Type: Business
Pages: 3 | Words: 602
Reading Time: 3 Minutes

1. How Telco should approach its Customer Segmentation Plan

Customer segmentation is a process by which a business splits and groups its customers depending on their common interests and needs (Lamb, Hair & McDaniel, 2012). In this regard, Telco Corporation should segment its customers according to their tastes, preferences and efficient operating structures. The profitability of different products varies. This in turn will often affect the service provision levels. In this connection, Telco should provide lower costs for the low profit products. In doing so, Telco should strike a strategic balance between profit motivations and the maintenance of customer loyalty. Profit margins and targets should thus not exclusively be the benchmark against which customer segmentation is organized. Rather, it should be based on the cost of the service to the customers and the level of customer satisfaction with the method applied. Further, segmentation should be enhanced because through this, the unique needs of potential customers with various demands can be met.

2. How Telco should tailor its Service Offerings to each Customer Segment

Telco should tailor its services through product branding, packaging and dispatching of customer and market-oriented products and service. This should be based on the various customer tastes. This way, the company will be able to achieve its market retention bid. Telco Corporation should ensure that the products required by customers are always available in all its divisions. In addition, this would enhance promotion of customer purchase and ordering convenience.

3. Option for asking certain Customers to take their business elsewhere

The greatest reason for the operation of Telco Corporation is to increase its market dominance and popularity. As such, every effort must be made to increase customer base through strategies such as market segmentation. The business organizations that register customer attrition trends often face the challenge of incurring losses in a free competitive market (Grigoroudis & Siskos, 2009). Therefore, the company should strive at improving the current procurement; purchase and supply structures in the organization so as to retain the current customer base and attract more potential customers.

4. Strategies for introduction of the revised Service Package to each Segment

The employment and use of the sales force to introduce the revised packages in each market segment is the most viable strategy for the new service packages. Sales force divides the business into different segments responsible for selling products or services with customer satisfaction as the prime target of the sales and marketing team (Capon & Hulbert, 2007). However, segmentation of various customers should not be done at the same time. This might shoot the cost of service offered in each segment. Further, this might make the business to incur more costs while trying to ensure that their customers are well served and satisfied with the level services offered.  

5. New Organizational Metrics based on Diversity of Customer Base

The customer should always remain a key stakeholder in any business organization. Therefore, adjustments should strive to satisfy customers (Coyle et al, 2009). There is a direct and critical relationship between the customer and the product and any effort employed should focus on improving the status of the product and services which in turn would increase the sales.

The target of the business should remain meeting the requirements of the customers and increasing sales. Therefore, the organization should organize around the customers and not the products. As such, the new organizational metrics would involve departments and divisions that deal with various segments of customers that cluster around certain products in the various divisions (Cant 2006). This can be done by studying customers and classifying them according to their diverse needs.

Copy-pasting equals plagiarizing!

Mind that anyone can use our samples, which may result in plagiarism. Want to maintain academic integrity? Order a tailored paper from our experts.

Get my custom paper
3 hours
the shortest deadline
original, no AI
300 words
1 page = 300 words
This is a sample essay that should not be submitted as an actual assignment
Need an essay with no plagiarism?
Grab your 15% discount
with code: writers15
Related essays
1 (888) 456 - 4855