Relationship Characteristics And Cash Flow Changeability

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This article is going to look for relationship characteristics and cash flow changeability by implication for satisfaction, loyalty and customer portfolio management. Changes in customers’ consumption on services can be reduced without decrease the revenues. There are an evil eye between customer satisfaction reactions: Lower cash flow changeability, not higher average cash flow. Firstly, this research is important because can discover methods to improve customer satisfaction in service marketing. Secondly, organization should create loyalty programs to improve customer satisfaction and provide invisible benefits such as membership benefits. Customers that no loyal to one brand have higher cash flows changeability, higher average cash flows.…show more content…
Satisfied customers have more stable cash glow obviously. Higher levels of satisfaction are growth. Reduce cash flows changeability influence greater low-involvement product categories. Improve customers satisfaction levels will reduce the cash flow changeability. Relationship characteristics affect customer reaction on services performance. There have three relationship characteristics which is relationship depth (participation in loyalty program), relationship breadth (number of product categories a customer purchases) and relationship length. Greater relationship breath allows greater knowledge of customer’s needs and want. It is also allocate more communication within buyer and supplier. Participate in loyalty program have higher cash flow changeability because when customer expected rewards was not achieved, customer will start sensitive on price. Loyalty program should be held for 6 to 9 months durations. Loyalty program that over 9 months, customers will involve higher cash flows changeability. While length of relationship is looking for the duration changeability…show more content…
Loyalty program is a behavioral description of customer’s willingness to join in formal relationship with firm. Long-term program allow customers getting more rewards. It is help to retain customers and make difficult for customers switching to competitive offer. Personal characteristics influence purchasing behavior. This study is more focus on customers’ demographic on age and income of the customers. Customer have different buying intention and behavior at different ages and income. Older customers have less changeability cash flow but have high cash flows levels. Older customers is more loyal to a service compare to younger customers. Income is the major factor that influence purchasing decision. Higher income have higher cash flows variability in insurance company. Customer not easier to satisfied the service because different customer have different demands. While in telecommunication sector, higher income lead to lower cash flow variability. Customers was used to current telecommunication network, demand does not change even income have increase. Customers usually capture depth relationship with the company insurance sector. The length of relationship between customer and company is looking for signed contract. Customers who only purchase one insurance likely to characterize by fix cash flows over many years. In telecommunication service, they should analyze current customer’ monthly purchasing record. Changeability in profit is

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