Customer relationship groups butterflies and bikinis

Customer relationship group explained - Marketing Myopia

customer relationship groups butterflies and bikinis

Customer relationship groups. There are 4-customer relationship group: 1) Butterflies: are profitable but not loyal example is stock market. Marketing - The 4 customer relationship groups 1. Butterflies 2. True friends 3. Strangers 4. Barnacles Marketing courses (Business. Discover Yamamay's online Butterfly promotion. Shop for clearance and outlet clothing in a range of styles!.

A 2 Z Everything: Customer relationship groups

In order to do so, the Customer Relationship Groups model can be used. It classifies customers based on their potential profitability for the company and leads to a way to manage the relationships with the different categories of customers accordingly.

This is due to the fact that each group of customers requires a different relationship management strategy. The four categories of customers are: Butterflies, True Friends, Strangers, and Barnacles. The names of these groups already indicate the specific relationship management strategy required, based on the projected profitability of that group for the business.

These four groups are sorted on the grid, which has two axes: Strangers offer only low potential profitability, and also little projected loyalty. So, the relationship management strategy for strangers is rather simple: Better than strangers are Butterflies for the company. These are at least potentially profitable, although not loyal.

customer relationship groups butterflies and bikinis

What does it mean? But the term butterflies also reveals the negative side of them: Therefore, it is very hard to build a long-term relationship with butterflies. This is due to the fact that each group of customers requires a different relationship management strategy. The four categories of customers according to the Customer Relationship Groups Model are: Butterflies, True Friends, Strangers, and Barnacles.

The names of these groups already indicate the specific relationship management strategy required, based on the projected profitability of that group for the business.

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These four groups are sorted on the Customer Relationship Groups grid, which has two axes: So, the relationship management strategy for strangers is rather simple: Better than strangers are Butterflies for the company. These are at least potentially profitable, although not loyal.

customer relationship groups butterflies and bikinis

What does it mean? But the term butterflies also reveals the negative side of them: Therefore, it is very hard to build a long-term relationship with butterflies.

Attempts to do so are rarely successful. So, the relationship management strategy is accordingly: In this time, profitable and satisfying transactions should be created, to capture as much value from them as possible in the short time.

customer relationship groups butterflies and bikinis

This argument is based on three claims, i It costs less to serve loyal customers ii Loyal customers pay higher prices for the same bundle of goods. Rather it should decide on which customers to acquire and retain. This gave birth to the concept of customer relationship groups.

Butterfly Promotion

As you can see from the above picture, X-axis gives the potential profitability ranging from low to high and the Y-axis gives the projected loyalty of the customer ranging from short term to long term. Butterflies — High profitability, Short term loyalty They bring in lot of revenue for your company albeit for a very short time.

It is very difficult to establish relationship with butterflies.

customer relationship groups butterflies and bikinis

Any such attempts are rarely successful. Similar to real life butterflies instead of chasing behind them, company should enjoy the value in that short time. In this time, profitable and satisfying transactions should be created, to capture as much value from them as possible in the short time.