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Archive for the ‘money management’ Category

A powerful loan survival technique

25 Apr

To make partnerships work, there must be a shift in orientation from past to future. A past orientation, just like past experience, is helpful to the partnership only to the extent that it can inform us about accomplishing new tasks. When learning something new, you don’t want to throw out the baby with the bathwater. History teaches valuable lessons, and it’s important to remember them. Too often, however, people cling desperately to their experience and fail to move beyond even the Form Stage of Relationship Development. They refuse to give up the old—and yet, they cannot embrace the new. This is because of a very powerful human survival technique known as knowledge transference, or what I call mental maps. Here’s how mental maps work. Whenever we engage in a new relationship, the first thing we do is scan our personal data bank—our memory—for what we already know about the other person or group. From our memory we seek out past experiences we’ve had with them or people like them. A mental scan then produces a map that helps us decide how we want to approach this new experience.

Thus we base our decision on the recollected memory of what has happened to us in the past. This knowledge transference occurs whenever we transfer an opinion about one type of person or group to another.

 

Measuring the profitability of credit

20 Oct

This will help to determine the structure, resources, direction and development of the sales effort, enabling the business to develop its activities.

To achieve this, customer analysis should highlight profit per customer, identifying the best and least profitable customers. It is also important to understand the characteristics of the most profitable customers, both tocontinue to meet their needs and to support tailored marketing campaigns that will attract the right customers.

Customer profitability can be measured by analysing two things: customer revenue and customer costs, including defection and retention costs. Some of the most important are listed in Table 12.1. Identifying the most and least profitable customers enables current and future initiatives to be targeted at the most profitable customers. It may also allow the business to find ways of reducing the costs of doing business with the least profitable customers.

 

Credit that grants satisfaction

18 Oct

The effect of these measures was monitored through customer-satisfaction surveys placed in each truck. As well as checking that customers were satisfied, the surveys also served to highlight Ryder’s renewed commitment to service, enhancing future sales prospects. Other measures helped to establish credibility with customers and improved the image that the business projected. For example, testimonials were featured in marketing literature, and each outlet was inspected monthly rather than quarterly to ensure that literature, banners and signage were appealing. This approach turned Ryder’s business round during a recession, returning the company to the number one position in its industry.

 
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