A Project Examining Strategies to Maximize Profitability Through Customer Loyalty

Author

Sidney B. Morice, Fontbonne College

Year of Award

1998

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

retention, business, strategies, marketing, relationship

Abstract

Customer retention is a significant problem throughout the business environment and is examined in relation to the medical device industry, specifically Medtronic Neurologic, Inc. Millions of dollars are spent annually to develop and maintain loyal customers. Corporate Financial Officers in the retail and direct sales industry must be committed to maximizing the time and money spent by their field representatives, while at the same time minimizing those efforts for customers that are non-value adding. Profit margins are critical in an industry that is barraged with regulations, safety requirements and strict reimbursement guidelines. The perspective of the supplier and consumer at Medtronic Neurologic Inc. are explored to determine whether the professional, reliable and consistent delivery of goods and services is categorically the key to building customer loyalty. A Field Staff Survey was conducted to gain an understanding of actual retention activites or lack thereof that are currently utilized. There is evidence that there can be a dramatic economic benefit on both sides of the equation from building customer loyalty. Across the board, managers must recognize the value of retaining customers by providing services that not only offer the highest level of value and satisfaction but also create lasting relationships. Finally, the author draws conclusions about the dramatic change in the industry and recommends three innovative strategies to improve loyalty for Medtronic Neurologic to maximize profitability and reduce current levels of customer attrition.

Document Type

Restricted Thesis

Recommended Citation

Morice, Sidney B., "A Project Examining Strategies to Maximize Profitability Through Customer Loyalty" (1998). All Theses, Dissertations, and Capstone Projects. 208.
https://griffinshare.fontbonne.edu/all-etds/208