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Task 2 Essay Example

There are various reasons that can make the number of customers for a given organization to either increase or decrease. These factors vary from customer experience, quality of products an organization offers, the additional benefits a particular group gives its customers and so forth. This metric can be analyzed in regard to the Alnahdi group – Mize Company in order to calculate the increment of the number of customers that can be associated with any of the above-mentioned factors (Carter, 2011). Taking an example, in the month of November 2014, the number of customers that the company (Alnahdi group – Mize) had were approximately 10005. Similarly, from the data taken from the enterprise’s data publish as at January 2015 the number of customers was 15004. Therefore, the company’s customer gain can be gotten as the difference between the two values which is 15004-10005 = 5000. This means that the number of customers for the company increased by 5000 within the period of Nov 2014- January 2015. From a marketer’s perspective, I can conclusively affirm that the company’s marketing strategies worked effectively since it garnered five thousand new customers to the company, within that span of time (Frösén, Tikkanen, Jaakkola & Vassinen, 2011).an organization loses its customers considering the number of customers it loses as compared to the number of customers it had at the beginning of the period being considered. The number of customers that an organization loses highly depends on factors such as the prices set by the organization. Further, the numbers also depend on the customer loyalty that the organization creates through various means such as offering of constant quality services (Krishnan, 2013). For example, the number of customers that Alnahdi group – Mize company in May 2012 were 4005. In the contrary to the above, the number of customers the company had in July 2012 was 3009. Therefore, to get the churn rate, we get the difference between the two values and then divide by the original number of customers which is 4005. Mathematically, it is calculated as;The figure means that the rate at which the organization lost its customers is 0.2487 * 100 = 24.87%, during that period. This unfortunate happening can be attributed to any of the factors mentioned above.customers that a company got at the end of the period considered in relation to the number of active customers the organization had at the beginning of

References

Allio, M. (2006) Metrics that matter: seven guidelines for better performance measurement. Handbook of Business Strategy, Vol7(1), pp255–263. Emerald http://dx.doi.org/10.1108/10775730610618918

Anon (2006) History lessons: do the math: Hoover. Management Today, January, p15. Ebsco http://search.ebscohost.com/login.aspx?direct=true&db=bch&AN=19493119&site=ehost-live

Eastwood, G. (2005) Giving too much away? Marketing Week, 17 February, pp41-42. Ebsco http://search.ebscohost.com/login.aspx?direct=true&db=bch&AN=19493119&site=ehost-live

Carter, M. (2010) How to…market at board level. The Marketer, September, pp34-37. Making marketing a board level concern is not only your ambition but your duty – value for money is crucial to your organisation’s post-recession recovery. So how should marketers use consulting services to measure marketing effectiveness? http://www.themarketer.co.uk/archives/how-to/market-at-board-level/

Frösén,J., Tikkanen, H., Jaakkola, M. and Vassinen, A. (2013) Marketing performance assessment systems and the business context. European Journal of Marketing, Vol47(/6) , pp715–737. Emerald http://dx.doi.org/10.1108/03090561311306688

Krishnan, V., Sullivan, U.Y., Groza, M.D. and Aurand, T.W. (2013) The brand recall index: a metric for assessing value. Journal of Consumer Marketing, Vol30(5), pp415-426. Emerald http://dx.doi.org/10.1108/JCM-02-2013-0464

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preview essay on Task 2
  • Pages: 6 (1500 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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