Synthesis of Two Sciences


Biometrics is a field that integrates biological science and computer science. One application of this new field of knowledge involves identification procedures. Scientists know that no two persons have the same fingerprint. This makes fingerprints a nearly foolproof method of identification. In the past, an individual’s fingers were coated with ink, and impressions were made on paper, then compared with impressions made by others. Laboratories kept files containing thousands of fingerprints. In time, computers enabled researchers to digitalize fingerprints and reduce them on computer screens. This enabled searches to occur much faster once fingerprints were on the file. Biometrics has now made possible the next step in this evolution of identification science. New scanners enable a person to place his or her finger on an imaging surface and instantaneously receive confirmation that the fingerprint matched that of the owner of an identification card. This technology of identification has been used to speed healthcare identification, eligibility for welfare benefits, and credit-card approvals.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Services Marketing


As the forces coincide and evolve, those involved realize that there is something different about marketing services and managing services. When a firm’s core offering is a deed performed by an employee, how can the firm ensure consistent product quality to the marketplace? As services businesses begin to turn to marketing and decide to hire marketing people, they naturally recruit from the best marketers in the world. People who move from marketing in packaged goods industries to marketing in healthcare, banking and other service industries find their skills and experiences are not directly transferable. They face issues and dilemmas in marketing services that their experiences in packaged goods and manufacturing has not prepared them for. These people realize the need for new concepts and approaches for marketing and managing service businesses.

Service marketers respond to these forces and begin to work across disciplines and with academics and business practitioners from around the world to develop and document marketing practices for service industries. As the field evolved, it expanded to address the concerns and needs of any business where service is an integral part of the offering. Frameworks, concepts, and strategies developed to address the fact that services marketing is different. As the field continues to evolve into the 21st century, new trends are developing that will shape the field and continue the need for services marketing concepts and tools.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Determining Salary Range


Responsibilities and salary are always related. Once you have drawn up a list of job duties and responsibilities and have written a job description, determining a corresponding salary range should be easy.

Roughly speaking, all jobs can be sorted into three categories:

  1. Nonexempt jobs are those that involve performing prescribed, internal tasks and include little problem solving.
  2. Exempt jobs are those associated with supervising the performance of internal tasks and dealing with problems related to those tasks. These employees do not need to be overpaid overtime for extra hours. A good rule of thumb for determining whether a job is exempt is this: if you miss a day of work and someone else does your work for you during your absence, your job is probably nonexempt. But if you return to work and find your work waiting for you, you’re probably exempt.
  3. Management positions are those involving responsibility for addressing internal and external problems and programs, such as business objectives and challenges.

Avoid the temptation to inflate a job’s title by pasting the management label on a task-based job. People with management skills cost more money in the job market and are harder to hire. Let’s say you decide to speed up your company’s inefficient employee healthcare claims handling process by creating a new position: someone who will collect claim forms and coordinate with your insurance carrier. Don’t lose sight of the fact that you are hiring someone to perform a series of tasks, not to address a management problem. Advertise for a clerk or coordinator, not a manager.

Always establish the correct responsibility level and salary range for every opening you advertise. Doing so will provide consistency throughout your department and maintain internal equity in the structuring and compensation of jobs.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Relating Price to Value


Value today is often misunderstood to mean low price or bundled price. Yet, the real essence of value revolves around the tradeoff between the benefits consumers receive from a product or service and the price that they pay. From a consumer’s point of view, price only has meaning when paired with the benefits delivered, both tangible and psychologiocal. For a given price, value increases when product or service benefits increase.

 

Value decreases when perceived benefits go down relative to price. Many companies were initially attracted to managed healthcare because of their ability to control skyrocketing healthcare costs. Yet, despite the cost savings, employees of these companies were becoming frustrated by the loss of control over their destiny.

 

Consumer value assessments are often comparative. Value judgments by consumers as to the worth and desirability of the product or service are m,ade relative to competitive substitutes that satisfy the same need. Thus, consumers determine the value of product or service based on a company’s perceived benefits and price, as well as those of a competitor’s offer.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Usage Analysis and Customer Retention


Segmenting markets by consumption patterns can be quite insightful for understanding your customer mix. Differentiated marketing strategies are needed for the various user groups—first-time users, repeat customers, heavy users, and former users. By classifying customer accounts based on usage frequency and variety, companies can develop effective strategies to retain and upgrade customers. There are many highly informative, low-cost applications of usage analysis that should be considered by management.

By classifying customers into usage categories, management can design appropriate strategies for each market segment. The objective is to move customers up the ladder, where possible. The implication of usage analysis is that all customers are not equal; some (the heavy users) are clearly more important than other categories.

The Pareto principle, or 80/20 rule, is insightful in the context. In a typical business, approximately 80% of sales comes from about 20% of customers (also, note that generally about 80% of your sales comes from 20% of your goods or services). It is important to defend this core business, as heavy users are primary attraction targets to key competitors. These highly valued customers require frequent advertising, promotions, and sales calls and ongoing communication efforts.

By knowing who better customers are—through geographic, demographic, psychographic, and benefit research—we have a solid profile of “typical users.” This information is very helpful in playing subsequent customer attraction/conquest marketing efforts. Realize that the marketing information system, the database, plays a key role in customer analysis and decision making.

For unprofitable customers, the company often needs to find new ways to serve them more effectively. Technology such as ATM machines, ICT, can be used in this regard. Quarterly contact through a newsletter and direct mail or access options such as toll-free telephone numbers and websites maintain adequate communication with low-volume users. In some cases, it may even be desirable to sever the relationship with certain unprofitable customers.

A good understanding of our customers’ purchasing patterns helps us keep our customers and gain a larger share of their business. Share of customer (customer retention focus) has supplanted market share (customer attraction focus) as a relevant business performance dimension in many markets. Share of customer is adapted by industry and goes by such names as share of care (health care), share of stomach (fast food), and share of wallet (financial services). If a company can increase a customer’s share of business from 20 to 30 percent, this will have a dramatic impact on market share and profitability.

Recency, frequency, and monetary value (RFM) analysis is a helpful tool in evaluation customer usage and loyalty patterns. Recency refers to the last service encounter/transaction, frequency assesses how often these customer-company experiences occur, and monetary value probes the amount that is spent, invested, or committed by customers for the firm’s products and services.

A more effective strategy is to classify customers via usage analysis and design differentiated marketing approaches for each target market. In sum, usage analysis can greatly assist us in our customer retention activities. Think about how to “hold” heavy users and key accounts, upgrade light and medium users, build customer loyalty, understand buying motives to meet or exceed expectations, use appropriate selling strategies for each targeted usage group, win back “lost” customers, and learn why nonusers are not responding to your value proposition.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com