Assignment No:1

Topic: Why Do Customers Defect.

Subject: Marketing Management 1.
Name: Nitesh Roy
Roll no: 2015351

The following case review deals with why companies have termed Customers are
Kings. The terms of false and long term loyalty, target and wrong customers,
Behavioural and technological trend are quoted with the most effective examples.
The difference between a customer and a fully satisfied customer has since
inception either made or ruined the future of the companies. The bridge between a
fairly satisfied customer and a highly satisfied one should be built with utmost care
if the firm wishes to exists in the cutthroat competitive world.
Loyalty is an attribute of change in technology, individual behavior, deregulation,
degradation of market image and intensity of satisfaction. The case review in the
very start quotes an example where relationship between the customer loyalty and
customer is depicted. The assumption that relatively high rating is acceptable in
very effortlessly corrected by the end of the review. An average high customer
satisfaction is still a road to improvement and not an achievement is very clearly
explained in the review quoting numerous examples from Xerox, Intuit, Northstrom
Departmental stores, MTV etc. to support the fact an detailed comparison of various
sectors namely the Aerospace, PCs, Automobile, telephone and healthcare service
are mentioned.
Customer Loyalty is an independent term irrespective of the market size; where
investment for complete customer satisfaction with very thin profit can bore a
substantially high ROI. it is in direct proportion to customer satisfaction; which later
is reflected back in the long term financial reports.one of the major reason for
customer defect is temporary bonuses provided to the customers which leads to
false loyalty. False loyalty only remains in picture till the short term or immediate
requirements of the customers are fulfilled. Dis-appropriate resource utilization,
morale breakdown and inadequate focus are some of the outcomes of false loyalty.
The time, capital and revenue spent on pleasing the false customers could be
effectively utilized to target and felicitate true loyal ones. Clear example of the
same is Northstrom department stores, Sewell Village Cadillac Company are few
examples of the same which it own customer base.
The Xerox Company survey enlightens the fact that high quality products and
services which are meant for hasslefree usage experience created a highly satisfied
customer base. The subsequent survey highlights the varying needs and thought
process within the customer decision making the influence to either switch the
brand or continue with the experience. Competition, Brand image and Monopoly in
the sector also has an long lasting impact in the minds of customers. But, Customer
base only on the term of Monopoly alone is highly risky again as it is instantly

influences competition and customers might tend to reach out to new players if the
find it more appealing.
A continuous assessment on the customers viewpoints can very well be understood
by the feedback survey conducted both at the first purchase to the last purchase
i.e. when they defect. This enables us to understand the customer mindset both at
the inception as well as throughout the usage experience. Frontline interaction and
Unbiased Survey can give a very discrete information on the subject of customer
experience at the entire cycle. Nevertheless the facts which gets illuminated is that
complete customer satisfaction is very important on both competitive as well as
monopoly routes.
The review also circulates around the fact the a loyal customer base requires
relentless efforts and does not necessarily stops at satisfying the needs once.
Customers according to theirs buying and interacting habits are again classified into
Apostles, Terrorists, Mercenaries and Hostages depending upon their experiences
and the affinity to review the product publicly. It quotes an example of Intuit and
explains how little efforts of companies going a little extra effort to improve the
buying experience can substantially influence the customers to buy even the
simplest product in the market. An effort to customize the buying experience of
customer in the way they desire can very well improve the satisfaction customers in
long term loyal ones.
The conclusion from the review is fairly simple: Satisfying the needs and doing it
exceptionally well are two different leaps of the same journey. Over exceeding the
quality (keeping in mind the expenses attached to it) , understanding the behavior,
formulation of techniques to deliver and understanding market situation can shift a
fairly satisfied customer to a loyalist. Continual improvement in delivering the value
to the customers not only helps to survive the competition but also to flourish on a
long term. To conclude the journey to complete loyalty of customers starts with the
companys intention to be loyal back to the customers.