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General Objectives of a Business
Profitability Productivity
Employee Retention Financing
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Where do Revenue and Customer
Service fit in?
Revenue
• In business, revenue or turnover is
income that a company receives
from its normal business
activities, usually from the sale of
goods and services. [1]
• Therefore, component of
profitability.
Customer Service
• Customer service is the service
provided to customers before,
during and after purchasing and
using goods and services. [2]
• For first time customers to
become regular customers,
customer service is important.
Therefore, it is a component of
profitability.
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Communicating with the Seller
• eBay expanded into China in 2002 without considering demands of local people.
• Customers wanted to be able to see a seller’s online status and communicate with them easily, which was not provided in eBay's China website.
• Chinese customers prefer to develop trust through their own interactions with sellers rather than acting on other users’ ratings. [3]
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Example 1
Amazon.com has been consistently ranked at #1 since 2010 in National Retail
Federation Customers’ Choice Awards in the USA. [4]
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Amazon’s profits
2011 10,789,000,000 $
2012 15,122,000,000 $
2013 20,271,000,000 $
[6]
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Customizing Websites
• Till 2008, Marriott’s local
language websites did not offer
the same functionality as their
English website.
• Marriott recognized that being
able to attract new customers and
interact with them in their local
language via the website would be
critical to drive international
growth.
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Results
• In 2008, Marriott launched fully functional Spanish, German, French and Chinese websites.
• In the very first year, revenue for these sites experienced double-digit growth for the Spanish, German, and French languages.
• Revenues for the Chinese language website increased by triple digits. [7]
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Conclusion
Focussing on customer service automatically increases profits.
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References
1.Definition of revenue from Wikipedia.
https://en.wikipedia.org/wiki/Revenue
2. Article titled “Using customer service to position a business” http://businesscasestudies.co.uk/first-direct/using-customer-service-to-position-a-business/what-is-customer-service.html#axzz39fWqHtas
3. Article titled “10 Successful American Businesses That Have Failed Overseas”
http://www.internationalbusinessguide.org/10-successful-american-businesses-that-have-failed-overseas/
4. www.nrf.com
5. Article titled “Lessons in Customer Service From the World's Most Beloved Companies”
http://www.entrepreneur.com/article/234116
6. Amazon.com results on Yahoo Finance.
http://finance.yahoo.com/q/is?s=amzn+Income+Statement&annual
7. Article titled “Marriott International: Web Content Optimization”
http://www.accenture.com/us-en/Pages/success-marriott-international-web-services-platform.aspx
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