BB concepts

Transactional (timely transfigure of products and services) Value-added (falls between transactional and collaborative) Collaborative (alternatives be less, complex leveragings and high prices) Transactional Timely exchange of g/s in a highly competitive market in terms of prices. Autonomous, no/little concerns towards the take of customers or sellers. The relationship ends once the purchase Is d angiotensin converting enzyme Types of products- packaging, cleaning products or good products where bidding is involved CollaborativeOccurs when a few(prenominal) alternatives are present and involves complex purchases. Prices excessively are high. Switching costs are very high and extremely definitive to collaborative customers. This is because the organizational customers invest in their relationships in the fol impoverisheding areas M unmatchabley throng Training costs Equipment Procedures & Processes The of necessity of both the customer as well as the seller is taken care of. assert and commitment are the key factors In such a relationship and they exists when one party has complete confidence In the other partners Integrity and ability.Egg IBM/GE/ Intel/ DuPont- Sucrose, and so forth In case of high tech IT products, collaborative relationship deal be very beneficial. It focuses on joint paradox solving and resource sharing. Value drivers in Collaborative exchange Value population through core offerings- direct cost, lurch performance Value unveiling inside sourcing process- acquisition cost Value creation at the customer level of operations- ops In order to achieve the key supplier status In collaborative exchange, one must- Target the ripe(p) customerMatch with their purchase requirements lift strategies to build trust and commitment in order to reduce the perceived run a risk in the minds of the buyers. Value-added In-between transactional and collaborative. They are those businesses which by from Just attracting customers also try and forbear customers by Providing additional services develop customized services according to customer needs Provide incentives to the customers on a firm basis to declare them Egg Tate & Lyle and viands ingredients The buyer seller relationship depends in general onMarket conditions- Highly inconstant/ less alternatives go for collaborative, Low prices/ low complexity go for transactional o/w collaborative Improving transactional customer inscription Adopt differentiation strategy- this strategy suggests that the measure created to the customers which is measure by high margins and gross revenue should exceed the cost involved in creating and delivering the customized product/ services. Adopt activity base costing- BBC is a method that allocates the cost of do various service to each customer.This go forth enable the firms to accurately identify who are the most profitable customers. The whale bender which is the result of BBC tells that 80% of sales revenue comes from 20 % of the customers. The firms should therefore either retain the most profitable customers, convert vain one to profitable or empty those who are not profitable. Managing unprofitable customers- avoid cost to serve Increasing profitability- manners time value All this can be done through adopting the right(a) CRM strategy The CRM strategy Acquire the right customers