The Montana Mountain Biking Case
Montana Mountain Biking Company has been in business for 16 years providing guided mountain biking trips at four locations in Montana. The success of the company is linked to retaining its customers. Eighty percent of the customers who sign up for the one week guided mountain biking expedition are repeat customers (University Of Phoenix, 2007). An important part of any marketing plan is to understand the customer relationship because ultimately, all profits come from the customers. The challenges facing the Montana Mountain Biking company is not only retaining customers but to attract new customers. The advances in e-marketing have given Montana Mountain Biking some alternatives to traditional marketing plans. The Five Stages of Customer Loyalty
Customer loyalty comes from the personal relationship that is developed between the customer and the business. One method used to understand the customer relationship is called customer relationship intensity and Life-cycle segmentation (UOP, 2007). This process includes classifying all the customer relationships into one of five groups. The first of the five groups includes customers who are aware of the business or service. This is considered the weakest of the groups because in the beginning of the relationship and the customer knows little or nothing about the company. The second group of customers is those who have explored or expressed interest in the products or services but have not made a purchase. These customers may see some value in the product or service but is still exploring the various options available to them. The third group is familiar customers or customers who have done business with the company. At this stage, service and customer satisfaction are important to building customer loyalty. The fourth stage is the commitment stage. In this stage, the customers are repeat buyers. Highly committed customers will be the best sales tool for the customer. The customer...
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