Question

Some WesternSlope Cleaning customers have long-term contracts for full-service cleaning, while others call the company as and when they require a particular service. The long-term customers have their queries handled by the company's customer service representative. The rest of its customers are directed towards voice messages when they want their inquiries to be processed. What strategy is the company adopting to achieve marketing excellence, and what is the main risk of this strategy?

Answer 1

Western Slope Cleaning is using a differentiation strategy for its high profit tier customers and their low profit tier customers.

By using this strategy, the full service cleaning customers are probably happier and receive better customers service, but the rest of the customers may be unhappy and feel they are receiving a low quality service. This will eventually lead to a decrease in the amount of low profit tier customers.