Consumer behavior analysis - Essay Example

Consumer behavior case Introduction The consumer problem that exists in the case is the way in which a company can increase its sales volume by way of referral from its existing customers. The companies can increase referrals by first satisfying the current customers who in return should refer the company to their friends and colleagues. That will ensure that the company increases its market share and in return increases its sales volume and proportionately increase its profit. The main task is to determine the best way in which the company will encourage its customers to encourage its customers to make referrals (Reichheld 6).

BodyA company can come up with a reward system. The reward system will reward customers who make consistent purchases and customers who will make referrals to their friends. A company can come up with smart cards, which the customers should use when making their routine purchases. In such a situation, the company will determine the customers who always purchase their brand. The customers can be awarded rewarded with reward points, which they can redeem in the future. A company can also use the reward system to award the loyal customers with gifts on special occasions such as public holidays.

The gifts can act as a token of appreciation and they can be used to encourage the customers to continue purchasing the company’s products.The other way in which the reward system can work can work is by the company coming up with a feedback system. The feedback system will ask the new customers where they got information about the company. If the information came as a referral, the new customer and the customer who made the referral are rewarded by the company. The system will encourage the customers to talk more about the products of the company.

The system will be beneficial to both the customer and the company. The company will benefit from the increased sales while the customer benefits from the reward points that should be redeemable.The other problem that companies are facing is changing the detractors to passives and passive to promoters. That is the hardest task because the perception of a customer is based on his or her mindset. The company can run training programs that should be aimed at informing customers on the advantages of using the company programs.

That may include the use of the company products and the reason as to why the company products are better as compared to the competitor’s products. The training program can be done in the form of adverts. The adverts can be used to illustrate the usage of the company. The adverts can also be used to should the positioning of the company products. The adverts can also be used to sell out the company’s services. Most customers usually purchase a product because of the services they receive at the sales centers.

The other form that training can take is the issuance of brochures. The brochures can show the many uses of the company products and the advantages associated with the use of company products.ConclusionIf the reward point system is implemented, the company will make a notable increase in the sales volume and that is a change in the positive direction. The companies should also advertise its product to attract more non-users who should be encouraged to make use of the company products.Work citedReichheld Fred.

The microeconomics of customer relationships. Harvard business review. 2006. Print.