Kansai Digital Phone Case
Introduction
Do you really know your customers? In recent years, managers have come to realize the importance of measuring and maximizing the lifetime value of individual customers - and with good reason. After all, why spend valuable marketing dollars to attract and retain minimally profitable customers when you can spend the same amount - or less - to capture and cultivate more profitable ones?
The new model is customer lifetime value. This customer -centric strategy holds tremendous implications for managing customers for profitability. By understanding the principals, optimizing the use of databases, implementing best industry practices, and deploying the right marketing tools, you can make significant changes that will maximize your customer value, now and into the future.
Through a dynamic combination of real-world case studies, hands-on individual and group exercises, and facilitated discussion, you will get the tools and techniques you need to implement cutting-edge marketing methodologies in combination with superior customer management strategies - all designed to help your firm maximize growth and profitability.
SITUATION ANALYSIS
Brief Summary
Ted Katagi, marketing strategy manager of Kansai Digital Phone (KDP), utilizes customer lifetime value as a key metric to prioritize initiatives in an emergency plan to turn around the company. KDP is a regional phone company in Japan with less than stellar performance. Katagi is sent from the U.S. partner, Airtouch (later Vodafone), to assemble a team which was called ”A-sen” to design and implement a plan that improves company to performance. Katagi must quickly prioritize actions and then assess the expected economic impact.
Learning Objective
The focal point of our paper is to identify techniques and use of customer lifetime value in Kansai Digital Phone.
Subjects covered
Change management; Customer relationships; Customer satisfaction; Customers; International management; Priorities; Strategy
Do you really know your customers? In recent years, managers have come to realize the importance of measuring and maximizing the lifetime value of individual customers - and with good reason. After all, why spend valuable marketing dollars to attract and retain minimally profitable customers when you can spend the same amount - or less - to capture and cultivate more profitable ones?
The new model is customer lifetime value. This customer -centric strategy holds tremendous implications for managing customers for profitability. By understanding the principals, optimizing the use of databases, implementing best industry practices, and deploying the right marketing tools, you can make significant changes that will maximize your customer value, now and into the future.
Through a dynamic combination of real-world case studies, hands-on individual and group exercises, and facilitated discussion, you will get the tools and techniques you need to implement cutting-edge marketing methodologies in combination with superior customer management strategies - all designed to help your firm maximize growth and profitability.
SITUATION ANALYSIS
Brief Summary
Ted Katagi, marketing strategy manager of Kansai Digital Phone (KDP), utilizes customer lifetime value as a key metric to prioritize initiatives in an emergency plan to turn around the company. KDP is a regional phone company in Japan with less than stellar performance. Katagi is sent from the U.S. partner, Airtouch (later Vodafone), to assemble a team which was called ”A-sen” to design and implement a plan that improves company to performance. Katagi must quickly prioritize actions and then assess the expected economic impact.
Learning Objective
The focal point of our paper is to identify techniques and use of customer lifetime value in Kansai Digital Phone.
Subjects covered
Change management; Customer relationships; Customer satisfaction; Customers; International management; Priorities; Strategy
References: 1.John R. Harrald, Ph.D.,Irmak Renda-Tanali, D.Sc.,Greg L. Shaw, M.S.,Claire B. Rubin, M.A.,Sarp Yeletaysi, B.S., REVIEW OF RISK BASED PRIORITIZATION/DECISION MAKING METHODOLOGIES FOR DAMS, pp 24-29. Looked: 2011.10.13 2. Amy Wong, Managing Service Quality, The role of emotional satisfaction in customer service, Volume 14, Number 5, 2004, pp 365-376. Looked: 2011.07.13 3. CEO online.Change Management: Three Essential Ingredients For Success Thursday 21 September, 2006 http://www.ceoonline.com.au/pages/id17502.aspx 4. Jaffe, D.T & Scott, C.D, Mastering the Change Curve, 2nd Ed. 2003. Appendix Exhibit 1. Distribution channels in the mobile phone industry in Japan Exhibit 2. Major players in the Kansai phone industry, Kansai 1997