Assignment Sample on Customer Acquisition and Retention
Introduction
Customer relationship management is considered as an influential part of organisation that helps organizations to receive better business techniques, which can be managed by suitable strategies and systems. Preliminary aim of this study is to comprehend the role of customer relationship management (CRM) followed by its impact on organisational growth in future business fields. Tesla has been operating in the business field successfully, which seeks for changes in terms of expanding further in overseas markets and gaining the ability to retain in market competition. This study evaluates marketing approaches for change in customer acquisition and retention level to be boost and guide for better performances.
Business overview of Tesla
Tesla has been operating in the international automotive sector since 2003, which is successful in attending active responses of audiences and thereby expanded in 35 numbers of different locations. Tesla has established headquarters in California, US and serves international audiences across North America, Europe, Australia, Eastern parts of Asia and New Zealand (TESLA, 2021). Additionally, Tesla has come up with latest automobile models that help in gaining attention of targeted audiences along with solar panels and solar roofs for a perfect balance of environmental sustainability factors. According to 2020 statistical reports, it has been found that 509,737 automobiles followed by 3022 MHz batteries and 205 MW solar panels (TESLA, 2021). It provides services on vehicle maintenance, charging solar batteries, insurance of automobiles, software up gradation and follow up to satisfy customer requirements.
Implementation of CRM systems for Tesla
Customer relationship management (CRM) systems associate with a combination of practices that also focuses on involvement of technologies and strategies for managing performance quality of organisations. In other words, regulation of CRM systems helps in analysing responses of potential customers and increases active participation so that customer requirements get addressed within time. Azevedo and Barros (2017) claimed that organization’s ability to understand customer requirements help in managing good relations that support the retaining ability and profits businesses. Similarly, in the case of Tesla, it has been noted that it serves audiences from different nations, which results in maintaining good relations with customers. In terms of further market exploration, it can be advised to Tesla for strengthening CRM systems, which would help in maintaining customer relations and impact growth of automobile sector positively.
Managing customers becomes easier by evaluating customer relationship management systems accurately, as a result of which a company’s reputation in markets takes place positively. Soroka et al. (2017) asserted that application of CRM systems guides organisations for acknowledging customer insights and accordingly comes up with products and services. Tesla taking support of CRM systems would be able to explore further in competitive niche markets as it helps in managing sales rate. However, as per 2020 financial reports of Tesla, it has been found that US$ 31.536 billion has been Tesla’s revenue income. This can be further increased by applying CRM systems in an improved way that would support in managing better relations with potential buyers. Besides, implementing advanced forms of CRM systems in Tesla would help in providing programs to increase efficiency of sales of services and products.
Development of customer relations initiates activities for managing customer engagement of audiences in organisations. In addition to this, organizations achieve competitive advantages as customer relationships management helps in increasing the possibility for salesperson to excel. According to Jaber and Simkin (2017) application of CRM behaviour theory helps organizations to boost sales of products and services for managing functional properties so that businesses can successfully expand further in business fields. Similarly, in terms of further development of CRM system, Tesla can opt for taking support of CRM behaviour theory. From this, it has been understood that development of CRM system in Tesla would be suitable as application of this type of theory would strengthen customer relations. By applying CRM behaviour theory, Tesla would be receiving better opportunities in terms of maintaining ability to retain customers.
Ability to enhance relations with customers helps management in organisation to make effective decisions for further improvement of business in marketplaces. Mahdiraji et al. (2020) mentioned that inputting decision making approaches help in elevating organisational performances by focusing on demands of customers. In this regard, it has been understood that Tesla would be able to enhance customer relationships management, due to which it would become possible to improve commercial activities across different regions. Considering CRM behaviour theory would assist Tesla for managing functions in terms of gaining attention from potential audiences.
Marketing approaches to customer acquisition and retention
Marketing approaches are required to be incorporated by organisations of meeting market demands and help in expanding further in business fields. According to Eslava-Bautista et al. (2021) application of marketing approaches such as ability to attract audiences help in managing customer acquisition and provides advantageous results to businesses. In this context, it has been understood that Tesla’s increasing quality of commercial activities would assist in customer acquisition. In terms of managing marketing approaches for achieving customer acquisition would guide Tesla for increasing engagement of customers. Apart from this, it has been understood that Tesla making changes in activities based on advanced automobile models, solar panels and roofs would help in being successful in new markets. In a nutshell, it has been understood that implementing changes in business functions of Tesla would guide in managing business functions in international regions followed by maintaining customer acquisition.
Customer acquisition refers to development of possibility for customer relationships management from which organization receives profitable results and opportunities to expand further in markets regions. Vanchan et al. (2018) explained that development of operational activities supports organisations for managing customer acquisition in an efficient way. From this, it has aided in analysing that development of customer acquisitions would be effectively guiding Tesla for managing CRM systems followed by marketing approaches. However, it is important for Tesla to enhance promotional activities so that new targeted customers get attracted and help in managing revenue structure. In this manner, Tesla would be able to achieve a successful outcome followed by ability to satisfy customers’ demands, due to which it becomes convenient to establish brand image in new markets.
Ability to retain customers majorly depends on involving quality of product and services those results in establishment of customer loyalty. According to Idrees and Xinping (2017) managing relations with customers assist organisations to represent good brand reputation in markets from which it becomes helpful to expand business further. In this manner, it can be recommended to Tesla for applying techniques that would support managing engagement of customers followed by ability to retain. In other words, it can be associated with Tesla for growth of customer retention ability, which can be attained by boosting brand management emotionally. Putting emotional intelligence to Tesla would enable it to move forward in the competitive business market as a result of which it would be able to explore new business fields. Managing brand positioning of Tesla would guide it to sustain in niche market competition for a long duration and accordingly help in managing operations for future growth.
Improvement of customer relations helps in managing accessibility to retain in markets along with gaining the ability to step in new markets. Bell and Mgbemena (2018) stated that ability to understand customer behaviour guides organisation to prevent from customer fluctuating nature situations. Change of customer buying perspective is a common issue that is being faced by organisations that eventually affect market positioning negatively if not actions taken within time. For enhancement on a part of Tesla, it can be recommended that regulation of commitment trust theory would support Tesla to analyse customer buying perspectives. Applying this type of theory, Tesla would be able to manage customer retention, so that revenue income increases followed by a number of satisfied potential customers. This would indirectly boost marketing approaches of Tesla to compete with rival automobile sectors in global markets.
Financial information for cost of customer acquisition (COCA)
Customer acquisition represents the ability of companies to gain attention from a large section of audiences in competitive business fields. In this regard, it is significant for measuring cost of customer acquisition (COCA), which intends to provide subjective changes in organisations to explore further in market regions. Similarly, in the case of Tesla, evaluation of COCA would enable management to strategies working conditions suitably and help in dealing with conditions based on customer acquisitions. However, it has been noted that involvement of functions, working strategies enable organizations to determine customer acquisition. In this manner, Tesla would be able to receive better results based on managing customer acquisition and help in managing CRM systems for convenience growth of businesses. It also associates with managing effective changes on a part of calculation of cost of customer acquisition, from which it would enhance future market demands.
Calculating customer acquisition techniques leads to increased customer retention ability, which is directly associated with providing profitability to companies. According to Chaowanapong et al. (2017) implementing cost of customer acquisition increases the possibility of profitable outcomes for organisations and helps in sustaining in markets for a long duration. Thus, it can be advised to Tesla for achieving competitive advantages on a part of customer acquisition, implementing COCA would guide for gaining better outcomes in terms of managing customers in different marketplaces. In this respect, it has been understood that organisations evaluating COCA techniques enable them to provide better market position as a result of which satisfaction followed by gaining loyalty of consumers can be managed as per accordance.
Tesla taking support of cost of customer acquisition would be receiving results on a number of attracted audiences and accordingly would enable it to implement strategies to maintain engagement of customers. Richnák et al. (2020) explained that involvement of cost of customer acquisition defines better techniques for meeting demands of buyers, due to which companies achieve competitiveness to sustain in niche market competition. Additionally, application of cost of customer acquisition, Tesla would be receiving better results as the business model also develops as per requirement. COCA associates with making suitable changes for optimisation of productivity and help in improving marketing channels so that organizations are able to expand further. In a nutshell, it has been analysed that Tesco would be receiving advantageous results based on application of COCA that would help in improving retaining customers.
Market investment on ROI
Return on investment is considered as investment of an adequate amount of money that helps organisations in achieving profitable results to retain in business fields. Other than this, making effective valuation of money assists organizations to explore further and retain for a long duration. Lin et al. (2019) noted that the possibility for market expansion in organisations can be preceded by the help of adequate financial investment. From this, it has been understood that development of financial infrastructure in organizations can be suitable for expanding further in competitive business regions. In this respect, it can be advised to Tesla for applying market investments based on ROI, which would help in boosting supply chain management and provide suggestive results for meeting customer demands. This would be significant in managing effectiveness of sales income value followed due to proper collaboration of supply chain management and return on investment.
Managing economic conditions in organisations support for developing working qualities so that organisations are able to explore further in market regions Bailey et al. (2019) explained that managing money investment in organisations by analysing foreign direct investments, from which better marketing plans take place. Thereby, it can be recommended to Tesla that application of techniques regarding return on investment would assist in making better market approaches. In this respect, Tesla would be able to expand further in competitive markets followed by regulation of return on investment. From this, it has been understood that Tesla implementing market approaches based on return on investment would guide in increasing efficiency of financial planning. In this manner, automobile business of Tesla would become suitable to maintaining quality production, which would help in enhancing customer service. Application of calculation based on return of investment would support Tesla to perform better in terms of intense niche market competition
Recommendations for future growth of Tesla
Application of commitment trust theory
Commitment trust theory emphasises on gaining attention of customers and as per requirement able to meet customer expectations. In terms of future growth in organisations of automobile businesses of Tesla, it can be recommended that evaluation of commitment trust theory would help in managing loyalty of potential buyers. By applying such a type of theory, Tesla would be able to sustain in markets for a long duration and achieve competitive aspects.
Regulation of CRM behaviour theory
CRM behaviour theory initiates changes based on development of customer relationships management. In terms of exploring further in business regions, Tesla is required to make good relations with customers to operate automobile business in the long run. However, this can be supportive managed by applying CRM Behaviour theory, due to which the possibility to satisfy potential audiences can be achieved. In this regard, it can be advised for Tesla about implementing CRM behaviour theory, which initiates with making effective changes and helps in maintaining good customer relations.
Increasing effectiveness on financial infrastructure by COCA and ROI
Making initiatives on a part of economic infrastructure helps organizations to process further in business fields. According to Donnelly et al. (2017) managing economic infrastructure in organisations provides stability to sustain market position in business fields. In this respect, advice can be recommended to Tesla for application of COCA along with ROI so that it can develop as per accordance. By regulating the cost of customer acquisition and return on investment helps in managing a range of international audiences to be attracted towards automobile models.
Conclusion
From this brief discussion on customer relationships management for making effective changes in organizational performances, it has been understood that it creates opportunities for future growth. However, it has been found that Tesla has been operating the automobile business in international markets since 2003 but seeks for future growth and that can be managed by keeping good relations with customers followed by suitable marketing approaches. Other than this, it has been analysed that incorporating cost of customer acquisition would be supportive in balancing newly attracted audiences from markets. This would guide Tesla to satisfy needs of customers as per requirement, due to which result would be obtained based on market sustainability. Thus, it can be validated that involvement of customer acquisition and retention help in improving business conditions, which can be attained by applying commitment trust theory and CRM behaviour theory.
References
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