Fraser office supplies

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Fraser Office Supplies (FOS) is an example of companies that have been long using conventional methods to mange their businesses and mange their clients. The case of FOS exemplifies a situation where a business entity cannot keep up with the current business practices, technology, emergence of new competition strategies, products etc. perhaps it is unfortunate that FOS management is unaware why their clients are leaving for other businesses at an annual rate of 30 percent. The key reason is that customers are becoming more dissatisfied with FOS products and services, that is, customer needs are ever changing with times. FOS should also appreciate the fact that high retention rates of clients have a positive impact to the business enterprise. Form an already known perspective; retention rates are driven by a desire to improve a business customer service and consequently improve the business bottom line. However, the implication of high retention rates on the financial status of the business has two facets; one is that a lot of financial commitment is called for to harness customer service oriented activities, thus budget allocation for customer’ retention activities area priority. The other implication is that high retention rates targets high valued customers who buy in large quantities. The objective of high retention rate is to improve the financial strength of the business entity. For a business to get new customers, the entity must first know the client’s needs before offering its products and services to them. After understanding the client’s perspective of the right product or service, good marketing skills and product delivery must be applied to win the customers trust and confidence. Perhaps the best approach that FOS should use, in analyzing and strategizing for a new marketing plan is to understand the reason why direct marketing had low response rate and clients. The means to get the attention of customers have changed over time, people are busy in twenty first century, they want to buy at their own time of choice, they are spoilt for choice and they want to have the best. Direct marketing at most uses catalogue marketing and face to face marketing strategy which has been overtaken by technology. Technology has offered an opportunity for clients to shop online at low cost and at their convenience. Anything less than this is non-appealing to clients. FOS realized the above was true when they established a website to market their products and services. Not only will the website be part of mass advertising strategy but people can shop and achieve their ideal product deliver service of their choice. Supplemented by a less than 24 hour delivery service after the clients have placed an order, a website would achieve higher sales than any other mode of advertising. Other than that, a website is an avenue where a range of service and products can be displayed to meet the diverse preferences in clients and hence achieving high retention rate than direct marketing. Customer relation is also highly achievable through a website due to its mechanism of an instant feedback from clients proposals, critics etc. FOS marketing manager Clare Prather would perhaps use $ 46, 700 of the previous annual revenue from the company’s top fifty clients. From this amount of money, she can use 5 % of the revenue in her marketing and customer retention oriented activities. FOS marketing strategy and objective is to grow the business wile at the same using marketing techniques that will increase the rate of client’s retention. In general, FOS marketing strategy was to use direct mail and online advertisement. However, this strategy becomes fruitless with time considering the expenses that were associated with learning the direct mails to existing clients. The other marketing strategy was using a website as a means of mass advertising and online ordering. The cost of operating and maintaining a website is cheaper compared to direct marketing. FOS major strength can be the strategic focusing on the existing customers. FOS use of good customer relationship management is the key to retaining clients and ensuring that heir sales volumes do not decline. However, the weakness element that comes with such a strategy is that, FOS is failing to target new clients and markets by concentrating on their existing clients. This will inhibit the growth and expansion of he company’s expansion in the long term.

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