92.2k views
3 votes
Describe and compare the four types of customers classified by their potential profitability to an organization. Identify how an organization should manage each type of customer.

User Asura
by
7.5k points

1 Answer

1 vote

Final answer:

There are four types of customers classified by potential profitability to an organization: high-profit, medium-profit, low-profit, and no-profit. Each type requires specific management strategies to maintain their loyalty and maximize their value to the organization.

Step-by-step explanation:

Types of Customers based on Potential Profitability

1. High-profit customers: These are customers who generate the most revenue for the organization. They are loyal, make frequent purchases, and have a high average order value. To manage high-profit customers, organizations can offer personalized promotions and rewards to maintain their loyalty.

2. Medium-profit customers: These customers contribute a moderate amount of revenue to the organization. They may make occasional purchases and have a moderate average order value. To manage medium-profit customers, organizations should focus on improving their shopping experience and providing incentives for repeat purchases.

3. Low-profit customers: These customers generate minimal revenue for the organization. They may make infrequent purchases and have a low average order value. To manage low-profit customers, organizations can implement strategies to increase their order size or frequency of purchases.

4. No-profit customers: These customers do not generate any revenue for the organization. They may be students, competitors, or individuals seeking information. To manage no-profit customers, organizations can provide valuable information, engage in community building, or use their interactions to build brand awareness.

User Leilani
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.