Easyfix incorporated strategies to build strong relations with consumers are based on the efficiency, quality, and price policies for the provided services. The company highlights that the maintenance services should deliver confidence and security for car owners, as the services’ availability backs them in any situation. Nonetheless, the company relies on the clients’ feedback and transforms it into empirical measurements to estimate satisfaction rates and ROI.
The company uses price, time, and percentage of complaints to predict future returns. In this case, the obtained results show whether the clients will return to the company, how likely they can be attracted back to the brand, and which level of satisfaction services have (Cui, Wang and Namih, 2019). In return, the used calculations allow not only to obtain ROI and data on clients’ satisfaction but also to predict the further development of the relationship between the company and its clients.
LTV is a central metric that shows the amount of revenue a customer has made over the entire period of their engagement with the company. Knowledge of LTV allows the company to adequately and realistically evaluate other significant indicators in the business; for example, the profitability of investments in attracting one customer. The simplest of them is as follows:
LTV = profit from the buyer + the cost to attract and retain it
For a more accurate result, the formula expands:
LTV = (average check in the reporting period) x (number of sales during the reporting period) x (customer retention time in the reporting period metric).
A low score indicates that a company is unable to retain customers. A high score indicates that customers are satisfied and return for repeat purchases. Easyfix can make calculations at any time, and the specificity of formulas is determined by the features of goods and services, the seasonality of demand, pricing.
Calculating the time frames per which customer retains is useful to all online stores and services providers, and in general, it is essential for any online business interested in long-term cooperation with the client (Cui, Wang and Namih, 2019). Knowing this indicator, an entrepreneur can imagine a real picture of profit and business prospects, which are available as new sources for revenue growth. LTV tracking assists Easyfix to achieve the following goals:
- Calculate ROI: Knowing the optimum cost of customer engagement, the company will strive for results when your revenue level exceeds your marketing budget. Without understanding how much profit a client brings, it is impossible to be convinced of the profitability of attracting him.
- Increase customer retention by analyzing the behavior of your most loyal customers and further driving them to new purchases.
- Create an optimal marketing strategy by changing ad campaigns based on a low-lifecycle client analysis.
- Segment the client base by LTV levels and develop a separate strategy for each segment.
- Keep track of changes in the customer lifecycle in the dynamics, under the influence of different strategies during the reporting periods and look for successful ways to retain customers.
A customer’s LTV level demonstrates its value to the business, so you have a clear vision of who to target. Thus, “customer life” is not just a metric that requires attention to draw a picture of business profitability, but a convenient and useful tool for generating real profits. What is more, the use of applied measurements supports the change intervention and improvements within the company and service delivery (Cui, Wang and Namih, 2019). The company can track changes over time in ROI, LTV, and satisfaction rates so that Easyfix can understand the market demand and how its services can become value-added for the target audience.
Complaint Handling Mechanism
The company uses LTV and ROI to set the problem-solving complaint handling mechanisms. Easyfix tends to make each complaint a unique case so that both consumers and the company can effectively collaborate and resolve the dispute. The utilization of LTV and ROI indicates the problematic fields and causes of such disturbances so that Easyfix can estimate and forecast the issue and fix them before mass complaints from consumers (Sahin, Gulmez and Kitapci, 2017). As a result, the company tends to prevent negative experiences and increase convenience and satisfaction levels within its services.
Nonetheless, another solution to deal with complaints is an in-depth analysis and in-breadth communication with the target audience. The application allows service managers to collect information on clients’ behavior and their needs to determine issues and challenges, which are faced or can be faced by consumers (Sahin, Gulmez and Kitapci, 2017). As a result, the personalized approach to each client ensures that complaints are held appropriately and with diligence, making it less time-consuming and resourceful to assist the client.
Service Quality and Productivity Improvement
The excellence and high productivity across the company became a part of corporate culture and its values, as the company desires to set string relations with clients. It is becoming increasingly important to understand the role of corporate culture by management to successfully merge outcomes from services’ quality and employees’ performance (Andrianto and Santoso, 2019). For many executives, the concept of “corporate culture” is associated with the traditions laid down in the enterprise.
After all, every company must form its corporate culture system to achieve its business objective. This system should consist of individual values and be shared by the leaders of this enterprise. That is why the culture that is being formed becomes a kind of business card of the company, according to which it is possible to conclude its carrier (Andrianto and Santoso, 2019). At the enterprise, corporate culture creates a unique internal atmosphere that mobilizes people to fulfill their higher goals and mission: the quality and intensity of each employee’s work are enhanced, and industrial conflicts are minimized.
Today, most executives view corporate culture as a powerful strategic tool that guides all divisions to achieve common goals (Andrianto and Santoso, 2019). Understanding the role and importance of organizational culture for success in achieving not only short-term but also long-term strategic objectives and the ability to “seek out,” grow, shape the desired corporate culture is an essential condition for successful organizational change.
The current measurements of productivity and consumer satisfaction rates are integrated into the corporate culture as a part of operational and service management. The company uses estimations to see how the integrated values and corporate culture are reflected in the field, through employees’ performance and duties, and clients’ feedback. In case of any decline or issues, the company has numeric data to track the situation and launch the change intervention. Using the collected feedback from clients and performance metrics, the company can define what should be changed, the employees’ behavior or some services for a better adaptation of both corporate values and clients’ demands.
Andrianto, Y. and Santoso, S. (2019) ‘Effect of service quality dimension and marketing mixed dimension of consumer loyalty with consumer satisfaction as mediation’, International Journal of Multicultural and Multireligious Understanding, 6(5), p.768.
Cui, T., Wang, Y. and Namih, B. (2019) ‘Build an intelligent online marketing system: an overview’, IEEE Internet Computing, 23(4), pp.53–60.
Sahin, I., Gulmez, M. and Kitapci, O. (2017) E-complaint tracking and online problem-solving strategies in hospitality management, Journal of Hospitality and Tourism Technology, 8(3), pp.372–394.