Investment’s Customer Intimacy Model to Wal-Mart’s
Intersect Investment is facing two major issues in a bid to gain market advantage to alleviate the current situation where in the company is barely surviving in the volatile economic market. 1. The need to completely implement a customer intimacy model that will build long-term relationships based on trust and value to the customer in order to develop a new brand image that will gain Wall Street’s trust.
There is an increasing employee turnover in the sales department partly as a consequence to the customer intimacy model transformation Faced with these issues, Intersect CEO Frank Jeffers, has given all out directives towards this new vision of Customer Intimacy Model. This has led to the replacement of Executive Vice President of Marketing and Sales.
Jane Angelo, the new Executive Vice President of Marketing and Sales, who has a little contrasting view to Jeffers method of completely replacing those who are against or not supportive of this revolutionary change in their marketing model, has responded to these issues by keeping the balance of employee retention and successful implementation of the road towards customer intimacy model. Customer intimacy is based on the idea that there is an increase in the likelihood of customers purchasing additional products if a company delivers great customer service.
This is something like customer loyalty. Customer Intimacy unlocks this potential, resulting in a positive bottom line impact on the business (Rudin, 1999). STATEMENT OF THE PROBLEM The purpose of this document is to discuss the issues that are also faced by Wal-Mart and Gateway that is related to Intersect Investment’s in the transformation towards customer intimacy model. This document also aims to explain how the company responded to the issue and the outcome of these responses.
COMPARISON OF ISSUES: WALMART AND INTERSECT INVESTMENT
Wal-Mart Background Wal-Mart was launched by Sam Walton in 1942. It was before a common practice that a retailer who managed to get a bargain from a wholesaler would leave his store prices unchanged and pocket the extra money. Walton, by contrast, realized he could do better by passing on the savings to his customers and earning his profits through volume (Frank, 2006). When Walton died in 1992, the core value of profit through volume has been preserved but the leadership had changed most of the pro-employee benefits set by Walton.