Using the data provided, evaluate the four offensive strategies for improving margins for sales in existing markets.
12.2-A Improve Customer Loyalty and Retention
- Increase retention from 50% to 75% with increase in retention cost per customer form $150 to $200.
12.2-B Improve Differentiation Advantage
- Increase revenue per customer by $500 for retained & new customers and increase acquisition and retention cost per customer by $50.
12.2-C Lower Cost/Improve Marketing Productivity
- Lower customer retention cost from $150 to $100 and lower marketing administration to 2.5%.
12.2-D Build Marketing Advantage
- Increase share from 10% to 12% (due to channel advantage) while increasing acquisition cost per customer from $800 to $850.