Customer Commitment


Great companies are extremely market-oriented and are incredible at creating value to their highly satisfied, loyal customers. Greatness in marketing and customer service is a function of attitude, not resources. Most companies do not do a very good job as marketers. Consider when you have been put on hold endlessly when calling for technical support, when you have been ignored or treated indifferently when visiting a retail site, or when you have been supplied inferior goods or services. While second-rate firms may survive in the short term, they will not last in the long run unless they change their philosophy and start creating superior value for their customers.

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.

The Laws of Preference


Scientific analysis always uses theories and models as simplified pictures of reality. Irrelevant details are stripped away to permit us to concentrate upon essentials. The economist’s simplified picture or theory of preference is based upon two axioms:

  1. Axiom of Comparison: Any two distinct baskets A and B of commodities can be compared in preference by the individual. Each such comparison must lead to one of three following results: a) Basket A is preferred to basket B, or b) B is preferred to A, or c) A and B are indifferent.
  2. Axiom of Transtivity: Consider any three baskets A, B, and C. If A is preferred to B, and B is preferred to C, then A must be preferred to C. similarly, if A is indifferent to B, and B to C, then A is indifferent to C.

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

Transaction-based Marketing Vs. Relationship Marketing


As marketing has entered the 21st Century, a significant change is taking place in the way companies interact with customers. The traditional view of marketing as a simple exchange process—a concept that might be termed transaction-based marketing—is being replaced by a different, longer-term approach.

Traditional marketing strategies focused on attracting consumers. The goal was to identify prospects, convert them to customers, and complete sales transactions. But today’s marketers realize that, although it remains important, attracting new customers is truly an intermediate step in the marketing process. Marketing efforts must focus on establishing and maintaining mutually beneficial relationships with existing customers. These efforts must expand to include suppliers and employees, as well.

The concept, called relationship marketing, refers to the development, growth, and maintenance of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. It broaches the scope of external marketing relationships to include suppliers, customers, and referral sources. In relationship marketing, the term customer takes on a new meaning. Employees serve customers within an organization as well as outside it; individual employees and their departments are customers of and suppliers to one another. They must apply the same high standards of customer satisfaction to inter-departmental relationships as they do to external customer relationships. Relationship marketing recognizes the critical importance of internal marketing to the success of external marketing plans. Programs that improve customer service inside a company also raise productivity and staff morale, resulting in better customer relationships outside the firm.

Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up a loyalty hierarchy from new customers to regular purchasers, then to loyal supporters of the company and its goods and services, and finally to advocates who not only buy the  company’s products but recommend them to others. by converting indifferent customers into loyal ones, companies generate repeat sales. The cost of maintaining existing customers is far below the cost of finding new ones, and these loyal customers are profitable ones.

Effective relationship marketing relies heavily on information technologies such as computer databases that record customers’ tastes, price preferences, and lifestyles alongwith the increase of electronic communications. This technology helps companies become one-to-one marketers that gather customer-specific information and provide individually customized goods and services. The firms target their marketing programs to appropriate groups, rather than relying on mass-marketing campaigns. Companies who study their customers’ preferences and react accordingly gain distinct competitive advantages.

Firms in service industry, from retailers to hotels to airlines, are among the leaders in relationship marketing. Their staff members have many opportunities to meet customers personally and build loyalty and repeat business. Rewards for frequent buyers of a firm’s goods or services, such as hotel programs that reward frequent visitors with free room stays and other travel documents, are another form of relationship marketing.

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

Courtesy and Competence


The two go hand in hand. Statistics show that customers seem to be happier being served by an enthusiastic amateur rather than an indifferent expert. Now for you this might be determined by whatever it is you’re being served with as a customer. For example, if I was going to the dentist, I think I might put up with some indifference if it was an expert dentist. However, the reality is of course that we want both. I would like a dentist that was relaxed and personable and at the same time accurate with his/her instruments.

Common courtesies and manners are very important, probably more important than you may consider at this point. They are also, very often, culturally based—for example, German consumers will place less importance than Italian or British consumers on such things as friendliness and personality. How you can actually be courteous and good mannered will also vary, for example, in Britain many people will shy away from the perhaps over zealous. American style of being best buddies and will avoid expressions such as ‘have a nice day’ even though, when said sincerely, customers warm to them.

Competence means that whoever serves the customer in your business or whoever supports people that serve customers in your business has to do things and do them well. It means getting things right first time. It means knowing what you should know. It means doing what you can do to the best that you can do it—competence and courtesy, hand in hand—it’s a licence to keep customers for life.

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