

Floral Art Company should build a strong and successful relationship with their customers. They must keep their target audience in their mind and must be engage in retaining their customers. For any business loyal and regular customers are important. Floral Art Company should focus on their customers. They can manage or build strong connection with their customers by following the following ways:-

1. Talk to their customers about their need requirements.

2. They must assure that they always sell standard quality goods to their customers because a good product brings out the loyal customers and by this they also win the trust of their customers.

3. They should not be involved in malpractices with their customers.

4. They must took feedback from their customers about the product that what do they think about it, what do they like in it, is there any further improvement they can provide in their services/products etc.

5. They should treat their customer with utmost respect and do not just ignore them or talk to them rudely.

Hector can execute the changes by following the below mentioned manners:-

1. Hector should ask their customers for feedback. Either he can make feedback form and give it to customers or can take feedback from them orally. In my suggestion written feedbacks are more preferable than those are taken verbally.

2. He can start giving various offers and discounts to lure the customers.

3. He should make a report of his target customers and then focus on them. But he should not forget that each and every customer is important for business.