Omnico, Inc
Omnico, Inc
Case 3-5
Marketing Management
MM522
Robert Smith
6/18/11
Table of contents I. Statement of the problem II. Summary of the facts III. Analysis IV. Recommendations V. Conclusion
I. Statement of the Problem
Omnico’s customer retention is much lower than industry average. The problem as perceived by long time employee and current sales manager is that his salespeople fail to appreciate the importance of relationship selling. The sales manager’s solution is to have his sales force spend time on the golf course with customers in order to build relationships. Some of the sales people believe this is not the answer to the problem and feel this tactic is out dated and not going to have the intended results.
II. Summary of the Facts
Marketing research report that compared industry averages for customer retentions shows that Omnico is well below average for their industry. Current sales manager has had many years of experience and is considered to be the best in the company. The current sales manager’s tactic is that he engages in social activities on the golf course in order to build relationships with his customers. This approach has worked for him for many years. Omnico’s CEO/president feels that the sales manager has been so successful and done so much for the company that he should be allowed to do whatever he wants. Some of the salespeople do not believe this approach will be successful and do not even know how to golf. Sales team needs training on importance of relationship selling and how to build relationships with customers. It costs as much a five times more to find new customers as it does to retain current customers. Sales team is currently not retaining current customers due to lack of follow up and understanding of relationship selling. Sales team must retain more current customers for the company to be competitive and stay in business. III. Analysis
Relationships are vital
Case 3-5
Marketing Management
MM522
Robert Smith
6/18/11
Table of contents I. Statement of the problem II. Summary of the facts III. Analysis IV. Recommendations V. Conclusion
I. Statement of the Problem
Omnico’s customer retention is much lower than industry average. The problem as perceived by long time employee and current sales manager is that his salespeople fail to appreciate the importance of relationship selling. The sales manager’s solution is to have his sales force spend time on the golf course with customers in order to build relationships. Some of the sales people believe this is not the answer to the problem and feel this tactic is out dated and not going to have the intended results.
II. Summary of the Facts
Marketing research report that compared industry averages for customer retentions shows that Omnico is well below average for their industry. Current sales manager has had many years of experience and is considered to be the best in the company. The current sales manager’s tactic is that he engages in social activities on the golf course in order to build relationships with his customers. This approach has worked for him for many years. Omnico’s CEO/president feels that the sales manager has been so successful and done so much for the company that he should be allowed to do whatever he wants. Some of the salespeople do not believe this approach will be successful and do not even know how to golf. Sales team needs training on importance of relationship selling and how to build relationships with customers. It costs as much a five times more to find new customers as it does to retain current customers. Sales team is currently not retaining current customers due to lack of follow up and understanding of relationship selling. Sales team must retain more current customers for the company to be competitive and stay in business. III. Analysis
Relationships are vital