Building customer associations to achieve a profitable rapport is necessary when a company is designing its strategies. It is a broadly implemented approach for managing a company’s relations with its customers and clients. Losing focus on maintaining excellent profitable customer relations can be very detrimental to any organization (Nick, 2007).
An example of a company that has lost focus is Pizza Hut Company. While a company focuses between being competitor centered and maintaining profitable customer relations, this company through its Customer Relationship Management Strategy failed to attain a balance and as result, lost the customer base. The main reason why this occurred is because of the fact that they tried to stiffen costs, made their foodstuffs cheap, and ramped up their prices. They could not maintain customers due to dissatisfaction and poor response strategies to their complaints. This resulted in customer lose. In return a company needs to counter this effect by embarking on customer recovery method because this is very important than acquiring new customers. It helps to maintain investment made in customers and ensure continuity of profits (Nick, 2007). The best way to achieve a gainful relationship is to ensure longevity of your relationship with the customer and give them value for their money or contribution to the company. You have to deliver significant value to them and nurture a close relationship to ensure success. The company also learns through an outlet interview on how it needs to upgrade its services to meet customer demands (Kotler & Armstrong, 2008).
Pizza Hut Company needed to change their strategy because of growing market competition in order to retain profitable customers and create new ones. A company’s strategy needs to focus on combating the intense pressure from the competitors. Striking a balance between customer and consumer orientation depends on the environment it operates and this helps it to have a clear understanding of the market and achieve customer satisfaction. Therefore, the best way of doing this is by investing in a vigorous a market intelligence system, emphasizing on collecting information and spreading it. Alternatively it should promote open flow of information within itself and avoid bureaucracy. This should always guarantee important market information to be conceded to different levels rapidly (Keillor, 2007).