Managing Customer Relationships

Current situation

Verizon is a companythat is located at New York and provide wireless network to theircustomers. Verizon operates in a culture of high integrity, respectto the employees and their customers, observes performance andaccountability. The moral ethical standards help the employees toprovide excellent services to the customers, the shareholders and theentire communities. Verizon being a smart business has embracedteamwork for the achievement of the mission and vision of thecompany. Through teamwork the services to the customer are faster andof high standards. Through the leadership of Lowell McAdam as thechairman and chief executive officer and other subordinate staffs thecompany goals is to be problem solvers, be engineers, technologistsand lastly be innovators. Verizon has attained its goals since in asingle day the company connects million individuals, companies andthe entire communities with network that is faster and powerful. Thepowerful wireless provider has royal customers who do not change theservices that are provided by Verizon. The network technology meetsthe customer requirements through innovation to ascertain that theneed of the customers is met. The next goal is to have positiveimpact to the society by incorporating corporate socialresponsibility to the education sector, healthcare and sustainableenvironment.

Verizon providepowerful network technology to their customer as a means of marketingstrategy. Verizon has transformed many companies through the powerfulnetwork making it possible for the company to be termed as thelargest United States service provider. The use of well developedsmart phones plays an integral part in marketing of the services thatare provided by Verizon. Through sharing and posting of the bestinternet service provider the company gains a lot of customers andstill makes an effort to retain them according to their goals.

Thecurrent customer services according to the company profile are toascertain that powerful technology is used to connect the companywith it clients so that the customer need is accomplished. Thepowerful network technology plays an important role since thecustomers have to use the wireless technology to serve and even carryonline transactions (Cadogan, 2009). Verizon uses the IDIC mode tomanage their customer relationship. For instance, the model can beexplained as follows.


The customers ofVerizon are companies, singer users of the network and communities.The customers are well known by Verizon and the company work toprovide high quality services so that they feel they are recognized.Likewise Verizon has adopted that strategy where it deals with thecompanies and people and provide powerful network that meets theirneeds.


Verizon hasdiversified their customers and this is the reason the companyprovide powerful network technology so that the customers areretained for longer period. The main idea of differentiation is tosatisfy the different customers that Verizon considers loyal to thecompany. The clients have different level of satisfaction and howthey value the services provided (Cadogan, 2009). The companies,people and communities that are provided with powerful network havedifferent levels of needs and this is the reason Verizon work harderto make sure that the customers will not change the service providerby being creative enough and innovative.


The companyemployees and the customers must interact fully to ensure that theywill understand the need of the customer. Verizon has a team thatfocus on the customer’s expectation where they interact with thecustomer freely. The customers are provided with contact informationthat they can use so that they can communicate with the management.Effective interaction in the company provides the company with thefirst hand information that is beneficial to the company growth.


The strategy is usedso that the customer expectation is valued and met. Verizon wasestablished in 2000 and from that time the company has beendeveloping steadily so that it can meet the customer expectation. Forinstance, in 2013 Verizon was able venture in Lower Manhattan wherethe Verizon established fiber-optic transformation. In 2015 Verizonwas able to acquire AOL which implies that the company has met thecustomer expectation from the time it was developing to the current.

Customerservice policies and strategies

Buy one get one freein the next purchase is a customer service policy that can be used asa strategy to identify the company customers. Loyal customers whomake repeated purchase can be indentified using the policy of buyingone and get free in the next purchase. Verizon through this strategyit can indentify its customers who have been retained for a longerperiod. The strategy plays a significant role since it acts as amarketing strategy and accomplishment of the company goals by beingcompetitive with other network providers in the United States.

Based on the factthat Verizon has around 177,300 employees it can come up withspecialization strategy as a policy that can be used by the customersso that their need can be met. Differentiation considers thedifferent levels of satisfaction to the customers and thus havingdiverse department to deal with the customer can accomplish the goalsof the company in a faster manner (Bijmolt and Dorotic, 2011). Thecompanies and the entire community has different goals of thepowerful network that is provided and thus if Verizon can use thestrategy of specialization so that different customers needs is meetwill be a goal achieved. The different department that offerdiversified services to the customers helps to market the servicesprovided and still attain the goals of the organization.

The next customerservice policy and strategy that can be used is having a good helpdesk for complaint when the customer needs is not met. The strategyplays a critical role in interacting with the customers. When Verizoninteracts with the customers it implies that the employees willmarket the company since they will communicate about the services thecompany provides. It means that when the stakeholders interact withthe customers they create confidence that the services they provideis of high standards. The last customer service policy and strategyis provision of standard and high quality services to the customers.By customizing and communicating to the customers well the customercan be open to the employee and provide the specific details of theservices that he or she requires.

CustomerLoyalty Strategies and Programs

Oneof the customer loyalty strategies and program that can be used byVerizon is rewards and discount programs. So that the customers canbe loyal to the company there is need for rewards and discount. Forinstance, the use of coupon can be used for those customers who haveattained certain points that are recorded in a computerized database.The program plays a significant role since the customers aremotivated and thus there is a possibility of making repeatedpurchases (Pearson, 2012). Thecustomer’s name and the number should appear on the computerizedsystem so that upon buying the card can be swept on that system andit will add the points after every purchase. At the end of the monththe customer who has accumulated the highest number of points shouldbe given the coupon.

Thenext customer loyalty strategy and program that can be used byVerizon is direct mailers. The program plays an important role to thecustomers since they are treated special and thus create customerloyalty. The system work well for those customers who have mailingsystem that is personal. The system work in way that target thecustomers in certain demographics where they are given coupon andcongratulation message in certain events like birthday. The programmakes the customer to feel part and parcel of the company and thusbecoming loyal customers. The use of social media, tools that help tolocate the customer information and direct mailers can provide thecustomer details so that the message and the coupon reach to thecustomer on time. This creates good relationship between the companyand the customers which plays an integral part in creating customerloyalty.

Thelast customer Loyalty Strategy and Program that can be used byVerizon is the use of card-linked offers (Pearson, 2012).Business transactions are conducted through the use of credit cardscurrently. The cards earn discounts and vouchers that entice thecustomers. Registered credit cards earn points to the customers andthus it is measurable and effective strategies that help to increasecustomer loyalty.

Differentiationof customers by loyalty segments

ForVerizon to have differentiation of customers by loyalty segments theyhave to consider the target market groups. For example, Verizoncustomers are companies, and the entire community. The customers maybe merged to either 3 to 4 groups so that they can be analyzed interms of the demographic, there lifestyle and preferences, geographicconcentration and their consumption (Bijmolt and Dorotic,2011). It means that Verizon will have therelevant information concerning the groups and thus they will providethe services that each and every group requires.

Theprice differentiation must be considered so that the customer can beloyal to the company. Market research must be conducted so that thecustomer level of earning is considered before the product isreleased in the market. Low income earners and high income earnerswill tend to buy different products based on their level of income. Apowerful network will need a lot of fund and thus low income earnerscustomers will not afford it.

Technology-RelatedTools (CRM) That Could Support Customer Service and Loyalty Programs

Oneof the technology related tool (CRM) that can support customerservice and loyalty programs insight driven marketing. Verizon beinga company that deals with technology has to make sure thatadvertising of the product to the customers is attained. Advertisingmakes it possible for the services to be recognized worldwide. Thecost of advertising is high though at long term it will increase theprofit of the company. The use of the websites, newsletter and onlineadvertisement plays a critical role in creating customer awareness.

Thesecond technology related tool that support customer service andloyalty is data management and analytic. The tool helps to get thecustomer preferences. It implies that for customer need to besatisfied then a research must be conducted to ascertain that thecustomer preferences are attained. The last tool that can be used tosupport customer service and loyalty is workforce effectiveness(Boulay and Pohlman, 2003). The tool isimportant based on the fact that it encourages the employees to workhard and embrace ways that will change the customer perception aboutthe company. The company has to provide the required tools andtraining so that the employees can offer the best services to thecustomers.

Thebest technology related tool that support program that is beneficialto Verizon is workforce effectiveness. By training the employees andproviding the relevant tool that the employees need to satisfy thecustomer need means the goals of the company will be attained.Additionally, the customer will be confident that the companyprovides services that are of high quality. Insight driven marketingeven if it plays an integral part if the services offered does notmeet the customer requirement the customer cannot be loyal and thusthey have to shift to the competitors. Data management and analyticif not implemented will not make any sense but if implemented then itcan yield a lot of profit to the company and meet the consumerpreferences.

Metricsthat will measure success

Oneof metric that can be used to measure success of the customer andloyalty program is customer retention rate. The metric applies thenotion of how the customers can be retained for a longer period. Ifthe loyalty program meets the customer expectation the number of thecustomers should still increase significantly. If the company has anincrease of 5% customer retention then the profit of the companyshould range from 25 to 100% profit. The goal of the metric is tomake sure that the customers are retained and will not leave or shiftto other competitive companies (Hawkins and Best, 2004).The program will need high cost training so that the employees willbe able to entice the customers. The cost of the training will needapproximately $1500 since the company has many employees and thusthree week training is needed. The break-even point will becalculated as the cost that was accumulated when the training wastaking place in relationship to the profit that has been attained.

Thesecond metric that can be used to measure the success of the customerloyalty program is net promoter score. The metric plays a significantrole in ensuring that the loyal customers will have to recommend newcustomers where they feel their service satisfies them. When theloyal customer recommends other customers to be part and parcel ofthe company means that their expectation is achieved by provision ofquality product. Verizon has to apply the net promoter score since itdeals with many brands and again ascertain that the customers who arerecommended by others will be served well. Lastly metric that can beapplied is the negative churn. Churn simply means that some customerwill have to shift to other competitors and the rate in which theyleave is termed as churn. Negative churn means the customer will notleave and thus remain royal based on the services and the programsused to entice them.


Bijmolt, T., &amp Dorotic, M. (2011). Loyalty programsgeneralizations on their adoption, effectiveness and design.Boston: Now.

Boulay, D., &amp Pohlman, K. (2003). The entrepreneur`s legalguide: Strategies for starting, managing, and making your businessprofitable. Naperville, Ill.: Sphinx Pub.

Cadogan, J. (2009). Marketing strategy. London: SAGE.

Hawkins, D., &amp Best, R. (2004). Consumer behavior: Buildingmarketing strategy. Boston: McGraw-Hill Irwin.

Pearson, B. (2012). The loyalty leap: Turning customer informationinto customer intimacy. New York: Portfolio/Penguin.