Question

Hi there,

Can you explain about Customer portfolio management (cpm) process with the article' reference as well  please?

Thanks so much

Answer 1

Customer portfolio management

Strategies of a business organization depend on the entire portfolio of target consumers. Customer portfolio management is an effective way which enables managers of businessorganizations to record consumer’s value and contributions to promote the portfolio of an organization. Moreover, it enables a strong consumer relationship management. Key processes of customer portfolio management are as follows:

• It maintains a proper record of consumers personal details, demands, and preferences
• Helps managers of an organization to analyses values and contributions of target consumers
• It helps to retain an effective relationship with target consumers

The portfolio is maintained for selected customers having the probability of repeat purchase and dealings. It helps business organizations to assure profitabilityand create future strategies. Portfolio of consumers can be different from separate organizations. Forexample- a regular consumer of Walmart can be an irregular consumer of Woolworths. Moreover, some buyers are consistent and some buyers are inconsistent. Portfolio of consumers is developed based on the revenue they generate for business organizations. Organizations prefer to retain regular consumers who have good contribution over organizational profitability. Thus, consumer portfolio management is an effective way of profiling consumers according to their buying capability, visit and product preferences (Thakur & Workman, 2016)

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Reference

Thakur, R., & Workman, L. (2016). Customer portfolio management (CPM) for improved customer relationship management (CRM): Are your customers platinum, gold, silver, or bronze?. Journal of Business Research, 69(10), 4095-4102.