Question

A company has got a huge orders from their customers and large profit is expected. State the concept?

Answer 1

Answer:

Achieving the full profit potential of each customer relationship should be the fundamental goal of every business. The logic is as simple as it is compelling: Profits from customer relationships are the lifeblood of all businesses. And, at the most basic level, these profits can be increased in only three ways. The first is to acquire new customers—to increase the number of people who use a product or service. The second is to enhance the profitability of existing customers—to motivate people to engage in behaviors that generate higher returns. The third is to extend the duration of customer relationships—to maintain those enhanced behaviors for a longer time. Yet the implicit business models that drive decisions in most large companies today do not focus on achieving this full profit potential. Why? Because those models were forged before such a focus was possible.

Answer 2

Achieving the full profit potential of each customer relationship should be the fundamental goal of every business. ... The first is to acquire new customers—to increase the number of people who use a product or service.