The Customer Value Based Differentiated Customer Retention Spending Management In E Company

Nowadays, under increasingly severe market competition, the enterprise’s competitive focus shift from traditional sense of market share to modern sense of customer share. The customer resource has become the most important resource for corporate strategic development. In this circumstance, the competition among enterprises is not only limited to the product itself but also in the following areas, e.g. efforts to improve service level, effectively client resources management, finding customer value, customer retention etc. These factors have been the key points to remain the sustainable competition advantages for a company. Therefore, how to make a reasonable evaluation of customer value, to identify the valued customers in the company and to develop the targeted customer retention strategy is the attention focus of theorists and practices.In this paper, based on the domestic and foreign achievements of research in customer value and customer retention domain, it takes E company and its organizational customers as the research objects and try to resolve the practical problems regarding its organizational customer value evaluation, customer segmentation and customer retention strategy development through qualitative and quantitative research methods. The main content of this paper contains three parts. The first part is to construct an organizational customer value evaluation system for E company. The second part is to do instance data analysis and customer clustering analysis based on customer value evaluation results. The last part is to conduct the customer segmentation and to propose the customer retention strategies.Following are the main achievements of this study.1. The organizational customer value evaluation system was constructed based on the literature review and company managers’interviews. The system is composed by direct value index and indirect value index. The direct value consists of net sales and total cost as well as the indirect value contains three sub-indexes including strategic value, credit value and loyalty value. In order to ensure the system is reasonable and applicable, the rationality test and feasibility test are conducted which involves of naming normative, completeness, independence, orientation and importance. As a result, it proved this system is appropriate for the organizational customer value evaluation for the instance company.2. After the customer clustering analysis was conducted twice, which is on the basis of the results of the organizational customer value evaluation for the instance company, all organizational customers of company were classified into five groups, i.e. strategic customer group, constructive customer group, developmental customer group, potential developmental customer group and unvalued customer group. 3. The differential customer retention strategies were proposed for the different customer groups based on the feature analysis of the five classified customer groups. The strategic customers are the most valued customers for the instance company and allocated the most customer retention budget. The company should make the best efforts to retain them. In contrast, for the unvalued customers the company should not invest any resources to keep them and could consider giving up them in some cases.At present, as there are less studies and practices on organizational customer value evaluation, classification and retention, so this research might enrich and develop the related theory and practical application of the organization customer value management to some extent. Hopefully, it might contribute some practical references to the B2B enterprises in organizational customer value evaluation and customer retention strategy determining.