Philip Auchincloss' speech to Structural Board Association Charlotte, NC - October, 2000
"Customer Loyalty in a Commodity Market."
(Summary)
Identifying industry "profit patterns" helps you plan your growth and profit strategy.
Patterns affecting the Structural Board industry include: "No Profit", "Profit shift", "Microsegmentation", and "Power shift."
Within profit patterns the company with the most loyal customer wins.
Example: An OSB producer had the highest prices most often yet still maintained a full order book. He added $2.5 million extra profit annually.
Loyal customers in surveys (1) act on buying intentions, (2) actively recommend your company to others, and (3) aren't interested in what competition has to offer.
The ultimate goal is to increase the segment of your customer base that is loyal and minimize the segment that is disloyal.
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