customer grid theory

John M. Cunningham, in his book, The Process of Selling and Servicing Clients, first discussed the concept now known as the Customer Grid Theory.

Cunningham argues that there are three main factors that influence customer satisfaction; perceived quality, price and service. These three factors are represented on a Cartesian coordinate system he refers to as the Customer Grid. The x-axis represents perceived quality, while the y-axix represents price. Quality varies from very low to very high, while price varies between low and high. Service is represented as an area in the grid over which all three variables intersect.

The concept of the Customer Grid Theory is to connect the dots, or coordinate points, of perceived quality, price, and service from the customers perspective to create a three-dimensional model. As a result, it is possible to better understand the customers perception of a product or service.

For example, lets assume a customer wishes to purchase a car. The Customer Grid Theory helps to identify various purchase points; for instance, if the customer is price sensitive, he or she will likely look for low-priced models with acceptable quality and good customer service. If, however, the customer is looking for a car with the highest possible quality and service, he or she is likely willing to pay extra on the price.

The customers perception of a product or service is important to consider. The Customer Grid helps to identify the customers preference and provide a framework to better serve them. It is also a useful tool to determine how competitors are faring in the market. By understanding the customers preference, a seller can develop a product or service that meets the customers needs.

The Customer Grid Theory has been applied in various organizations such as hotels, retailers, and banks. Companies that use this approach to customer satisfaction strive to provide customers with quality products, competitive prices, and excellent service. They also look for opportunities to improve their quality and service offerings, as well as to introduce new products or services.

In conclusion, the Customer Grid Theory is a useful tool for sellers and customers to better understand customer needs and preferences. It can help companies to identify areas for improvement and offer superior customer service. If used correctly, it can help to increase sales and customer loyalty.

Customer segmentation theory suggests that customers can be separated into distinct groups based on their needs, behaviors and other characteristics. This theory recognizes that not all consumers have the same needs, preferences, or wants and it is often more effective to target specific types of consumers more than entire spectrums of potential customers. This is done by breaking potential consumers into clusters of i

or segments which share similar characteristics.

These clusters may include demographic characteristics such as age, gender, and location, psychographic characteristics such as beliefs, lifestyles, and values, or behavior such as product usage or purchase history. Segmentation theories are important because they enable marketers to identify and target the most likely customers. As a result, they can focus their marketing efforts to reach the right customers and make sure they spend their marketing dollars wisely.

Once customers are segmented, marketers can use marketing techniques to tailor their offerings to each segment, making sure that their messaging is relevant. For instance, a company may find that their male customers prefer a more risky type of product than their female customers and target their advertising to those gender segments accordingly. This targeting helps make sure that the messages are more directly relevant to the recipients and have a better chance of resonance.

Furthermore, companies can use segmentation theory to adjust their pricing and promotions in order to better reach each segment. Different segments will be interested in different promotions or price points, so it’s vital to be able to tailor these offerings in order to make sure the right customers are being reached.

Overall, customer segmentation theory provides a great way for companies to identify target consumers and tailor their advertising and product offerings appropriately. By utilizing these segmentation strategies, companies are able to save their resources and make sure they are appealing to their most likely customers.