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FINAL EXAM

MARKETING STRATEGY

Amelia Andriani - 01616200062


3 ideas or models explained in class during the last 3 days and apply them to your
company, industry or business.

As a medical doctor who graduated a year ago. I should be joining government internship
right now, but I can’t join because I was giving birth to my second child and the pandemic still
going crazy. So, I try to find business and I see right now people popular with coffee. So, I
decided to open franchise for coffee shop. During these 3 days, I learn a lot from dr. George and
open my mind about marketing strategy is so important. I discovered several important lessons
that could be applied in my business.
There is a relationship between profitability and customer loyalty. Of course, every
business wants to make profits and increase profits. Like my business coffee shop because I paid
for the franchise fee at first, rent a place, buying coffee machine, etc. I need to reach the
breakeven point first until I can make profits. Sometimes I confused how to make it more
profitable, but right now I know if I want raise profitability, I must retain customers over a
lifetime. Because today’s customer-centered economy, we must understand that keeping and
retaining customers is the key and as customers have the ability to choose at every point, we
must keep them happy.
First of all, I need to assessing customer loyalty with Customer Loyalty Index. There is
formula for Customer Loyalty Index.
Customer History+Purchase Amount+Desire to Repurchase+
Product Preference+Would Recommend
𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐋𝐨𝐲𝐚𝐥𝐭𝐲 𝐈𝐧𝐝𝐞𝐱 = 5

Customer Purchase Desire to Product Would


History Amount Repurchase Preference Recommend
Long 100 100 100 100 100
Average 50 50 50 50 50
Short 0 0 0 0 0

After we calculate the customer loyalty index, there are 5 customer classification:
• Loyal customers scores between 70 to 100, have high performance in all five aspects of
customer loyalty.
• Repeat customers scores between 50 to 69, this customer buy coffee often but have low
score on the purchase amount, product preference, and customer recommendation.
• Captive customers scores <50, this customer have long customer history and average
purchase amount but they would leave if they could as dissatisfied captive customers.
• New customers scores between 0 to 60, score low on all five aspect and do not yet have
customer history.
• Unprofitable customers score between 0 to 40, score low on all five aspects.
So, to make my coffee shop more profitable, I need evaluate periodically (but not so often this
could annoy my customers) to effectively keep track of my customer loyalty.

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