Paper Written on the Importance of the High Value Customer for a college course.

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Importance of the High Value Customer
Brian Rakowski
Wilmington University

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ABSTRACT
In today’s world, it is of the upmost importance to understand the needs of their customers. This
paper will answer two assigned questions concerning this matter as it relates to industrial
concerns. The information based upon these responses has been based upon lectures from the
CEO of Onxy as well as the Seattle Mariners during their cutting edge implementation of their
systems in 2003.

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Return on investment is an estimation typically based upon a financial return over a
certain number of years. This paper will discuss not only the immediate advantages a company
will gain through upgrading their systems to a customer oriented database but also the benefits of
man hours spent repeating tasks. The first part of this process I will discuss is the benefits of
identifying high value customers.
In business, every customer should be treated as a high value customer. With that being
said, this course of action is not always practical as the rewards from all customers are not
always the same. The receiving of group purchases as opposed to individual purchases tend to
deliver much larger returns. It is crucial to recognize the individual as important, but companies
need to ensure that certain individuals carry a larger standing than the average customer.
This is most important in the area of personal interest as opposed to financial interest of
certain individuals. Many companies have strict policies concerning their customers which
pertain to everyone regardless of who they are. This is a mistake which can easily be avoided by
having as much information on a company’s customers as possible. A decision based upon an
individual high executive’s personal interests may weigh heavily on the company they represents
decision to continue business with a company. This cross information could be the determining
factor when it is time to renew contracts.
The determining factor on point of return should be the overall benefits granted to the
entire company compare to returns. While many suggest that a 20% increase is the basis to
install new technology, I disagree with a firm number. The overall advantages should be gauged
against the financial cost as technology is able to lower expenses as well as establish new
connections for the future. Although these are my opinions, it goes against the current business
world’s trend of changing CEO’s unless they maintain a certain growth in stock revenues every

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year. This places many decision makers in a situation where although an implementation may be
good for their company in the long term, they are scared of being replaced if it does not show
immediate returns. The thoughts that a company will build its customer base through long term
customer loyalty has become a thing of the past.
Understanding how high value customer recognition is important can easily be
understood through an example of my own life which has happened recently. I have been going
to the same doctor for about a year now, with my wife and children also going there. This
represents six patients with a variety of needs. During my last visit, the office was backed up to
the point where I waited a half hour past my scheduled appointment time with no explanation or
other communication. At this point I then asked the receptionist how much longer the wait
would be. I was told that it would at least be another forty-five minutes before I would be seen.
To me this was totally unacceptable and I not only immediately cancelled my current
appointment but also those of my entire families. While it does not sound like much, we average
about 25 visits every year. This all could have been avoided by the staff simply understanding
the situation and explaining the situation when I came in and offering me the opportunity to
reschedule or to decide to wait. The way it was handled, ensured that my family will not visit
this doctor again, but any of my extended family or friends will also not go there. In the
immediate future, that practice lost 25 visits a year, but just between the members of my
immediate family, they lost 125 appointments over the next five years.

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